Blog #108: Profit Sharing Plan vs. Indexed Universal Life
(Part 3 of 3)

(Click here for Blog Archive)
(Click here for Blog Index)

(Presentations in this blog were created using the InsMark Illustration System.)

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In Blog #106 and Blog #107, we discussed a deductible “pretend” Profit Sharing Plan funded by way of business profits compared to a distribution of the same amount to the business owner with the after tax proceeds used to purchase Indexed Universal Life (“IUL”).  The former results in taxable retirement cash flow; the latter produces tax free retirement cash flow.  If you have not read Blogs #106 and #107, please do so; otherwise the continuing analysis in this Blog will make little sense to you.

Here are the results of Blogs #106 and #107:

blog-108 image 2 profit sharing plan indexed universal life llc c corps llp s corps image

Unlike C Corporations, there are very few benefit arrangements that provide leverage for principals of S Corporations, Limited Liability Companies, and Limited Liability Partnerships.  Due to the financial muscle of Indexed Universal Life (“IUL”), as you have seen in Blogs #106 and #107 (and the above table), IUL outperforms a hypothetical Profit Sharing Plan that discriminates totally in favor of the owner(s) of any business entity.

What might be the typical objections to the IUL solution?

Objection #1: “The distributions required to make the comparison work don’t have to be used to buy life insurance.  If you want the insurance, why not use term insurance and an equity side fund?”

I researched the lowest super-preferred rate for $3,500,000 of 20-year term insurance for a male, age 45, and found $3,725 offered by Ohio National.  So let’s use that in the comparison.  The IUL is illustrated at 7.50%, so we’ll assume a growth rate for the equity side fund of the same 7.50%.  The indexes available for IUL generally don’t credit a dividend.  The current S&P 500 dividend yield is 1.99% so let’s round that to a 2.00% dividend and add that to the equity side fund for a total yield of 9.50%, 200 basis points greater than the IUL.

Since the equity side fund will provide for an increasing benefit on top of the level 20-year term insurance, I changed the death benefit option on the IUL to face amount plus cash value for the first 20 years.

Indexed Universal Life vs. Term Insurance and an Equity Side Fund

The graphic below summarizes the comparison.

blog 108 image 3 cumulative payments cumulative after tax cash flow indexed universal life image

Even with 200 basis points greater yield, the equity side fund collapses at age 79.  It would have to earn 12.50% (including the 2.00% dividend) to equal the results of the IUL.

Objection #2: “Maybe you should skip the life insurance.”

OK, let’s compare the IUL to just an equity account with the same assumptions.

blog 108 image 4 cumulative payments cumulative after tax cash flow IUL indexed universal life image

Click here to review both illustrations, one with term insurance; the other without.  For consistency purposes, we used an increasing death benefit IUL for both.

Even with 200 basis points greater yield, the equity account collapses at age 80.  It would have to earn 12.20% (including the 2.00% dividend) to equal the results of the IUL.

Note: Robert McNamara, age 45, is the insured in Blog #106; Tony Harmon, age 45, is the insured in Blog #107.  The IUL illustrated for both is identical, so I used “Robert McNamara or Tony Harmon” as the insured in both illustrations.

Additional Advantages

The IUL has several additional advantages:

  • Unlike either equity alternative, if the selected market index for the IUL drops, there is no loss to the policy owner;
  • Against term and an equity side fund, it provides a life insurance death benefit during retirement years;
  • Against just an equity account, it also provides $3,500,000 in life insurance death benefits during pre-retirement years.

 

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.

Digital Workbook Files For This Blog

Blog108.zip

Download all workbook files for all blogs

Experienced Zip File Downloaders Download the zip file, open it, and double click the Workbook file name to open it in your InsMark System.

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.

 

InsMark’s Referral Resources
(Put our Illustration Experts to Work for Your Practice)

We created the Referral Resources listed below to deliver a “do-it-for-me” illustration service in a way that makes sense for your practice.  All are IMOs and InsMark Agency Platinum Power Producers®, and they are highly skilled at running InsMark software.  They will utilize your choice of insurance company, and they do not require a commission split.

Mention my name when you talk to our Referral Resources 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!

