I was asked to define my financial advice strategy in one sentence. At first, it felt like a hard task trying to compress over two decades of experience in this industry into one single sentence. Then, I realized that all my strategy always focused on a few converging paths: saving my clients money, protecting their money, help them grow their money, get rid of debt and lastly, help them keep more of their own money and spend less on taxes. To sum this in one phrase, my financial strategy can be defined in short as: ZERO Risk, ZERO Debt, ZERO Tax Strategy, resulting in a huge positive impact on your retirement savings. I will talk more about each of these strategies, below.

ZERO RISK Strategy

The path to “zero risk planning” involves implementing safeguards that will ensure continued growth even in situations when potentially catastrophic events could otherwise derail your future plans. We’re talking unexpected health problems, economic downturns or market risk. To accomplish this, I take into consideration your current financial situation, your past experiences as well as your goals. A risk assessment will then be drafted based on potential adverse situations that could affect your future goals, with solutions to eliminate those risks or limit their impact on your finances.

Some notable steps in eliminating RISK from your financial planning involves:

• GUARANTEE that your income keeps coming in – even if you get sick, disabled,  or lose your job. This is not an empty promise, you can literally insure your paycheck (look at life insurance with living benefits & disability income protection). It is evident that ONE year of being out-of-work can wipe off 6-10 years of savings. You can – and should – eliminate this risk.
• ELIMINATE or mitigate losses during an economic downturn – when you diversify your assets to include no-risk accounts or contracts, while taking advantage of growth during periods of good economy trends. How can you protect your money from a market crash? By utilizing assets that are sheltered from market fluctuations, and assets that offer guarantees built-in, so you know that in worst-case scenario you at least don’t sustain a loss, while you can safely grow your funds when the markets go up.

ZERO DEBT Strategy

You can’t effectively grow your money if you depend on loans for your large expenses and as a result pay interest to others.

“But we need to borrow money in this type of economy we live in, right? There is no other way”.

Well, you’re both right and wrong. There is another way, but a shift in perspective is needed here: Imagine you can get access to a pool of cash you can use for ANY large expenses, and all you have to put in as collateral is your life insurance policy. Did you know your life insurance policy grows equity every year in the form of cash value? Did you know you can take large loans against this pool of money which is YOURS to do whatever you need with? When you were told “Don’t keep all eggs in one basket”, this is one of the alternative “baskets” or assets they were talking about.

“But life insurance is for when I die, right?” Again, that is only partially correct – because life insurance has MANY living benefits that are less known therefore less utilized, because many advisors don’t know how to use them and set them up correctly: – loans that can be taken against the “equity” or cash value built up inside your life insurance policy, will help YOUR OWN funds grow instead of having to pay interest to banks and other institutions.

ZERO TAX Strategy

During your working years and retirement age, a huge impact on your finances comes from taxes owed. Naturally, one should fully utilize tax-free “buckets” first and foremost, then tax-deferred tools, and lastly the taxable asset classes available.

Tax-free class of assets or tools include: municipal bonds, cash-value life insurance and some inheritances. Some tax-deferred or tax-advantaged tools involve Roth-IRAs, Roth conversions and few other tools.

Out of these, you can utilize the guarantees built-in the cash-value life insurance contracts, which also comes with TAX-FREE loans and other TAX-FREE benefits. Why is life insurance a tax-free asset? In short – because you pay for the life insurance premiums with after-tax dollars. In time, the life insurance policy grows equity in the form of “cash value” which is 100% liquid and being your money, you can take the funds out as loans with interest paid to yourself. Why pay interest to yourself? Well, if you want to keep the funds working for you, you should. Otherwise, you can decide to NOT pay back the loans, and it will then be deducted from your policy’s death benefit when you pass. VERY IMPORTANT: Under all circumstances, don’t let that policy lapse unless you want to finally pay taxes on the loans you took out!

 

Wherever you are now in your financial journey, you will benefit from one of these three strategies. Zero Risk, Zero Debt, Zero Tax Strategy will place you an a stable path to financial stability and freedom. Ask for a free consultation with myself, one of my financial experts. You’ll be glad you called!

1-877-LIFE GUY

info@LifeGuy.com