Blog #131: Don’t Burn the Nest Egg™

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

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Bob Ritter's blog #131 Dont-Burn-the-Nest-Egg

“Don’t Burn the Nest Egg” is a trademark of InsMark, Inc.

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Andy MacGregor is the managing member of MacGregor Cars, LLC, a luxury car search company for upscale clients.  The LLC has no other members or employees.

Andy, age 40, is about to install what he considers the beginning of his “nest egg”, an Individual 401(k) -- also known as a Solo 401(k) -- with a $50,000 annual, deductible contribution.  In his 40% marginal state and federal tax bracket, it will cost him $30,000 to make the $50,000 contribution.

According to Investopedia, a nest egg is a substantial sum of money that has been saved or invested for a specific purpose and is generally earmarked for longer-term objectives, the most common being retirement.

Andy’s nest egg would be significantly better-funded if the after tax cost of the $50,000 contribution to the 401(k) -- $30,000 in his case -- were placed in max-funded indexed universal life (“IUL”).  The proof of this follows.

“Nest egg” has referred to savings since the late 17th century.  The term is believed to have been derived from poultry farmers’ tactic of placing eggs - both real and fake - in hens’ nests to induce them to lay more eggs, which meant more income for these farmers.

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The Mathematics

Below is a graphic of the results of the IUL.

Image 1
Indexed Universal Life

blog-131-Image-1-Indexed-Universal-Life

Click here to review the full IUL illustration from the InsMark Illustration System.

A Solo 401(k), however, is a tax deferred investment, so let’s match that against the IUL using the same crediting rate of 7.00% as the IUL.  Below is a graphic of the customized comparison from the Other Investments vs. Your Policy module in the InsMark Illustration System:

Image 2
Solo 401(k)
vs.
Indexed Universal Life

blog-131-Image-2-Solo-401K-vs-Indexed-Universal-Life

Click here to review the full comparison of a Solo 401(k) vs. IUL.  As you can see on Page 3.  the Solo 401(k) crashes and burns at Andy’s age 85 which is another good reminder for your clients -- Don’t Burn the Nest Egg™.

As you can see on Page 4, Andy needs an annual, pre-tax equivalent rate of return of 9.04% on the Solo 401(k) to match the long-range values of the IUL.  That’s 204 basis points more than the 7.00% illustrated for the IUL.

Roth Solo 401(k)

A Roth Solo 401(k) is also an available option for Andy.  His non-deductible annual contribution for 2016 for this plan is limited to $18,000 so let’s compare that with an $18,000 annual premium for the IUL.  As the analysis below proves, any funds considered for the Roth Solo 401(k) should be directed to IUL.

Image 3
Roth Solo 401(k)
vs.
Indexed Universal Life

blog-131-Image-3-Roth-Solo-401-K-vs-Indexed-Universal-Life

Click here to review the full comparison of a Roth Solo 401(k) vs. IUL.  Andy needs a rate of return of 8.96% on the Roth Solo 401(k) to match the long-range values of the IUL.

Conclusion

Comparing the after tax costs of funding and the after tax retirement cash flow, IUL is significantly better than any of the following retirement plans:

  • IRA;
  • Roth IRA;
  • Keogh;
  • 401(k);
  • Solo 401(k);
  • Roth Solo 401(k);
  • 457 plan;
  • Profit sharing plan.

Other Important Advantages to the IUL

Unlike the alternative retirement plans noted above:

  • IUL provides a significant death benefit for Andy’s family in all years.
  • IUL requires no complex client calculations to establish the funding level because there are no contribution limits to IUL.
  • Waiver of premium can be attached to IUL in the event of disability.
  • There is no 10% premature distribution tax on cash flow from IUL.
  • Tax free loans can be taken from the IUL with no IRS limits or payback requirements.
  • IUL can maintain its “Nest Egg” qualities throughout the years illustrated.

The Challenge

Total U.S. retirement assets are close to $30 trillion.  Are you getting your share of contributions to those plans redirected to IUL?  An entire career could be based on this project.

