ENHANCING MONEY—

FOR WHATEVER REASON

By Raymond L. Adams, CFP®, CLU, ChFC

7 CREATIVE WAYS YOU CAN LEVERAGE LIFE INSURANCE:

These articles share what many people have done to instantly generate an enhanced sum of money, which ultimately will be of benefit to others who are so meaningful to them, at their time of deathfor the benefit of a spouse; an education for their grandchildren; a special needs loved one; a generational family retirement income account, and other examples, which include how to:

LEAVE AN INHERITANCE TO YOUR FAMILY

Ten family members each began receiving an annual “gift” of $13,000 from their father when he turned 70, totaling $130,000 a year, which they utilize to pay for a $5,000,000 life insurance policy on him —

BUY OUT A BUSINESS PARTNER

Age 75, this lady each year gifts a total of $78,000 to her children. They use the funds to  make payments on a $2,500,000 life insurance policy, which will be paid in a lump sum when she passes away, providing an easy economical way to buy out the remaining silent partner in the family business.

PAY ESTATE TAXES

This gentleman in his early 60’s repositioned $2,150,000 from a bond portfolio, and he immediately created an $8,000,000 life insurance policy to pay future estate taxes.

MAINTAIN FAMILY TRADITIONS, FOR GENERATIONS 

A married couple, ages 71 and 68, pay $11,485 per year for a $750,000 life insurance policy to be paid to their 4 children—to carry on some family traditions…payable at the time the second one passes away.

LEAVE MONEY TO THE GRANDCHILDREN

At age 80, a female cancer survivor began re-distributing $10,419 each year from her IRA required minimum distribution (RMD) to pay for a $200,000 life insurance policy—made available to her four grandchildren upon her death.

PROVIDE RETIREMENT INCOME FOR THE CHILDREN

A married couple, age 72, are gifting a total of $26,000 a year to their two daughters, which they use to pay for a $1,500,000 joint policy, which they will received upon the second death of the parents, for the benefit of each of the daughter’s future retirement.

HAVE MORE MONEY IN YOUR RETIREMENT

A retired couple, concerned about the future financial situation of the wife, if the husband were to pass away first, had $200,000 set aside to offset the inevitable loss of one Social Security income check, and a reduction in pension income—both from the husband’s former employer and the military.

They took $100,000 of the $200,000 they had in savings, and moved it into a Modified Endowment Contract—a type of one-payment life insurance policy created by IRC regulations in 1988—which immediately established a $200,000 Death Benefit on the husband, to be paid to his wife upon his death. Additionally, if needed, this life insurance policy even allowed him an advance against the death proceeds for qualifying long term care expenses: home health care, assisted living, or nursing home care, if he ever needed such…and they now freed up $100,000 to enjoy life a little more, which they are doing.  

ENHANCE MONEY—FOR WHATEVER REASON

Life insurance can do things you perhaps never thought of. So, whether you are 50 or 80, male or female, this concept may be of benefit to you and/or your loved ones. The very rich of this country have utilized this method of enhancing money for many years. You can, too.

 

IF YOU ARE YOU INTERESTED TO LEARN MORE

 

These are REAL examples; dollar amounts can be adjusted to accomplish your wishes. If you would like to gather more personalized information about how this concept might be of benefit to you or your family, contact me, (425) 827 - 9225 without obligation. It costs nothing to gather the facts, and may well benefit your circumstances.

*Guarantees are subject to the claims paying ability of the underlying insurance company **Variations in health, age, tobacco use, contribution, interest rates, etc., may affect your results.

Capital Enhancement Group, Inc. • 611 4th Ave. Suite A • Kirkland, WA 98033 • (425) 827-9225