LifeShares LLC Life Settlement Investments are a non-correlated, fixed-income alternative investment that provides equity-like returns without subjecting your portfolio to market volatility or other non-market risks.
The document discusses trust deed investing as an alternative investment approach. It provides an overview of trust deed financing, including that it involves direct lending secured by real estate. It then gives examples of how financial planners have used trust deed investments to enhance fixed income portfolios, diversify equity-heavy portfolios, and help fund healthcare costs and longer lifespans in retirement planning.
The document describes an "Everything Solution" product that provides safety, liquidity, yield, growth, death benefits, and long-term care benefits. It is structured as an indexed universal life insurance policy that allows deposits between $100,000-$1,000,000. Account value grows based on S&P 500 index returns up to a cap, and is protected from losses by a floor. Policyholders can withdraw funds penalty-free and interest grows tax-deferred. Upon death, beneficiaries receive proceeds income tax-free. It also allows accelerating some death benefits tax-free for long-term care costs. Case studies show how the product provides growth, income, liquidity, and long-term care benefits for different
The document discusses preparing for retirement with a variable annuity product called the Northwestern Mutual Select Variable Annuity. It outlines key features like tax-deferred growth, guaranteed death benefits, and options for guaranteed retirement income. Concerns around running out of money, health costs, and inflation in retirement are addressed through the annuity's features and investment options.
This document discusses how permanent life insurance can be a tax-advantaged investment asset that provides growth potential, access to cash value through loans, and benefits for heirs. It provides an example comparing returns from life insurance to traditional investments like interest, dividends, and capital gains, showing that life insurance requires less capital and risk to achieve the same results due to its tax advantages. While collateral loans involve risk, permanent life insurance is positioned as an effective strategy for managing assets, accessing funds, and preserving an estate over the long term.
Everyone wants to be more financially secure, but don't know the basics of how to get there. This presentation is a roadmap with seven simple rules for financial success. It is part of a series of seminars offered by Saunders Learning Group on personal money management. You can now view the presentation here, order the Family Financial Freedom book from any of the ebook sites for iPhone, iPad, Kindle, Nook, Kobo reader etc. contact me at floyd.saunders@yahoo.com for a copy of the presentation or more information on how to get seminar materials.
This document provides an overview of health insurance. It discusses why health insurance is needed given rising healthcare costs. It outlines the types of medical expenses that can be incurred and that most health insurance policies cover expenses related to hospitalization. There are two major types of health insurance plans - indemnity plans which reimburse expenses, and managed care plans which provide incentives to use selected healthcare providers. When determining an appropriate level of health insurance coverage, factors to consider include age, health history, income, financial obligations, profession, and the option of a floater policy that provides coverage for a family rather than individuals.
Commercial Equity Partners Ltd believes that in both prosperous and tumultuous economic times, small investors deserve to find investment options that offer superior rates of return and provide stability during unpredictable times. Since 2006, we at CEP have been maximizing investment leverage, thus producing high-yielding returns for our clients.
The document discusses trust deed investing as an alternative investment approach. It provides an overview of trust deed financing, including that it involves direct lending secured by real estate. It then gives examples of how financial planners have used trust deed investments to enhance fixed income portfolios, diversify equity-heavy portfolios, and help fund healthcare costs and longer lifespans in retirement planning.
The document describes an "Everything Solution" product that provides safety, liquidity, yield, growth, death benefits, and long-term care benefits. It is structured as an indexed universal life insurance policy that allows deposits between $100,000-$1,000,000. Account value grows based on S&P 500 index returns up to a cap, and is protected from losses by a floor. Policyholders can withdraw funds penalty-free and interest grows tax-deferred. Upon death, beneficiaries receive proceeds income tax-free. It also allows accelerating some death benefits tax-free for long-term care costs. Case studies show how the product provides growth, income, liquidity, and long-term care benefits for different
The document discusses preparing for retirement with a variable annuity product called the Northwestern Mutual Select Variable Annuity. It outlines key features like tax-deferred growth, guaranteed death benefits, and options for guaranteed retirement income. Concerns around running out of money, health costs, and inflation in retirement are addressed through the annuity's features and investment options.
This document discusses how permanent life insurance can be a tax-advantaged investment asset that provides growth potential, access to cash value through loans, and benefits for heirs. It provides an example comparing returns from life insurance to traditional investments like interest, dividends, and capital gains, showing that life insurance requires less capital and risk to achieve the same results due to its tax advantages. While collateral loans involve risk, permanent life insurance is positioned as an effective strategy for managing assets, accessing funds, and preserving an estate over the long term.
Everyone wants to be more financially secure, but don't know the basics of how to get there. This presentation is a roadmap with seven simple rules for financial success. It is part of a series of seminars offered by Saunders Learning Group on personal money management. You can now view the presentation here, order the Family Financial Freedom book from any of the ebook sites for iPhone, iPad, Kindle, Nook, Kobo reader etc. contact me at floyd.saunders@yahoo.com for a copy of the presentation or more information on how to get seminar materials.
This document provides an overview of health insurance. It discusses why health insurance is needed given rising healthcare costs. It outlines the types of medical expenses that can be incurred and that most health insurance policies cover expenses related to hospitalization. There are two major types of health insurance plans - indemnity plans which reimburse expenses, and managed care plans which provide incentives to use selected healthcare providers. When determining an appropriate level of health insurance coverage, factors to consider include age, health history, income, financial obligations, profession, and the option of a floater policy that provides coverage for a family rather than individuals.
Commercial Equity Partners Ltd believes that in both prosperous and tumultuous economic times, small investors deserve to find investment options that offer superior rates of return and provide stability during unpredictable times. Since 2006, we at CEP have been maximizing investment leverage, thus producing high-yielding returns for our clients.
