Today I want to go a little further. In today’s environment, investors are often looking for certainty from their investments, but by doing so they give up something, whether it be liquidity, return or tax treatment. What if I could show you a strategy that may not be completely liquid today but has certain returns and could be a replacement to a bond or unused cash portfolio? This is where the 10 pay strategy comes into play. There are two companies, open to the independent world, which do this strategy really well. Guardian Life with their Pre-Paid Account and Mass Mutual utilizing their Single Premium Immediate Annuity. With both you are using a 10 pay life policy, and the premiums are amortized out over 10 years. You earn money on the lump sum and in the cash value of the policy. You also start getting certain returns based on dividend scales and it develops into a larger opportunity for you. The money is also liquid, although you forfeit interest return in the PPIA, the SPIA is more locked but you are getting a set return as well. Both strategies work it just depends on what you and your client want to accomplish.
To learn more check out the podcast page at www.solveurpuzzles.com, or give me a call at 512-428-4145 to discuss.
Rodney Mogen, is the president of solveurpuzzles, a business focused company. Solve ur puzzles helps three groups: Small Businesses, Financial Advisors/Agents, and Local Government Entities. Rodney is also a small business advisor focused on developing financial strategies for small business owners and helping them develop their own strategy and ideas to grow, sell, develop the way they want. He is focused on creating proper financial strategies for Advisors and business owners to assist them in their day to day duties by solving their financial puzzles. Rodney is also the Director of Financial Strategy for The Evans Group. Check out more information at www.solvurpuzzles.com.