Are you worried about RMD on your 401(k)?
Are you worried about RMD on your 401(k)? If you’re nearing retirement, Required Minimum Distributions (RMDs) on your 401(k) might feel like a ticking tax time bomb. Once you hit age 73, the IRS mandates you to withdraw a portion of your retirement savings annually—whether you need the money or not—potentially pushing you into a higher tax bracket. But what if there was a way to reduce this burden and create a tax-advantaged income stream? Enter the Flex Method. By leveraging an Indexed Universal Life (IUL) policy, you can redirect funds from your 401(k) or IRA into a tax-free growth vehicle. This strategy not only eliminates RMDs but also shelters your wealth from market volatility. The cash value in an IUL grows tax-deferred and can be accessed tax-free through policy loans, providing a steady income in retirement without triggering additional taxes. Enter the Flex Method. By leveraging an Indexed Universal Life (IUL) policy, you can redirect funds from your 401(k) or IRA into a tax-free growth vehicle. This strategy not only eliminates RMDs but also shelters your wealth from market volatility. The cash value in an IUL grows tax-deferred and can be accessed tax-free through policy loans, providing a steady income in retirement without triggering additional taxes.
Secure Your Retirement with Other People’s Money
Secure Your Retirement with Other People’s Money (OPM) How to Fund Your Retirement with OPM While Keeping Control and Access to Your Money Are you absolutely confident about your retirement plans, or do you have some doubts? Imagine if I could show you a way to secure your retirement using an investment-grade life insurance policy that generates double-digit, tax-free returns. How Leveraging OPM Works Leveraging OPM in a Simple Way: This strategy starts with you investing $100,000 to create an insurance contract with yearly premiums of $100,000. You then use the cash value of this insurance policy as collateral to secure a $100,000 loan from a bank to pay the premiums. By repeating this process annually for 20 years, with an assumed 5% growth rate and a 3% interest rate on the loan, you can accumulate substantial funds. By the 20th year, you will have contributed $2,000,000, out of which $100,000 was your own money, and $1,900,000 was borrowed. With the growth and interest, you could potentially have over $3,000,000. This results in a net gain of $113,000 in one year alone, representing a 113% return on investment. What Does This Look Like During Retirement? If you contribute $100,000 to the OPM Strategy and the bank matches that contribution every year, starting to take distributions in year 10, here’s what you could expect: In your first year of distribution (year 10), you could take out $42,000. This amount will steadily increase, and by year 35, you could take out $579,000! The best part? All these distributions are tax-free! Your Numbers During Retirement Even after 35 years, the distributions don’t stop. The growth curve continues to get steeper, allowing you to keep taking increasing distributions. In year 10, when you start taking distributions, your total cash value would be $946,642. Since $784,815 was financed, you would be left with $355,615. By year 35, even after taking $4,525,000 in total distributions, your net cash value will still be $2,057,605. In year 35, you would have a total of $9,564,225 working for you, which continues to grow through further financing and interest and dividends, allowing you to keep taking increasing distributions. What About the Death Benefit? Your life insurance policy offers an impressive 23.0% annual return, turning $100,000 into $4,525,000. Additionally, your premiums not only fund a death benefit for your heirs but also grow over time, surpassing your cash value. When you pass away, the death benefit pays off any outstanding loans and interest, leaving a tax-free sum for your heirs. Here are the accrued death benefit amounts on day 1, year 10, and year 35, after repaying any financing: This strategy allows you to leverage other people’s money to secure a comfortable and prosperous retirement, all while maintaining control and access to your funds whenever you need them.
The Untaxed Retirement Income Plan is often asked, where is the safest place for our money?
