Thought for the day:
“ Life would be infinitely happier if we could only be born at the age of 80 and gradually approach 18. ” — Mark Twain
If you will read no further:
Consider this. It’s not a matter of if you die; it’s a matter of when. Part of almost every older client’s financial strategy consists of leaving some money for kids, grandkids or charity. “Investing” in life insurance will yield a guaranteed IRR that will surpass anything you can do for them elsewhere; particularly considering the guarantees.
Thought for the week:
I spent half a day last week listening to a respected economist who counsels several hundred corporate executives and private investors on the current and future outlook for the economy, U.S. and worldwide. His message was similar to what we are hearing from economist and analysts for the broker/dealers and investment firms that we are involved with. “For the time being, everything is holding together. But this not a healthy situation and will not last much longer”, he said. He gave a very compelling argument for a modest recession beginning end of 2013-early 2014 with a pull back in the market of 25-40%.
Clearly the “goings-on” in Washington is not helping and the rest of the world sucks as well. ; China is starting to feel the pain as well; not anywhere near the problem that we have but they will. And all of this portends the importance of protecting the portfolios, particularly of your older clients.
I’ll bet you are ready for me to say that MoneyGuard will solve their problems. Good for you! Actually, that is not what I was going to say. But I like the way you’re thinking.
Buy only individual issues of Bonds; no mutual funds or ETFs please. An annuity helps a great deal…not in place of, but in addition to your other favorites. There is nothing wrong with 6, 7 or 8% income from some of their money with no risk or reduction when the next couple of recessions come around. The tax benefits aren’t bad either. Remember, 60% to 80% of most annuity income is tax-free.
And while the younger clients are sitting on cash in their portfolio waiting for the bad stuff to pass, encourage them to begin a couple of half-million dollar life insurance policies on both the husband and wife. Life insurance from age 50 on is an investment, not just a need. Consider this; its not a matter of if you die, it’s a matter of when. Part of almost every older client’s financial strategy consists of leaving some money for kids, grandkids or charity. Why not fund that legacy beginning at 50 or so with a life insurance policy that will pay LTCi benefits if needed. Annual deposits for 10 years and done…or smaller ones for life if they wish. Click here and see the internal rate of return on a life insurance investment beginning at age 50 or 60. Then tell me how you will beat that in the next 20 years particularly when you consider the ironclad predictability of the results.
For California Advisors:
We told you 18 years ago that the LTCi program offered by the California Public Employee Retirement System (CalPERS) would not hold up. Three rate increases since then and now the big Kahuna. An 85% rate increase is on its way. http://www.sacbee.com/2013/02/28/5223864/the-state-worker-did-calpers-lie.html
Some of your clients may still be young enough and healthy enough to look at alternatives, but most will be too old or too sick. Call us and we can tell you which.
Encouraging your younger clients to purchase Linked-benefit life insurance from carriers like John Hancock will assure them that in years from now they will not have to face the circumstances that these folks are facing. Prepare them today with an insured sinking fund that will provide hundreds of thousand of dollars when LTCi becomes a reality for them; and hundreds of thousands of tax-free dollars for their heirs if they are lucky and it doesn’t. How good a deal is that???