This document provides an overview of HawsGoodwin Investment Management's wealth management process and philosophy. It discusses the benefits of a disciplined, globally diversified approach that incorporates asset allocation, rebalancing, tax management strategies, and minimizing behavioral biases. The goal is to help clients preserve their lifestyle in changing markets by avoiding unnecessary risks and losses through an ongoing process of wealth planning, estate planning, investment planning, and portfolio monitoring.
Identifying the 12 things that EVERYONE gets wrong about financial planning, Understanding insurance, Demystifying savings and investments, Wading through the banking and lending challenges, Effective tax and estate planning
Lower discount rates and declining asset returns negatively impacted pension plan funding in 2014. Funded ratios declined roughly 9% on average as discount rates fell between 84-100 basis points. Longer life expectancies also increased liabilities, with estimates that plan obligations rose 5-10% based on updated mortality tables. Looking ahead, plan sponsors will need to evaluate the impact of lower funding levels on required contributions and PBGC premiums.
The document provides an overview of the capital markets and the various financial products available within it. It begins with an introduction to basic financial concepts like savings, investing, budgeting, inflation, risk and return, and the power of compounding. It then describes various investment-related products like bank deposits, company fixed deposits, equity shares, debt instruments, mutual funds, insurance policies, pension plans, and loans. The document provides details on securities available in the capital market like equity shares, corporate bonds, and government securities. It explains that the capital market allows for channeling of savings into preferred businesses and projects through the issuance of various securities.
Terminally ill individuals facing high medical costs and reduced income have some options to reduce financial concerns from their life insurance policies. These include borrowing against the cash value, surrendering the policy for its current value, borrowing from third parties, or accessing accelerated death benefits that pay out a portion of the policy while still alive and tax-free. Another option is a viatical settlement where the policy is sold to an investor for a percentage of its face value, providing cash to the policy owner during their lifetime. Several factors determine the percentage payout offered in a viatical settlement.
For Those Who Want to Prosper & Thrive in Retirementfreddysaamy
http://ekinsurance.com/financial/retirement/
Our core capital should be designed to outlive us. In fact, it’s important for you to start thinking about your money in terms of it outliving you, not the other way around. You don’t want to outlive your money.
Book Recommendation: Waring, M. Barton. Pension Finance – Putting the Risks and Costs of Defined Benefit Plans Back under Your Control. New Jersey: John Wiley & Sons, Inc., 2012. Print
There are many sources of financing available to a business owner. David Lerner Associates offers this list of loan sources - it should provide some ideas.
This document summarizes key terms and considerations for a termsheet between investors and companies. It discusses binding provisions like exclusivity periods, confidentiality clauses, and dispute resolution. It also covers negotiating valuation, share types, management rights, liquidation preferences, representations and warranties, and exit rights. Anti-dilution protections like full ratchet and weighted average are explained. The document cautions that over-negotiating early stage termsheets can dampen investor confidence. Potential issues like founder exits, employee stock plans, and problems with multiple angel investors are also addressed.
This document discusses intermediate term financing. It defines intermediate term as between 1-7 years. It notes the characteristics of intermediate term financing include maturity of 1-5 years, typically for machinery or expansion. Sources include commercial banks, insurance companies, and leasing firms. Cost is higher than short term but lower than long term financing. Types of intermediate financing discussed include bank term loans, revolving credit, and equipment financing. Methods of repayment include the balloon method, where the principal is due at the end of the term, and the capital recovery method, where installments include principal and interest payments. An example problem calculates the costs and effective interest rates of revolving credit and a term loan.
The document describes the Investors Group Home Equity Diversification Plan, which allows homeowners to access equity in their home to invest for long-term growth. It works by replacing a mortgage with a line of credit that has two sub-accounts - one for the mortgage and one for investments. As the mortgage sub-account is paid down, equity becomes available to borrow from for investing. This strategy aims to maximize net worth over the long run by leveraging home equity for investments. It is best suited for homeowners who want to invest while maintaining their standard of living and have a long time horizon.
The document discusses the benefits of fixed annuities for retirement planning. It notes that retirees face significant financial challenges, including rising healthcare and living costs. Fixed annuities offer guaranteed returns, provide a stream of income for life, and allow for tax-deferred growth. Immediate annuities provide guaranteed lifetime income, while deferred annuities allow for long-term accumulation of assets on a tax-deferred basis before receiving income.
The document discusses the Ameriprise Financial Confident Retirement approach, which provides a framework to create a sound retirement plan. The approach is built on four principles: 1) Cover essential expenses with guaranteed income sources like Social Security, annuities, and bonds. 2) Ensure lifestyle through flexible withdrawal plans and diversified growth investments. 3) Prepare for unexpected costs like long-term care and medical expenses using insurance. 4) Leave a legacy by controlling assets through estate planning and maximizing amounts given to heirs using life insurance. The approach aims to provide clients with strategies to manage risks and confidently fund retirement.
Bond Basics provides an overview of bonds, including:
1) Bonds work like loans, with the bond issuer paying interest regularly and returning the principal at maturity.
2) Bond investors can make money through interest payments or selling bonds at a profit before maturity.
3) Bond prices and interest rates have an inverse relationship - bond prices rise when rates fall.
4) Bond ratings help evaluate risk, with higher-rated bonds posing less risk of default.
This document discusses annuities as safe money products that can help preserve wealth and provide financial growth and secure retirement. It provides information on different types of annuities including fixed annuities, which offer guaranteed minimum interest rates and tax advantages, and variable annuities, which carry investment risk. The document outlines benefits such as tax deferral, death benefits, and guarantees as well as factors to consider like fees, liquidity, and maturity dates when evaluating annuities.
Understanding annuities once and for allKirk Ashburn
Your guide to understanding the fundamentals of annuities, including their pros and cons, in an easy to understand manner so you can make an educated decision. Is guaranteed income for the rest of my life important to me? Is protecting the downside of my investment important to my family? Will I sleep better at night knowing that my investment will not lose value if the market drops tomorrow?
