Welcome To The Legacy Wealth Account FAQ’S!

No, We offer a unique strategy in this space and utilize our professional resources to accomplish results far greater than industry averages.

Yes there is actually. It still falls under the Legacy Wealth Account but its broken down into the following three (3) types.

1. Personal- this has the lowest barrier to entry which is $60k (or if you can do $30k year one and $30k for year 2.) Then you are done. Can you do more absolutely. We will cover the other two so you get a better idea of which one would work best for you.

2. Corporate- This is where a business that has a minimum of $250,000 or higher in additional emergency funds or lazy idle dollars can fully fund this account and its a one time pay. The leverage we utilize with our lines of credit pays for the policies premiums every year after.

In as little as 11 years we will have it structured so that you can obtain an actual 6 figure plus revenue stream that is 100% tax free and will continue to grow each year. Not to mention the funds are 100% liquid allowing for the business owner to still utilize the funds for emergency purposes or opportunities.

We utilize each and every employee getting them a maximized death benefit that the business owner or employer provides to each employee at no cost to the employee, while the business owner maximizes their cash flow through the tax free revenue streams that payout starting in year 11. This can also be used to vest each employee.

3. Hybrid- A Hybrid is where we do a combination of the corporate legacy wealth account however, its under the business owners name. This is 100% under the business owner and not utilizing its employees for the death benefit.

So a business owner may have $1,000,000 in lazy idle dollars, depending on how much we can max out that owners Death Benefits will determine how much of that $1,000,000 can be used towards their hybrid Legacy Wealth Account. We determine this through a variety of methods.

Sometimes we must do a percentage split and do a percentage of that $1,000,000 under the business owner lets say 40% or $400k and then another one that is under the company for $600k where then the employees can obtain the deathbenefit to their families.

The purpose for doing it this way is to 1. provide a sizeable death benefit to the owners beneficiaries, but also the owner gets 2 forms of tax free revenue streams within an 11 year period.

No, Premium Financing relies on outside assets acting as collateral and a bank loaning you your preimum payments against that collateral to make your annual policy payments from day 1. While our clients may use financing if, when and as wanted, our strategy is not dependent on financing. There are major differences in flexibility, safety, and performance.

There are numerous differences, but the most important to you is the lack of death benefit protection, leverage opportunities and taxation of distributions. Annuities are also more expensive and have much lesser cash values in the early years. Also, income from the Legacy Wealth Account is 100% tax free!

Yes! In addition to a permanant death benefit, i’ts a great substitute for conservative assets with far better risk/reward characteristics. When structured correctly, it’s a tremendous vehicle for compounding interest, tax free income and an ability to safely leverage without penalties or fines which is not advisable or the case with other typical investment portfolios.

Yes! For a Personal Legacy Wealth Account “LWA” It’s $60,000 all up front or you can $30,000 for 2 years. The more that goes into this the better performance it has. For A Hybrid or Corporate LWA, the Minimum Is around $250,000.

Yes! This is certainly an option, but whether or not you should is dependent on many variables. We can look at your situation and see how this would affect your taxes and see how we might be able to map out an effective tax plan to minimize your tax liabilities.

Your LWA is yours to access anytime you need. The recommendation would usually be to only access funds when other options are not available to you. This is so that the LWA may continue to grow at its maximum pace so that you can obtain the max tax free income stream in as little as 11 years.

There is no catch other than it has a much higher entry point that most other programs but this is highly unique and isnt for everyone. We do this with hundreds of business owners every year. There are limitations on how much you can do, you have to qualify for a policy, and it is expected to take several years before the strategy is working best but for our Corporate and Hybrid plans they have high liquidity in case the business owner needs funds for the business as a last draw for an emergency.

Results are not guaranteed as no one can predict the future and circumstances beyond anyone’s control, but we believe this should be one of your best and strongest assets. This can be leveraged and utliized multiple ways when done right.

We even have a tax strategy we created around this allowing you to use the same dollar up to 3 to4 times. Talk about leverage at its finest.

Insurers are highly regulated and required to place vast amounts of money into reserve accounts unlike the banks. There are reinsurance pools and other multiple safeguards which is why they have been around for over 200 years without a hiccup.

There is almost nothing on the planet considered to be safer by bank regulators and institutional investors than cash value life insurance its one of the top 3 things the wealhy always utilize.

Anything is possible, but life insurance cash values are about the last thing you would ever need to worry about.

Insurance policies come in many shapes and sizes. Other people don’t know what we know here at DoWhatTheWealthyDo. How a policy is built, which company is used, how it’s used, what it replaces, and many more variables make the difference in how appropriate it would be. Our money manager has access to just about everything under the sun. The Legacy Wealth Account is, by far, one of their favorite methods.

The Legacy Wealth Account has been around for over 8 years now. Our team has been reviewed by legal teams, accounting firms, auditors, state and federal regulators and  insurance compliance departments. We are held to a high compliance standard. There is nothing fabricated or exaggerated.

Consumer debt and living beyond one’s means are never good. Leverage (financing) must always be used with extreme caution and is not advisable with most investments. With the Legacy Wealth Account, we are always debt neutral, meaning we always have more value in the policy than the debt owed.

We use financing only when we see very safe and appropriate opportunities and maintain the ability to elminate the financing at any time if its no longer desired. The LWA is not dependent on financing.

