Blog #151 – The Trump Presidency: How It Will Impact the Sale of Life Insurance Retirement Plans

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Later this week, Donald J. Trump will become the 45th President of the United States.

One thing we know for sure.  President-elect Trump wants to reduce the top Federal income tax rate from 39.6% to 33%.  And, with a Republican majority in both houses of Congress, this is a very real possibility.  So, one might assume that this means that the benefits of tax free accumulation in cash value life insurance policies could be less valuable if the top rate does in fact go down.

I would argue the exact opposite.

Before I make my case, every single American should watch the video (see link below) from David Walker (Comptroller General of the U.S. and Head of the G.A.O. from 1998-2008).  Mr. Walker is one of the smartest, most “inside guys” in the world when it comes to U.S. fiscal policy and what’s likely to happen in future generations as it pertains to taxes and government spending . . . so it’s worth hearing what he has to say.

https://www.youtube.com/watch?v=hsUdK70Jtmc

The key takeaway from this video is that there is high probability that future income tax rates will be far greater than they are today (regardless of who occupies the White House or controls Congress, and in spite of the fact that we might have temporary lower rates under a Trump administration).

So, what does this mean if income tax rates are lower for the next 4 to 8 years and then rise higher after that (possibly much higher)?

It means the following:

  1. Tax deductions for IRAs and qualified plans made today are worth less in current tax savings (and cost more in terms of taxable distributions in 10, 15 or 20 years).
  2. At least a portion of your total retirement savings need to be in financial instruments that are protected against skyrocketing future income tax rates (specifically, Roth IRAs and Life Insurance Retirement Plans).

And, that’s very good news for all of us…

One of the best books written for how American taxpayers can maximize their future retirement income is called The Power of Zero by David McKnight.  This book is one of two #1 Amazon best sellers that David has written and he’s introduced some incredible insights into how cash value life insurance can be a key part of an optimized retirement planning program (especially considering the significant risk of higher income taxation down the road).

You should also know that David is one of the top life insurance producers in the U.S. So, his insights and solutions are not theoretical.  He’s also developed a system around The Power of Zero that creates a steady stream of new clients requesting help with The Power of Zero analysis for their individual circumstances (so he’s essentially cracked the “prospecting code” and we found that interesting as well).

To help you understand these issues, we have asked David to share his ideas at a webinar event that will be held at 11 AM (Eastern) on Thursday, January 19th.  Click here to register for this event.

Scheduled Webinar

To learn more of the details of The Power of Zero Webinar presented by InsMark and how this can be a turn-key opportunity for you and your clients, there will be a LIVE one-hour Webinar on Thursday, January 19th at 11 AM (Eastern).  This Webinar is entitled “Learn How To Help Your Clients Use Life Insurance and Roth IRAs to Avoid Crippling Taxation on Social Security and IRA/Pension Plan Income During Retirement”.  Simply click here to register.  By attending the webinar, you will discover:

  • Why Trump’s election may provide one of the greatest opportunities for the sale of Life Insurance Retirement Plans . . . ever;
  • How you can use The Power Of Zero to dramatically increase the sale of cash value life insurance in your current practice;
  • How The Power Of Zero can create a constant stream of new clients;
  • Why it’s likely that income tax rates on Americans will be much higher in future years (post Trump) and why every one of your clients should be taking steps now to diversify against this risk;
  • Why “overfunding” traditional IRAs and qualified plans can cause major tax problems during retirement (and why the advisors earning investment fees on these plans have a financial incentive to exacerbate this “overfunding problem”);
  • How to determine the proper balance in taxable, tax deferred and tax free buckets to optimize your after-tax income during retirement;
  • Why even the wealthiest individuals can benefit from The Power Of Zero investment strategy;
  • Why you don’t need to do any of the individual client analysis and presentations for The Power Of Zero (and where to get those resources….if all you want to do is sell);
  • THE COST FOR YOU TO ATTEND THIS WEBINAR IS ZERO.

 

Don Prehn and David McKnight will be presenting The Power of Zero platform during the webinar.

More About Don Prehn

Don Prehn imageDon Prehn, CLU, ChFC is a past president, and current board member/senior adviser to InsMark, Inc.  As part of Don’s current advisory role with InsMark, Don heads up InsMark’s strategic partnerships where companies with financial strategies, solutions and products desire to position InsMark as a reseller of these products to InsMark’s 20,000 licensed software users (all of which are financial services advisors).  Don is also heavily involved with InsMark’s marketing communications with its licensed users.  Aside from InsMark, Don co-founded a finance company in 1996 which was then merged with AMRESCO (a public company based in Texas) and then ultimately sold to a Goldman Sachs led partnership in 2002.  Finally, Don is also the co-founder of Integrated Platforms (a small firm located in Boise focused on digital marketing).

More About David McKnight

David McKnight imageDavid McKnight graduated from Brigham Young University with Honors in 1997.  David is a nationally recognized speaker and his popular workshop “The Power of Zero” has been seen by thousands of Americans from coast to coast.  In 2014, David was a Focus Speaker at the world-wide annual conference for Million Dollar Roundtable in Toronto, Canada.  In 2016 he spoke on the main platform at Ed Slott’s Elite IRA Advisor Group Workshop. He is also a multiple Top of the Table qualifier.

David is the author of two #1 Amazon best-selling books, The Power of Zero and Look Before You LIRP and contributes regularly to a number of national magazines on the subject of tax-free retirement.

David has trained thousands of financial advisors on his tax-free paradigm.  He is the President and Founder of The Power of Zero Marketing Program located in Mequon, Wisconsin.

David is very involved with his family, church and community.  He currently resides in Grafton, Wisconsin with his wife Felice and their seven children.

Licensing InsMark Systems

To license any of the InsMark software products, visit our Product Center online at 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.

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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.

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Doug Peete, Past President, Top of the Table, InsMark Silver Power Producer®, Overland Park, KS

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Sam Keck, MBA, CLU, CFP, LUTCF, InsMark Platinum Power Producer®, Financial Planner, Denver, CO

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

 

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.

 

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Blog #147: New Logic for Permanent vs. Term (Part 2 of 3)

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Robert B. Ritter, Jr. Blog Archive

 

2 thoughts on “Blog #151 – The Trump Presidency: How It Will Impact the Sale of Life Insurance Retirement Plans

  • February 7, 2017 at 9:10 am
    Permalink

    Bob,

    I joined “The Power of Zero” Webinar presentation and have subsequently read David McKnight’s “The Power of Zero” book.

    Considering your enthusiastic support of this concept, “It’s Math”, and how it ties so closely with Wealthy and Wise, are you planning to develop a “Zero Income Tax Plan”
    Sample Client workbook to supplement the current “Zero Estate Tax Plan” Sample Client workbook? I hope so.

    Look forward to hearing from you.

    Best regards,
    Don Lomax

    Reply
    • February 7, 2017 at 9:16 am
      Permalink

      Hi Don,

      Sometimes I’m really asleep at the switch.  I did a Wealthy and Wise® “Zero Income Tax” presentation at the 2016 Symposium last November, and it didn’t occur to me to have it made into a Sample Workbook until I got your email.  Thanks a lot for the suggestion.  We should have the Sample Workbook in the Wealthy and Wise System in a few days.

      In addition, here is a link to a pdf of the PowerPoint I used at the Symposium to explain the concept to give you some narrative on our version.

      Thanks again for contacting me about it.

      Best regards,
      Bob Ritter
      InsMark President

      Reply

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