How to enjoy a 9.94% annual return without market risk – bank on yourself list of ways to make money

Presumably the $1,054 premiums paid for 19 years were with after-tax dollars. So, to do a fair comparison (apples-to-apples) using tax-deferred alternatives such as iras and 401(k)s, you’d have to gross up the amount being invested. So, for the 30% tax bracket used in the illustration, you’d be able to invest $1,370 in a tax-deferred account and then pay taxes upon withdrawal years later. Now what rate of return would I need to end list of ways to make money up with the same net income in retirement? Assuming I annually take out 4% of my nest egg of $153,000 to produce a $6,120 income, with a 30% tax bracket I’d have to take out $7,956 annually in order to obtain the same income. Using the same 4% annual withdrawal, my nest egg would have had to grow to $198,900 by 2012 to achieve the same result. So my question is: what annual rate of return is needed in investing $1,370 per year for 19 years and then stopping to list of ways to make money build a nest egg $198,900 over the same timeframe? Does this come out to the same 9.94%, including 1% fees?

You are not borrowing “your” cash surrender value (CSV) since it belongs to the insurance company. The company is willing to pay you the entire (CSV) at any time you are alive because CSV and death list of ways to make money benefit are mathematically equivalent at all times from the company’s standpoint. However they are not equivalent from the policyowner’s standpoint since the policyowner loses income taxes to the list of ways to make money IRS on the gain (cash value – premiums paid). The policyowner who surrenders the also faces the investment risk list of ways to make money to recover the tax AND to match/beat the insurance company going forward. If you die with a loan against the policy, your heirs get the death benefit minus the loan–remember, the CSV belongs to the company. You can buy term an invest, but you need to invest at the tax equivalent rate list of ways to make money to match the results of the whole life policy. Most agents will never disclose their commissions, but the average commission on retail whole life policies is list of ways to make money 90% or more. Properly structured whole life policies should have a first year list of ways to make money cash value of 60% or more of the premium. When you borrow from your 401(k) your loan is limited to $50,000 and you must repay it in 5 years or list of ways to make money pay tax on the unpaid distribution

Thanks for the article! Paul is actually my agent and we live in the list of ways to make money same city and I got started my whole life policy list of ways to make money a few months ago. I’m an entrepreneur and mainly deal in real estate and list of ways to make money am going to really work my cash value in other list of ways to make money value added areas (with paul’s guidance of course so I stay within the guidelines, MEC, and all that). When I take loans against my policy (which is still in its infant stages of growing), being that I’ll need these funds for short term real estate projects, I can actually pay myself back at very high, yet comparable interest rates. I currently pay private lenders a point or two plus list of ways to make money 12% annualized all day long on short term projects (hard money lenders even charge more!), so I’ll structure these with paul to where if I lend list of ways to make money myself for a short 3 or 4 month project I’ll generate my own the loan and I’ll still get an arbitrage of interest back to make list of ways to make money my plan even more powerful as my money will work list of ways to make money for me (velocity of money). Anyway, paul will make sure I’m staying in the guideline and there are some specifics list of ways to make money with the structure he’ll help me hash out, but I appreciate your article and it’s truly a powerful product. The flexibility and security is second to none! I’d love to share my successes one day and show list of ways to make money you how I have made my plan work work even list of ways to make money harder for me. 🙂

If you use paid up additions to get you to list of ways to make money that level to have a high dividend level, yes you will not pay taxes on those dividends. If you take a qualified loan on the policy, it is as a loan and you will not pay list of ways to make money taxes, and the face value of the policy will remain in list of ways to make money effect as long as you pay the maintenance fees etc list of ways to make money if you take a loan. If you take a distribution that is a full surrender list of ways to make money or a dividend payout, it is subject to capital gains taxes. The government will get theirs regardless in that situation. The insurance company will 1099 you, because you’ve earned income. Your heirs will not pay a tax on the face list of ways to make money value of the policy however unless they roll it into list of ways to make money another plan and take distributions from said plan.

The key is to put this together correctly and through list of ways to make money a company that is not just a mutual, but a top rated A.M. Best company. The company has to have enough assets to cover their list of ways to make money asses and the fine print has to not have riders list of ways to make money galore making it impossible for you to get to your list of ways to make money money. That is why a qualified agent with integrity is the list of ways to make money only person you should use in this adventure. Too many try to get rich quick and make the list of ways to make money rest of us look bad.

Just re read my own post. That should read ,to take out non taxable loan distributions . I just finished an IUL thru an AM best A+ rated company . The young man is 30. He has agreed to put in $500 a month till age 75 and a goal to list of ways to make money stop premiums and start taking the loan distributions till age list of ways to make money 110. He will put in $270,000. He or she will draw out approximately $8,000,000 at about $230,000 a year unreportable ,tax exempt income, and if the 2nd to die does pass on before list of ways to make money age 110, what is left in the face value still goes to list of ways to make money the heirs tax exempt. The numbers are currently calculated on the past 25 years list of ways to make money of their data. Of course he or she can adjust any of these list of ways to make money parameters any time he or she wants to with little list of ways to make money more than a phone call. ?? Several other benefits such as long term care ,acute illness , disability etc on both the IUL and the term. IUL only of course after the term expires and can list of ways to make money convert the term to whole life to recover his paid list of ways to make money in premiums calculated on his premium level before the term list of ways to make money expiration date. These are actually pretty minimalistic numbers built on a conservative list of ways to make money platform this old line legal reserve company is known for. Not a publicly stock held company.

RELATED POSTS