Testimonials

“I really thought I knew all the sales techniques that affect my business, but I do now, thanks to InsMark.”
Sam Keck, MBA, CLU, CFP, LUTCF, InsMark Platinum Power Producer®, Financial Planner, Denver, CO

“InsMark’s Checkmate® Selling strategy is still one of the most compelling tools to bring a client to a definitive decision, based on their best case alternatives!!!  Solid mathematical comparisons that prove the validity of our insurance solution!!!”
Frank Dunaway, III, CLU, Legacy Advisory Services, Carthage, MO

“InsMark provides incredible tools to give clients a visual of how they can optimize their wealth.  It’s great for deciding which road to go down.”
Jim Heafner, MBA, CFP, Heafner Financial Solutions, Inc., Charlotte, NC

 

Important Note #1:  The hypothetical life insurance illustrations associated with this Blog assumes the nonguaranteed values shown continue in all years.  This is not likely, and actual results may be more or less favorable.  Actual illustrations are not valid unless accompanied by a basic illustration from the issuing life insurance company.

Important Note #2:  Many of you are rightly concerned about the potential tax bomb in life insurance that can accidentally be triggered by a careless policyowner.  Click here to read Blog #51:  Avoiding the Tax Bomb in Life Insurance.

Important Note #3:  The information in this Blog is for educational purposes only.  In all cases, the approval of a client’s legal and tax advisers must be secured regarding the implementation or modification of any planning technique as well as the applicability and consequences of new cases, rulings, or legislation upon existing or impending plans.

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More Recent Blogs:

Blog #107: Profit Sharing Plan vs. Indexed Universal Life (Part 2 of 3)

Blog #106: Profit Sharing Plan vs. Indexed Universal Life (Part 1 of 3)

Blog #105: Stretch, Charitable, Roth (Three Smart IRA Strategies)

Blog #104: Good Logic vs. Bad Logic™ (It’s All About the Math)

Blog #103: Charging Monitoring Fees for a Client’s Wealth Plan

 

3 Reasons Why It’s Profitable For You To Share These
Blog Posts With Your Business Associates and
Professional Study Groups (i.e. “LinkedIn”)

 

Robert B. Ritter, Jr. Blog Archive

 

Blog #107: Profit Sharing Plan vs. Indexed Universal Life
(Part 2 of 3)

(Click here for Blog Archive)
(Click here for Blog Index)

(Presentations in this blog were created using the InsMark Illustration System.)

Getting Started with InsMark Training Video

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Editor’s Note:  Blog #107 applies to a C corporation rather than a pass-through entity like an S corporation, LLC, or LLP as described in Blog #106.  Blog #107 follows the text and formatting of Blog #106 so that each Blog contains complete information as to the nature of the transaction.

Tony Harmon, age 45, has a successful civil engineering firm with a staff of 30.  The business is a C corporation, and he is President and sole shareholder.

One of Tony’s advisers recently commented, “It’s too bad you don’t have a profit sharing plan in your company.  It’s a great way for you to put deductible money aside for retirement. Way more than, say, a 401(k) plan.”

Tony’s response, “I’ve looked into it, but I’d have to cover too many employees.  They already have a 401(k) plan with a generous match.”

The adviser countered, “There is a way you can contribute to a personal Profit Sharing Plan, do it just for yourself, and the cash flow at retirement is tax free.”

“Can I do that?  What’s the limit?”

“There is no limit.”

Show me!”

Case Study

For comparison purposes, let’s pretend that Tony could install a Profit Sharing Plan just for himself funded with a company-paid, deductible, $250,000 contribution each year for five years.  In the company’s 35% tax bracket, the deduction would produce tax savings of $87,500 reducing the annual after tax cost of the plan to $162,500.  (If Profit Sharing Plans could be constructed this way just for CEOs of multi-employee C corporations, there would be a stampede to install them.)

Alternatively, assume the company distributes the same $250,000 to Tony as a bonus.  Also deductible by the firm 1, this would produce the same after tax cost for the firm of $162,500 each year for five years.  In Tony’s personal, marginal income tax bracket of 40%, he pays income tax of $100,000 on the $250,000 and is left with $150,000 which he directs to $3,500,000 of Indexed Universal Life (“IUL”) set up as his personal retirement plan.

