Easily uncover assets of your client with this easy to use discovery process. Great for financial advisors and life insurance agents. Close more deals with this training! visit: www.LISacademy.com for more details
Moving money "up" to tax free money only makes sense when you hold all other varitables equal. If my 401(k) is invested in government securites and has a comparitable interest rate to a life insurance "investment" then go ahead, but for the majority of clients who hold some equities in their 401k they are going to outperform the life insuranse "investment"
+LISacademy So even though the 7% (or whatever is unmatched), is being invested and accumulating additional value, you should reallocate it to a Roth or a life insurance policy where it can be invested and accumulate additional value similarly.
I do like this strategy for helping the client find money. The overfunding verbiage is good. But since roth iras and life insurance use after tax money, they're not entirely tax free, you just paid the tax first. You gotta be very careful with this conversation..
100% agree, Matt. You NEVER want to say that withdrawing from your cash value life insurance policy is TAX FREE. You need to let them know that taking money from the policy can be done in a tax-free way. (FIFO and loan)
Hi Al. The best way to do this is by saying something similar to: "Before we go any further, I think it would be best if you take a big picture view of your finances currently. This will help determine where and how we can become more advantageous with your finances." Something to that effect will help lead into this conversation. Try it would and let us know your thoughts.
...And then, if you wanna drop the 'ill sticky bomb on 'em, let them know that only one of those Tax-Free options, comes with a Free-Money benefit. (And in the meantime, here's a 'Supplemental illustrating all/(some of) the LIVING benefits of a policy...like access to your $...while the mutually funded dividend paying non direct recognition CV continues to accrue and compound interest. If you're into that sort of thing. ;)
I’m confused about the last allocation calculation. For an employer to “ 3% match” a contribution, the employee (the client before us) has to put forth 3%. Therefore there is only 4% of the allocated investment to be tapped or moved so-to-say. Did I miss something in the calculation?
I’m not sure what the question is. If an employee were to place 3% of his/her income into the 401k while the employer matches up to 3%. That would be an equal, “what you put in they put in” type situation. Any additional money (above the first 3%) could be placed into other investments or possibly life insurance.
trisTOM First thank you for this great presentation. Ive shared it with my team of agents. At the point 9:16 in your presentation you say that the individual is over-funding their 401k by 7%. In my calculations it is only over by 4%. The amount above (4%) the employer matched funds. However just looking at the investment and finding money for their life insurance is only going to be 4% of their net. What ever that calculates to be.
Might have been a slip of the words, but you get the idea. Invest into your 401k up to the match and anything in addition, shift the money into other areas such as life insurance. Glad that you’ve forwarded it to your agents. We provide one on one agent training as well. We work with Work with plenty of teams and customize a majority of our learning to fit their need. If this is something you and your team might be interested, reach out via email. www.tristom.com/contactus
