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NOW: The money we need to live on NOW

FUTURE: The money we may need to use later in life, including unexpected health problems or long-term care needs

NEVER: The money we are going to leave to our heirs when we are gone

In fact, some planners will tell you that there are only two things we can do with our money: spend it or leave it. So the magic question is: WHY DON’T YOU GIVE YOUR HEIRS THIS “NEVER MONEY” NOW?

More often than not, the answer is, “You never know!” You might need the money yourselves for something unexpected. You like the liquidity of funds in the bank, even if you don’t like the miniscule returns. Or, you’re willing to take some risk with market positions, hoping for gains, but willing to accept losses in exchange for having access to your funds at any time.

What if a new strategy existed that would provide you with absolute liquidity but also leverage up your fund into tax-free wealth transference for your heirs – spouse, and/or kids and grandkids? And, what if this same strategy provided tax-free long-term care protection as well as potential tax-free retirement income? Well, just such a new strategy has been created by a few innovative insurance companies. Indeed, they have created a new plan that provides answers to all of your retirement questions. You need access to your funds at any time – You got it. You die too soon – Your heirs will receive a leveraged-up tax-free wealth transference sum. You live too long – You draw upon these leveraged-up dollars for tax-free long-term care payments. You change your mind about leaving your heirs anything and you still have your health – You can begin a tax-free income stream from your leveraged-up funds.

Sound too good to be true? What’s the catch? The catch is, it does not matter how wealthy you are, money alone does not buy this new product. Your health does. However, using a Single Premium Life strategy, wherein a lump sum is transferred from low-yielding “NEVER MONEY” or CD accounts, or from risky “Never Money” market accounts, health considerations are much less of a factor than they are with normal life insurance.

We recently introduced this new strategy to existing clients at special dinner seminars and got an overwhelmingly positive response. Rarely did we have anyone declined due to health problems. And, even for those few who could not qualify, we found attractive alternatives that did not require physicals or even health records.

For those of you who don’t have a lump sum of “Never Money” lying around anywhere, you can still obtain a similar plan. It would require a series of payments instead of a single payment. Many of our clients who are over 70½ and must take a Required Minimum Distribution from their IRA’s, do not really need this money and would not take it if the IRS did not require it. Consequently, since they have to take this money anyway and pay a tax on it, they have decided to leverage these RMD payments into a Tax-Free Wealth Transference plan for their heirs. In the process, they have also created a tax-free long-term care payment plan, if needed.

Other sources of annual payments would be the 10% free withdrawal your annuities offer you. Money intended for gifts that, instead of going directly to your heirs now, could be leveraged up into a much larger Tax-Free Wealth Transference. Surplus income from Social Security, pensions, bond interest or stock dividends would also work. You actually have an abundance of options to use for this exciting new strategy of leveraging up available cash into Tax-Free Wealth Transference, tax-free long-term care benefits and tax-free retirement income.

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