Easily uncover assets of your client with this easy to use discovery process. Great for financial advisors and life insurance agents. Close more deals with this training!
visit: www.LISacademy.com for more details
I’m confused about the last allocation calculation. For an employer to “ 3% match” a contribution, the employee (the client before us) has to put forth 3%. Therefore there is only 4% of the allocated investment to be tapped or moved so-to-say. Did I miss something in the calculation?
Might have been a slip of the words, but you get the idea. Invest into your 401k up to the match and anything in addition, shift the money into other areas such as life insurance.
Glad that you’ve forwarded it to your agents. We provide one on one agent training as well. We work with Work with plenty of teams and customize a majority of our learning to fit their need.
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First thank you for this great presentation. Ive shared it with my team of agents.
At the point 9:16 in your presentation you say that the individual is over-funding their 401k by 7%. In my calculations it is only over by 4%. The amount above (4%) the employer matched funds. <Of course the ROI on the specific stocks in the porfolio meeds to be considered.>
However just looking at the investment and finding money for their life insurance is only going to be 4% of their net. What ever that calculates to be.
I’m not sure what the question is. If an employee were to place 3% of his/her income into the 401k while the employer matches up to 3%. That would be an equal, “what you put in they put in” type situation. Any additional money (above the first 3%) could be placed into other investments or possibly life insurance.
I do like this strategy for helping the client find money. The overfunding verbiage is good. But since roth iras and life insurance use after tax money, they're not entirely tax free, you just paid the tax first. You gotta be very careful with this conversation..
100% agree, Matt. You NEVER want to say that withdrawing from your cash value life insurance policy is TAX FREE. You need to let them know that taking money from the policy can be done in a tax-free way. (FIFO and loan)
Moving money "up" to tax free money only makes sense when you hold all other varitables equal. If my 401(k) is invested in government securites and has a comparitable interest rate to a life insurance "investment" then go ahead, but for the majority of clients who hold some equities in their 401k they are going to outperform the life insuranse "investment"
+LISacademy So even though the 7% (or whatever is unmatched), is being invested and accumulating additional value, you should reallocate it to a Roth or a life insurance policy where it can be invested and accumulate additional value similarly.
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