Life insurance has been traditionally viewed as “expensive”, but the client’s perception is markedly different when the results shown in this Blog are achieved.  Once again, here is Bill Boersma’s comment from his article in the December 2014 issue of Trusts & Estates in which he discusses life insurance as an asset class:

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

IUL vs. Defined Contribution Plans

Below are links to other Blogs on this general subject that may be of interest to you:

Note:  These links are easily found in the Blog Index which is a resource you should use to identify Blogs on specific subjects that interest you.  To identify the ones listed above, I selected Blogs By Sales Concept followed by Retirement Planning and Wealth Management.

Licensing InsMark Systems

To license the InsMark Illustration System, visit us online or 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 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

Blog131.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!

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“The reason I use InsMark products is because they are so good at explaining financial concepts to all three parties: 1) the producer trying to explain the idea; 2) the computer technician trying to illustrate it; 3) the customer trying to understand it.”
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Brian Langford, InsMark Platinum Power Producer®, Plano, TX

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Larry Gustafson, InsMark Platinum Power Producer®, Denver, CO

 

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 #130: Should I or Shouldn’t I?

Blog #129: Leveraged Executive Bonus Plan with Bank-Funding of the Income Tax (Part 3 of 3)

Blog #128: Leveraged Executive Bonus Plan with Bank-Funding of the Income Tax (Part 2 of 3)

Blog #127: Leveraged Executive Bonus Plan with
Bank-Funding of the Income Tax (Part 1 of 3)

Blog #126: The Leverage of Bank-Funded Estate Liquidity

 

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 #130: Should I or Shouldn’t I?

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

(Presentations in this blog were created using Wealthy and Wise®.)

Getting Started with InsMark Training Video

A Guest Blog by Richard Abelar
InsMark Senior Software Engineer and
Wealthy and Wise Project Manager

Bob Ritter’s Blog #130: Should I or Shouldn’t I ?

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Note from Bob Ritter:  Richard Abelar is a Senior Software Engineer at InsMark and is the individual primarily responsible for the coding and maintenance of our Wealthy and Wise® System.  When Rich told me his story of how he used Wealthy and Wise to help a friend make an informed decision about a real estate matter, I asked him to turn it into a Guest Blog -- and here it is.

How many times have you heard this question, particularly from your clients?  Should I or Shouldn’t I?  This question was recently posed to me by a longtime friend.  She was considering purchasing a new home and was trying to determine if the purchase was a sound financial choice.  Being a retired widow, she was quite concerned with liquid asset longevity as well as estate transfer.

The InsMark Wealthy and Wise® System is an extremely powerful tool capable of analyzing the most complicated financial planning scenarios.  However, Wealthy and Wise is equally powerful when analyzing seemingly straight forward decisions such as a home purchase.  Wealthy and Wise was the perfect tool to help answer my friend’s question.

Background

Carol Johnson is 79 years old and has been comfortably retired for many years.  She has lived in her home for 50 years but is considering a new home in a safer neighborhood and closer to her children and grandchildren.  Even after considering the advantages of a new home, the thought of making such a big financial commitment at this stage of her life was daunting.  Carol and her husband lived conservatively and worked very hard for their retirement.  She didn’t want to make a bad decision.

Carol’s current home is worth $320,000.  She has about $507,000 in cash and investments, and $410,000 in an IRA.  She collects $48,500 a year from a defined benefit retirement plan, and $15,625 from Social security, which together provides her an income with which she is comfortable.  Being above the magical age of 70 ½, Carol is required to take minimum distribution from her IRA which she uses for family gifts and reinvestment cash flow.

Carol’s questions:

  • Should I or Shouldn’t I purchase this home?
  • If purchasing the home is a good idea, how should I go about it?
  • Sell my current home?
  • Keep it as rental property?
  • Take a mortgage on the new house?
  • Can I afford the payments?
  • What about taxes and insurance?

So many questions!