How safe are Banks? Banking regulation and supervision holds banks to certain requirements, restrictions and guidelines, that are enforced by a financial regulatory authority, generally referred to as banking supervisor. Banking regulation and supervision aims at ensuring that banks are safe and sound and promote market transparency between banks and the individuals and corporations with whom they conduct business. (However, banks lack the independent, stand-alone cross-over supervision that insurance companies enforce upon themselves.) Though bank failures get a lot of media attention, customer finances are usually not severely impacted; as long as they do business with an FDIC-insured institution and keep less than $250,000 per account ownership. Is it safe to keep more than $500,000 in a brokerage account? In most cases, the brokerage will liquidate on its own without needing the Securities Investor Protection Corporation to intervene. That being said, if the firm refuses or is unable to self-liquidate and the SIPC must step in, you may not be able to claim more than $500,000 in securities and cash. Therefore, the safest option is to move your money above that $500,000 SIPC coverage threshold to a different type of account, or to a different brokerage altogether. How safe are insurance companies If you decide to do business using the Untaxed Retirement Income Plan, your assets will most likely exceed the $250,000 or $500,000 limit levied by banks and the Federal Reserve; as well as the SIPC: either with the first deposit, or certainly after you have kept your Income Strategy in force for just a few years. Also, your death benefit, at the beginning will most likely exceed $500,000+, thus the imperative need for a financial institution more financially responsible then an FDIC bank or the Security Exchange Commission. Beyond your insurance company’s sheer financial strength, there are six safety nets to help guarantee the company will be able to pay its claims. The State Insurance Commissioner’s Office – can run and fund an insurance company, in the event it gets into financial trouble. You can be confident your policy will stay in force. Every life insurance company is audited by several independent ratings companies. Examples: Standard and Poor’s, Moody’s, Fitch, A.M. Best. The Untaxed Retirement Income Plan selects the very best companies to work with; based on: A. financial strength. B. the very best product for the client’s needs. C. how long the company has been in business. Additional protections include: One of the primary duties of state insurance departments is protecting policyholders from the risk of an insurance company in financial duress. If a life insurance company gets into financial trouble, the insurance commissioner, in the company’s home state, starts a process called rehabilitation to help the company regain its financial footing. Also, each state has a state insurance guaranty association, aka, The GA, that provides the necessary funds, to pay insurance policies in the event an insurance company, has financial trouble, or goes bankrupt. Each state’s GA is funded by every insurance company participating in that state. Also, there’s a nationwide organization called the National Organization of Life and Health Insurance Guaranty Associations (NOLHGA). It’s made up of the life and health insurance guaranty associations of all 50 states and the District of Columbia.
Too good to be true!
Too good to be true! After 3 years, a policyholder, would have made 3 deposits into the Untaxed Retirement Income Plan with a projected gain of approximately 6- 8% interest. At the beginning of the fourth year, one of our financial partners, will make arrangements with a bank, that sets-up a low-interest loan, using a low-risk asset (the policy holders deposits). When a low interest loan, is set against a higher yielding cash value reserve account it creates what is called a profit spread, or arbitrage. The risk is practically non-existent to the policy holder, because the borrowed money is never spent. It is always there to pay the bank, if need be! When more money goes into the cash value reserve account it generates more interest income. Let me say it again; the more money there is in the policy holders reserve account, the more interest income it generates. Right! It is always nearly zero risk exposure, to the policy holder, because all the borrowed assets are easily accessible inside the policy holders cash value reserves. Our financial partner is a licensed registered investment advisor, (RIA) and an insurance agent, licensed in all 50 states. He is compensated by the insurance company. For 10 years, our partner has been helping clients to collateralize their premiums by using other people’s money, aka, low interest bank loans, to increase their total rate of return. As of 2024, there are hundreds of policies with more than a half billion dollars under management, creating assets, for policyholders. The Untaxed Retirement Income Strategy is the best retirement strategy: It is uncomplicated, and very profitable, very reliable, and nearly risk free. An Index Cash Value Life Insurance policy typically generates on average, 6-8% rate of return after the cost of insurance is paid. When arbitrage is combined with the policy, the average rate of return jumps to 10-16% tax-free without market losses or risks. If the market were to crash, which it has done 3 times in the past 25 years; there is a safety net in place which holds the insurance company responsible to absorb all index losses below zero, thus the policyholder’s, asset gains, are always protected, and this arrangement is declared, right up front, in the policy holder’s life insurance contract agreement. Compare that to the high probability of a 35-50% loss in savings, during a stock market recession or even a crash that may take 4-8 years to return an investors stock market assets to the break-even point. What if you are only months away from retiring when a crash occurs? What if you are retired and a crash occurs? Depleted savings, means, you will have less to spend, in a world economy, where inflation never sleeps. It’s very hard to replace, lost retirement dollars, even when the market is good. You didn’t save for your retirement, just so you would just barely get by, did you? The Untaxed Retirement Income Plan is the solution! The average stock market rate of return over the past 25 years was 7%, and then of course, there are taxes to pay, with your withdrawals! In the last 3 years inflation has increased well over 20%. Making your savings 1/5th less valuable then they were 3 years ago. Inflation never sleeps; it is always increasing the cost of living. We are not, in the, everybody else business. The Untaxed Retirement Income Strategy is a safe and consistent, retirement income, that consistently increases in value to protect against the catastrophic effects of inflation, and is a legal tax-free income for a life-time.
