Every month I type my fingers to the bone to put together articles that will thrill, delight and give you some ideas that are on the cutting edge, and what do I get for that? Grief! Yes, I said grief.
I am referring to the articles that I wrote on becoming a millionaire. You can find them on ChiroWeb.com. I gave the example of a young chiropractor that could put away just $100 per week, and at retirement could have a tax-free stream of money for life. For example, if Dr. Tom at age 30 puts away just $100 per week, by age 65 he'll have a retirement income of over $160,000 per year until he's 100, all tax-free. That's over six million dollars! Will your retirement plan yield that? Do you have any plan that even comes close to that?
This is all accomplished through the use of an insurance policy. This is where the "Yes, but" starts. I've gotten thousands of requests for additional information on this plan from all over the world. Most were really amazed with this plan, and I have set up these policies for many.
To accomplish this feat with this policy, you must have a death benefit, since it is a life insurance policy. Dr. Tom has a death benefit of $526,000. Can you get by on less coverage? Yes, you can, but that reduces the amount that can be contributed.
A typical response to this is: "Yes, Stanley, I think this is a great plan, but I don't want the life insurance part."
My answer to this is quite simple. If you give up the life insurance part, you also give up the ability to accumulate all of this money tax-free, and the ability to get to this money without being taxed.
"Yes, that is great Stanley, but ..."
Some don't understand how this all works. Take Dr. Tom's $526,000 policy. While Dr. Tom puts $100 per week into his insurance policy, the premium for a $526,000 policy is just $79.28 per week. If Dr. Tom had paid the "normal" amount for the policy, it would still have built a substantial amount of cash. At age 65, he would yield $121,011 per year to age 100, for a total of over $4,600,000. Not bad for just a "normal" policy.
Instead of paying $79.28 per week for a $526,000 policy, Dr. Tom put an additional $20.72 per week into his insurance policy, but that extra money did NOT buy any additional protection. He still had a policy for $526,000, but that extra cash yielded him at age 65 an additional $1,400,000, all tax-free.
It is as simple as that: a plan that builds cash totally sheltered from all taxes, now and later.
"Yes Stanley, I see that, but I am paying for all that life insurance, and I don't believe in life insurance."
Give me a break! I am not asking you to believe in the tooth fairy!
"But Stanley, I've always heard that term insurance is the best insurance to buy."
I just added up the premiums for a $526,000 term insurance policy with the lowest possible rate for a "super-perfect" person that has never even had a cold! The total premiums were $155,343.84 to age 65. Dr. Tom's policy had a total premium of $182,000. The term insurance would save you $26,656.16, but the term policy builds no equity. Dr. Tom put an additional $26,656.16 in his policy, but he built over $6,000,000, all tax-free. Would you invest $26,656.16 for a return of $6,000,000? You say you can do better? Sure you can, and I have a bridge to sell you.
"Yes, Stanley, that really looks good, but the mutual funds in the policy are down right now."
That is true, but so are the funds everywhere. What are you going to do, wait until they go all the way up again and then get in? Good move! And you should always buy high and sell low! Give me a break!
See what I mean? I just can't win with some of you. I have given you an idea that will accumulate more money for you than any other plan, and it does it all totally sheltered from any taxes ever! Some have already jumped on this and have started plans for themselves. Some of you have read all about this and will now turn the page and read about who is doing what to whom and why.
For the rest of you, you are what this article is all about. You are the ones who will call or email me and say, "Yes Stanley, that looks good, but..." You know the rest.
1829 Green Heron Court
Jacksonville Beach, FL 32250
Tel: (800) 585-1555
Fax: (904) 247-1266
Click here for previous articles by Stanley Greenfield, RHU.