Not only does your client want to ensure they have enough funds to survive comfortably for the remainder of their living years, but they also want to leave a legacy to their children.

It’s becoming increasingly more difficult to transfer wealth to surviving family members. Humans live longer. Long-term care is becoming a necessity for more and more Americans, and the associated costs are rising. We’re dealing with recessions and inflation. As financial advisors, we’re telling our clients to do everything they can to save more even though they make the same amount.

Some studies claimed Baby Boomers, for example, would inherit over $100 trillion from their parents. Today, reports show that figure is closer to $10 trillion. Are Baby Boomers an indication of a downward trend? It’s plausible. How many of you between your 40s and 50s expect a large inheritance from your parents? Quite a few plausibly are prepared for small amounts or nothing at all.

Individuals are battling their own financial obstacles and won’t receive as much, if anything, from their parents. Then they are expected to pass something on to the next generation.

So how do they do it?

Let’s say you have a 65-year-old client who is retired and has an unused $100,000 asset. This could be a 401(k), a pension, an IRA, a CD, etc. She has other means for retirement funds, so this $100,000 is available for investing. She wants to leave as much money to her son as possible without the funds levying heavy taxes.

The answer might be asset maximization. Here’s how it works.

Your client takes the $100,000 from the original asset and puts it into an immediate annuity. The immediate annuity then provides a guaranteed income stream of monthly payments equaling, let’s say, $500. The client then uses these monthly payments for the annual premium on a life insurance policy.

For $6,000 a year, the client may be able to purchase a life insurance policy with a death benefit as high as $700,000 (dependent on variables such as age, state, health history, and carrier). Therefore, your client has just converted $100,000 into $700,000, all of which can be left to her son, tax free.

To see the same growth, the client would need to place the $100,000 into an asset that has an interest rate of at least 10.25% for 20 years. Today we’re lucky to see interest rates of 5-6%.

By converting her money from one asset to another, then using it to purchase life insurance, this client has multiplied her money by seven.

Tell anyone you can multiply their money by seven, tax free; do you think they would be interested?

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