what if I told you the bank was offering a CD with let’s say 4% that probably per cheers up isn’t it now.
what if I sit on top of this 4% the gains from the CD were tax-free.
well, now you’re sitting up in your seat aren’t you what if I said a little thank you for opening the CD.
this bank was offering a death benefit that was kind of based on the initial amount that you deposit for you your spouse are kids that seems really nice and then I tell you hey just like you know CDs there’s going to be some restrictions on how quickly you can access the money.
But eventually, you’ll be able to get pretty much all of it back if you really really want to you might have some strings attached on some of those gains that’s kind of understandable that’s kind of LCD’s work, isn’t it?
I think you would suspect there probably when you pull up to that bank there’s going to be a line around the block for that bank right offering that CD at that crazy amount why is explained to you though is whole life cash value life insurance as an attorney I love it for its simplicity and its tax efficiency.
When I’m doing tax planning it’s great to have piles of money that don’t have to pay tax being in charge of my own personal finance I love it for its flexibility think about somebody like Walt Disney he funded his after getting denied from banks he funded his parks using the hidden cash value of his life insurance he borrowed his own money think about big companies pick your favorite least favorite big company,
When they need to add a new distribution warehouse or a new division they don’t go to a bank for a loan they go to their own life insurance policies and they borrow from themselves and the company pays back at interest the owner of the company brilliant think about the real high-level CEOs of America’s financial institutions they don’t get paid in IR.
A company matching programs they get paid in cash value life insurance they pay tax on premiums the company makes for them,
And then they, when they retire, have tax free access to money and their legacy is secured if they pass away with tax free money through spouse and kids too many people here life insurance and they cloud up and they think it’s boring or useless or something a snake oil salesman sells him and that reputation frankly is well earned for a lot of life insurance products out there but the right kind of hold life cash value life insurance policy can do wonders for your estate and tax plan both while you’re alive and after you pass away