Investment Strategies
Investment Strategies
Sep 28, 2012 // 679 Words
The 770 Account—Everything you need to know.
The 770 Account—Everything you need to know.
This type of account is an investment strategy and can offer an investor steady, competitive returns with little to no risk!
The 770 Account is often also referred to as:
- The President’s Secret Account
- The 501(k) Plan
- The Invisible Account
- Income for Life
- The Infinite Banking Concept®
- Bank on Yourself
- The 702(j) Retirement Plan
Why does it go by so many names? There is a reason which I will reveal in a moment. But first, let me tell you precisely what it is.
The 770 Account — Is this life insurance policy hope or hype?
The 770 account originates from IRS code 7702, which governs “life insurance contracts.” Put simply, a “770 Account” is a permanent life insurance policy that is used more as an investment than for traditional insurance.
This life insurance design differs from a traditional term life policy since it focuses less on maximizing the death benefit, and more on the living benefits of the policy, and the preferred tax treatment of the cash value within the policy.
The policy is structured such that you fund the policy to the maximum allowable per the IRS guidelines. Your money will grow at either a fixed percentage or at a rate tied to an index, specified by the type of policy that you purchased.
The 770 Account — What are the benefits?
The benefit here is that you can take loans against the cash value in the policy, which, according to IRS regulations, are never considered as taxable income.
Also, if the policy has sufficient cash value, there are no age restrictions on when you can take out a loan, making it an attractive income source for those looking to retire early and control their income tax liability.
Depending on the type of policy, the cash value is also principal-protected and can provide additional cash in the event of a chronic, critical, or terminal illness.
So, in essence, you are using a life insurance contract as a savings account. Once you have funded it sufficiently, then yes, you may, in most cases, make withdrawals tax free.
The uber-wealthy and bankers use this type of account to earn 30-40X more interest on their money. — The Palm Beach Letter
This account exists right now and if structured correctly:
- Provides yields 5-6 times more than long-term CDs
- Offers guaranteed returns in some cases
- Does not have to be reported to the IRS
- Can be accessed anytime without penalty
- Lets you retire 100% tax-free
The 770 Account — Why the name keeps changing.
Some smart marketers coined the term “770 Account” to help insurance agents sell certain kinds of life insurance products.
It’s just clever marketing, to brand it under many different names. It makes it sound mysterious and more easily hooks people in, with something supposedly new.
The 770 Account — Is permanent life insurance with a twist.
Affluent investors have used cash-value life insurance policies for over 100 years.
President John F. Kennedy used this type of account, and so did Presidents Taft, Cleveland, McKinley, Harding, and FDR. Republican senator John McCain took a policy loan from his life insurance policy to pay for his presidential campaign.
While the government places restrictions on when and how much money can be invested in all types of IRAs, the amount of money that can be put into a permanent life insurance policy is flexible. It depends upon the death benefit and policy structure.
When structured correctly, a 770 Account is a powerful strategy that can be used to provide tax-free income later in life and a tax- free death benefit for your heirs.
I encourage you to watch the videos below and contact a risk management advisor to determine if this type of account is right for you.
Watch the videos below and contact a risk management advisor to determine if this type of account is right for you!
Solera’s specific approach aims to protect your assets against catastrophic loss and yet still grow your portfolio by utilizing a diversified strategy of risk allocation.
I recommend Vladi Donets, Risk Management Advisor of Solera Asset Managers. – Ricardo Crooks
This type of account is an investment strategy and can offer an investor steady, competitive returns with little to no risk!
The 770 Account is also often referred to as:
- The President’s Secret Account
- The 501(k) Plan
- The Invisible Account
- Income for Life
- The Infinite Banking Concept®
- Bank on Yourself
- The 702(j) Retirement Plan
Why does it go by so many names? There is a reason which I will reveal in a moment. But first, let me tell you precisely what it is.
The 770 Account — Is this life insurance policy hope or hype?
The 770 Account originates from IRS code 7702, which governs “life insurance contracts.” Put simply, a “770 Account” is a permanent life insurance policy that is used more as an investment than for traditional insurance.
This life insurance design differs from a traditional term life policy since it focuses less on maximizing the death benefit, and more on the living benefits of the policy, and the preferred tax treatment of the cash value within the policy.
The policy is structured such that you fund the policy to the maximum allowable per the IRS guidelines. Your money will grow at either a fixed percentage or at a rate tied to an index, specified by the type of policy that you purchased.
The 770 Account — What are the benefits?
The benefit here is that you can take loans against the cash value in the policy, which, according to IRS regulations, are never considered as taxable income.
Also, if the policy has sufficient cash value, there are no age restrictions on when you can take out a loan, making it an attractive income source for those looking to retire early and control their income tax liability.
Depending on the type of policy, the cash value is also principal-protected and can provide additional cash in the event of a chronic, critical, or terminal illness.
So, in essence, you are using a life insurance contract as a savings account. Once you have funded it sufficiently, then yes, you may, in most cases, make withdrawals tax free.
The uber-wealthy and bankers use this type of account to earn 30-40X more interest on their money. — The Palm Beach Letter
This account exists right now and if structured correctly:
- Provides yields 5-6 times more than long-term CDs
- Offers guaranteed returns in some cases
- Does not have to be reported to the IRS
- Can be accessed anytime without penalty
- Lets you retire 100% tax-free
The 770 Account — Why the name keeps changing.
Some smart marketers coined the term “770 Account” to help insurance agents sell certain kinds of life insurance products.
It’s just clever marketing, to brand it under many different names. It makes it sound mysterious and more easily hooks people in, with something supposedly new.
The 770 Account — Is permanent life insurance with a twist.
Affluent investors have used cash-value life insurance policies for over 100 years.
President John F. Kennedy used this type of account, and so did Presidents Taft, Cleveland, McKinley, Harding, and FDR. Republican senator John McCain used a policy loan from his life insurance policy to pay for his presidential campaign.
While the government places restrictions on when and how much money can be invested in all types of IRAs, the amount of money that can be put into a permanent life insurance policy is flexible. It depends upon the death benefit and policy structure.
When structured correctly, a 770 Account is a powerful strategy that can be used to provide tax-free income later in life and a tax- free death benefit for your heirs.
I encourage you to watch the videos below and contact a risk management advisor to determine if this type of account is right for you.
Watch the videos below and contact a risk management advisor to determine if this type of account is right for you!
Solera’s specific approach aims to protect your assets against catastrophic loss and yet still grow your portfolio by utilizing a diversified strategy of risk allocation.
I recommend Vladi Donets, Risk Management Advisor of Solera Asset Managers. – Ricardo Crooks