1Assuming Tony’s overall compensation is reasonable.

The key question is: Would Tony be better off with the company-paid, pretend Profit Sharing Plan funded with $250,000 or with the personally-owned IUL policy funded with $150,000?  If the IUL proves to be the superior choice, there is no limit to the amount that can be contributed to it.

Below are two graphics:

  • Summary of the results of the pretend Profit Sharing Plan where we scheduled withdrawals to produce the same after tax cash flow as the IUL;
  • Summary of the results of the IUL.

Unfortunately, the Profit Sharing Plan runs out of money in year 37 (Tony’s age 81) which is not the best timing for retirement cash flow to cease.

Pretend Profit Sharing Plan
(Paid for and Deducted by C Corporation)

Bob Ritter's blog 107 img 2 cumulative contributions distributions before and after tax plan assets image

Indexed Universal Life
(Paid for With Five Years of After Tax Bonuses from C Corporation)

Bob Ritter's blog 107 img 3 payments cumulative policy premiums cash flow policy values cash value death benefit image

Click here to see the year-by-year values of each component.

There is simply no way that the values generated by this pretend Profit Sharing Plan can compete with the IUL.  And remember — in reality, this Profit Sharing Plan is not available for Tony, but the IUL is.

Additional Advantages

The IUL has four additional advantages:

  • It provides a $3,500,000 life insurance death benefit;
  • If the selected market index drops, there is no loss to the policy owner;
  • There are no required minimum distributions;
  • There is no 10% penalty tax associated for distributions prior to age 59½.

Conclusion

There is no more powerful sales strategy for your business-owner clients than the advantages of IUL compared to a company-sponsored Profit Sharing Plan.  IUL has a significant mathematical advantage even if the Profit Sharing Plan could be installed just for the owner.  If you use this concept, you will likely never run out of prospective customers.

I hope the analysis in this Blog increases your appreciation of IUL considerably as it is truly an unmatched financial instrument.

Note:  See Blog #68 for a similar analysis involving IUL vs. a 401(k).

“I can only wonder if another asset with the same qualities would be implemented more frequently if it wasn’t called life insurance.”
(Bill Boersma)

Whose Money Is It Anyway?

During the accumulation years, the pretend Profit Sharing Plan shows more value than the Indexed UL.  For example, just prior to retirement, it has an illustrated value of $3,511,841 while the IUL contains only $1,924,052.  Apples to apples comparison?  It’s not comparable at all since, unlike the IUL, its values are subject to income tax when distributed.

So, whose money is it in the Profit Sharing Plan?  Tony would likely have 100% of it listed on his financial statement.  But it’s not 100% his; it’s 60% his and 40% the U.S. Government’s.  Whose money is it in the IUL?  It’s all Tony’s assuming he accesses it through income tax free participating loans.  Residual values are paid to heirs via the income tax free death benefit of the life insurance.

Funding Based on Type of Business

  • C corporation:  The deductible pretend Profit Sharing Plan is funded by the employer.  IUL is paid for with funds bonused by the business after Tony’s income tax is paid.
  • S corporation, LLC, LLP:  The pretend Profit Sharing Plan is funded by the business with the deduction flowing to the principals.  The IUL alternative is paid for with funds distributed by the business after personal taxes are paid.  (See Blog #106 for illustration details — they are different for S corporations, LLCs, and LLPs.)

To follow the logic presented in this Blog, in each case, a comparison should be made to the hypothetical, business-funded, Profit Sharing Plan as though such an exclusionary plan is possible.  That’s the point — even if it were, IUL is a smarter alternative.

Compared to What?

You don’t need to compare the IUL to a Profit Sharing Plan to illustrate the power of this form of life insurance, but prospects and clients make better decisions when alternatives are considered.  We call it Checkmate® Selling and it drives almost everything we do at InsMark.

Prospecting

Imagine the response you would get if you ask the following question of individuals similar to Tony:

“If you could invest an unlimited amount into a deductible profit sharing plan just for yourself, how much could you contribute annually over the next five years?”

