Do you have life insurance as an asset class in your portfolio?

Common Sense Financial Podcast

Do you have life insurance as an asset class in your portfolio?

When I opened my business back in 1993, I started by selling life insurance and absolutely hated it.

So much so that I switched to offering investments as soon as I could to get away from life insurance all together…for a period of time.

I think I moved away from it because I didn’t like my experience with how it was being packaged and sold to people.

Fast forward 20 years to today after thinking and rethinking the topic of life insurance, I have come to the conclusion that when it is used and designed properly, it is an effective tool and has a multitude of practical applications.

For instance, what drove bonds higher was declining interest rates.

Now, interest rates are near zero with nowhere to go but up, leaving bonds susceptible to loss.

So, finding an alternative is important to help replace bonds as a way to balance the risk of stocks.

These historically low interest rates leave banks with little incentive to offer much of a return on a deposit account.

While bank accounts offer a safe place to store cash, yields are low and are taxable.

A specially designed life insurance policy could be the perfect replacement for bonds and bank accounts considering these policies have everything we are looking for without the same negative headwinds…3-4% yield…Favorable tax treatment…Access to cash.

My goal is to share these proper designs and purposes with you so you can you understand why these programs can prove to be a welcome addition to many portfolios and financial plans.

The key to learning is removing everything you have heard about life insurance to formulate a different perspective about how these plans work.

The podcasts here are historical in nature. They aired before July 1, 2022 and were previously approved by Kalos Capital. The views and statistics discussed in these shows are relevant to that time period and may not be relevant to current events. This is intended for informational and entertainment purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. Investing involves risk, including the potential loss of principal. Any references to protection, safety or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the issuing carrier. Our firm is not permitted to offer and no statement made during this show shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the US Government or any governmental agency. The information and opinions contained herein provided by the third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by our firm.

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