There are two types of debts. Bad debt and good debt. Bad debt is libility debt such as anything that takes money out of your pocket. Good debt is the kind of debt like a mortgage on a cash flowing real estate property or in this case your LWA because it helps you accelerate the growth of your cash value using the banks money while giving you a high tax free income stream in as little as 11 years.

Some banks allow the interest on a loan to accrue (compoud). We only use financing if we believe there will be more made elsewhere and/or in the policy itself. When that is the case, it is better to compound your money at the higher rate than save at a lower rate.

The longer there compound, the more money is made for you. It’s the same reason why all banks borrow money form some  to loand it out to thers at a higher interest rate. This is called “Arbitrage”. Although they have the ability to be debt free, they would make a lot less money if they were.

No. A Policy loan is not reported to the credit bureaus.

Policy loans from the insurance company and many banks do not have any recourse on anything other than the policy iself.

The LWA only uses existing policy values when financing is used and at safe loan to value ratios. This means you always have the money to repay any loans at anytim you want to repay them.

As far as your line of credit, as the cash value grows so does your death benefit and reserve account as well as line of credit. The line of credit isnt typically needed to be paid off until after you pass away as its tied to your death benefit. When we show you your illistrations the death benefit shown is your actual “NET DB” or net death benefit of what is left after the loan is paid back and what goes to your beneficiaries.

It depends. Some banks do report to the credit bureaus, and some do not. When the LOC’s are reported, to the credit bureaus, the interest payments will add to the amount of debt you owe, but the growth of the policies will count towards your reportable income, so it should not affect your ability to borrow.

If it did become a hrudle to obtain new financing, we would just use a policy loan (not reportable) to pay off the LOC and after you have secured the financing that ou need, you can reuse the LOC and pay off the policy loan.

No. Once you are qualified you are good to go. The only caveat is if you wish to get new LWA’s down the road, they could require new medical evaluations for those new LWA’s.

No because your income is coming from your line of credit. This type of “income” is not taxable, no different than a cash out refinance on a home. Income and gains in a policy are only reportable if a policy is sold or surrendered.

It depends on what the premium reserve account is invested in. That is a discussion for you and your wealth advocate.

Although anything is possible, the government has looked at making changs to income derived from loans in the past and has never come close to making any changs. With that said, even if the income becomes taxable in the future the Legacy Wealth Account can react to changing market conditions and will adapt with those changs.

Well-built insurance policies with good carriers are great assets to have. As rates rise, their expected cash values are also expected to rise as well. If a policy has been used to collateralize loans, the costs of those loans will likely raise as well. If costs are expected to be more than increases in policies performance, loans may need to be prepaid or neutralized temporarily with “wash loans” from the carrier until positive loan spreads return.

The LWA is designed specifically with these contingencies in mind. Clients should understand this is a possibility and that even unleveraged, insurance is a great asset to hold for both cash growth and family protection purposes.

It is expected that if higher rates remain, a positive spread will return and even more money will be made than if the same spread took place in a lower rate environment, especially when interest is deductible.

Borrowing rates and crediting rates of policies are typically positively correlated, but not necessarily immediately. One should expect that there will be years when returns will be better and others that are worse and, depending on how it is setup, even negative.

One of our investment advisors will help determine the best way to optimize this component, tailored to the client’s risk tolerance, time horizon, needs and concerns. This is another area of expertise that sets us apart from other insurance strategies.

This is one of the limitations of the LWA and a common limit that is encountered. What may limit you on the Legacy Wealth Account is your overall net worth and the death benefit associated with that.

So as you continue to Do What The Wealthy Do, you will be able to begin increasing your overall wealth and drastically boost up your Death Benefit thus allowing you to put more into this.

Now this is where business acquisitions comes into play. The business acquisitions is utilized for a few reasons.

1. Tax Benefits: of being able to write off the FF&E’s or Furniture, Fixtures and Equipment when you acquire one.

2. Additional Cash Flow and Increased Net Worth.

3. Leverage: it allows you to utilize the new employees to obtain another LWA while you utilize and max out the death benefit on all of the employees and not yourself.

We will help you with the business and acqusitions side of things should you get to this point and want to invest more. The wealthy put a large portion of their money into these always maxing them out and re-upping as they continue to increase their net worth and business holdings.

It should be expected that markets and indexes will tank from time to time. This is nomrmal. The LWA is a long-term strategy and when the market goes through its ups and downs the Legacy Wealth Account will be designed to minimize downside and maximize the upside. The overall performance is expected to be head and shoulders above any conservative strategy.

Maybe. Each policy or annuity will be evaluated by our team to determine if there is a path forward to leverage your current auunity or policy.

The Legacy Wealth Account will ehance and compliment what you are doing with your real estate investing. Enhancements include far better cash management, higher income, better buying decisions, reduced risk, liquidity and more.

The Insurance “Banking” strategies often focus on borrowing against current cash values for depreciating assets and often utilize too much leverage and no ongoing support or direction. Others use similar principles with the Legacy Wealth Account and can be enhanced by our Premium Reserve services, the IOP, loan deductibilty planning, ect.

Plus the LWA is geared to where it can drastically enhance the amount of income or tax free cash flow you obtain in as little as 11 years that you can use for anytihng you choose such as growing your asset holdings and thus further improving your cash flow.

When tax planning with us, we will set you with tax planning strategies that are designed to improve your retirement and over all wealth. The Legacy Wealth Account is one of the foundational pieces in acccomplishing this due to its unique structure and high growth, flexibilty, safety and liquidity.