Creating $6.5M of Tax-free Family Wealth with $51,000 of Leveraged Surplus Income

(don’t forget to checkout the video of this case study too)

💾 be sure to save this one for later 💾

⭐️ Here are the details ⭐️

✅ John is 53 & Kate is 60

✅ They want $20,000 per month of retirement income

✅ They also want to leave $6M+ to their children & grandchildren

✅ They have $5M now & will easily have over $10M in retirement

✅ Their Number 1 Goal Is to create a tax-free wealth transfer

✅ They will have $80,000 per year of social security (they want to make sure they don’t make any big social security mistakes leading into retirement either)

✅ They want to retire in 10 years

⭐️ Step 1: Create Leveraged Income for Wealth Transfer ⭐️

They know they have enough assets to live on, but they want to leverage the income premium of an insurance company, using an income annuity to pay the premiums for their tax-free legacy goal

✅ $1.6M in the market earning 10% a year for 10 years = $4.15M

At 4% per year that can generate $166,000 per year of income (still subject to the ups-and-downs of the market, which are less than optimal for withdrawing income)

However, leveraging an insurance company guarantees $217,000 per year of guaranteed, lifetime income

This creates a $51,000/year Leveraged Income Surplus (more on this in a moment)

⭐️ Step 2: Reposition Surplus Income For Tax-free Wealth Creation ⭐️

✅ They now have over $20,000 per month of guaranteed income

✅ They also have $51,000 per year to fund a tax-free wealth transfer vehicle

✅ $51,000 buys approximately $6.5M of tax-free life permanent life insurance

⭐️ Step 3: Placeholder for Wealth Transfer ⭐️

They aren’t immediately going to fund their life insurance contract (until the annuity income comes on in retirement)

So for now, we will purchase a $6.5M CONVERTIBLE term insurance policy

Then, in retirement, they will shove the $51,000/year of surplus income into this policy to guarantee their family will receive $6.5M 100% tax-free whenever they pass away

This is the BIGGEST tax loophole in the entire IRS tax code and not enough people leverage it to create family wealth!

Let’s chat 💬😎