How to Build Wealth Like the 1%

I named my firm “Enhanced Funding Solutions” because my specialty lies in enhancing our clients' financial worth.?

My Partners and I identify opportunities for clients to enhance life insurance with funding, as a solution to protect their wealth while creating more retirement income.

Typically reserved for the 1%, this investment vehicle is available to many, but rarely spoken of.

This strategy builds investor portfolios by leveraging their life insurance as an asset.

Premium Financed Life Insurance, also sometimes referred to as Enhanced Funding or Leveraged Life Insurance, is a lesser-known opportunity that turns client assets into real earnings.

Wealthy investors take advantage of this to diversify and supplement their portfolios.?

A strategy like PFLI is great for people who seek to prepare, build and/or protect their businesses, families, or both.

Enhancing Your Portfolio to Handle Bear Markets

So, how can you invest like a wealthy person? It’s not a secret and it’s actually quite simple: Identify ways your assets can work better for you.?

When enduring a bear market, the top 1% never seem to worry. Why is that?

They’ve diversified their portfolio with fixed investments to use as a “buffer asset”.

For example, a premium financed life insurance policy ensures investors don’t have to spend capital that needs to remain invested in the market while those assets recover value.?

To build wealth like the 1%, you must be strategic. When it comes to securing your income during uncertain times, adding a buffer asset to your portfolio is a worthy consideration.

What is a Buffer Asset?

It’s crucial to strategize and identify opportunities to continue building wealth, especially when the market is in a volatile state.?A buffer asset provides income outside of your nest egg.

It’s something to utilize when you can’t (or shouldn’t) touch your principal.

There is no faster way to go broke than withdrawing funds from your nest egg in a down market.?How do the 1% weather a bear market? They don’t touch their principal assets.

By ensuring their portfolio includes a buffer asset (like an enhanced funded life insurance policy), the wealthiest investors have other streams of income to utilize when the market is down.?

How to Get Tax Breaks Like the Wealthy

The 1% enjoy so many tax breaks because of their capital investments.?To get tax breaks like the wealthy, the other 99% need to balance their equity portfolios with tax-free investments, too.?

PFLI policies earn tax-free growth and provide tax-free income.

Investors who have premium financing can access their funds without restrictions.

Their money is theirs, and is accessible just like a checking account.?

Most importantly, Deferred Enhanced Funding plans allow investors to avoid paying capital gains tax when liquidating the asset for cash. The capital in the PFLI policy enjoys tax-free growth.

• Clients pay no taxes upon using on the capital in their account.
• Clients can protect wealth so their family inherits the value and pays minimal taxes for the gift.

At Enhanced Funding Solutions, we help financial advisors, insurance agents and individual clients identify how best to leverage a policy for maximum financial gain. If this strategy sounds like a good option for you or your client, simply reach out to me with any questions.

TL;DR

• The average IRR (investment rate of return) for a buffer asset like premium financed life insurance has historically ranged from 8% to 15%.
• Investors can grow their assets with benefits including tax breaks, fixed returns, and the security of leaving other assets untouched in a down market.
• Reach out to Enhanced Funding Solutions to see if a PFLI policy buffer asset makes sense for your portfolio.