The document discusses different investment options and their risk and return profiles, including stocks, bonds, and life settlements. It then provides details on how life settlement investments work, including purchasing a portion of a life insurance policy at a discount, with returns paid out when the insured passes away. Life settlements offer potential annual returns of 10-15% with very low risk of losing principal, providing diversification benefits compared to traditional markets like stocks and bonds.
A life settlement is the sale of an existing life insurance policy to a third party investor. The original policy owner sells their ownership rights for a cash payment that is typically higher than the cash surrender value offered by the insurance company. Investors purchase policies at a discount and hold them until the insured passes away, at which point they receive the full death benefit. Life settlements have existed since 1911 but became more common for individual investors starting in 1997. They provide absolute returns that are not correlated to market performance and are considered a low-risk investment due to contractual obligations of the insuring company.
The document discusses various risks to consider for retirement planning such as longevity risk, inflation risk, and investment risk. It introduces variable annuities as a potential solution to help mitigate these risks by providing guaranteed lifetime income, protection against market downturns, and upside potential from stock market investments. Variable annuities can help secure retirement income through features such as living benefits and death benefits. Working with a financial advisor can help assess if a variable annuity is a suitable strategy for individual retirement goals and risk tolerance.
The document discusses the benefits of fixed annuities for retirement planning. It notes that Americans are living longer but face financial challenges in retirement. Fixed annuities offer guaranteed returns, tax deferral, and can provide lifetime income streams. Both immediate and deferred fixed annuities are described as options to help investors meet their retirement income needs through guaranteed and predictable payments.
This document provides an overview of HawsGoodwin Investment Management's wealth management process and philosophy. It discusses the benefits of a disciplined, globally diversified approach that incorporates asset allocation, rebalancing, tax management strategies, and minimizing behavioral biases. The goal is to help clients preserve their lifestyle in changing markets by avoiding unnecessary risks and losses through an ongoing process of wealth planning, estate planning, investment planning, and portfolio monitoring.
Identifying the 12 things that EVERYONE gets wrong about financial planning, Understanding insurance, Demystifying savings and investments, Wading through the banking and lending challenges, Effective tax and estate planning
Lower discount rates and declining asset returns negatively impacted pension plan funding in 2014. Funded ratios declined roughly 9% on average as discount rates fell between 84-100 basis points. Longer life expectancies also increased liabilities, with estimates that plan obligations rose 5-10% based on updated mortality tables. Looking ahead, plan sponsors will need to evaluate the impact of lower funding levels on required contributions and PBGC premiums.
The document provides an overview of the capital markets and the various financial products available within it. It begins with an introduction to basic financial concepts like savings, investing, budgeting, inflation, risk and return, and the power of compounding. It then describes various investment-related products like bank deposits, company fixed deposits, equity shares, debt instruments, mutual funds, insurance policies, pension plans, and loans. The document provides details on securities available in the capital market like equity shares, corporate bonds, and government securities. It explains that the capital market allows for channeling of savings into preferred businesses and projects through the issuance of various securities.
Terminally ill individuals facing high medical costs and reduced income have some options to reduce financial concerns from their life insurance policies. These include borrowing against the cash value, surrendering the policy for its current value, borrowing from third parties, or accessing accelerated death benefits that pay out a portion of the policy while still alive and tax-free. Another option is a viatical settlement where the policy is sold to an investor for a percentage of its face value, providing cash to the policy owner during their lifetime. Several factors determine the percentage payout offered in a viatical settlement.
For Those Who Want to Prosper & Thrive in Retirementfreddysaamy
http://ekinsurance.com/financial/retirement/
Our core capital should be designed to outlive us. In fact, it’s important for you to start thinking about your money in terms of it outliving you, not the other way around. You don’t want to outlive your money.
Book Recommendation: Waring, M. Barton. Pension Finance – Putting the Risks and Costs of Defined Benefit Plans Back under Your Control. New Jersey: John Wiley & Sons, Inc., 2012. Print
There are many sources of financing available to a business owner. David Lerner Associates offers this list of loan sources - it should provide some ideas.
This document summarizes key terms and considerations for a termsheet between investors and companies. It discusses binding provisions like exclusivity periods, confidentiality clauses, and dispute resolution. It also covers negotiating valuation, share types, management rights, liquidation preferences, representations and warranties, and exit rights. Anti-dilution protections like full ratchet and weighted average are explained. The document cautions that over-negotiating early stage termsheets can dampen investor confidence. Potential issues like founder exits, employee stock plans, and problems with multiple angel investors are also addressed.
This document discusses intermediate term financing. It defines intermediate term as between 1-7 years. It notes the characteristics of intermediate term financing include maturity of 1-5 years, typically for machinery or expansion. Sources include commercial banks, insurance companies, and leasing firms. Cost is higher than short term but lower than long term financing. Types of intermediate financing discussed include bank term loans, revolving credit, and equipment financing. Methods of repayment include the balloon method, where the principal is due at the end of the term, and the capital recovery method, where installments include principal and interest payments. An example problem calculates the costs and effective interest rates of revolving credit and a term loan.
The document describes the Investors Group Home Equity Diversification Plan, which allows homeowners to access equity in their home to invest for long-term growth. It works by replacing a mortgage with a line of credit that has two sub-accounts - one for the mortgage and one for investments. As the mortgage sub-account is paid down, equity becomes available to borrow from for investing. This strategy aims to maximize net worth over the long run by leveraging home equity for investments. It is best suited for homeowners who want to invest while maintaining their standard of living and have a long time horizon.
The document discusses the benefits of fixed annuities for retirement planning. It notes that retirees face significant financial challenges, including rising healthcare and living costs. Fixed annuities offer guaranteed returns, provide a stream of income for life, and allow for tax-deferred growth. Immediate annuities provide guaranteed lifetime income, while deferred annuities allow for long-term accumulation of assets on a tax-deferred basis before receiving income.