This question usually produces a favorable response.  To illustrate how it works, determine the after tax cost of such a profit sharing plan and show that as the premium contribution of a personally-owned IUL policy.  If the business is a C corporation, you will need to use two modules in the InsMark Illustration System: the Defined Contribution Retirement Plan Calculator located on the InsCalc tab and the Illustration of Values module located on the Personal Insurance tab.

If you want to see the precise data entry I used for Tony’s Case Study, see below to request the System Workbook file from the InsMark Illustration System I used to create the numbers for this Blog.

Incidentally, if you find business owners under, say, age 55, who are already participating in a profit sharing plan, recommend they drop out and allocate an amount equal to their plan contribution to a bonus funded, personally-owned, cash-rich IUL policy.

 

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.

Digital Workbook Files For This Blog

Blog107.zip

Download all workbook files for all blogs

Experienced Zip File Downloaders Download the zip file, open it, and double click the Workbook file name to open it in your InsMark System.

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 of the InsMark Systems, 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 the Referral Resources listed below to deliver a “do-it-for-me” illustration service in a way that makes sense for your practice.  All are IMOs and InsMark Agency Platinum Power Producers®, and they are highly skilled at running InsMark software.  They will utilize your choice of insurance company, and they do not require a commission split.

Mention my name when you talk to our Referral Resources 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!

Testimonials:

“I really thought I knew all the sales techniques that affect my business, but I do now, thanks to InsMark.”
Sam Keck, MBA, CLU, CFP, LUTCF, InsMark Platinum Power Producer®, Financial Planner, Denver, CO

“InsMark’s Checkmate® Selling strategy is still one of the most compelling tools to bring a client to a definitive decision, based on their best case alternatives!!!  Solid mathematical comparisons that prove the validity of our insurance solution!!!”
Frank Dunaway, III, CLU, Legacy Advisory Services, Carthage, MO

“InsMark provides incredible tools to give clients a visual of how they can optimize their wealth.  It’s great for deciding which road to go down.”
Jim Heafner, MBA, CFP, Heafner Financial Solutions, Inc., Charlotte, NC

 

Important Note #1:  The hypothetical life insurance illustration associated with this Blog assumes the nonguaranteed values shown continue in all years.  This is not likely, and actual results may be more or less favorable.  Actual illustrations are not valid unless accompanied by a basic illustration from the issuing life insurance company.

Important Note #2:  Many of you are rightly concerned about the potential tax bomb in life insurance that can accidentally be triggered by a careless policyowner.  Click here to read Blog #51: Avoiding the Tax Bomb in Life Insurance.

Important Note #3:  The information in this Blog is for educational purposes only.  In all cases, the approval of a client’s legal and tax advisers must be secured regarding the implementation or modification of any planning technique as well as the applicability and consequences of new cases, rulings, or legislation upon existing or impending plans.

seperator bar

More Recent Blogs:

Blog #106: Profit Sharing Plan vs. Indexed Universal Life (Part 1 of 3)

Blog #105: Stretch, Charitable, Roth (Three Smart IRA Strategies)

Blog #104: Good Logic vs. Bad Logic™ (It’s All About the Math)

Blog #103: Charging Monitoring Fees for a Client’s Wealth Plan

Blog #102: Linking Indexed UL with Disability Income Insurance
(Part 2 of 2)

 

3 Reasons Why It’s Profitable For You To Share These
Blog Posts With Your Business Associates and
Professional Study Groups (i.e. “LinkedIn”)

 

Robert B. Ritter, Jr. Blog Archive

 

Blog #106: Profit Sharing Plan vs. Indexed Universal Life
(Part 1 of 3)

(Click here for Blog Archive)
(Click here for Blog Index)

(Presentations in this blog were created using the InsMark Illustration System.)

Getting Started with InsMark Training Video

Blog 105 stretch ira charitable ira roth ira three smart ira strategies image

Lion all mine image
Zero-Split-Case-Premium-Financing-click-here-to-receive-more-information
spacer image

Robert McNamara, age 45, is a very successful sports agent with a staff of 30.  His business is a limited liability company (LLC), and he is the Managing Member.