Case Study

Scenario 1 – Current Situation:  We start off by doing the basic “Status Quo” illustration.  This gives a picture of where Carol is now and what kind of net worth she is likely to have over her life expectancy assuming she remains in her current home.  It also shows what her estate picture is when that inevitable day comes.  In doing this analysis we used an inflation index of 2% on her income stream and a growth rate of 3% on her real estate assets, slightly out-pacing inflation.  Growth rate assumptions on liquid assets are as follows:  Tax Exempt Assets (2): 4% and 3%, Equity Assets: 6% with 0.5% dividend, and IRA: 5%.  We assumed a stretch-out option for her IRA so the income tax will continue to be deferred at death.  Carol is gifting a total $20,000 annually divided among her adult children.

Scenario 2 – Simple Home Replacement:  In this scenario we look at selling her existing home and purchasing the new home for cash at $515,000.  Since Carol has been in her existing home for so long, she has a very low cost basis and will incur some capital gains tax on her home sale calculated by Wealthy and Wise.  She needs an additional $203,000 in cash to complete the purchase of the new home.  Her financial advisor has told her that she has access to these funds for a very modest tax consequence (also calculated by Wealthy and Wise).

Scenario 3 – Keep Current Home as Rental Property and Purchase New Home:  In this scenario, we look at renting her old home and purchasing the new home.  Carol’s local real estate professional has advised her that she can get $1,400 or more per month for rent.  Since she has access to $200,000 of liquid assets for little tax, we will use that for the down payment on the new house and take a standard amortized mortgage for $315,000 at 4.1% to complete the transaction.

Results at Life Expectancy

Scenario 1 reveals that if Carol remains in her current home until her life expectancy of 89, her net worth grows to $1,555,690 and her total estate transferred to heirs is $1,775,690.

Scenario 2, complete home replacement, is her worst choice, decreasing her net worth and wealth to heirs by over $130,000.

Scenario 3, keeping the old home as rental property and taking on the mortgage for the new home results in a very small increase in net worth and wealth to heirs.

See the two graphics below showing a comparison of these three options:

Image 1

blog-130-img-1b-net-worth-after-providing-required-cash-flow image

Image 2

blog-130-img-2-wealth-to-heirs image

Our analysis can be further expanded to include a safety net -- just in case.  Carol’s original thought was to suspend her family gifting and use that money to pay her mortgage payment.  Our analysis so far keeps those gifts intact and illustrates that she can afford both.  However, if Carol becomes concerned after a few years we can show her the effect of suspending those gifts at a later time.  Scenario 4 suspends the gifts after 3 years.  This strategy results in an increase in net worth with virtually the same wealth to heirs.  The details can be seen in the graphs below:

Image 3

blog-130-img-3-net-worth-after-providing-required-cash-flow

Image 4

blog-130-img-4-wealth-to-heirs image

Conclusion

Carol has the information she needs to make a sound financial decision.  She is now comfortable that she can enjoy a new home in a nice area, closer to her family with very little financial worries.  If she becomes concerned about her situation in the future, she has an additional safety net of suspending her family gifts to increase her income and help satisfy her new home commitment.  Carol can now move forward with her plan.

One thing she won’t be dragging with her when she moves is that nagging question:  Should I or Shouldn’t I?

Note:  Should Carol live past her life expectancy of 11 years, her net worth and wealth to heirs continue to grow on a similar path as shown in the above images including providing her with the needed retirement cash flow.

Licensing InsMark Systems

To license Wealthy and Wise, visit us online or 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 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

Blog130.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

“InsMark helps us help our clients understand their money and their choices.  I always learn something new that changes what we do and how we can do it more efficiently.  That translates to a better bottom line for us and for our clients.  It’s making more money for everyone -- just by pushing InsMark buttons on the computer.”
Kay Corbin, CLU, ChFC, InsMark Platinum Power Producer®, Phoenix, AZ

“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®, Minneapolis, MN

 

Important Note:  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 #129: Leveraged Executive Bonus Plan with Bank-Funding of the Income Tax (Part 3 of 3)

Blog #128: Leveraged Executive Bonus Plan with Bank-Funding of the Income Tax (Part 2 of 3)

Blog #127: Leveraged Executive Bonus Plan with
Bank-Funding of the Income Tax (Part 1 of 3)

Blog #126: The Leverage of Bank-Funded Estate Liquidity

Blog #125: Web Supported Resources for You

 

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 #129: Leveraged Executive Bonus Plan with
Bank-Funding of the Income Tax (Part 3 of 3)

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

(Presentations were created using the InsMark Illustration System.)