The document discusses the Ameriprise Financial Confident Retirement approach, which provides a framework to create a sound retirement plan. The approach is built on four principles: 1) Cover essential expenses with guaranteed income sources like Social Security, annuities, and bonds. 2) Ensure lifestyle through flexible withdrawal plans and diversified growth investments. 3) Prepare for unexpected costs like long-term care and medical expenses using insurance. 4) Leave a legacy by controlling assets through estate planning and maximizing amounts given to heirs using life insurance. The approach aims to provide clients with strategies to manage risks and confidently fund retirement.
Bond Basics provides an overview of bonds, including:
1) Bonds work like loans, with the bond issuer paying interest regularly and returning the principal at maturity.
2) Bond investors can make money through interest payments or selling bonds at a profit before maturity.
3) Bond prices and interest rates have an inverse relationship - bond prices rise when rates fall.
4) Bond ratings help evaluate risk, with higher-rated bonds posing less risk of default.
This document discusses annuities as safe money products that can help preserve wealth and provide financial growth and secure retirement. It provides information on different types of annuities including fixed annuities, which offer guaranteed minimum interest rates and tax advantages, and variable annuities, which carry investment risk. The document outlines benefits such as tax deferral, death benefits, and guarantees as well as factors to consider like fees, liquidity, and maturity dates when evaluating annuities.
Understanding annuities once and for allKirk Ashburn
Your guide to understanding the fundamentals of annuities, including their pros and cons, in an easy to understand manner so you can make an educated decision. Is guaranteed income for the rest of my life important to me? Is protecting the downside of my investment important to my family? Will I sleep better at night knowing that my investment will not lose value if the market drops tomorrow?
The document discusses different investment options and their risk and return profiles, including stocks, bonds, and life settlements. It then provides details on how life settlement investments work, including purchasing a portion of a life insurance policy at a discount, with returns paid out when the insured passes away. Life settlements offer potential annual returns of 10-15% with very low risk of losing principal, providing diversification benefits compared to traditional markets like stocks and bonds.
A life settlement is the sale of an existing life insurance policy to a third party investor. The original policy owner sells their ownership rights for a cash payment that is typically higher than the cash surrender value offered by the insurance company. Investors purchase policies at a discount and hold them until the insured passes away, at which point they receive the full death benefit. Life settlements have existed since 1911 but became more common for individual investors starting in 1997. They provide absolute returns that are not correlated to market performance and are considered a low-risk investment due to contractual obligations of the insuring company.
The document discusses various risks to consider for retirement planning such as longevity risk, inflation risk, and investment risk. It introduces variable annuities as a potential solution to help mitigate these risks by providing guaranteed lifetime income, protection against market downturns, and upside potential from stock market investments. Variable annuities can help secure retirement income through features such as living benefits and death benefits. Working with a financial advisor can help assess if a variable annuity is a suitable strategy for individual retirement goals and risk tolerance.
The document discusses the benefits of fixed annuities for retirement planning. It notes that Americans are living longer but face financial challenges in retirement. Fixed annuities offer guaranteed returns, tax deferral, and can provide lifetime income streams. Both immediate and deferred fixed annuities are described as options to help investors meet their retirement income needs through guaranteed and predictable payments.
"The Case For Annuity," by Phil Wasserman. This book shows an unbiased view on annuities, how they can offer you secure income streams, and growth potential while having no market risk or volatility.
Life insurance provides essential financial protection for loved ones in the event of death. There are different types of life insurance, like term and permanent policies, that offer varying levels of protection and benefits. Determining the appropriate amount of coverage requires a comprehensive needs analysis that considers income needs, cash needs, existing assets and other factors. Permanent life insurance is suitable for long-term needs while term is for temporary protection. Working with a financial professional can help identify the best strategies and products for an individual's specific situation.
The document discusses secondary markets for structured cash flows, such as pensions, which allow individuals to sell future income streams for a lump sum payment. It provides details on Future Income Payments, LLC, a company that facilitates these transactions, including their process for underwriting sellers, mitigating risks through reserve accounts, and replacing cash flows if needed. Examples of purchase prices, terms, and monthly payments are given to illustrate potential returns from structured cash flows compared to other fixed income options like annuities.
ReturnsA return, also known as a financial return is the money m.docxzmark3
Returns
A return, also known as a financial return is the money made or lost on an investment. A return can be expressed nominally as the change in dollar value of an investment over time or as a percentage derived from the ratio of profit to investment. We will cover those ratios below. If we make a profit on our investment or venture, we have a positive return. If we lose money on our investment or venture, we have negative return.
A nominal return is the net profit or loss of an investment expressed in nominal terms (i.e., levels). It can be calculated by figuring the change in value of the investment over a stated time period plus any distributions minus any outlays. Distributions received by an investor depend on the type of investment or venture but may include dividends, interest, rents, rights, benefits, or other cash flows received by an investor. Outlays paid by an investor depend on the type of investment or venture but may include taxes, costs, fees, or expenditures paid by an investor to acquire, maintain, and sell an investment. For example, assume an investor buys $2,000 worth of publicly traded stock, receives no distributions, pays no outlays, and sells the stock two years later for $2,200. The nominal return in dollars is $2,200 - $2,000 = $200.
A percentage return is a return expressed as a percentage. It is known as the return on investment (ROI). ROI is the return per dollar invested and is calculated by dividing the dollar return by the dollar initial investment. This ratio is multiplied by 100 to get a percentage. Assuming a $200 return on a $1,000 investment, the percentage return or ROI = ($200 / $1,000) × 100 = 20 percent.
A holding period return is an investment's return over the time it is owned by a particular investor. Holding period return may be expressed nominally or as a percentage.
Rate of return is the proportion of profit earned from an investment during a periodic interval of time, expressed as a percentage. For example, the return earned during the periodic interval of a month is a monthly return and of a return earned during a year is an annual return.
Returns over periodic internals of different lengths can only be compared when they have been converted to same length intervals. It is customary to compare returns earned during yearlong intervals. Return of capital refers to the recovery of the original investment.
