Did you know that nearly 3 out of every 10 people provide care for chronically ill, disabled or aged members of their family? šØ Itās true, and more than 1 out of 10 of these family caregivers provide 40 or more hours of care per week!
Whether youāre directly providing this care or financing the care for your family - this can really affect your finances FAST. But your retirement and legacy shouldnāt have to suffer for this important priority IF the family plans ahead.
Donāt wait until itās too late. Explore the options and get perspective for your family plan.
Thereās a good case for Adult Children to Insure their Parents, but this isnāt always possible. Even if parents donāt want to leave a legacy, the best solution includes a way to restore the financial burden resting upon family care-givers (or care-financiers).
Resources:
The Case for Insuring Parents and Loved Ones - Article on InsuranceNewsNet.com
Happy Independence Day! šŗšø It's a great time to consider how you exercise your Financial FREEDOM.
Financial planning used to be simple. Today there are infinite possibilities - some good - some bad.
You want sustainable Passive Income in your Golden Years? Now is the best time to optimize your money - create stability and better options for the future.
This is not as hard as you might think. Traditional tools with solid guarantees are still the best way to build your foundation.
Also a follow up to last weekās showā¦ people say āyou wonāt need a Life Insurance Death Benefitā in the future - discover why this is probably not true. Of course a life insurance death benefit can be income tax free, but thatās not all. Listen and discover another role where a permanent death benefit can become a unique planning tool for your future and passive income.
Resources:
How Much Will You Need for Retirement - Podcast
Retirement Remastered - Smart Strategy for Passive Income in Your Golden Years - Article
Wealth Cruise October 2019 - Info Link
Coming soon - a video bringing unique perspective to how you want to manage your finances. Subscribe here for updates
A L Williams popularized the concept of āBuy Term and Invest the Differenceā in the 1970ās. When market returns are looking good this concept seems to make a come-back even though itās flawed with big assumptions.
They say you wonāt need a death benefit when term insurance gets expensive. They say your investments will do better than whole life insurance. Maybe, and maybe not.
You want guarantees? Then you want to build a strong financial foundation with guarantees before you invest. Investing isnāt bad, but donāt throw away guarantees for speculative possibilities.
Resources:
Buy Term and Invest the Difference? - Video Example with ROR
How to Build a Secure Financial Foundation - Video with Ben McFie and a Donut Stack
Catch this Special Interview with Alex. Alex contacted our office for some policy reviews after his agent told him ālet policy loans pay your premiums.ā This started in the 90ās. 20+ years later results are plaintive.
These were (and still are) good policies, but the funding strategy backfired. Policy loans can enable you to take great financial opportunities without giving up guaranteed growth + dividends on your money, and like any good strategy this can be taken too far.
Good rule of thumb for Policy Loans = Make sure youāre always making or saving more money than the interest when you take a policy loan.
Can you use a policy loan to pay a premium if youāre in a cash flow crunch? Of course, just donāt make this your long-term habit. DO make sure youāre always aware of the interest on any and all policy loans that you take.
Plan to review your strategy regularly - about 1x year is a good idea. Contact Life Benefits for a complimentary policy review.
Most public facing insurance companies today are organized as stock-held companies. š¢ Many mutual carriers have reorganized as mutual holding companies.
What does this mean for you? Example: You get a whole life policy from a mutual carrier. BUT then the contract says your policy was issued by a stock company! You still participate/receive dividends + have voting rights as a mutual policy holder, so what just happened?
No cause for alarm. If you chose a mutual holding company, this is normal. Hereās how a typical mutual holding structure works and what you should know as a policy holder with a company organized in this manner.
Topic #2: What is the 7-pay test?
One of you recently asked a question about the 7-pay test. Today you get the answer + hear why some people intentionally want policies that are Modified Endowment Contracts. And yes, this does make sense sometimes.
