Placing Extra Cash in Your Life Insurance Policy
May 10th, 2010 // 4:00 am @ Andrew Rosenbaum
In the current economic environment, it is difficult to produce a significant return from conventional financial products that offer safety, such as savings accounts and certificates of deposit.
But if you own a whole life insurance policy, you may be able to deposit money using your life insurance contract and gain two important things:
- A return from dividends*, as well as guaranteed cash values that grow tax-deferred each year.
- An ability to leverage your death benefit, because in most situations, every additional dollar added may produce an additional $3 in your death benefit. That gives you an opportunity to create more of a legacy and pass along more income tax-free money to your heirs.
Basically, you’re getting your money to do more than one job.
It will both generate a higher return than what’s available from most financial products today, and significantly enhance your death benefit.
It’s a sensible and secure long-term growth vehicle for extra cash that can be set aside for several years.
So if you’ve worked hard and saved money that you can afford to sit for a while, discuss this option with your financial representative.
*Dividends are not guaranteed and are declared annually by the company’s Board of Directors.
Category : Accumulation v. Utilization &Family &Market Volatility &Recession &Taxes
Accumulating v. Utilizing Wealth
December 23rd, 2009 // 3:59 am @ Andrew Rosenbaum
Accumulated money means nothing if it’s not utilized properly. There’s a huge difference between accumulating money and putting it to good use.
Accumulating without utilizing is like buying a cruise to the Bahamas then never going.
The basic premise of the accumulation theory is that collecting money — gathering a “nest egg” — guarantees financial protection.
But no amount of money guarantees happiness or, for that matter, security. Many Wall Streeters are discovering this.
I believe in the utilization theory, which says money gains meaning by how it is earned and used.
What is true is that money is a tool and, like all tools, it is designed to do a job. It’s up to you to use that tool to enhance your happiness.
People who enjoy lasting wealth have a deep understanding of money — what it is and what it is not. Money isn’t as important as the asset that produces it.
With the utilization theory, the idea is to limit the risk that the asset will lose its power to provide financial security for you.
The more risk we take on, the more stress and pressure we experience, regardless of how much money we have or make. The more we use money to transfer risk, the more economic confidence we feel.
Purchasing a guaranteed contract that provides a reliable return, virtually risk-free, and ensures your family’s financial security if you die, is a wise use of money.
Category : Accumulation v. Utilization &Economic Confidence &Financial Certainty &Financial Risk &Permanent Insurance