Return Ratios
Companies use different kinds of return ratios to compare one investment option to another one:
· Return on equity (ROE) is a profitability ratio figured as net income divided by average shareholder's equity, which measures how much net income is generated per dollar of stock investment. If a company makes $10,000 in net income for the year and the average equity capital of the company over the same time period is $100,000, the ROE is 10 percent.
· Return on assets (ROA) is a profitability ratio figured as net income divided by average total assets, which measures how much net p.
The document discusses various options for building an income-generating portfolio, including the risks and rewards of different asset classes like stocks, bonds, real estate, and international fixed income. It provides examples of how an income portfolio could be constructed using a combination of assets, depending on an investor's goals, risk tolerance, and time horizon. Specific funds are mentioned as examples of strategies that combine different income-producing assets.
Traditional means of funding retirement like pensions and Social Security are becoming less reliable. Most retirees can expect about $1,000 monthly from Social Security alone. Many retirees rely on investment accounts to supplement retirement income, but bear markets can significantly impact account values, especially if withdrawals are taken during downturns. Purchasing a permanent life insurance policy provides a death benefit for beneficiaries and cash value that can be accessed during bear markets to avoid depleting investment accounts through withdrawals during downturns. This strategy helped one retiree's investment account balance remain over $200,000 higher by age 79 compared to withdrawing during bear years.
Survivor universal life insurance 4088541883 san jose california connie dello...Connie Dello Buono
connie dello buono 4088541883 san jose california ca life ins lic 0G60621 on page 3 is about preserving your heir's inheritance, charitable gifts, key person coverage and wealth transfer
factors considered when estimating the rate of returnAleck Makandwa
The major components that venture investors consider when estimating the required rate of return are:
1) The risk-free interest rate, which is the baseline rate without any risk.
2) The risk premium, which is additional return expected above the risk-free rate to compensate for investment risk.
3) Liquidity premium, maturity premium, inflation premium, and default premium, which compensate investors for additional specific risks like lack of liquidity, inflation, or default.
Common loan restrictions for new ventures include requirements to maintain accurate financial records, limits on total debt levels, restrictions on dividends or payments to owners, reporting/disclosure obligations, and restrictions on selling fixed assets. These protections help banks assess
This document summarizes an insurance policy that allows policyholders to bear the investment risk of the investment portfolio. It offers a savings and protection plan with multiple investment choices and life insurance coverage to protect goals in case of death. The key points are:
- The policyholder bears the investment risk of the investment portfolio, which consists of various funds across risk levels.
- Policyholders cannot withdraw or surrender their investment for the first 5 years.
- The plan provides life insurance coverage and allows policyholders to continue their savings for goals even if they die, by waiving future premiums.
- Policyholders can choose their investment portfolio strategy between a fixed portfolio strategy with various fund options, or a life-
This document discusses how a traditional retirement asset allocation focused on fixed income may not be optimal given low yields and inflation risks. It proposes that an equity income strategy can help retirees by providing higher and more sustainable income growth than fixed income to better match retirement spending needs while also offering capital appreciation potential to hedge against inflation. Specifically, the document finds that a simple hedging strategy over equities can improve how long the portfolio can support spending by over 34% during poor market periods, allowing retirees to safely increase their equities allocation.
Indexed universal life insurance policies from Aviva combine the features of traditional universal life insurance with the potential to earn interest based on the performance of a stock market index. The policies provide life insurance protection, potential for cash value growth, and flexibility. Premium payments are initially placed in a basic interest strategy and then may be allocated to indexed strategies where interest is credited based on the movement of a stock market index, subject to participation rates and caps. This limits downside risk while allowing upside potential.
This document provides information about life settlements from The Architect of Life Settlements. It defines a life settlement as the purchase of an existing life insurance policy at a discount. It then outlines the history and legal basis of life settlements. Finally, it discusses why one might invest in life settlements, highlighting the inherent asset value, generation of true alpha, and risk amelioration they provide.
This document provides an overview of immediate fixed income annuities as a way to guarantee an income for life after retirement. It discusses factors to consider such as life expectancy, how long savings may last in retirement, income annuity payout options, taxation of annuity income, and things to evaluate when purchasing a fixed income annuity like fees and the financial strength of the insurance company.
“Why do academics always talk about risk adjusted returns? I get that risk matters and you shouldn’t have a riskier portfolio than you can manage. But if I compare two strategies over a period, I’m better off at the end if I used the strategy with the higher return, not the one with the higher risk adjusted return. So why is risk adjusted return relevant?”
This document provides an introduction to investing and key concepts like risk and return. It explains that balancing risk and return is important for achieving financial goals. While higher risk investments offer potential for greater returns, they also carry more uncertainty. The document advocates diversifying investments across different asset classes like stocks, bonds, property and cash to reduce risk. It provides data showing how various asset classes have performed over time, with higher risk assets generally providing higher average returns but also more variability in returns. The key is choosing an appropriate mix of assets based on an individual's risk tolerance and time horizon.
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5 Compelling Reasons to Invest in Cryptocurrency NowDaniel
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How to Invest in Cryptocurrency for Beginners: A Complete GuideDaniel
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Madhya Pradesh, the "Heart of India," boasts a rich tapestry of culture and heritage, from ancient dynasties to modern developments. Explore its land records, historical landmarks, and vibrant traditions. From agricultural expanses to urban growth, Madhya Pradesh offers a unique blend of the ancient and modern.
4. We have just experienced two of the most severe bear markets in history and both within the past decade
5. Unemployment, politics, monetary policy, budget & trade deficits, tax policy, market volatility and other factors continue to weigh heavily on the minds of investors
6. Investors are telling us that all of this has made them more risk averse and their confidence in the traditional market mechanisms continues to be challenged
7. Investors are asking for greater clarity and want more protection from the erosive forces jeopardizing their ability to live the lives they want to now and in retirement3
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9. The VIX is a widely used measure of market risk.The “Investor Fear Gauge" 4
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11. Investors are looking increasingly to safe investments despite the fact that many of the yielding instruments are extremely low
12. How can an advisor meet the challenge of the New Normal and add value to his/her client relationships5
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14. An investor becomes the owner, designates his/her beneficiary(ies) and assumes premium payments. The investor collects death benefits upon maturity of policy.
