By David Alemian
Are you a business owner in your forties, or fifties and feel you’re behind in your retirement savings? You can’t turn back the clock, but you can make up for lost time by combining the power of financial leverage and compound interest.
You borrow money from a bank at a low simple interest rate, and put the money into a permanent cash value life insurance policy.The loan interest rate is simple interest, and the money in the life insurance policy is compound interest.
Moreover, the loan interest rate is lower than the life insurance policy interest growth rate.
As a result, the money in the life insurance policy grows faster than the interest on the loan. This is the power of financial leverage, and it is the ideal way to catch up on your retirement savings.
Most of the collateral for the loan is the cash value in the life insurance policy. Depending on how the plan is designed, the only additional collateral required is a business line of credit, or a letter of credit. Which means in some cases, you can actually start the plan with relatively little out of pocket expense.
For the past twenty years, successful business people have been using this technique for estate planning purposes. In this case, you can use the same powerful financial tools, and methods to create very substantial lifetime tax-free income. This is not for everyone, but most businesses with a valuation of greater than five million dollars are good candidates for this type of plan.
I’ll bet you just learned something new. Want to learn more?
If you have questions, send an email to David@TheAlemianFile.com, because I answer every email I get.
In the meantime, check out and “LIKE” The Alemian File Facebook page, or simply go to the Alemianfile.com. and absolutely make sure you come back here next week to for another edition of the Alemian file, because the more you learn… the more you know!!!
Free Webinar
Before I go, I have a special invitation for you. On Wednesday, March 30th, 8:00 PM Eastern time, 5:00 PM Pacific, save the date!!!
My friends at Next Generation Trust Services are presenting a live webinar on self-directed IRAs. I’ll be on the webinar too talking about the Seven Retirement Killers. We’ll have a live open question and answer period and you can ask me any question about retirement you like. It’ll be a great opportunity for us to interact together in a live open forum. There is no selling involved at the webinar. It is for educational purposes only.
Please register for How to Avoid the 7 Retirement Killers Webinar on March 30, 2016 8:00 PM EDT at:
https://attendee.gotowebinar.com/register/1107679172834399748
In the meantime, check out and “LIKE” The Alemian File Facebook page, or simply go to the www.theAlemianfile.com. Absolutely make sure you come back here next week to for another edition of the Alemian file, because the more you learn… the more you know!!!
About David Alemian
Successfully creating affordable retirement plans guaranteed to last a lifetime is a unique, specialty skill. It’s a challenging arena but respected writer David Alemian makes it look easy. Alemian is a leading retirement expert and nationally recognized authority whose expertise is shared via video columns, numerous journals, and talk-shows.
His national recognition results from both revolutionizing and revitalizing how organizations and individuals like you and me plan and save for retirement. Alemian is considered “The Go-To Guy” for creating and implementing absolutely irresistible, lifetime retirement pension programs.
Formerly the host of “It’s About Money” Radio Show, Alemian has also produced and is featured in over 200 financial education videos. Additional content can be found in many well-respected, publications including: MD Magazine, Physician’s Money Digest, Physicians Practice, Journal of Clinical Oncology, Consultant Live, Psychiatric Times, Cancer Network, OB/GYN.net, and The Healthcare Executives Network.