Financial Strategies # 1 Tax Free Earnings.

You should be ecstatic to know the answer is YES.

Now, how do I get my hands on those you ask? It is very easy. Buy a specially designed Permanent or Whole Life Insurance policy with a solid Mutual Company that has paid tax free dividends every year for at least the last 100 to 150 years, without fail.

There are Mutual companies that have paid dividends every single year through the civil war, through the great depression, through the first and second world wars, and every up and down in the market since then. In fact one company has paid an average of 9% over the past 30 years.

Why a Mutual Life Insurance Company and not a Stock Insurance Company? Dividends are the difference between the premiums paid and the cost of running the insurance company, so the profits. With a stock company, who earns the dividends? The Shareholders. And because this is considered capital gains for those shareholders, it is taxed.

However, with a Mutual company the policy owners actually own a portion of the company and so when dividends.are shared out between the policy owners, they are considered a return of premium. You see, there are profits because they charged you more premium than they needed to to keep the company running in both cases, however, in a stock company the shareholders receive that overpayment of premium but in the mutual company the Policy Owners receive the overpayment of premium back into their own pockets. This is considered to be a non-taxable event for the mutual company policy owners.

Pretend you are a farmer and you were offered a choice of either paying taxes on the bag of seed you buy today OR paying taxes on that bag of seed later on, along with paying taxes on the harvest that bag of seed grew into? At what rate will the taxes be charged after the harvest? That will be determined when the taxes are due. What would a smart farmer do?

What if you could pay tax on the bag of seed now and never pay tax on the guaranteed harvest in the future. How would that be? It is possible.

Tax Deferred financial vehicles are not uncommon. The multiple Retirement funds are one form where the deposits can be qualified for tax deferment along with the growth in the policy. Pretty much most financial vehicles grow tax deferred meaning you don't have to pay taxes until you actually access the growth to use.

There is only one financial vehicle that grows tax-deferred where you can also use the growth without ever paying taxes on it. That financial vehicle once again is a specially designed whole life insurance policy with a mutual company.

You see, if you go to a bank and apply for a loan and the bank gives you the money that you then pay back, you do not have to pay tax on the money the bank gives you right? because It is a loan, a non-taxable event. The same is true for specific whole life insurance policies. If you borrow out the cash value of the policy, it is a loan. You do not have to pay taxes on that money. You have access to it, you can use it at will, but are not required to pay taxes on that withdrawal.

If you happen to not pay the loan back before you pass away, the amount will be deducted from the death benefit and the remainder will be passed on to your beneficiaries tax free (in most cases) also.

Why, in the 1980's, did the government add restrictions to the amount of money one could put into whole life insurance policies? Because they wanted everyone to start putting their money into qualified retirement plans like 401(k)'s, 403(b)'s, IRA's etc. instead. If they did not restrict the amount going into whole life policies then no one would want to put their money into these other vehicles.

Whole Life Insurance has been around since before the current tax system was created so it does not have most of the same restrictions these other financial vehicles have, tax wise.

You see if you give up control of your money into these other types of retirement accounts that are full of restrictions and penalties for your working lifetime, that is approx 40 to 50 years. Do you think taxes will decrease or increase as time goes by? The new retirement age is considered to be 70 years old now.

How much growth will your capital produce over 40 to 50 years? Not only that, is your capital and the growth guaranteed to still be there when you need it at retirement age once you have paid it into the regular retirement plans? I think we can see by our current economy that the answer is no. It is guaranteed to grow and to be there when you need it in a Whole Life Insurance policy with certain Mutual Companies that have been around for 100 to 150 years.

Learn more about Whole Life Insurance here, with a ten minute video

If you want to know more and have your policy designed for your best advantage, i GIVE FREE CONSULTATIONS so to Learn About My Win Win Offer, Click Here Now.

Check out my second HUB in this Financial Strategies series here

Presentation and supporting material are designed to educate and provide general information regarding the subject matter covered. It is presented with the understanding that the presenters are not engaged in rendering legal, financial or other professional advice. It is also understood that laws and practices often vary from state to state and are subject to change.
All illustrations and examples provided in these materials are for educational purposes only and individual results will vary. Each illustration or example provided is unique to that individual and your personal results may vary.
Because each situation is different, specific advice should be tailored to each individual's particular circumstances. For this reason, the audience is advised to consult with a qualified licensed professional of their choosing, regarding that individual's specific situation.
The authors and presenters have taken reasonable precautions in the preparation of all materials and believe the facts presented are accurate as of the date it was presented. However, neither the authors nor the presenter assumes any responsibility for any errors or omissions.
The authors and presenters specifically disclaim any liability resulting from the use or application of the information contained in all materials, and the information is neither intended nor should be relied upon as legal, financial or any other advice related to individual situations.