Using Life Insurance Strategies to Insure Your Future with Rob Kolb

Rob Kolb is one of my favorite alternative financial planners. He has been in the finance industry for over 20 years. His main area of focus is helping find strategies to create wealth and lower taxes. He is good at it too. Today, Rob shares a genius strategy for amplifying wealth without giving it all to the government in the form of taxes.

This strategy is one that is used by the wealthy to lower their taxes, have penalty free access to their money, and have tax free income. We talk about the different types of money. Rob explains what red, blue, and green money is. Green money is money that lowers taxes or has tax free income, has a good rate of return, and leverages OPM. This is the type of money we are talking about today.

You can find Rob here:

[email protected] Your Wealth PlanAsk Loral

Show Notes:

[01:57] Rob has been in the financial industry for 20-plus years. His ran several different agencies. In the past, he was security licensed. [02:12] He has spent most of his life helping people find strategies to create wealth and lower taxes. [02:18] He works with The Independent Excellence Group. This is a national group that gets together on a quarterly basis to find strategies to help upper end clients lower taxes, make more money, and have a much larger flow of income. [03:10] Most people use their 401k to help lower taxes, because they assume they'll be in a lower tax bracket later in life. We are currently in one of the lowest tax brackets, so it's likely your bracket could be higher later on in life. [03:58] Our country is 22 trillion dollars in debt. It will be amazing to see what the country will try to do to resolve that debt. [04:19] A trillion seconds is like 33,000 years. [05:55] Deferring your taxes is like taking out a loan with the IRS and not knowing what interest rate you're going to be paying it back to the IRS. [06:09] With a Roth IRA you pay taxes up front and don't pay taxes on the gains. Because of the amount limits, it's not a vehicle for building true wealth. [07:50] From 2000 to 2018, people put their money at risk in the stock market and got about 4.5% returns. [08:28] Solo 401ks are different, because you can make different investments. Traditional 401ks can put you in a higher tax bracket, and you may have to pay penalties and taxes depending on when you withdraw. [09:31] There are even penalties for not taking money out after you are 70 and 1/2. The penalty for not taking your required minimum distribution is 50%. [10:35] Using OPM others people's money is a way to grow, expand, and do deals. It's a strategic tactic. [12:08] A good strategy lowers taxes for later or is tax free income. It would also be nice to make a decent rate of return without worrying about the ups and downs of the stock market. [12:58] There's a specific strategy to enjoy the upside of the market without a downside. We also want to use other people's money, so we have access to our cash. [13:43] The killer to any sound financial plan is called procrastination. Start now. Start early. [15:44] There is a tax code section called 7702 that revolves around life insurance. There are tax advantages if you set up life insurance correctly. [16:31] When using life insurance as a tax play, you buy the least amount available and put the most money in. This creates a large cash value. This money can be accessed by taking a loan against it. Because of the spread, you are using other people's money. In this case, the life insurance company's money. [17:54] You also have the ability to access this money before age 59 and a half. Think of it as a wealth account. This account compounds and gives you financial freedom later that is tax free. [19:10] The idea is to use it for tax advantages, not a death benefit. [19:52] The top 25% of earners in America are $80,000 and above. When you have a tax problem and not an income problem, it's time to fix it. [21:11] With cash value life insurance, expenses are on the front end. [22:07] The compounding benefits are huge. [24:04] We're talking about guaranteed money by large insurance companies. They have to have money on reserve. We call this green money. [25:13] Red money is tied up in the stock market. Blue money is alternative investments. Things like gas & oil, etc. [27:44] If you aren't getting matching dollars with your 401k, maybe you should reallocate that money. [28:23] Rob has an ebook that pinpoints this strategy. You need an independent advisor to set up the strategy properly. Email [email protected] to get his ebook. Links and Resources:

Integrated Wealth Systems The Independent Excellence Group