by: Cory Carlton
When it comes to saving for retirement are you focused on the right aspect? Are you trying to get the best returns for your money? That’s what most people think. They want their money to grow as much as possible. That’s logical.
When you get to retirement your money will come from two sources: the money you saved, and the interest earned.
A recent study showed that of these two sources, the interest/growth potion accounted for only 26% of the total asset.
That means what people save makes up 74% of their retirement savings. The mainstream media has conditioned us to focus on the wrong thing. Most people are focused on growth but that only accounts for 26% of nest eggs.
Do you think it makes sense to focus more on the 74%? We do.
That brings us back to the title of this post: getting your money to act like 300% more. We want to focus on what you do with your 74% and the 26% will take care of itself.
For households making $100,000 or more a year, they have an opportunity to make their savings behave as though they actually saved a lot more than they did.
How does this work? Why have you never heard of it? Great questions and this has been going on for decades. Here’s the deal…
You contribute/save an amount of money over five years that is worthwhile, and meaningful, but not intrusive to your lifestyle. We’ll use $30K a year as an example.
To be clear, that means you are done saving after only five years.
As you’re saving a bank matches your contributions for the first five years and then pays both your portion and their portion in years six through ten. That means $60K a year is being saved on your behalf for ten years.
Your $150K + the bank's $450K = $600,000 saved for you.
All the while, up through year 15, we let the compound interest do its thing for the entire amount saved. That’s $600K earning compound interest.
At the end of the 15 years, the bank gets its money back, but then you get to keep the entirety of the compound interest.
Your $150K acts like $600K thanks to the bank.
Why would the bank do this? Loans look good on their books and they need a place to park money. And, you have to qualify for this by having a very specific kind of life insurance called indexed universal life insurance.
The bank looks at the due diligence the insurance company does and says, “Well, they think this person will be around at least 15 years so this makes sense for us.”
It’s really the bank and the insurance company playing nice together with you in the middle.
Is this a loan? Yes. But it’s not a loan to you that you must pay back. The bank is underwriting the insurance company, not you.
Here are a few examples for you…
A young engineer, age 25 when he started this, and his wife contributed $24,000 a year for five years. When they retire at age 65, which is what they are thinking, their annual income will be $168,000 a year for the rest of his life. And, all the money is 100% tax-free.
If they wanted to start an income at age 50 then they would get $53,000 a year tax-free for the rest of his life.
If he saved the same amount of money but did not use this strategy his income would be about half of what we can do for him.
A 35-year-old put in $30K a year and his income in retirement will be $96,000 a year tax-free. Without this strategy, it would be close to $50K to $60K.
A 52-year-old is putting in $50K a year and when he retires his income will be over $50K a year for the rest of his life. Without this strategy, it would be around $40K a year at best.
To wrap up here are some final thoughts…
This is for high-earning professionals. You must qualify for this.
The income is 100% tax-free which given the fact that taxes are going to be higher in the future you would prefer more of your money to be tax-free than tax deferred.
There is no maximum contribution limit to this plan. This can allow you to catch up on not having saved enough in the past or allow you to save as much as you need to maintain your current lifestyle in retirement.
Also, there is ZERO market risk. You can never lose a penny due to poor market performance.
We often hear, “This must be too good to be true.” It’s not. It’s been done for decades and is a simple process.
If interested reach out to Cory Carlton at email@example.com. He will visit with you about this concept and see if it makes sense for you.
If it does, here’s the process…
- A custom link/account will be sent to you.
- Complete the online enrollment.
- Make your contribution once every five years.
It’s almost impossible to save for retirement on your own. Classic offerings just don’t cut it anymore.
This program can let you take advantage of your high-earning ability so you can make your money act like 300% more to let you catch up on saving for retirement, speed up on retiring, and/or maximize your retirement.
If you don’t want your high-earning potential to go to waste and you want your money to work smarter, this may be worth a conversation.
ABOUT THE AUTHOR: Cory Carlton is the Co-Founder & CEO of Both Hands Financial Group. He specializes in advanced planning methods that are only available to high-income earners. By sharing strategies that most people are not aware of Cory is able to help people put themselves in a better place for the future.