I named my firm “Enhanced Funding Solutions” because my specialty lies in enhancing our clients financial worth.
My Partners and I identify opportunities for clients to enhance their life insurance with funding, as a solution to protect their wealth while creating more retirement income.
Typically reserved for the 1%, this investment vehicle is available to many, but rarely spoken of.
This strategy builds investor portfolios by leveraging their life insurance as an asset.
Premium Financed Life Insurance, also sometimes referred to as Enhanced Funding or Leveraged Life Insurance, is a lesser-known opportunity that turns client assets into real earnings.
Wealthy investors take advantage of this to diversify and supplement their portfolios.
Considering a strategy like PFLI is great for people who seek to prepare, build and/or protect their businesses, families, or both.
If you want to build wealth like the top 1%, you can learn more about how Premium Financed Life Insurance works in this article.
Enhancing Your Retirement Portfolio to Handle Bear Markets
So, how can you invest like a wealthy person? It’s not a secret and it’s actually quite simple: Identify ways your assets can work better for you.
When enduring a bear market, the top 1% never seem to falter. Why is that?
They’ve diversified their portfolio with fixed investments to use as a “buffer asset”.
For example, a premium financed life insurance policy ensures investors don’t have to spend capital that needs to remain invested the market while assets recover their value.
When it comes to securing your income during uncertain times, adding a buffer asset to your portfolio is a worthy consideration.
What is a Buffer Asset?
A buffer asset provides income outside of your nest egg. It’s something to utilize when you can’t (or shouldn’t) touch your principal.
It’s crucial to strategize and identify opportunities to continue building wealth, especially when the market is in a volatile state.
There is no faster way to go broke than withdrawing funds from your nest egg in a down market.
How do the 1% weather a bear market? They don’t touch their principal assets.
By ensuring their portfolio includes a buffer asset (like a enhanced funded life insurance policy), the wealthiest investors have other streams of income to utilize when the market is down.
At Enhanced Funding Solutions, we review your current policy to determine if it’s making you money, or costing you money.
We are experts in helping financial advisors, insurance agents and individual clients identify how best to leverage a policy for maximum financial gain.
Investors can grow their assets with benefits including tax breaks, fixed returns, and the security of leaving other assets untouched in a down market.
How to Get Tax Breaks Like the Wealthy
The 1% enjoy so many tax breaks because of their capital investments.
To get tax breaks like the wealthy, people need to balance their equity portfolios with tax-free investments, too.
PFLI policies earn tax-free growth and provide tax-free income. Investors who have premium financing can access their funds without restrictions. Their money is theirs, and is accessible just like a checking account.
Most importantly, Deferred Enhanced Funding plans allow investors to avoid paying capital gains tax when liquidating the asset for cash. The capital in the PFLI policy enjoys tax-free growth.
Clients pay no taxes upon using the capital in their account.
Clients can protect wealth so their family inherits the value and pays minimal taxes for the gift.
If this strategy sounds like a good option for you or your client, an EFS advisor can guide you in choosing a premium funded life insurance policy with a strategic approach and grow your wealth.
How to Get Tax Breaks Like the Wealthy
Investing like the 1% also means weighing your options, outcomes and associated risks. Jumping into new opportunities should only be done with the trusted guidance of a financial team.
If you have questions about PFLI, consider speaking to your current financial advisor about the strategy and bring them to a meeting with EFS for added benefit.
Did you know the average IRR (investment rate of return) for premium financed life insurance has historically ranged from 8% to 15%? The EFS team and your advisor are committed to each client and maintaining transparency from the very beginning.
Conclusion: How Enhanced Funding Builds Wealth
If you want to build wealth like the 1%, you must be strategic. In addition to working with an advisor you can trust, maximize your investment strategy by:
Using market volatility to your advantage. Grow your wealth by diversifying your portfolio with a premium financed life insurance policy.
Identify tax breaks that apply to your situation. For most, this lies in expert retirement planning.
Find the additional benefits that work for you. In this case, the younger you are, the more time you have to build wealth using a necessary asset like life insurance.
Seeking more details about how Premium Financed Life Insurance works? Click below to download our free PDF with case studies.