TAkING cONTROl OF YOUR FINANcIAl dESTINYprimary income sources once you’re retired. If you choose to use tra-
ditional growth type investments, once you are retired and start taking
withdrawals, when the market drops, you will still need to pull money
out and this could have a devastating effect on your funds when not
properly insured for lifetime income. Thus, this is why I suggest using
insured products for this leg of your retirement income plan.
Third, whenever possible, you should have a separate growth account
in place that will serve as a hedge against inflation. This account could
fluctuate with the markets since it’s invested for growth. If you’ve taken
the steps to secure your basic income needs as described above, you
could use these assets as a hedge against future inflation as well as your
“slush fund.”
The fourth and final leg is, in my opinion, the most valuable because it
brings so much of what financial planning should bring together, and
what I have been promoting since 2004 when I first learned about it. It
is a concept propagated by individuals such as Nelson Nash, founder
of the Infinite Banking Concept™ and Best Selling author of the book,
Becoming Your Own Banker and Pamela Yellen, Best Selling author of
the book, Bank On Yourself.
BeCoMIng YoUR oWn BAnkeRThis concept, when engineered and utilized the way it is advocated,
brings together basic economic principles, U.S. tax laws and life insur-
ance contractual guarantees to build wealth safely and predictably in
any economic environment. This results in a cash and debt manage-
ment system, risk management, wealth creation, tax planning and, in
my opinion, the most efficient wealth transfer strategy rolled up into
one ideal system, utilizing a whole life insurance policy individually
engineered and designed for each client’s specific needs as the vehicle
to accomplish this strategy. Let me explain:
- Central to a sound financial plan is a cash and debt man-
agement system: Your premiums and cash value are constantly
compounding in your policy even when you take out a loan (as
long as you are using a non-direct recognition company). These
plans, when properly designed to maximize the paid up addi-
tions rider, earn a very competitive rate of return. When you
need to finance any purchase, you can borrow the funds from