Qualified Retirement Plan Vs. Untaxed Retirement Income Plan
What if, you could just pay taxes on the money you earn, and not have to pay taxes on the money, your money earns? Here is a little, known fact: Everyone knows that all monies inside a Qualified Savings Plan, such as, a 401k, IRA, or 403b are subject to tax when money is withdrawn; but few realize, that any income withdrawal, from their Qualified Saving Plan will increase their total annual taxable income, which can increase their tax bracket, which will also increase their tax rate on their Social Security Income, as well. 2. What if, you could earn a safe, consistent rate of return, with one of the safest assets in the world; without ever endangering your portfolio to a stock Market Crash. Year 2000, the Dot.com Stock Market crash; took investors 4-8 years to reclaim their losses, because; one particular event, created a market crash? Year 2008, the Real Estate/Stock Market crash occurred that nearly paralleled, the crash of 1929. It took 3-6 years for investors to return their portfolio earnings to par. Year 2019, there was a Worldwide Pandemic/Stock Market crash. The government is still trying to improve our countries slow-moving economy; with very little success. Investors are still trying to restore their portfolios back to par from where they were in 2019. Here is a little-known fact: According to the Social Security Administration, if someone retires at age 65, a man’s life expectancy is age 83, and a woman’s, life expectancy is age 87. Non-smokers can add 5 additional years to their life. That means that presently a man and woman’s life expectancy during retirement is somewhere between 18 -27 years. Considering the history of the U.S. Economy for the past 25 years; it would be wise for investors to plan that similar catastrophic events, will happen during those 18-27 years of retirement. Why not safe-guard your portfolio now, while there is time? Redelsperger and Associates, can correct your retirement dilemmas. Significantly reduce your tax liability during retirement. Replace your paycheck, and receive annual raises on your retirement, for a lifetime.
Infinite Banking and Traditional Banks – 10 Differences
The Game Changer: Understanding the Top 10 Differences Between Infinite Banking and Traditional Banks In personal finance, the stark contrasts between Infinite Banking and traditional banking systems could redefine your financial journey. These differences go beyond the surface, offering a transformative approach to managing and growing your wealth. Let’s unravel these distinctions, shedding light on the real power and potential inherent in Infinite Banking. Financial Instrument At its core, Infinite-Banking revolves around a whole life insurance policy, while traditional banking operates through cash accounts in regular banks. The fundamental purpose and functionalities of these two instruments diverge significantly. Cash Value Growth The backbone of , the whole life insurance policy, harbors a cash value component that grows over time. This cash value accrues guaranteed interest, and the earnings are tax-deferred. Conversely, traditional savings accounts yield substantially lower interest rates. Loans In family banking , policyholders can effortlessly obtain policy loans against their cash value without intricate approval processes or concerns about credit scores. Traditional banking involves borrowing money from financial institutions under predefined terms and interest rates, typically favoring the banks. Interest Payments offers the opportunity to reclaim interest payments that would have otherwise gone to traditional lenders, redirecting these earnings back into your policy. This redirected interest serves as a viable source of financing for various investments or expenses. Flexibility In the domain of Infinite-Banking, flexibility reigns supreme. Access to additional liquidity through the cash value of a whole life policy and the autonomy to set loan terms and interest rates provide unprecedented flexibility, contrasting starkly with traditional banking norms. Tax Advantages Whole life insurance policies within the realm of Infinite-Banking offer a myriad of tax advantages, including tax-deferred growth, tax-free withdrawals, and tax-free death benefits. Conversely, traditional banking lacks such benefits, potentially subjecting individuals to income and capital gains taxes. Source of Financing In financing stems from borrowing against the cash value of a whole life insurance policy. In contrast, traditional banking revolves around individuals borrowing money from financial institutions based on factors like creditworthiness, income, and collateral. Relationship with Financial Institutions Infinite-Banking establishes a direct relationship between you and the insurance company providing your whole life policy. Traditional banking involves navigating through multiple intermediaries within financial institutions. Infinite and Ownership Embracing Infinite-Banking hands you the reins to your financial destiny. Ownership and complete autonomy over financial decisions distinguish this strategy from the traditional banking approach, where decisions often benefit financial institutions over individuals. Purpose Infinite Banking’s primary goal is to empower individuals, fostering financial stability, independence, and wealth. Conversely, traditional banking chiefly focuses on maximizing profits for financial institutions, occasionally at the expense of their clientele. By embracing Infinite Banking, you rewrite the rules of finance, creating a system that caters to your needs. It’s an opportunity to seize control, unlock your potential, and live the life you’ve envisioned. With Infinite Banking, you set the stage for your financial success on your terms!
