Protect Assets Strategy

Protect Assets Strategy - The Role of Life Insurance

March 05, 2009 : Posted by: admin : Category: Uncategorized : Comments (0) : Add Comment

Life insurance can be a key element of an effective strategy for protecting assets by eliminating estate taxes. But for this protect assets strategy to work, one must be knowlegeable about the kind of life insurance that is effective in employing this strategy.

Term Life Insurance Policies

These popular policies are intended to pay at face value if the policy holder dies within the period of coverage. Premiums can be fixed for 10-20 years and sometimes can be renewed, with new premiums set by the company at that time. For example, a 20-year policy for $2 million might cost $10,000 per year at age 45. Depending on the policy, you may have the right to renew for another 10 or 15 years, but the premium will be reset by the insurer based on your new age. At 65 or 70, the annual premium might increase to several hundred thousand dollars per year. So at a time when the insured’s income is decreasing, the cost of the term insurance has increased so much as to make it virtually impossible to retain. Term life insurance is low cost because the actuarial tables indicate that few people die during the term of this type of policy. And few can afford to renew a term policy as they get older and really need the policy either to replace income if they died or to protect assets.

Term policies have one important and specific purpose: to replace lost income from a premature death. If you should die before your anticipated retirement date, how much insurance would be necessary to replace for your spouse and children all or a portion of your lost income? If the answer is a lot, you are probably a good candidate for term insurance. It offers the most insurance for relatively low premiums. Term insurance effectively covers the risk of lost income for a set number of years, but it doesn’t build or protect wealth for the future. If one is in a position in which he has a business that will increase in value and he needs a
source of funds to pay estate taxes without selling the business, then term life is probably not the strategy that will protect assets. Often when someone is young he purchases this type of policy because the agent recommended it and doesn’t look too closely at the details or think about the asset protection aspect of insurance.

Permanent Life Policies as an Asset Protection Strategy

Because your current term policy probably will be insufficient if you anticipate paying sizeable estate taxes or you want to leave money to your family, you’ll probably need a permanent life insurance policy that lasts for your lifetime. There are many varieties of these policies, but they are often described as Whole Life or Universal Life. In addition to paying the specified death benefit, these policies also work like savings
accounts, building cash value that you can borrow against or redeem. They also get a big tax break because the earnings on the savings are not subject to income tax at any time. That may be an amazingly good asset protection strategy but it’s one that few people understand.

Another advantage of permanent life policies is their usefulness in wealth accumulation. Since they work like a savings account, the funds that have accumulated in them can be borrowed more easily than borrowing against the equity in your home or getting a loan from a bank. As the insured pays that loan back to his policy, he is free to pay it with interest, thus garnering the interest from his own “loan” and accumulating cash value in his policy.

Conclusion

Term policies and permanent policies meet important but different financial needs and are useful for different asset protection goals. Term life insurance efficiently and inexpensively protects against the risk of lost income for a specific number of years. Permanent policies are designed to last for a lifetime; they
effectively guarantee that a specified amount of wealth is accumulated for whatever family, charitable, or estate tax needs you might consider. The caveat is that there are huge differences in benefits and costs among all of the available plans. You owe it to yourself to talk to knowledgeable advisors about the real benefits and costs of any insurance plan you are considering.

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Protect Your Online ets - Review

July 04, 2009 : Posted by: admin : Category: protect assets : Comments (0) : Add Comment

Protect Your Online ets Reviewed shows you exactly why you should take a closer look at this product.

Duration : 0:1:28

Protect Your Online ets - Review

July 04, 2009 : Posted by: admin : Category: protect assets : Comments (0) : Add Comment

Protect Your Online ets Reviewed shows you exactly why you should take a closer look at this product.

Duration : 0:1:28

11/21/2008 Part 1/3 Peter Schiff: Markets Reacting To Nomination Of Tim Geithner?

July 04, 2009 : Posted by: admin : Category: protecting wealth : Comments (25) : Add Comment

Visit http://www.PhilDeCarolis.com to sign up for my free weekly newsletter that includes Economic and Real Estate updates or for more Peter Schiff videos and real estate advice from an experienced Investor/Realtor. Let me help you protect and grow your wealth NOW before it is too late. Contact me right away for a referral to my own personal broker with Euro Pacific Capital that can advise you on the purchase of precious metals (Gold, Silver, etc..), Commodities And/Or Foreign Dividend paying stocks to hedge against rising prices and your loss of hard earned wealth. Join me in preserving your savings so that we can utilize our retained purchasing power to purchase Discounted/Cash Flowing California Real Estate ets at the bottom of this downturn for pennies on the dollar that will rise in value dramatically during Californias’ next cyclical inflationary real estate bull market.