15. It is estimated that over 70% of life insurance policies lapse or are surrendered without paying a death benefit.6
26. Life Settlements Good for Consumers GAOstudy Finds that Life Settlements Deliver Almost 8 Times Surrender Value to Seniors HUDSON, Ohio--(BUSINESS WIRE)-- The U.S. Government Accountability Office recently issued a long anticipated report on the state of the emerging Life Settlement market. One of the key findings, based on analysis of over 1,000 life settlement transactions, was that seniors selling their policies in a life settlement transaction received almost 8 times as much money as they would have had they surrendered the policy to the insurance company. “This confirms what we have been saying all along, life settlements are good for consumers and result in maximizing policy value for seniors who no longer want or need their life insurance policy,” said Brian Smith, President of the Life Settlement Institute. For example, proceeds of a life settlement may help a senior pay for long term care. LAPSE SURRENDER SETTLEMENT $$$ $$$$$ -0- $ 8
27. Who Buys Life Settlements Until recently, only institutional buyers invested in life settlements. Commercial banks, hedge funds, private equity, foundations, charitable organizations and the like recognized the unique risk/return characteristics of life settlements. Gen Re, the global reinsurance and risk management arm of Buffett's Berkshire Hathaway Inc., arranged a financing facility upwards of $400 million for Living Benefits Financial Services LLC, a life settlements funder in Minnetonka, Minn. 9
30. LifeShares play an important role in reducing the overall risk characteristics of a portfolio’s asset allocation
31. LifeShares represent an anchor diversification strategy to protect investors from market, inflation, volatility, capital, credit, real estate and other traditional market-based risks10
32. Asset Allocation Risk and Expected Return Modern Portfolio Theory assumes that investors are risk averse, meaning that given two portfolios that offer the same expected return, investors will prefer the less risky one. Thus, an investor will take on increased risk only if compensated by higher expected returns. Conversely, an investor who wants higher expected returns must accept more risk. The exact trade-off will be the same for all investors, but different investors will evaluate the trade-off differently based on individual risk aversion characteristics. The implication is that a rational investor will not invest in a portfolio if a second portfolio exists with a more favorable risk-expected return profile – i.e., if for that level of risk an alternative portfolio exists which has better expected returns. 11
33. Asset Allocation 2.0 LifeShares is the missing piece of the asset allocation puzzle for the newly conservative investor seeking higher, risk-adjusted returns LifeShares 12
36. Of course, in the real world, 1 and -1 correlations almost never exist. But for the sake of comparing asset classes, most people view a correlation value between 0 and 0.5 as a very weak correlation, which is a good starting point for finding diversification.
37. Return on investment in LifeShares is unaffected by volatility in the stock, fixed income, commodity, real estate, or credit markets. Politics, terrorism, natural disasters or other unforeseen events do not affect the investor’s expected return.14
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39. LifeShares vs A 7% Annual Return Hypothetical Portfolio Over a 15 year period, LifeShares outperform a diversified portfolio with a return on investment of 7%. Of course, as Modern Portfolio Theory suggests, if a consistent rate of return can be achieved, a prudent investor would choose it over a more volatile investment. Until now, that portfolio did not exist… 7% Hypothetical Portfolio LifeShares Market Indices LifeShares deliver predictable, stable growth for the risk averse investor. 16
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42. Third party actuarial mortality specialists develop target maturity durations without bias or conflict of interest (e.g. November 2010- Fasano Associates report 96% Actual to Expected Accuracy based on 3 successive, independent Actuarial Studies. Results are based on actual predictions not restated estimates.)
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44. In the event of an insurer credit default, beneficiary remunerated through state pools
45. Underwriter performs a thorough fraud review to confirm policies selected satisfy insurable interest existed at the time of issue, is in good standing and is beyond the two-year contestability periodUnforeseen changes in regulation (SEC, State). 17
51. Policy Matures 5 Years Beyond Life ExpectancyThe chart calculates the annualized return on investment for the Purchase of LifeShares. The chart does not include any adjustments to the purchaser’s tax basis which may be encountered. The chart is for illustrative purposes only and no specific rate of return for any policy is guaranteed. 18
89. Ordinary Income: The portion exceeding the adjusted cost basis, but not exceeding the cash surrender value, will be taxed as ordinary income.