How Does Infinite Banking Work? Unlocking Financial Freedom with LSM Insurance
The concept of Infinite Banking revolves around a powerful financial strategy anchored by a participating whole life insurance policy. At the core of this approach is the ability to leverage the cash value of the insurance policy, transforming it into a personal financial reservoir. In this blog post, we delve into the mechanics of Infinite Banking, demystifying the process and highlighting its transformative potential. Understanding the Core Concept The fundamental principle of Infinite Banking is establishing a participating whole life insurance policy. This type of policy not only provides insurance coverage but also pays dividends. These dividends serve as a catalyst, allowing policyholders to contribute to the cash value of the policy or offset insurance premiums. Lending to Yourself: The Infinite Banking Advantage Once the participating whole life insurance policy is in place, the policyholder gains the ability to lend money to themselves. The cash value of the insurance policy serves as collateral, eliminating the need to pay interest to traditional lending institutions. This self-lending feature empowers individuals to have quick access to extra funds, with a simple call to the insurance company. The Crux: Participating Whole Life Insurance The key to unlocking the full potential of Infinite Banking lies in the choice of a participating whole life insurance policy. This unique insurance variant pays dividends, providing a dual benefit of enhancing the policy’s cash value and potentially reducing insurance premiums. It acts as the keystone of the Infinite Banking concept, offering growth and adaptability. A Transformative Journey Towards Financial Freedom Infinite Banking is not a theoretical abstraction; it’s a tangible and pragmatic approach to financial management. By embracing this strategy, individuals take control of their financial destiny. The ability to leverage the cash value, combined with the benefits of participating whole life insurance, creates a transformative journey towards financial liberation. Expanding Horizons Beyond Wealth Accumulation Infinite Banking goes beyond conventional financial paradigms. It’s not solely about amassing wealth; it’s a paradigm shift towards securing financial sovereignty. This approach is about fostering financial security not just for the present but across generations, making it a legacy-building tool. Navigating the Path to Financial Empowerment While the concept of Infinite Banking is compelling, navigating this financial terrain requires careful planning and informed decision-making. Selecting the right insurance policy, maintaining financial discipline, and understanding policy intricacies are crucial elements in successfully implementing this strategy. Conclusion: Embrace Financial Freedom with Infinite Banking Infinite Banking is not just a financial strategy; it’s a lifestyle and an empowerment tool. It’s about taking command of your financial destiny, creating a lasting legacy, and empowering future generations. By exploring its potential, understanding its intricacies, and embracing its ethos, individuals can embark on a journey towards unprecedented financial liberation and legacy-building. Infinite Banking isn’t a financial maneuver; it’s a lifestyle—an empowerment tool propelling you toward lasting financial security and freedom. Unlock the secrets of Infinite Banking with a participating whole life insurance policy at its core! Take control of your financial destiny and embrace the potential for unparalleled financial liberation and legacy-building. Experience the transformative power of Infinite Banking with LSM Insurance, where your financial freedom begins.
Navigating Business Partnerships The Crucial Role of Buy/Sell Agreements
In the intricate dance of business partnerships, much like in personal relationships, having a plan for the unexpected is paramount. Enter the buy/sell agreement, akin to a prenuptial agreement in marriage, functioning as a safety net for business partners. This contractual masterpiece delineates the course of action in the event a partner decides to exit the business under various circumstances. Primarily, a buy/sell agreement serves as a contin gency plan, addressing potential scenarios that could disrupt the delicate balance of a partnership. The most common trigger activating this agreement is the unfortunate passing of a partner. In these challenging moments, the agreement steps in, outlining the process for the remaining partner(s) to acquire the deceased partner’s share, often facilitated by funds from a life insurance policy. Yet, the buy/sell agreement is not merely a response to life’s tragedies; it’s a versatile tool that covers a spectrum of scenarios. From navigating rocky times in the partnership to a partner’s decision to retire, exit the business, or even extreme cases like serious misconduct, legal troubles, or divorce – this agreement has it all. Essentially, the buy/sell agreement acts as a guiding compass through the complex landscape of business partnerships. It serves as a roadmap, ensuring a seamless and organized transition when unexpected hurdles arise. Picture it as a buffer against potential conflicts and uncertainties, offering a clear path forward during challenging times. This agreement is not a mere piece of paper; it’s a strategic asset. For those engaged in a business partnership, it’s a proactive measure to secure their future and protect their interests. By establishing this agreement, partners create a structured framework that anticipates and addresses potential scenarios, fortifying the foundation of their business relationship. Consider it the protective shield that keeps the business secure amidst life’s unpredictability. Much like a prenuptial agreement safeguards assets in a marriage, a buy/sell agreement safeguards the integrity and continuity of a business. It’s the safety mechanism that ensures a partnership’s longevity and resilience. In conclusion, for those in a business partnership, the buy/sell agreement is more than just a legal document – it’s a proactive step towards building a robust and secure business foundation. By acknowledging the uncertainties of the future and preemptively planning for them, partners not only protect their individual interests but also fortify the partnership’s resilience against unforeseen challenges. It’s the key to navigating the intricate waters of business partnerships with confidence and foresight.
