Premium financed life insurance policies can be an investment vehicle for retirement income. Many people are eligible but have yet to learn more about this option.
As we enter this looming bear market, it’s understandable that retirees (and people nearing retirement) do not want to draw from their accounts and affect their principal’s earning power.
How do the wealthy weather a bear market during retirement? Enter the “buffer asset”.
A buffer asset is an investment, such as premium financed life insurance, that offers supplemental income when equities investments like stocks are experiencing a downturn. Enhanced Funding Solutions excels in premium financed life insurance.
As part of a diversified investment portfolio, the benefits are extremely valuable. Learn more about how EFS can help you protect your principal assets while simultaneously ensuring you have cash flow when you need it.
Strategize and Protect Assets with Premium Financed Life Insurance
There is no faster way to go broke than to sell in a down market. Truly, there is a better option to rely on when the stock market is volatile.
When risk-averse investors are concerned about protecting their portfolio, notably principal assets, the obvious solution is to explore adding buffer assets rich with benefits.
Rather than having to draw from principal assets, a premium financed life insurance policy provides:
peace of mind,
more flexible distribution options, and of course,
tax-free income for retirement
Best of all, EFS uses our experience as having been clients first to focus on how to create strong positions based on each individual’s circumstances.
Mitigate Potential Market Dips with Buffer Assets
Financial projections are only based on the past and the immediate future, companies planning to go public, stock splits, expansions and merger announcements, and so on.
Typically, using facts to determine investment decisions is an excellent approach to investing for retirement. Oftentimes, what’s missing is the overall strategy, and how an investor can reach their goal.
The most dangerous belief any investor can have is betting on averages.
Most recently, the world experienced a rollercoaster-like stock market when COVID-19 spread. Months of uncertainty had a negative impact on many investors, whether personally or in business.
Considering the higher risk of investing in a volatile stock market, liquidating principal assets that may be the primary source of income is not ideal for all investors.
In this situation, financial advisors often encourage clients to reassess portfolios based on risk tolerance changes.
We work with financial advisors to determine how a buffer asset can make sense for a client’s retirement earning power.
EFS utilizes premium financed life insurance policies based on each client’s goal. Enhanced Funding Solutions listens to client concerns, ideas and change in risk tolerance, then provides expert advice.
EFS guides clients in establishing or reassessing strategies, while keeping the their unique financial wants and needs top of mind.
Today’s Investment Adds to Tomorrow’s Assets
Investing is like growing a tree – when is the best time to plant a tree?
Answer: 20 years ago. Or, rather, yesterday.
The sooner the seed has been planted, or the investment account has been opened, the growth begins.
Together with your advisor, choosing the “best location to plant the tree” often means assessing your current policy performance.
Your policy can be making you money like any other asset. It’s one of the best, most advantageous investments, especially the sooner you begin.
In particular, EFS emphasizes the importance of how investments can affect a client’s post-retirement life and legacy.
The EFS team is here to assist our clients and their financial teams as they look toward the future.
Wondering exactly how it works? Click below to download my free PDF to review real case studies:
Click here to download our free Premium Financed Life Insurance Guide.
Reach out to me today to explore the options. We’ll provide guidance and determine the best options for you or your clients. Together, we will strategize with specific goals in mind, and protect client assets from down markets like we saw in 2008 and 2020 and now 2022.
– Jeff Faine