Resource:
Hereās the link to order Winning Your Financial GAME - Book and Study Guide
Some gurus say you can āmake moneyā by taking a vacation financed by a policy loan, but is this really true? š¤Ø
Taking a vacation is an obvious expense - there is a cost - at some point you have to make the money to pay for your vacation.
Hereās how to tell the Facts apart from Fluff. Yes, you can āRecover/Offsetā money on your next vacationā¦ and it also takes TIME.
Checkout How to Recover Thousands on Your Next Vacation - Article for further info with a numeric example.
When it comes to your Homeownerās insurance š ā¦
Your answers to these 3 questions could help you save on your premiums in the future.
Resources:
Get Your LexisNexis Personal Report
To Claim or Not To Claim - Article
More About Umbrella Insurance (including Average cost) - Article
Some advisors tell you to Buy Term Life Insurance and Invest the Difference, but there is a better way (no secret). š¤
Some advisors tell you to Buy Universal Life Insurance (UL, VUL, EIUL or IUL variants), but this is really a pre-packaged form of the same strategy š - Buy Term and Invest the Difference. Thereās still a better way!
We tell you to buy Whole Life Insurance with a strong PUA rider (Paid Up Additions) + maybe some convertible term insurance (separate policy)ā¦AND you will hear WHY this is the best way to go. When all the pieces come together it just makes sense! You want to keep your options on the the table as fully and as long as possible, and you remember Warren Buffetās first 2 rules: #1 Donāt Lose Money; #2 Donāt Forget Rule #1.
Also on this show a quick review of how long you should think of keeping the PUA rider on a Whole Life Insurance policy for the best results.
Resources:
Do You Have a Friend Selling Indexed Universal Life Insurance? - Podcast
Did you know, that successfully avoiding risk can be more important to your wealth than finding great returns? ā ļø But most people (including financial planners) think they can āmanage riskā when theyāre simply hiding the risk instead. Donāt let this bite you.š¦
Learn from a real-life story of Steve Wynnās Mirage Hotel & Casino + the fact that āIn the last fifty years, the ten most extreme days in the financial markets represent half the returns. Ten days in fifty years!ā
In 1911 the Supreme Court ruled Life Insurance was a Transferable Asset, and Justice Oliver Wendell Holmes wrote the court opinion saying life insurance is one of the āā¦best recognized forms of investment and self-compelled saving.ā
Discover how you can manage risk through whole life insurance in a way thatās impossible through the Stock Market alone.
Resources:
Supreme Court Ruling Grigsby v. Russell (1911) - On Life Insurance as Transferable Property
How to Read a Life Insurance Illustration - Video
You will hear all sorts of fluffy marketing terms when it comes to building wealth with life insurance. š§ Listen for tips on how to cut through to the real meaning and understand the keys to manage your money wisely.
A good litmus test that still holds true = āIf it sounds too good to be true, it probably is.ā Of course Truth does provide amazing results, AFTER the foundation has been laid. Good things take time to grow.
Itās not so much about the money you SAVE - its about the Money you KEEP and there is a big difference! Not all advice is applicable for all levels of financial strategy - This is one lesson that will always help you stay on track at every level of your financial journey.
Resources:
Are you having to pay more income tax for 2018 than you planned?šŗšø Jack Cohen CPA joins us for a quick interview to share what heās seeing as 2018 returns are processed.
You may not be getting as big a tax refund this year because of the way withholding is calculated under the new law...instead, you most likely keep more with every paycheck. The IRS will be releasing a new W-4 form later this year which could complicate withholding for employees.
Most Americans are indeed paying less federal income tax overall UNLESS you live in a high-income/property tax state like California, New York, New Jersey or Illinois.
Section 199A of the new law is great for business owners, but there are special situations CPAs are working through for the first time. Small changes can significantly affect your bottom line and calculations can be complex. Good idea to get a second opinion if your 2018 return doesnāt seem quite right.
Contact Jack Cohen for a Free Review of your tax return - no strings attached: 702-255-2330
Resources:
Similar to a 1031 exchange in Real Estate š, a 1035 exchange lets you avoid tax and transfer your ācost basisā when exchanging life insurance policies.
