FINANCIAL NEEDS ANALYSIS
How an affluent RN client turned a $ 6,000-year index universal life insurance into $343,025 retirement vehicle with downside protection and upside potential.
It will take 9 years total annualized premium of $54,000 to double quadruple 6.35 X’s and outperform a traditional 403B, 401k retirement plan.
Case Study #1
Age 44 RN
The client is single and has no dependents and time horizon goals is to supplement her retirement income and begin taking $1,500 tax-free loans every month out of her insurance policy purchased 9 years ago for 20 years starting at age 53 and end at age 73.
5 key benefits of using life insurance as retirement with ABR riders.
1. Nursing Home Care
2. Home Health/ Hospice
3. Assisted Living
4. Adult Day Care
5. Death Benefits
One proposal is for $343,025 with a maximum monthly ABR benefit with optional tax-free loan withdrawals of $6,861 for (50 months) for $400 per month premium
Case Study #2 Age 44 RN
Tax-free loan withdraws of $ 1,500-month loan 20 years
Case Study #3 Age 44 RN
Another proposal for $432,012 with a maximum ABR benefit payout $8,640 for $500 per month premium
long-term care benefits or cash payouts that can be used however you choose to spend it. The long-term care is a fixed benefit will not increase this is guaranteed for 50 months up to 20 years if you choose $1,500 monthly payments.
Case Study #4 Age 44 RN
Purchased a life insurance for 9 years with a monthly premium of $500 month 388,3212 with a maximum monthly ABR benefit with optional tax-free loan withdrawal of $18,000
“Rule of 72” estimates how long it takes tax-free & deferred money to double given an anticipated growth rate. Simply divide the anticipated growth rate into 72 to determine the number of years. Example: tax-deferred money growing at 6% would double in approximately 12 years.
Worth consideration: “Rule of 108” estimates the time needed for a taxable account…such as a CD…to double, assuming an anticipated growth rate. The taxable money will double in approximately 22 years at a 5% growth rate.
*Once funds are withdrawn from a tax-deferred annuity they become taxable. The Rule of 72 works for estimating annuity growth. Any withdrawals, taxes and surrender charges are not considered in these rules.
Preservation of Capital:
The objective is to seek maximum safety and stability for your principal by focusing on securities and investments that carry a low degree of risk.
The objective is to generate dividend, interest or other income instead of, or in addition to, seeking long-term capital appreciation.
The objective is to increase the principal value of your investments over time rather than seeking current income. Investor assumes a higher degree of risk.
The objective is to increase the principal value of your investments using shorter-term trading strategies and by assuming a higher risk.
The objective is to substantially increase the principal value of your investments by assuming substantially higher risk to your investment capital.
The objective is to take positions in a product in order to hedge or offset the risk in another product.
Sustainable, Responsible and Impact Investing
Environmental, Social and Corporate Governance
Marshawn Govan Financial Advisor
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Texas Department of Insurance License 2139171
MKG Enterprises Corp. dba MKG Insurance Agency
California Dept. Insurance License 0J03013
Florida Agency License L103183
Florida Managing General Agent License No. W383809
Texas Department of Insurance License No. 2126837
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Contact us to receive a proposal tailored to your financial needs, don’t just purchase life insurance believe in the power of life insurance to increase your income, safeguard assets and protect your retirement income.