By: rhfg Retirement No Comments
Finance Your Retirement Just Like Your Home
When you decide to purchase a home, you search for the home of your dreams until you find it. Unless you have $100,000 to $200,000 sitting in an account, the next step involves securing the financing to purchase that dream home. In most situations, you provide a down payment, the bank loans you the rest, and you begin making payments which the bank expects for the next 15 to 30 years depending on the terms of your loan.
What if you learned that the wealthy have used this same approach for years to finance their retirement? In the financial world this concept is called “premium financing”, and it could provide the retirement you dreamed you’d enjoy.
When purchasing a home, you determine how many houses you can afford to finance using a bank. With premium financing, you decide how much retirement you can afford to finance, but you engage a bank and an insurance company to execute the transaction. When purchasing a home, the home serves as collateral to the bank to guarantee the loan.
When you use the premium financing to finance your retirement, you use a life insurance policy as collateral. You make payments for five years instead of 15-30 years when financing your mortgage. During those initial five years, the bank matches your contributions. The next five years, the bank makes all of the contributions. Here’s the most amazing part. At the end of the 15 years, there will be enough accumulation to pay back the loan to the bank, receive a tax free income for the rest of your life, and leave a sizable tax free death benefit for your loved ones.
Make an appointment today to begin financing the retirement you always dreamed you’d have. It’s your money . . . until you give it away.
Did You Know?
If you saved $500 per month for the next 25 years, with a 5% return on your investment, you would accumulate almost $300,000. But if you waited five years to start saving, you would only accumulate$205,000, losing $95,000. If you saved $1,000 per month for the next 25 years, with a 5% return, you would accumulate $595,000. But if you waited five years, you would only accumulate $411,000, losing $184,000!! Moral of the story: don’t wait. Set an appointment with me today to begin saving for your retirement. It’s your money . . . until you give it away.