Do you have a policy that isnāt performing the way it ought to be? Is your insurance agent wanting you to exchange into a new life insurance policy? Should you do this?
Hereās an overview with Pros and Cons and what you want to know to decide whether a 1035 is the best idea for you.
Also some clarification around when it makes sense to take a policy loan - triggered by a recent conversation with Dr. Jim.
Thank you Dr. Jim!
Resources:
Atlanta Workshop - May 4th 2019
How to Read a Life Insurance Illustration - Video
š³ Come experience the Wealth Cruise Oct 19-26th 2019! Launching from Ft. Lauderdale, FL and touching ports in St Thomas, Grand Turk, Half Moon Cay, and San Juan you can expect delightful destinations with beautiful blue waters ANDā¦
Youāll get to hear proven practices for wise Money management, strong Family Relationships and good Health from the McFie Family, Krish Dhanam and Dr. John Bergman. This will be an experience much different than the Wealth Summits!
Cabin prices start at 1,698 (double occupancy). Only 350 deposit per cabin is required to reserve. May 1st is the soft deadline. This means prices can go up after May 1st and availability is not guaranteed. Reserve your cabin now and start looking forward to this one-of-a-kind experience.
Contact Anila Dhanam to reserve your cabin: 469-261-6067
Contact Life Benefits for general cruise questions: 702-660-7000
Resource Links:
Wikipedia reveals 91 different types of insurance š² - many of them you will never need. Life Insurance gets high attention on this show with good reason. There is a place for other types of insurance too.
Did you know there is insurance that will pay you an income if you become disabled (Disability / Disability Income Insurance)? Thereās also insurance to help cover expenses for Long-term care such as Assisted Living. Today John and Gracine McFie share what you should know about these 2 types of insurance.
Call for personalized quotes: 702-660-7000
Resources:
Special Interview with 2 Vice Presidents of Ameritas Life Insurance Company: Rob Sharp and Kelly Halverson
(Kelly is also an Actuary - one of the scientists who crunch the numbers behind life insurance)
Ameritas provides a great selection of whole life and term life insurance policies with strong guarantees.
Questions answered, big words made easy + an inside perspective on what it takes to make strong guarantees for policy owners at Ameritas.
Resources:
Ameritas 2018 Annual Report - Open
Ameritas Financial Highlights - Web Link
Direct of Non-Direct Recognition: What Difference Does it Make? - Blog
Come behind scenes and hear the reasoning around insurance company ratings, portfolio management, dividends and what it all really means for you in this special interview with Karl Kreunan - Vice President of Ohio National Financial Services.
Karl makes detailed life insurance topics easy. āLife insurance is a significantly underutilized financial assetā - use it in your life and enjoy the financial security it will provide for you and your family.
Astronaut Neil Armstrong knew the value of life insurance, but he couldnāt get any before his trip to the moon because of the high risk. Find out what he did instead.
Call us for a personal strategy session: 702-660-7000
Resources:
You will love this entertaining and useful example of a 5% average rate of return! šÆ And youāll never think the same way about AVERAGE returns again.
Explore how returns work in life insurance and what type of life insurance works best as a guaranteed foundation of protection and savings for your family. Information is everywhere today, but real
Knowledge and Understanding are the keys š youāll need to win big because at the end of the day itās not all about how much money you can MAKE, rather how much you KEEP.
Make sure you are playing the LONG GAME.
Resource:
When first hearing about The Perpetual Wealth Codeā¢ you might wonder if you need to do something else first. Do you need to SAVE first? Or PAY OFF DEBT first? Or should you INVEST first so you have more money to do the Perpetual Wealth Codeā¢?
Discover what you should do first and what comes next on the best road to financial freedom. It all makes sense when you get the full perspective.