One of Robert’s advisers recently commented, “It’s too bad you don’t have a profit sharing plan in your company.  It’s a great way for you to put deductible money aside for retirement.  Way more than, say, a 401(k) plan.”

Robert’s response, “I’ve looked into it, but I’d have to cover too many employees.  They already have a 401(k) plan with a generous match.”

The adviser countered, “There is a way you can contribute to a personal Profit Sharing Plan, do it just for yourself, and the cash flow at retirement is tax free.”

“Can I do that?  What’s the limit?”

“There is no limit.”

Show me!”

Case Study

For comparison purposes, let’s pretend that Robert could install a Profit Sharing Plan just for himself funded with a company-paid, deductible, $250,000 contribution each year for five years.  Since the business is an LLC, the deduction would flow to Robert saving him $100,000 of income tax in his 40% marginal income tax bracket.  He would have the full $250,000 working on his behalf in the Profit Sharing Plan.  (If Profit Sharing Plans could be constructed this way, those who own LLCs, LLPs, or S corporations would stampede to install them.)

Alternatively, assume the LLC distributes the same $250,000 of business profits to Robert each year for five years.  In his personal, marginal income tax bracket of 40%, he pays income tax of $100,000 on the $250,000 and is left with $150,000 which he directs to $3,500,000 of Indexed Universal Life (“IUL”) set up as his personal retirement plan.

The key question is: Would Robert be better off with the company-paid, pretend Profit Sharing Plan funded with $250,000 or with the personally-owned IUL policy funded with $150,000?  If the IUL proves to be the superior choice, there is no limit to the amount that can be contributed to it.

Below is a graphic comparing the IUL to this pretend Profit Sharing Plan from which we have scheduled withdrawals to produce the same after tax cash flow as the IUL.  Unfortunately, the Profit Sharing Plan runs out of money in year 37 (Robert’s age 81) which is not the best timing for retirement cash flow to cease.

Bob Ritter's blog 106 graphic comparing the IUL to this Profit Sharing Plan image

Click here to see the year-by-year values of the comparison.

There is simply no way that the values generated by this pretend Profit Sharing Plan can compete with the IUL.  And remember — in reality, this Profit Sharing Plan is not available for Robert, but the IUL is.

Additional Advantages

The IUL has four additional advantages:

  • It provides a $3,500,000 life insurance death benefit;
  • If the selected market index drops, there is no loss to the policy owner;
  • There are no required minimum distributions;
  • There is no 10% penalty tax associated for distributions prior to age 59½.

Conclusion

Unlike C corporations, there are very few benefit arrangements that provide leverage for principals of Limited Liability Companies, Limited Liability Partnerships, and S corporations.  Due to the financial muscle of Indexed Universal Life (“IUL”), it outperforms a hypothetical profit sharing plan that discriminates totally in favor of the owner(s) of such entities.

I hope the analysis in this Blog increases your appreciation of IUL considerably as it is truly an unmatched financial instrument.

Note:  See Blog #68 for a similar analysis involving IUL vs. a 401(k).

“I can only wonder if another asset with the same qualities would be implemented more frequently if it wasn’t called life insurance.”
(Bill Boersma)

Whose Money Is It Anyway?

One of the more interesting aspects of this evaluation is that, during the accumulation years, the pretend Profit Sharing Plan shows more value than the Indexed UL.  For example, just prior to retirement it has an illustrated value of $3,511,841 while the IUL contains only $1,924,052.  Apples to apples comparison?  It’s not comparable at all since, unlike the IUL, its values are subject to income tax when distributed.

So, whose money is it in the Profit Sharing Plan?  Robert would likely have 100% of it listed on his financial statement.  But it’s not 100% his; it’s 60% his and 40% the U.S. Government’s.  Whose money is it in the IUL?  It’s all Robert’s assuming he accesses it in a smart fashion by way of income tax free participating loans.  Any residual values are paid to heirs via the income tax free death benefit of the life insurance.

Funding Based on Type of Business

  • S corporation, LLC, LLP:  The pretend Profit Sharing Plan is funded by the business with the deduction flowing to the principals.  The IUL alternative is paid for with funds distributed by the business after taxes are paid.
  • C corporation:  The deductible pretend Profit Sharing Plan is funded by the employer.  IUL is paid for with funds bonused by the business after taxes are paid.  (See Part 2 next week for illustration details — they are different for a C corporation.)

