Mastering Wealth: 5 Strategic Moves with Life Insurance

Okay folks, today we're going to talk about the five tricks the wealthy do with their life insurance. And by the way, this doesn't mean you can. This means grab a pen and piece of paper, take notes, make some calls, click the link below as you go through the process because I guarantee this information can create a lot of awareness and opportunity that puts money back into your pocket where it belongs, provided you follow the plan A through Z. Life insurance, it's such a horrible name and the energy behind it makes you think of your own demise. So people run in the opposite direction when they hear it. Make sure you avoid that right now. Wake up because whether you're wealthy or not, life insurance is extremely useful, especially when you have a family and wish to be prepared. For those building their wealth portfolio, however, life insurance is useful for other reasons beyond simple prudence. Life insurance could be a valuable asset for wealth management. Now that is Investopedia's definition and I hate when they just make it about family because the truth is if you're an entrepreneur and you want to maximize opportunities, which we'll get into later in the video, it's not just about your family. Although for me, that's my number one reason, but all the other reasons I use it is because I want to turbocharge my wealth. Okay, so life insurance has an asset. Life insurance is more than a death benefit. It I didn't say IUL, which offers lifetime coverage. So listen, this is where it's important where you understand correlated versus uncorrelated. Correlated is, hey, if the stocks go down because interest rates go up, those are kind of correlated. Uncorrelated means whether real estate goes up or down, whether stocks go up or down, cash value, life insurance slowly climbs. So number two, we're going to get into tax protection and this is where you stop everything, go to your Rolodex, go to your phone, make sure you get your accountant's phone number because you want to make sure that your I.T. crossing is doing everything the right way from a tax perspective. But current tax laws, which change all the time, grant benefits to life insurance premiums and proceeds, creating greater asset protection. The proceeds of the life insurance are also tax free to the beneficiary. This helps individuals with higher net worth to minimize things such as the estate tax. Now, you know, when you're playing in the space of unlimited marital deduction and you back it up with trusts, take that and rewind the back unlimited marital deduction. You back it up with trusts. You need the estate attorney. You need the account. You need the trust officer, the insurance agent to figure all this out. But in that space, there's so much magic. And remember, if you're liking what you hear, put a comment below. If you want us to do other videos, let us know. And don't forget to click the link if you want to sit down with one of the members here at Epic because we will take you through the success process. OK, number three, we're going to talk about growing a nest egg. Cash value. Life insurance policies are extremely popular with investors looking to supplement their retirement income. These funds are guaranteed to grow tax deferred, which could really beef up your nest egg later on. Why? Well, because if all your money is in a 401k or an IRA and it comes out at taxed ordinary income and those tax laws changes, you want to make sure that you have something that is tax free up to basis and then maintain tax free status from borrowing from beyond that can support the taxable jail sentence that you're going through with your IRA or with your 401k. Folks, check out Barry Dyke, D-Y-K-E. He wrote a book, Pirates of Manhattan. He told the truth about what's going on on Wall Street. He said that your 401k, your IRA you don't own, your partners with the government. And by the way, you can't do a buy sell agreement. You can't do an operating agreement. What he said was, when you take that money out later on, they get to decide what tax bracket it's going to be at that particular time. So if you're 40 years old right now and you're in a certain tax bracket, they could change the tax law. So when you're 65, it could be much higher. It could be lower. Doubt it. It could be much higher, which means you're just at the mercy of what they say. All right. So listen, number four, we're going to talk about taking out a loan. A lot of business people, when they overfund their policies, what they like to do instead of financing their dentist, for example, instead of financing his equipment, he likes to finance it for his policies. So he gets that money back into his pocket where it belongs, because what happens is the equipment depreciates, they'll get the depreciation. But the money used for the equipment used for the policy is accelerating. So check this out. Once you've built up a sizable cash value, you could choose to take out a loan against your policy. Life insurance companies often offer these loans at interest rates lower than a traditional bank loan. And the money inside the account continues to grow. But here's the key. And it says it right there. It continues to grow. But we're going to use the word uninterrupted interest, and we're going to supplement it with instead of end or we're going to say and end, meaning I have money in a savings account or a 401k versus I have overfunded my life insurance and borrowed from it and put into another investment, therefore earning multiple rates of return off the same dollar. So check it out. Business owner, business owner, business owner, beware, but also be excited because there's opportunities right now. Number five, we're going to get into a business strategy. If an entrepreneur co-owns a business, then life insurance can fund a buy-sell agreement in the event of an owner's sudden death. I'm going to pause for a second. So I'm currently working with a client today whose husband owns or owned a restaurant chain worth about let's say 20 to 30 million dollars. He passes away. There was no buy-sell agreement. The spouse now has multiple attorneys to figure out what her half of the business is because she takes it over when her husband died. If there was a policy in place within that buy-sell, the policy would have paid off the spouse. The other guy that survived would own the company complete and it would be clean. But that didn't happen. So now there's a lot of litigiousness going on. A key man policy protects the firm from going under in the event that the key personal passes away before a replacement is found. So right behind this camera is my man Weber. God forbid if Weber shuffled off this mortal coil. He's a key man to this organization. They need to find another Weber. So they need to get liquid real fast so they can go find another Weber. That's what a key man policy is. Is life insurance only for the wealthy? Hell no. At the end of the day, if you want to become wealthy, do what the wealthy do, but start now. Many of America's elite hold cash value life insurance, you better believe it. And the wide variety of benefits to building wealth, their wealth portfolio can help anyone in their own financial journey. So listen, we put a lot of time and effort into this and we really want to give you proper education when it comes down to understanding exactly how to maximize your money, protect it from taxation, and create that generational wealth as an entrepreneur, as a business owner, as a corporate executive. Go ahead, click the link below. One of the members here at Epic will take you right through that success process, share with you age-old strategies, and give you protection from the things that you can't control by properly owning life insurance throughout the process. Folks, check it out, man. We're bringing it. We're bringing education all the time. We're giving you valuable information. Take notes, listen, learn. Every single day we're dropping new content. If you like what you hear, go ahead, hit that like button, subscribe, and smash that bell, and check out the next video because it's going to be even more valuable.