Duration : 0:8:20

Technorati Tags: 2008, 21, deflation, Faber, Geithner, Gold, Inflation, Interest, Jim, Marc, November, Part, paul, peter, Rates, Rogers, ron, Schiff, the, Tim

12/10/2008 Part 2/3 Peter Schiff On Kudlow & Co.: Market Drilldown

July 04, 2009 : Posted by: admin : Category: protecting wealth : Comments (25) : Add Comment

Visit http://www.PhilDeCarolis.com to sign up for my free weekly newsletter that includes Economic and Real Estate updates or for more Peter Schiff videos and real estate advice from an experienced Investor/Realtor. Let me help you protect and grow your wealth NOW before it is too late. Contact me right away for a referral to my own personal broker with Euro Pacific Capital that can advise you on the purchase of precious metals (Gold, Silver, etc..), Commodities And/Or Foreign Dividend paying stocks to hedge against rising prices and your loss of hard earned wealth. Join me in preserving your savings so that we can utilize our retained purchasing power to purchase Discounted/Cash Flowing California Real Estate ets at the bottom of this downturn for pennies on the dollar that will rise in value dramatically during Californias’ next cyclical inflationary real estate bull market.

Duration : 0:6:14

Technorati Tags: 10, 2008, bailouts, December, depression, economy, Inflation, Kudlow, MSNBC, paul, peter, ron, Schiff

Hawwains - How do you feel about Obama now? How are your votes for him working for you?

July 03, 2009 : Posted by: admin : Category: protect assets strategy : Comments (12) : Add Comment

Aloha, ‘Star Wars’ - Obama Bluffs on Defending Hawaii

Monday, June 29, 2009

July 4 could be another day that will live in infamy. The Obama administration seized headlines June 18 when the Defense Department stated that the United States would deploy ground- and sea-based missile-defense assets to protect Hawaii. This was a response to North Korea’s threat to launch a long-range missile on July 4 toward the islands. However, new information suggests that the administration is bluffing and our defenses are inadequate to get the job done.

Missile-defense expert Taylor Dinerman told us that the sea-based SM-3 missiles now deployed to "protect" Hawaii are not equipped with adequate software and communications to intercept a missile traveling from North Korea to Hawaii, which would reach a terminal velocity of Mach 23 to 25. The SM-3s are effective only against targets traveling at up to half that speed. It would take about $50 million to upgrade the software to enable a Mach 25 intercept. The Army’s Terminal High Altitude Area Defense missile, which also has been activated after successful tests at Barking Sands on Kauai, "doesn’t come close" to being effective against this type of threat, Mr. Dinerman said.

The Obama administration is stuck in the past on missile defense, repeating worn-out arguments about unproven technologies and destabilizing effects. The Defense Department’s 2010 budget proposal cut missile defense by $1.2 billion, and congressional Democrats rebuffed Republican attempts to restore the funding. Justification for the cuts was led by Rep. Ellen O. Tauscher, California Democrat, who is the newly confirmed undersecretary of state for arms control and international security. Ms. Tauscher will play a major role in missile-defense policy.

The cuts include scaling back the number of interceptors based at Fort Greely, Alaska, from 44 to 30. This cut is hard to justify given the proximity to North Korea and the fact that these interceptors actually could bring down one of its missiles (which may explain why Pyongyang is aiming for Hawaii). The Airborne Laser program has been downgraded to a research-and-development effort despite a recent successful test of its target-acquisition system. Taxpayers have invested about $5 billion to bring this advanced technology to the point of fruition.

The Obama administration also has cut funding for the European missile-defense shield, leaving our allies in Poland and the Czech Republic in the lurch after they took a major political risk to support the program. A February Congressional Budget Office study of the proposed European deployment concluded that "none of the alternatives considered by CBO provide as much additional defense of the United States." This retreat makes the United States appear weak before Russian bluster, which doesn’t put U.S. leaders on the best footing on the eve of a July 7 Washington-Moscow summit.

Missile defense should be central to the U.S. strategy to dissuade, deter and, if necessary, defeat threats. Instead, we are unilaterally disarming, which only strengthens the strategic logic for our adversaries to produce more missiles. Current policies encourage countries like North Korea, Iran and Syria to move ahead with advanced missile and weapons-of-mass-destruction programs that promise more bang for the buck than expensive conventional forces.

The Obama administration’s hostility to missile defense is inexplicable. The missile threat is growing, and defensive technology is increasingly effective, yet the Obama team has dug in stubbornly behind a losing strategy that emboldens our enemies and places us in greater danger. No wonder Hawaiians are nervous.

http://www.washingtontimes.com/news/2009/jun/29/aloha-star-wars/

I’m headed for Kauai.

The North Korean rat will do nothing, and the rat in the White House will do nothing. They have that in common.