What Makes Saving For Retirement So Hard?
Why is it that 90% of us are chronically under saving vs what we should be saving to maintain the lifestyle in retirement we promised ourselves? According to research by Fidelity, Mercer and Aon, if you start saving in your mid-forties, to maintain lifestyle in retirement you need to save at least 35% of what you make. The average amount saved amongst professional groups is more like 9-15%. So, you can see the problem: there is simply not enough money in your retirement account to solve the issue.
According to Principal, 74% of your income in retirement is driven by how much you save and only 26% is a result of your investment return and asset allocation. Why is everyone focusing on the 26% and not the 74%?
If there is not enough money being saved for you to have the lifestyle you enjoy and aspire to maintain, then we just need to bring more money to the table. Leverage, when done correctly, may just be the cheapest and most sustainable source of the money needed to have enough capital to achieve our objectives.
Our Business Service Strategies
We work with successful small and medium businesses in a consulting capacity to help accomplish four primary objectives:
- To provide the funding for the retirement accounts of business owners and key employees.
- To help recruit and retain top talent with benefit programs that other companies are not offering.
- To fund key-person insurance policies which are designed to protect the company financially due to a loss of a resource.
- To create an additional profit center without changing anything you do or adding resources or costs.
How Do We Accomplish These Objectives?
We utilize the concept of Premium Financing which employs the use of a life insurance policy in which the premiums are paid by financial institutions on behalf of the insured or owner of the policy. The payments are loans which are provided through third party finance firms known as premium financing companies. Typically, these firms consist of large, well-capitalized banks and banking networks.
What Makes Us Unique in the Premium Finance Marketplace?
The concept and implementation of premium finance strategies are not new. In fact, they have been utilized for over 50 years for high net worth individuals and business owners. There are several well-respected firms in the industry including our premium finance partnering companies. However, not all these firms offer the same level of service nor do they offer the same extent of benefits as we do. Our strategies offer various approaches which are based on whether the plan is for an individual or business owner -OR- if the plan is for a business owner(s) to include key employees as well.
Program 1: Kai-Zen Plan
Business Owner or Individual
This plan is for an individual business owner or owners with independent plans or any individual meeting the program requirements. Kai-Zen was uniquely designed to combine the advantage of leverage with the cash accumulation features of life insurance. This enhances your potential for policy distributions during retirement to supplement your income while also providing more protections for your family.
Program 2: Tri-Zen Plan
Business Owner(s) Including Key Employees
The difference between the Kai-Zen plan and the Tri-Zen plan is that Tri-Zen is for business owner(s) with 15+ key employees to include in the plan. Please watch the Video below since it relates to the use of BOTH programs 1 and 2.
We are genuinely concerned about the economics in this country over the next twenty years because we plan to retire like you some day. Conventional plans simply do not protect us from potential downside risks. The Kai-Zen and Tri-Zen plans mitigate these risks better than our alternative options, while still giving us 60% plus more supplemental income vs alternatives.
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“No plausible economic scenario broke the [Kai-Zen] plan - it would have to be something totally out of the ordinary.”
-Actuary, with one of the top insurance carriers
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Program 3: Prestige Strategy
High Net Worth Business Owner(s) or Individuals and Highly Compensated Key Employees
This plan is for high net worth individuals with a high income. The minimum requirements are $5M in individual net worth (or a business net worth of $10M) and a total annual household of income of $250K+ for the business owner and $100K+ in annual income for key employees.
Contact us to learn more about how you can utilize these strategies to enhance your retirement planning efforts and provide more supplemental retirement income.