90. Capital Gain: The portion exceeding the cash surrender value will be a gain, which, in some circumstances may be considered a capital gain.200 180 160 140 120 100 80 60 40 20 0 Here’s an example of the life settlement taxation method using data from the IRS’s example outlined in Revenue Ruling 2009-13 and a realistic net sale price. Net Sale Price $200,000 Cash Surrender Value $ 78,000 Premium Paid $ 64,000 Cost of Insurance $ 10,000 $132,000 Capital Gain $14,000 Ordinary Income $54,000 Tax Free * Tax obligations will vary based on individual circumstance. Please consult your tax advisor. 27
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92. Ordinary Income: The portion of the proceeds at maturity exceeding the investor’s cost basis, will be taxed as ordinary income
93. Capital Gain: Upon the sale of Life Settlement Fractional Shares prior to maturity, the entire sale amount is treated as a capital gain with no consideration for the investor’s cost basisExample A: Shares Held to Maturity Acquisition Cost $ 50,000 Proceeds at Maturity $140,000 Example B: Shares Sold Prior to Maturity Acquisition Cost $ 50,000 Proceeds at Sale $ 82,000 140 120 100 80 60 40 20 0 140 120 100 80 60 40 20 0 $90,000 Ordinary Income $82,000 Capital Gain $50,000 Tax Free * Tax obligations will vary based on individual circumstance. Please consult your tax advisor. 28
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95. Appendix A IRS Issues Guidance On Taxation of Life Settlement Transactions than fully offset the cost of insurance charges. Upon a surrender, the policyholder in this example would be subject to tax at ordinary income rates on the net “inside build-up” in the contract, equal to $14,000 (the $78,000 cash surrender value minus $64,000 in premiums paid). Sale of a life policy - "cost of insurance" excluded from tax basis. The tax code’s specific rules for computing income received under a life insurance contract assure that the policyholder gets full credit for premiums paid in the case of a surrender, but on a sale to a third party the IRS takes the position that these specific rules give way to the general concept of tax “basis” in an asset. Revenue Ruling 2009-13 holds that if an individual policyholder sells a policy to a third-party purchaser rather than surrendering it to the life insurance company, the individual may not use the amounts paid for “cost of insurance” charges to increase tax basis or reduce taxable gain. When the policyholder in the example sells the policy to a third-party investor for $80,000, the policyholder’s tax basis for computing gain on sale is only $54,000 ($64,000 in premiums paid less $10,000 cost of insurance). Under case law discussed in the ruling, the IRS takes the position that a portion of premiums paid represents personal consumption of life insurance protection (the cost of insurance amount) and only the remainder of the premiums paid is the cost of an asset. The gain on sale is therefore $26,000 ($80,000 minus $54,000). The IRS position on this issue requires policyholders who sell their policies to third parties to obtain their cumulative “cost of insurance” information from the life insurance company in order to file their tax returns - information that may not be regularly provided to policyholders. Gain is part ordinary, part capital. Revenue Ruling 2009-13 also holds that $14,000 of the policyholder’s $26,000 gain is taxable as ordinary income, because it is a substitute for the $14,000 of net inside build-up the policyholder would have received upon a surrender. Under case law discussed in the ruling, the IRS takes the position that this portion of the gain represents an accrued right to receive ordinary income, which cannot be transformed into capital gain by assignment to a third party. The remaining $12,000 of gain is treated as capital gain. Basis in term policies. Finally, Revenue Ruling 2009-13 holds that a policyholder’s tax basis in a pure term life insurance policy having no cash value is limited to the amount of any unearned premium, absent other proof to the contrary. 30
96. Appendix A IRS Issues Guidance On Taxation of Life Settlement Transactions Effective date. Revenue Ruling 2009-13 indicates that the IRS positions on excluding the cost of insurance from basis, and treating a portion of gain on sale as ordinary income, will not be applied to sales occurring before August 26, 2009. Guidance For Life Settlement Investors On the same day, the IRS also issued Revenue Ruling 2009-14, which addresses the tax treatment of transactions involving the purchase and sale of life insurance policies by investors. Death benefit produces ordinary income to investor. Revenue Ruling 2009-14 confirms that where an investor buys a policy as an investment and holds it until death of the insured, the investor is taxable on an amount equal to the death benefit received minus (i) the cost to acquire the policy and (ii) the amount of premiums subsequently paid. (The ruling does not address the treatment of interest paid on a debt-financed investment in a life settlement.) The ruling states that a life settlement policy may be a capital asset in the hands of the investor, but nonetheless concludes that the taxable portion of the death benefit is ordinary income, not capital gain, without stating a reason for this conclusion. (As noted above, many practitioners would take the view that this result is due to the lack of a “sale or exchange.”) Resale produces capital gain to investor with no haircut for “cost of insurance.” Revenue Ruling 2009-14 also addresses an investor’s resale of a life settlement policy prior to death of the insured, and holds that an investor’s tax basis includes, in addition to the acquisition cost, the full amount of premiums the investor pays, even though such premiums largely or entirely represent the “cost of insurance.” In this welcome ruling, the IRS has acknowledged that the rationale for treating a portion of a consumer’s life insurance premiums as personal consumption, rather than investment, does not extend to a life settlement investor. 31
97. IRS Issues Guidance On Taxation of Life Settlement Transactions Appendix A In addition, the ruling concludes that an investor’s gain on resale of a life settlement policy prior to death of the insured is capital gain, using an illustrative example of a 15-year term policy rather than a cash value policy. The IRS notes that these facts do not present the question (discussed above) of whether a portion of taxable gain on resale of a cash value policy should be treated as an accrued right to receive ordinary income. This issue may be of little or no importance in any case, if the life settlement investor maintains the cash values of the policies it holds at minimal levels. Withholding tax. Finally, Revenue Ruling 2009-14 confirms that the taxable portion of a death benefit paid to a foreign life settlement investor by a domestic life insurer on the life of a domestic insured is “U.S. source FDAP” subject to 30 percent withholding tax (unless the withholding tax is eliminated by treaty, an issue the ruling does not address). The ruling does not address the issue of how a domestic life insurer can determine what portion of the death benefit paid represents taxable income rather than recovery of acquisition costs and amounts subsequently paid. 32
98.
