March 31st, 2015 → 9:34 pm @ MacDev Financial Group| Stephen Devlin // No Comments
Death and taxes—as the saying goes you can bank on those, right?
Yes. And NO.
While it may only be February, tax season is already top of mind for most of us. And as mindful as we should be about the money we make, give, and spend, we should be just as in tune with the money we pay in taxes as well. And with the Bank on Yourself system, not only do you have complete control over your money, you now have more control over how much of your money ends up in the hands of the government.
Render unto Caesar what is Caesar’s but not anymore than you should! One of the amazing aspects of Bank on Yourself is the tax advantages you reap when you utilize your wealth accumulation through your whole life insurance. Say you need to buy a new ink press for your printing business. When you borrow that money out of your dividend-paying whole life insurance policy it places a lien on your Death Benefit and the Cash Surrender Value. Ultimately, you are using the cash values and death benefit as collateral. Not only are you paying for your hefty item in cash, you are paying yourself back while the remaining money continues to grow from the interest helping the overall yield of the PAR ACCOUNT which in turn gives us the dividend. And you can access your principal and growth with no due taxes under current tax law.
Now, if you were to take out a loan from your whole life insurance and sadly pass away, the outstanding balance would simply come off the death benefit. If you terminated the policy before the loan was paid back, the balance would come off the Cash Surrender Value.
While you can’t get both, you still get benefits. You either get the death benefit paid to your beneficiaries once you die or you use the “living benefit” of whole life pay access the CSV while you are living.
Death and taxes might not be the topic of choice when it comes to blind dates, family picnics, or junior’s piano recital. But it’s inevitable that one day you will have to broach the subject. And when you do, being armed with knowledge—and a hefty whole life insurance bank you have been building up—will help everyone breath a little easier, especially when it’s tax time.
Tags: CPA, Financial Advice, retirement advice, retirement information, Tax Advice, Tax Information, Tax Tips
