New Ways to Invest Create Your Own Tax-Free Family Bank
I met with my long-time friend Dave Phillips, president of Estate Planning Specialists, at the Orlando MoneyShow, and he told me about a great new way to build a large estate while minimizing taxes. He has just written a fascinating book on the subject called “The Family Bank Strategy,” which reveals the surprising benefits of the Indexed Universal Life (IUL).
Forecasts & Strategies
Vol. 32, No. 12 Pages 7-8
New Ways to Invest
Three Opportunities to Make Big Money with Little Downside Risk
One of my favorite estate/tax planning specialists is Dave Phillips, president of Phillips Financial in Chandler, Ariz. (near Phoenix). I’ve known Dave for more than 30 years as a reliable, low-cost source for insurance products, without the high-pressure sales tactics.
Dave recently told me about three new products that you should know about in these uncertain times.
First, there is an exciting, brand-new hybrid index/variable annuity called “Structured Capital Strategies,” which is available from AXA Equitable (rated A+ by A. M. Best). As subscribers know, most guaranteed indexed annuities offer such low payouts that they aren’t worth buying now. But Structured Capital is different – it offers you 100% participation in the upside gains of your chosen Index up to an earnings Cap. What makes this annuity so intriguing is unusually high Caps, compared to typical indexed annuities. The Russell 2000, for example, has an upside cap of 62%. The trade off is you can lose in the account if your losses exceed the buffer, which in this case encompasses losses deeper than 20%. That’s a pretty good risk/reward relationship if you ask me and is a great way to reduce risk from your portfolio. For details, call Dave or his son Todd, who specialize in annuities, at 1-520/796-2500 or toll-free at 1-888/892-1102.
Speaking of IRAs... Several years ago at a conference at Arizona State University, a former U.S. Treasury official revealed why the federal government isn't concerned about the national debt and the deficit.
He bluntly said, "The treasury isn't that concerned about the deficit because we have 'off-balance sheet assets' that will eventually pay off the deficit. Americans have $18 trillion in 'qualified' savings accounts that will soon be taxed at an average rate of 30% when taken as income. Required Minimum Distributions (RMDs) that start at the age of 70.5 for owners and immediately for non-spousal beneficiaries.