To follow the logic presented in this Blog, in each case, a comparison should be made to the hypothetical, business-funded, Profit Sharing Plan as though such an exclusionary plan is possible.  That’s the point — even if it were, IUL is a smarter alternative.

Compared to What?

You don’t need to compare the IUL to a Profit Sharing Plan to illustrate the power of this form of life insurance, but prospects and clients make better decisions when alternatives are considered.  We call it Checkmate® Selling, and it drives almost everything we do at InsMark.

Prospecting

Imagine the response you would get if you ask the following question of individuals similar to Robert:

“If you could invest an unlimited amount into a deductible profit sharing plan just for yourself, how much could you contribute annually over the next five years?”

This question usually produces a favorable response.  When that occurs, the Other Investments vs. Your Policy module in the InsMark Illustration System is a perfect choice to showcase the results of a pretend Profit Sharing Plan vs. IUL.  (The illustration technique used in this Blog works best for S corporations, LLCs and LLPs; however, next week, I’ll show you how it can be illustrated for a C corporation.)

If you want to see the precise data entry I used for Robert’s Case Study, see below to request the System Workbook file from the InsMark Illustration System I used to create the numbers for this Blog.

Incidentally, if you find business owners under, say, age 55, who are participating in a Profit Sharing Plan, recommend they drop out and allocate the after tax cost of their contribution to a cash-rich IUL policy.

 

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.

Digital Workbook Files For This Blog

Blog106.zip

Download all workbook files for all blogs

Experienced Zip File Downloaders Download the zip file, open it, and double click the Workbook file name to open it in your InsMark System.

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.

 

InsMark’s Referral Resources
(Put our Illustration Experts to Work for Your Practice)

We created the Referral Resources listed below to deliver a “do-it-for-me” illustration service in a way that makes sense for your practice.  All are IMOs and InsMark Agency Platinum Power Producers®, and they are highly skilled at running InsMark software.  They will utilize your choice of insurance company, and they do not require a commission split.

Mention my name when you talk to our Referral Resources 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!

Testimonials:

“I really thought I knew all the sales techniques that affect my business, but I do now, thanks to InsMark.”
Sam Keck, MBA, CLU, CFP, LUTCF, InsMark Platinum Power Producer®, Financial Planner, Denver, CO

“InsMark’s Checkmate® Selling strategy is still one of the most compelling tools to bring a client to a definitive decision, based on their best case alternatives!!!  Solid mathematical comparisons that prove the validity of our insurance solution!!!”
Frank Dunaway, III, CLU, Legacy Advisory Services, Carthage, MO

“InsMark provides incredible tools to give clients a visual of how they can optimize their wealth.  It’s great for deciding which road to go down.”
Jim Heafner, MBA, CFP, Heafner Financial Solutions, Inc., Charlotte, NC

 

Important Note #1:  The hypothetical life insurance illustration associated with this Blog assumes the nonguaranteed values shown continue in all years.  This is not likely, and actual results may be more or less favorable.  Actual illustrations are not valid unless accompanied by a basic illustration from the issuing life insurance company.

Important Note #2:  Many of you are rightly concerned about the potential tax bomb in life insurance that can accidentally be triggered by a careless policyowner.  Click here to read Blog #51: Avoiding the Tax Bomb in Life Insurance.

Important Note #3:  The information in this Blog is for educational purposes only.  In all cases, the approval of a client’s legal and tax advisers must be secured regarding the implementation or modification of any planning technique as well as the applicability and consequences of new cases, rulings, or legislation upon existing or impending plans.

seperator bar

More Recent Blogs:

Blog #105: Stretch, Charitable, Roth (Three Smart IRA Strategies)

Blog #104: Good Logic vs. Bad Logic™ (It’s All About the Math)

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)

 

3 Reasons Why It’s Profitable For You To Share These
Blog Posts With Your Business Associates and
Professional Study Groups (i.e. “LinkedIn”)

 

Robert B. Ritter, Jr. Blog Archive