Posted by While creating wealth at this stage, we will provide a retirement income guarantee for the future and provide multiple passive income channels in the future. This is an important part of our stable family wealth income pyramid.
"Global High Net Worth Project" certified insurance consultant, financial and insurance columnist Heather, Shared aboutUse the two financial tools "insurance" and "trust" to help families buildSupplementary retirement incomeAnd wealth inheritanceCase.American Life Insurance GuideThe evaluation of this case is divided into two parts (top) and (bottom). All rights reserved. Reprinting without permission is strictly prohibited.
Case Introduction
Mr. Lee, 45 years old, a family of four, has a pair of minor children under his knees. Mr. Lee is a successful new generation of entrepreneurs in the process of "globalization". After years of intensive cultivation, his business covers North America, Europe, South America and the United Kingdom.
What the policyholder wants
After more than ten years of hard work, Mr. Lee is very aware of the current difficulties of doing business-exchange rate, politics, public health, legal and other risks, are enough to burn for many years of hard work.Based on the conservative experience he shared, in the current environment, the high profit life of a company after reaching the maturity period is usually only 5-10 years, and then it may go downhill.
Mr. Lee hopes to make good use of the golden period of 5 to 10 years, and while working hard, he will plan for the family's retirement income 20 years later and the children's wealth inheritance plan.If the market conditions in the future take a turn for the worse, Mr. Lee's family will also have a passive income and security, and can withdraw calmly.
Why choose to use "family insurance trust"?
Family Insurance Trust, also known asLife Insurance Life Trust, Is a financial service that combines "insurance" and "trust", and is often used in the professional field of wealth accumulation and inheritance.
(Recommended reading:One minute to understand what the United States' living trust is?The cost and function of a lifetime trust ）
Considering that Mr. Lee mainly lives in Asia at this stage, and his family members have different nationalities, although Mr. Lee has a clear intention to emigrate in the future, the final immigration destination cannot be determined at present.
In order to avoid a series of possible futureAsset and inheritance risk, Combined with Mr. Lee's actual needs and age status, using "family insurance trust" is a more favorable choice for Mr. Lee.
Another reason for choosing "family insurance trust",It is its "convenience".In addition to being able to switch ownership flexibly, Mr. Lee also has full control.It also provides a more convenient experience in terms of legally and compliantly processing relevant documents.
After clarifying the ownership of the "family insurance trust", we also helped Mr. Lee to establish a "family insurance trust"Wealth accumulation"As the core demand of the goal, Mr. Lee also confirmed$30/year supplementary retirement income intention, We will proceed to the next step:
Compare and choose asset management strategies
As an independent financial and insurance broker, the biggest institutional advantage is that it is not limited to one product supplier; and the biggest professional advantage is the professionalism of an independent team.
We will help Mr. Lee penetrate the shell of "insurance company" and directly analyze and compare the pros and cons and historical performance of the asset management strategy team behind it.And according to the needs of the insured, it is presented to the insured for comparison and selection.
*Editor's note: For high-net-worth and ultra-high-net-worth groups, it is never a question of "no choice", but too many choices. In the end, "Which plan is best for me" and "the most suitable for my social status" , "The most in line with my values orientation" these three levels of choice.
I selected three “asset management” financial and insurance companies with a high reputation in the industry, and evaluated a variety of different asset management strategies, and drew the following summary table.
As you can see from the picture below, Mr. LeeDeposit 17 U.S. dollars annuallyPremium, according to Mr. Lee’s wishes,10 yearsDeposit.The sum assured of Lee’s family trust policy is only designed toUSD 5 million, Not high.Why is it necessary to carry out the "low insurance amount and high premium" design, I will explain in the final summary part.
(Comparison of applying 3 different policy asset management strategies)
Asset management strategy evaluation
PIMCO (Pacific Investment Management Company) and Merrill Lynch (Merrill Lynch) are both world-renowned top private wealth management institutions.Through specific policy accounts, we can also enjoy their first-class asset management services at a low cost.
In the asset management strategy evaluation of the policy account, the asset management strategies provided by PIMCO and Merrill Lynch are similar. They areA dynamic equilibrium combination of stocks, cash and bonds is formed, and a volatility control rate is provided.
The characteristic of this type of strategy is that when the stock market undergoes violent fluctuations-such as in the recentU.S. stocks fuse, The strategy with volatility control will automatically adjust the proportion of assets in stocks/S&P500 index, cash, and bonds according to the set rules.Reduce the ratio of stocks/S&P500 index components and increase the ratio of cash and bonds, To achieve the purpose of dynamic risk control.
(The composition of the constituent stocks of the S&P500 index will be updated by voting every month)
Jointly managed by the 9-person index committee (most members are kept confidential)S & P 500 Index, Represents the vane of the US market, and is also an important part of many other asset management strategies.The index strategy consists of pure stocks, and the composition is shown in the figure above.Although the strategy does not have volatility control, in contrastPotential for higher returns.The American Life Insurance Guide ©️Industry data reportIt pointed out that “in the index insurance policies, the proportion of insurance policies that choose the S&P500 strategy reaches 75%”.
As any asset management strategyEncountered zero negative returnsAt the time, at the insurance company level, the cash value capital account of the policy will be protected by “underlying” funds to formIndex insuranceCore competitiveness.
The latest data I provided to the American Life Insurance Guide Network©️ shows that as of April 2020, 4,New Coronary Pneumonia OutbreakUnder the impact of S&P500, S&PXNUMX has alreadyFell by -13.65% (YTD), PIMCO’s quantitative asset management strategyDown -2.29% (YTD as 04/08/2019), While Merrill Lynch’s asset management strategy has maintained +3.93% (YTD) positive rate of return.
By comparing the performance of different asset management strategies of family insurance trust accounts with Mr. Lee, and more detailed historical data analysis, we can finally help Mr. Lee to further finalize the design plan and show the distribution of benefits.
Welfare distribution
As you can see from the numbers in the bold red part of the figure above, it is predicted that after 60 years of age,Withdraw 30 U.S. dollars every year, As the family’s supplementary retirement income.After receiving for 20 consecutive years, the cumulative amount will beReceive 600 million U.S. dollars.
After providing supplementary retirement income for Mr. Lee's family for 20 consecutive years, the insurance policy of the Family Insurance Trust will continue to operate automatically.During the operation, if the elderly Mr. Lee happensAny accidental death, Or need "Long-term care”And other professional medical care services*, or be diagnosedTerminal illnessLater, the insurance policy will provide huge benefit payments.
As you can see from the form above, when he was 90 years old, Mr. Lee would leave 400 million to 600 million cash compensation for his children and family.
however,Are these values achievable?What do these values mean?What are the misunderstandings?pleaseClick to visit the column of American Life Insurance Guide Network©️ : How to use a family insurance trust to achieve an annual retirement income of $30 and wealth inheritance planning? (the second half
Disclaimer:
*The content of this article is to explain to the public an existing market strategy for the purpose of learning and education.The graphs, values, and assumptions used are not guaranteed and may be changed at any time.The actual results may be more favorable or unfavorable than the situation described in the text.
*This article does not constitute the investment advice of the American Life Insurance Guide and the author, and support for related strategies, nor does it constitute the guarantee of the American Life Insurance Guide and the author on the subsequent tax consequences.
*The content of this article is not intended as tax or legal advice.Please consult your lawyer or accountant before taking action on any information contained in this article.
*Additional clauses for long-term care compensation depend on different insurance companies, the country or region where the insured is located, or different states in the United States. The specific compensation conditions shall be subject to the specified documents of the insurance company and the insurance bureau.
