When we adopted our son, the life insurance company sent back to me half the premium because it was violating IRS guidelines. Why because life policies are not good for the government, but great for tax-free income and death benefits for the family. How Long Will You Be a Consumer? Wouldn't You Like to Recover Some of Your Interests? Privatized Family Bank, when used correctly, can help you finance all your future "big ticket" capital purchases. Mr. Nash, in his book, teaches that one should set a goal to accumulate a pool of cash value in their policies over a five to seven-year time frame. I hold the same sound philosophy, and I teach you how to build a tax-free income by helping you find those "Lost Opportunity Dollars" that are slipping through the cracks. I want to share a story with you. I had a client send me $5,000 to begin an IRA for his 20-year-old daughter a couple of years ago, and I refused to set her up in a government-qualified IRA because, at her age, she would not be able to have any liquidity for 39 ½ years. She does not know what her future tax bracket will be. A well-designed, high- grade, dividend-paying life insurance policy would fit her much better than an IRA. By not using the traditional methods of IRA funding to fund her retirement, she would be much better off staying in control of her retirement account. Remember, she would be taking all the risk, having no liquidity, and we never know what the government will do in the future with qualified plans. Some politicians have even suggested that the government should take over the management of retirement plans and pay the people a token payment each year. Anyway, I sent the $5,000 back to the client and told him that his daughter should retain control, use, and liquidity of her retirement money. Think about it. 39 ½ years is a long time in the future, and laws can change, a person may find themselves in a position where they need instant cash, and they are unable to borrow from their IRA without penalties.
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