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(Presentations in this blog were created using Wealthy and Wise®.)
One of the problems with most retirement plans today is they address only two of the three key issues. The two that are typically addressed are:
- Pre-retirement asset allocation;
- Post-retirement asset allocation.
The one usually not addressed is:
- The order in which assets are accessed for cash flow that produces the best long-range net worth and wealth to heirs. We call it Good Logic vs. Bad Logic™ when it is done efficiently.
When cash flow is needed, advice that determines which assets should be accessed, and in what order, is vitally important. Why is this typically overlooked? It’s simple — with, say, five different asset classes and 30 years of cash flow, 3,600 calculations are needed to determine the best order. With six assets, 21,600 calculations are needed; with seven, 151,200. This is not something that can be handled by a simple Excel spreadsheet.
We built an algorithm in InsMark’s Wealthy and Wise® for this very complex calculation, and the results are dramatic as you will see.
Don Prehn and Steve Savant, both consultants to InsMark, have created a very interesting video that discusses this issue in two segments. The first segment is 6 minutes concluding with the second segment of 5 ½ minutes. Normally, I would present each one in successive blogs, but the information is so sequential that they flow better if shown together. You’ll be glad you watched them both.
Click on the image below to begin the video.
The two major takeaways I want you to have from both video segments are:
- There is a significant increase in both net worth and wealth to heirs that is created through the application of Good Logic vs. Bad Logic™;
- Reallocating current assets to purchase an investment grade life insurance policy usually produces a meaningful increase in net worth or retirement cash flow — or both.
| Life insurance has been traditionally viewed as “expensive”, but the client’s perception is markedly different when the results shown in the video can be achieved. Below is a quote from an article in the December 2014 issue of Trusts & Estates by Bill Boersma entitled “Life Insurance as an Asset Class” in which he states: |
| “I can only wonder if another asset with the same qualities would be implemented more frequently if it wasn’t called life insurance.” |
If you would like to review more details of the material presented in the video, please go to Blog #35: Revisiting the Pothole in Wealth Planning and Blog #71: When Life Insurance Doesn’t Work — or Does It?
InsMark’s Digital Workbook Files
If you would like some help creating customized versions of the presentations in this Blog for your clients, watch the video below on how to download and use InsMark’s Digital Workbook Files.
New Zip File Downloaders
Watch the video.
Experienced Zip File Downloaders Download the zip file, open it, and double click the Workbook file name to open it in your InsMark System.
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Note: If you are viewing this on a cell phone or tablet, the downloaded Workbook file won’t launch in your InsMark System. Please forward the Workbook where you can launch it on your PC where your InsMark System(s) are installed. |
Licensing InsMark Systems
To license any InsMark System, contact Julie Nayeri at julien@insmark.com or 888-InsMark (467-6275). Institutional inquiries should be directed to David Grant, Senior Vice President – Sales, at dag@insmark.com or (925) 543-0513.
InsMark’s Referral Resources
(Put our Illustration Experts to Work for Your Practice)
We created Referral Resources to deliver a “do-it-for-me” illustration service in a way that makes sense for your practice. You can utilize your choice of insurance company, there is no commission split, and you don’t have to change any current relationships. They are very familiar with running InsMark software.
Please mention my name when you talk to a Referral Resource as they have promised to take special care of my readers. My only request is this: if a Referral Resource helps you get the sale, place at least that case through them; otherwise, you will be taking unfair advantage of their generous offer to InsMark licensees.
Save time and get results with any InsMark illustration. Contact:
- Ben Nevejans, President of LifePro Financial Services in San Diego, CA.
Testimonials:
“Major cases we are developing have all moved along successfully because of the sublime simplicity and communication capability of Wealthy and Wise. I guarantee that the proper use of this tool will dramatically raise the professional and personal self-image of any associate who dares to take the time to understand it… ”
Phillip Barnhill, CLU, InsMark Gold Power Producer®, Minnetonka, MN
“Bob Ritter’s blogs make me look like a genius! My CPA takes the info, then studies for a week before he says ‘he gets it’.”
Stewart King, Wealthy and Wise Licensee, Bayboro, NC
“For three decades, InsMark software has been the leader in presentation software for life insurance. However, my favorite retirement, estate and charitable planning software is InsMark’s Wealthy and Wise combined with DOD (Documents on a Disk). Nothing holds a candle. If you are in the retirement, estate or charitable planning arena, this is the easiest AND most powerful software on the planet. I highly recommend it.”
Scott Keffer, Advisor Coach, Best Selling Author, Creator of Double Your Affluent Clients®, Pittsburgh, PA
More Recent Blogs:
Blog #103: Charging Monitoring Fees for a Client’s Wealth Plan
Blog #102: Linking Indexed UL with Disability Income Insurance
(Part 2 of 2)
Blog #101: Linking Indexed UL with Disability Income Insurance
(Part 1 of 2)
Blog #100: Mysterious Fees for Mutual Funds
Blog #99: One More Time – The Value of “You” to Your Clients
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