Thought for the day:
“A golf match is a test of your skill against your opponent’s luck”
TO OUR MANY NEW RECIPIENTS OF THIS “MONDAY GREETING”, A FEW WORDS OF EXPLANATION; AS IT IS UNLIKE MOST ANYTHING YOU RECEIVE FROM OTHER VENDORS.
“PEARLS” is intended to provide four minutes of education and entertainment once a week. If you take the time to read it, you will find over time that you have an added awareness and appreciation for the role that fixed and variable insurance products can play in a well-designed portfolio. Not always a revelation; but we won’t waste your four minutes either… Unless, of course, you find my humor “not funny”.
The mission of Westland Financial Services is to support the financial advisor community with solid, up-to-date strategies that include insurance products to meet certain needs of clients. We show financial planners the reasons to use insurance as a desired option rather than just because it’s needed.
Open it, give it a glance; and then delete if you see nothing of interest. We think that most of the time you will go ahead and allocate a whole four minutes.
If you will read no further:
“Long-term care insurance provides choice and control, protects retirements and lifestyles, and allows loved ones to care about you rather than being forced to care for you. You can’t put a price on that kind of value.” http://hub.am/10moir9
Bill Jones, president of The MedAmerica Companies
Thought for the week:
Following a recent presentation I made to a group of consumers a gentleman came up to me and said that I was a “Fraud”. Quickly consoling myself that he was only one out of the 70 folks in attendance, I naturally asked him why he would say that. “Because, he said, I came here expecting to learn how to self-insure for long-term care; and all you did was try to sell me an insurance policy”. He was referring to my compelling presentation (that everyone else thought was quite insightful) about placing a linked benefit insurance policy like MoneyGuard or TLC from Genworth into the portfolio to leverage the value of their savings by 3-5 times when LTC is needed.
When I asked him just what he expected to hear, he said that he wanted to know how to get the most from any government programs and other ways to reduce the impact on his portfolio when paying for long-term care. I pointed out that we did carefully go through the five Government programs and tax laws that address and define the government’s participation in the long-term care issue. Then went on to point out that the remainder of the presentation was about how to best position money in his portfolio to provide the maximum value at the time of need with the minimum impact to his legacy. Pretty awesome, huh?
Even though I pointed out that money could be placed in an account with the insurance company that would be safe and liquid and earn three times the interest (or more) than the bank to purchase needed benefits. That these annual earnings are not taxed. That the deposit could be retrieved at any time for any reason. That, if he ever needed care, his account would be instantly revalued at 300% to 500%* of the deposit and generate tax-free income of 4% to 6% PER MONTH of that value for as long as six years. And finally, if he never needed to use the money in the cash account for any reason, or he never needed long-term care, his heirs would receive the money when he passed away, plus a tax free rate of return equaling or exceeding any bank interest he could expect. From that point on he sounded like some financial planners I know, “Yes, but you are just trying to sell me an insurance policy”.
I started to explain to him (again) that he had to have his money somewhere. And he interrupted me by calling me a “fraud” for the second time and bragging that he could do better by investing the money elsewhere; and instead, I would try to sell him a life insurance policy. Needless to say, I determined that our conversation was over and I told him he could have his money back. Oh wait! The lecture and the wine and hors d’oeuvres were free.
At least I was able to console myself that a financial planner would never think like that. He/she would know that even at a constant 8% tax free return it would take 18 years to grow his money four times and almost 25 years at 6%; while my plan delivers that amount THE NEXT DAY if needed. And what if he needs it sooner rather than later? But then, it’s really only insurance. And who wants that?
*Depending on sex and age at time of issue and the policy design chosen.
Josh Ver Hoeve is the “Amazon.com” of the annuity business. Call (800)238-8144 or email joshvh@westlandinc.com your proposal by noon and it is guaranteed to be shipped that very day.
Genworth is now offering 5.75% cap and 5.25% bailout on 7 yr. index and everyone else is raising their rates as well. That is why Josh Ver Hove is so busy lately.