If you haven’t yet heard of the investment vehicle known as “Enhanced Funding” (also sometimes referred to as Premium Financing or LIRP), now is the time to learn.
Optimizing your portfolio with fixed assets that offer tax-free growth is key, especially considering the current bear market.
My firm, Enhanced Funding Solutions, specializes in an asset called Premium Financed Life Insurance.
For most, life insurance premiums are just an expense to be paid. Those with Enhanced Funding know life insurance is actually an asset to be leveraged for tax-free wealth-building.
Enhanced Funding: Making Your Assets Work for You
Seasoned investors and industry professionals know the best way to build wealth is making your assets work for you.
This is especially true when leveraging those assets introduces new types of tax breaks.
For example, investors with real estate portfolios enjoy tax breaks on the expenses of home ownership, even though they have renters in their properties generating cash flow.
Similarly, investors who have a Buffer Asset like Premium Financed Life Insurance enjoy tax-free growth and tax-free distributions on the cash growing in their account, even though the Insurance Company is the one paying interest on it.
So, how exactly does it work?
Enhanced Funding Solutions works with clients and often clients’ advisors to determine the best PFLI policy based on your needs.
From there, a lender underwrites your policy and enhances your contributions into the policy.
Over the life of the loan (5, 7 or 10 years), you contribute a fixed amount into the policy as well.
This growing cash value earns interest rate return from the Insurance Company, historically a cash on cash average of 8% – 15% IRR!
Why Leverage Life Insurance?
I venture to ask: Why not? If you are already paying premiums for a death benefit, wouldn’t you rather make those dollars work for you?
PFLI serves as a valuable Buffer Asset largely unaffected by market conditions.
As we know, holding fixed assets in times like these is how the wealthy weather a bear market.
Utilizing tax-free distributions from a buffer asset account like PFLI ensures their principal accounts stay untouched until the market corrects.
Partnering with EFS for premium financed life insurance means you benefit from our expertise in managing your PFLI policy and:
Leave equity assets and investments untouched during market uncertainty
Grow your wealth for retirement and your family’s future
Secure significant tax advantages