A Perfect Shield!
Karl Schilling
Karl Schilling is Author of Middle Class Millioniare... helping financial services professionals build 7 Figure incomes.
As you know I often discuss how Life Insurance is a unique asset class. It's not an investment and yet it creates financial independence when structured properly. It establishes tax free liquidity for emergencies or opportunities, it creates tax free income for retirement, and it creates generational wealth through legacy. It also provides financial protection for chronic, critical and terminal illness. All this is one policy structured properly.
And with this there are other amazing protections that Life Insurance and Annuity planning can provide. Both are creditor proof. They form a shield for your money which no creditor or liability is going to pierce. (This is subject to state laws and some limitations)
Any professional who has malpractice, professional liability exposure can use Life Insurance and Annuities as wonderful growth solution. The young interns, young lawyers, dentists and other professionals should be taught how to use these wonderful financial tools. Sadly, most are approached for brokerage accounts, mutual funds, real estate tax shelters etc. All are useful, this is not an either-or discussion. It's a simply useful consultation to figure out how to accomplish many financial goals with simple solutions.
There is another factor for families who seek to create college funds for their children. The Financial Aide world in the educational system attempts to create a financial picture for families. That picture is referred to as the EFC estimated family contribution level. Of course, the higher the asset base the less financial aid is available. Once again Life Insurance and Annuities are not considered in this snapshot. So, they become great asset bases to grow tax advantaged gains and income. This is why you are at risk when being counseled by average or mediocre financial professionals. Financial Advisors are usually anti Life Insurance and Annuities (unless you want variable Life Insurance or Annuities, which basically turn a no risk product into a risk venture). There was a time when the Life Insurance professional was part of a team that included a banker, a broker and a risk manager. Now, we have generalists attempting to be all things to all people. This is a disservice to all clients with that generalist.
You need an authority, a thought leader who has experience with all financial products and knowledge of such but specializing in only Life Insurance and Annuities, a Financial Concierge. These are separate unique asset classes and don't need to be compared with investments and other asset classes.
I like to analogize to a peanut butter cup. Equities, bonds and investments are chocolate, Real Estate is peanut butter. What you find is that most people either love chocolate and have all their eggs in that basket or they love peanut butter and have all their eggs in that basket. I have served clients peanut butter cups for decades and the asset class that bonds the chocolate and peanut butter is Life Insurance and Annuities. And there is nothing variable in that bonding agent.
Check the book (free) and let's have a consultation. Whether you are a client or an insurance professional who wants to become a Financial Concierge, we can form a strong strategic alliance.
Managing Partner at ATD Homes
2 天前Do insurance like moonshine. Get the recipe and do it yourself instead of splitting your money with a stranger. For 2025, you don't need a third party. Use a self-directed IRA so the tax man doesn't destroy your principal, and start when you are young.