Getting Started with InsMark Training Video

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Bob Ritter's blog #129 Leveraged-Executive-Bonus-Plan-with-Bank-Funding-of-the-Income-Tax image

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Summary of Part 1 and Part 2

As you will recall from Blog #127, Hawthorne Construction, Inc., has decided that part of a new benefit plan for Alex Demas will include a Leveraged Executive Bonus Plan funded with $2,875,000 of indexed universal life (IUL).  The policy is max-funded with five level premiums of $100,000 financed with deductible bonuses by the company paid to Alex.  Alex will pay the annual income tax on each bonus with funds from a bank loan secured by the cash value of the IUL.

We integrated data from the illustration in Blog #127 into an overall wealth evaluation using our Wealthy and Wise® System which developed some amazing results for Alex and his wife, Ana.

In Blog #128, we introduced an incentive feature called “Controlled Executive Bonus” where we added a condition to Alex’s bonus arrangement that the bonuses must be repaid if he voluntarily leaves the firm during the next 10 years.

Part of the analysis in Blog #127 includes the conversion of $500,000 in IRA assets to a Roth IRA.  The income tax generated by the conversion is paid by a withdrawal for their liquid assets — it is not an out-of-pocket cost.  As a result, Alex and Ana consider the income tax to be an investment, not a cost, as it is the key to an increase in their long-range net worth of almost $8 million.

Note:  Any future contribution to a retirement plan by Alex and/or Ana should likely be directed to a Roth IRA.

Part 3 of the Series

How about Inherited IRAs vs. Inherited Roth IRAs for heirs?

Alex and Ana’s daughter, Lexie, is currently age 15.  Let’s assume she inherits the retirement plan in 50 years at her parents’ joint life expectancy of ages 89/89, which will be Lexie’s age 65.

Below is the comparison of Lexie’s Inherited IRA vs. her Inherited Roth IRA.

Inherited IRA vs. Inherited Roth IRA
Lexie Demas at age 65
Assumed Yield 7.00%

blog-129-img-2-Inherited-IRA-vs-Inherited-Roth-IRA-image

The reason for the discrepancy between the two options?  By Alex and Ana’s joint life expectancy, the required minimum distributions (RMDs) from the IRA result in an initial value for Lexie’s Inherited IRA of $4,470,813 which produces after tax cash flow for her retirement of $6,471,304.  The Roth, with no RMDs, develops an initial value for Lexie’s Inherited Roth IRA of $14,728,531 which produces after tax cash flow for her retirement of $30,455,562 — 470% greater than the Inherited IRA.  This alone is reason enough for Alex and Ana to convert the IRA to a Roth IRA.

If you are not including the giant impact on heirs of inheriting a Roth IRA in your presentations, you are missing out on a major benefit for your clients that they likely have never considered or been shown.

Click here to review the Inherited IRA vs Inherited Roth IRA comparison from the InsMark Illustration System.

Source of the Inherited IRA and Inherited Roth IRA Calculations

Three calculators from the InsMark Illustration System (InsCalc tab) were used:

  • Inherited IRA Calculator
  • Inherited Roth IRA Calculator
  • Comparison of Inherited IRAs

Derived from the Wealthy and Wise evaluation in Blog #127, we used the Defined Contribution Transfer Tax (Summary) report in Scenario 1 and the Roth Defined Contribution Transfer Tax (Summary) report in Scenario 3 to establish the beginning values of Lexie’s inherited retirement plan.

Click here to review those Wealthy and Wise reports.  The value I used as the initial balance for Lexie’s Inherited IRA ($4,470,813) is at her parents’ ages 89/89 in Column (4) on Page 2.  The value I used as the initial balance for Lexie’s Inherited Roth IRA ($14,728,531) is at her parents’ ages 89/89 in Column (4) on Page 4.

