This “New” Asset Class Provides Stability To Any Portfolio

“You must be very patient, very persistent. The world isn’t going to shower gold coins on you just because you have a good idea. You’re going to have to work like crazy to bring that idea to the attention of people. They’re not going to buy it unless they know about it.”                           

~Herb Kelleher author, business owner

Whole Life is by no means a new product. Its origins date back more than 100 years.

But to an entire generation of people in America, it is a relatively new way of saving money. Not just saving money – preserving wealth.

And as people’s faith and reliance on Wall Street deteriorates, it is becoming more and more evident that a Whole Life plan is a great option.

With these kinds of benefits, it’s pretty obvious why:

  • Steady returns every single year. Period. No matter what happens to the stock market. No matter what happens to the real estate market.
  • Tax-free withdrawals at retirement.
  • Liquidity. You can access to the money whenever it’s needed.

Those three points are highlighted in an excellent article sent over to me by Mastery Member Toddy Anthony.

The article calls attention to large-scale economic forces that people don’t often consider when planning long-term retirement savings.

The first is that our country’s national debt is too high and our taxes rates are historically low. Most economists believe that tax rates will eventually be raised to recoup our losses, and many whispers in Washington D.C. suspect that may happen as part of the Grand Bargain.

As a result, it’s conceivable that more will be taken from an investor’s take-home pay and investment earnings. To say that this will affect which investment vehicles you choose is understatement.

Another great point is that the currently historically low returns on fixed-income securities are expected to continue through 2014. Making things worse is that historically low interest rates set by the Federal Reserve are bound to rise. Both of these factors will pull down the value of long-term bonds.

Reading over the last three paragraphs, there is a lot of stuff going on. And it seems that there is nothing people can do about it. However, there are two scary words and phrases in there that are neutralized by whole life insurance.

The first is “taxes.” As stated earlier in this article and in many articles before, whole life policies offer tax-free withdrawals at retirement.

Another is “investment earnings.” The returns of a whole life policy aren’t flashy, but you know they are reliable every year of a policy. If the market collapses, that return rate stands its ground.

As you know, whole term life insurance is simpler and more beneficial to a family’s retirement savings plan.

But a whole generation of people doesn’t.

Actually, it’s plausible to say that fewer people know about whole life insurance based on the fact that more and more investment options become available every year. When returns aren’t flashy, it’s hard to stick out in a noisy crowd.

Your job then is to do what 401(k) consultants and endless commercials don’t do: Educate prospects about the realities of the impact of our changing economic tides.

The best among us can pare down a financial plan’s important concepts and benefits.

Focus on the outcome of these benefits. Make them tangible. Put them in dollar figures, and show what those dollar figures can afford.

Take this tactic a step further that show how these benefits solve their stated problem and fulfill their stated desires while operating soundly in our new fiscal reality.

Be valuable.

John  McCarthy
Managing Editor,

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Brian J. Kay, Executive Director, Leads4Insurance
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