Call us for a private strategy session to gain perspective on your finances and how the Perpetual Wealth Codeā¢ can work for you: 702-660-7000
ALSO IN THIS EPISODE: A recent caller with maxed out credit cards š³ wants to retire in 5 years by investing in Real Estate. š Is is it possible? Listen to this episode to hear the details
Recent questions reveal a natural perspective around using participating whole life insurance to build your wealth. Discover how policy loan interest works, what ābackdatingā means and what the ābreak-evenā point means for you and your wallet.
In the second half of the show, youāll learn the power of the Perpetual Wealth Codeā¢ and tips for managing money in your financial toolbox.
Resources:
Everyone knows life insurance companies make good money, and they donāt share profits with all policy owners. Neither do all policy owners get equal benefits from guarantees provided by life insurance companies.
Discover whatās going on behind the scenes with company structure, and policy design. Armed with this knowledge you can maximize your guarantees from certain life insurance companies and share in the profits of the insurance company as well.
A good Life Insurance policy can be a wonderful financial tool once you sort through the fluff to reveal the real solid products that are available.
Did you know there have been 29 market corrections of 10% or more over the last 50 years? That averages out to more than one every 2 years and this volatility can play havoc with your financial security UNLESS you build a strong foundation of GUARANTEES first.
Investment opportunities are nice, but donāt let them lure you away from building your all-important foundation. Build your foundation first and then the world becomes your oyster.
4 Steps to Wealth in order of priority = Protect, Save, Manage Debt, Invest (notice Investing comes last)
Call for your personal strategy session: 702-660-7000
Filmed on location in India š®š³, with a top-quality production spanning 5 continents - The Least of These (movie) š¬ was released in US theaters February 1st 2019. It is a story of compassion, desperation, truth, deception and forgiveness.
Hear first hand from Krish Dhanam as he takes you behind the scenes and reveals the journey of this amazing project and what the message means for you. You see, life and wealth are 3 dimensional and you have to get all 3 dimensions right to be a complete success.
Be sure to see this film while itās in the theaters and we hope you can join us for the Wealth Cruise in October 2019!
Resources:
The Least of These Movie - Find a Theater Near You
Starring actors: Steven Baldwin, Sharman Josi and Shari Rigby
Call 702-660-7000 for info on the Oct 2019 Wealth Cruise with Life Benefits and Krish Dhanam
Thereās a big difference between quality motivation and high-pressure sales tactics often used by insurance salespeople. Hereās what you need to know to discern the real deadlines so you can be comfortable with this important purchase.
Thereās no excuse for hhigh-pressuresales tactics, but neither is there any excuse for procrastination.
Call our office for a no-pressure life insurance experience, or a second opinion on your current policy: 702-660-7000
Financial entertainers š¤ will tell you that you need to ācut out your coffeeā āļø to get out of debt, save for your future and become a millionaire!
Maybe thatās true for them, but is it true for you? BALANCE is key. Discover how to balance your financial life so you can save with sustainable guarantees, get out of debt and achieve your dreams without sacrificing your quality of life.
The basic recipe is simple. Your details are unique. Call us for assistance with your strategy to get out of debt and move beyond just ādebt freeā to āfinancial freedomā. 702-660-7000
Resources:
10-20-70 Cash Flow Balancing Worksheet - Download here
Thereās a lot of āalphabet soupā š surrounding HRAs (Health Reimbursement Arrangements), HSAs (Health Savings Accounts) and FSAs (Flexible Spending Accounts)ā¦even people who are really smart managing money donāt always realize the potential of using these tools to save money.
When it comes to HRAs thereās a traditional 105 HRA and also the QSEHRA which provides great options for small business employers & employees. Now there are some new plans on the horizon for 2020 like the ICHRA and EBHRA.
Listen closely as special guest Jack Hooper from Take Command Health clears up the āalphabet soupā around all these tools so you can successfully navigate this part of your financial world and save more money than you ever thought possible.š°
Resource Links from Take Command Health:
Small Business HRA Strategy Guide - Blog