This data from the Wealthy and Wise reports was entered into each plan’s respective calculator (IRA Calculator and Roth IRA Calculator) on the InsCalc tab in the InsMark Illustration System (“IIS”).  The results of each were then easily imported into the Comparison of Inherited IRAs Calculator in the same location which is source of the graphic image above.  The IIS Workbook with all three calculators is available below.

Note:  If you would like to review these two Wealthy and Wise evaluations in the context of Blog #127, go to the section entitled System Workbook Files in Blog #127 and request that we email that Wealthy and Wise Workbook to you using the email address indicated at that location.

Conclusion

The benefits for Lexie Demas all stem from the power of the Leveraged Executive Bonus Plan featured in this three-part series of bank-funded income tax on the bonuses.  Without the introduction of that plan’s benefits into the Wealthy and Wise analysis for her parents, none of the features described in Blogs #127, #128, and #129 would be present.

Here is a short summary of the three Blogs in the series:

Blog #127:

Hawthorne Construction, Inc., deducts the bonuses paid to Alex resulting in an annual after tax cost of $65,000 a year for five years.

Alex is rewarded with an executive fringe benefit which, at no personal cost, provides:

  • Pre-retirement, tax free death benefit of $2 million+ for his family;
  • After tax retirement cash flow totaling $4.8 million;
  • Residual policy cash value of $1.7 million.
  • Residual policy death benefit of $1.8 million.

Blog #128:

Hawthorne Construction, Inc., adds a Controlled Bonus feature to Alex’s benefit plan which provides it with near certainty of Alex’s employment for at least the next 10 years.

Blog #129:

A major result of the Roth conversion (outlined in Blog #127) results in a benefit to Alex and Ana’s daughter, Lexie, of an inheritance of an after tax income stream totaling over $30 million through her age 85.  (The Inherited IRA and the Inherited Roth are both subject to RMDs.  As a result, either inherited account is exhausted by Lexie’s age 85.)

Licensing InsMark Systems

To license the InsMark Illustration System, visit us online or 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 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

Blog129zip

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 is the Picasso of the financial services world — their marketing savvy never fails to amaze me.”
Doug Peete, Past President, Top of the Table, InsMark Silver Power Producer®, Overland Park, KS

“Standard bank financing illustrations produce much in the way of great data, but it takes the variations available in the InsMark Premium Financing System to really present compelling numbers; however, the integration of that data into InsMark’s comparative modules like Various Financial Alternatives and Wealthy and Wise is really what makes premium financing sizzle.  The inherited IRA calculations add even more.”
Chris Jacob, CFP, SFI-Cadeau, InsMark Platinum Power Producer®, St. Louis, MO

“As with all of the InsMark software, InsMark’s Premium Financing System has proven to be an indispensable addition to my ability to show my clients the advantages in using bank loans to solve their financial needs.  Because of this, I was able to close three large financed cases easier and faster than ever before.  As always, InsMark has delivered again.  I encourage all who use bank financing as a solution to their clients’ needs to purchase this system.  The cost of the system is not an expense, but rather an investment in your business.”
William Moates, Jr., Trilennium Financial Alliance LLC, Fort Smith, AR, InsMark Platinum Power Producer®

“InsMark has created without question the best suite of software for our industry that has ever existed.  I personally have been using their software for almost 30 years, and it changed my career.  This unique and user friendly software will add many thousands to your income for as long as you’re in business.  InsMark makes me look good, and it will you as well.”
Simon Singer, CFP®, CAP®, RFC®, International Forum Member, InsMark Platinum Power Producer®, Encino, CA

 

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.

seperator bar

More Recent Blogs:

Blog #128: Leveraged Executive Bonus Plan with Bank-Funding of the Income Tax (Part 2 of 3)

Blog #127: Leveraged Executive Bonus Plan with
Bank-Funding of the Income Tax (Part 1 of 3)

Blog #126: The Leverage of Bank-Funded Estate Liquidity

Blog #125: Web Supported Resources for You

Blog #124: More on the Siren Song of “Buy Term and Invest the Difference”

 

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