99. An employee benefit plan, within the meaning of the Employee Retirement Income Security Act, if a bank, insurance company, or registered investment adviser makes the investment decisions, or if the plan has total assets in excess of $5 million;
101. A director, executive officer, or general partner of the company selling the securities;
102. A business in which all the equity owners are accredited investors;
103. A natural person who has individual net worth, or joint net worth with the person’s spouse, that exceeds $1 million at the time of the purchase;
104. A natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year; or
105. A trust with assets in excess of $5 million, not formed to acquire the securities offered, whose purchases a sophisticated person makes. For more information about the SEC’s registration requirements and common exemptions, read our brochure, Q&A: Small Business & the SEC. http://www.sec.gov/answers/accred.htm 33
106. LifeShares Advisors JOHN M. ZANETIS, Senior AdvisorMr. Zanetis is an experienced attorney in the fields of Estate Planning, Business Planning, Business and Estate Tax Law, as well as Asset Protection Strategies. Mr. Zanetis graduated from Indiana State University (BS Business Administration, 1968) and Indiana University School of Law in Indianapolis (JD, 1971). He was admitted to the Bar of the Supreme Court of Indiana in 1971, to the Supreme Court of Tennessee in 1978, and the United States District Court of Indiana and Tennessee.Mr. Zanetis is a founding member of the National Network of Estate Planning Attorneys, a member of the National Estate Planning Association, and a member of WEALTHCOUNSEL, LLC. He is also a member of the American Bar Association, the Indiana Bar Association, the Hamilton County Bar Association and the Tennessee Bar Association.Mr. Zanetis limited his practice to Estate Planning and Administration in 1988 when he became the first attorney in Indiana to hold Living Trust Estate Planning Seminars. His clients’ estates range in size from several hundred thousand dollars to in excess of fifty million dollars and include large farmers, automobile dealerships, manufacturing concerns, physicians, dentists, real estate developers, and numerous other small businesses. Since limiting his practice in 1988 he has prepared in excess of 2,500 estates and business plans and administered several hundred.Mr. Zanetis is a published author on the topic of revocable living trusts as well as a practiced speaker who gives statewide seminars not only for the general public but also for CPA’s, Financial Planners, and Insurance Professionals which are approved for continuing education credits and cover topics such as Premium Financed Insurance, Asset Protection Strategies, Irrevocable Life Insurance Trusts, Charitable Remainder and Charitable Lead Trusts, Qualified Personal Residence Trusts, Family Limited Partnerships, Limited Liability Companies, Exit Strategies for Business Owners, and Who Should Be The Beneficiary Of Your IRA?Mr. Zanetis is licensed life insurance agent specializing in Premium Financed Life Insurance. His experience in the area of Premium Financed Insurance has resulted in the funding of policies in excess of 50 million dollars. He has experience working with several of the largest banks in the world. He is experienced with various annuity products and other means of estate funding. In addition to working with individual brokers from all the major broker dealers he has given many seminars working in conjunction with organizations such as Royal Bank of Canada Wealth Management, Market Share Financial, A.G. Edwards and Sons Inc., Charles Schwab & Co., Inc, Dean Witter Reynolds Inc., Salomon Smith Barney Inc., Hilliard Lyons, UBS Paine Webber, Kroger Corporation, General Motors, Delco Remy, National Association of Retired Federal Employees, Indiana Counsel on Aging, and numerous other civic and social organizations. 34
107. LifeShares Advisors Michael J. Bradburn, Senior Advisor Mr. Bradburn is a serial entrepreneur with experience in endeavors ranging from internet technology, retail automotive, financial services, manufacturing and intellectual property. Mr. Bradburn cut his teeth in the automotive retail trade. Born the son of a self-made successful auto dealer, Mr. Bradburn spent time after school, during summer vacations and later in a full time capacity learning the family business. From the age of ten, the auto trade was his preoccupation. As the heir apparent to a small automotive conglomerate, Mr. Bradburn worked tirelessly learning the family business in all capacities that culminated in the sale of the dealerships in 1999. During his collegiate experience as a sophomore at Indiana University, Mr. Bradburn launched his first startup. At the onset of the computer age, Mr. Bradburn recognized and capitalized on an opportunity. At the forefront of the personal computer trend, Mr. Bradburn created a business to serve the needs of the academic community. His first entrepreneurial endeavor achieved early success as a typing, academic and desktop publishing service. However, as the proliferation of the personal computer gained traction on college campuses, the market for personal computing services dwindled signaling the end of his first business. At the conclusion of the sale of the family business, Mr. Bradburn sought a career in the life insurance business. Securing a position with Prudential Preferred Financial Services, Mr. Bradburn developed a thriving practice in insurance and annuity sales that later blossomed into a private wealth management career that led him to Morgan Stanley Dean Witter and Merrill Lynch. Financial services became and continues to be his passion. His entrepreneurial drive was yet to be satisfied however. A private client approached Mr. Bradburn in 2004 with an intellectual property concept in the manufacturing space that peaked his interest. Throwing caution to the wind leaving a ten-year career in financial services behind, Mr. Bradburn accepted an offer to assume an equity position and the role of Chief Financial Officer in a new startup. In uncharted territory, Mr. Bradburn threw himself headlong into this new opportunity. Mr. Bradburn was instrumental in securing patents and developing a completely virtual, vertically integrated, manufacturing and distribution technology serving the global powder metallurgy industry. The startup was immediately commercially viable and profitable. Despite a very successful venture in virtual manufacturing, Mr. Bradburn’s true love lies in financial planning and wealth creation. LifeShares, once again, has presented itself as a cutting edge opportunity to satiate his need to reinvent the startup and quench his desire to serve his fellow man in creating personal wealth. Mr. Bradburn is a single father of a beautiful twelve year old daughter and resides in Fishers, Indiana. 35
110. Any information presented about tax considerations affecting client financial transactions or arrangements is not intended as tax advice and should not be relied upon for the purpose of avoiding any tax penalties. Neither LifeShares LLC nor its Financial Advisors provide tax, accounting or legal advice. Clients should review any planned financial transactions or arrangements that may have tax, accounting or legal implications with their personal professional advisors.
111. Not intended for use in solicitation of sales to the public. This is prepared for general information and education. A life settlement is only one option when a life insurance policy is no longer needed. Policy terms, conditions and limitations will apply. LifeShares LLC or its Financial Advisors make no representation regarding the suitability of a life settlement to a client’s needs. Neither LifeShares LLC, its affilliates nor the insurance carriers provide tax or legal advice regarding life settlements.
112. For guidance on a specific transaction, please review IRS Ruling 2009-13 and/or consult a tax advisor. Insureds should consult their own tax, legal and other advisors before deciding to sell a life insurance policy. To ensure compliance with requirements imposed by the IRS, we inform you that, unless expressly stated otherwise, any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.