Fixed growth accounts, like your standard checking and savings accounts, are some of the best examples of common "fixed" growth accounts. These account types are ideal to hold your cash to be used for every day spending and your emergency savings. However, fixed accounts, tend to yield extremely low interest with the national average for an interest bearing savings account at 0.01% - 0.06%.
Variable growth accounts, such as 401ks, Roth IRAs, stocks, etc., are a few of many account types that offer variable growth. When the market is up, it's great! We pop some bubbly and sleep really good at night. When the market is down... we're stressed and upset, questioning everything. The experience can feel like an emotional roller coaster or like a Vegas roulette table.
Indexed growth accounts, such as those built into Indexed Universal Life (IUL) Insurance products, are the gold standard in compound growth. We cheer when the market is up and save our tears when it's down! Your policy cash value grows when the market is up and indexes that growth. If the market is down the following year, your previous gains will not drop with the market.
In the event that your variable account experiences a loss in value with a downward market shift, whatever percentage of the loss occurred will require a higher percentage gain to recover.
For example:
If the cash value of your variable account is $100 and you experience a 50% loss, the new cash value will be $50.
With the new cash value at $50, in order to get back to a $100 cash value, the market would need to experience a gain of 100%.
In other words, a 50% loss requires a 100% gain to recover.
Indexed Universal Life (IUL) Insurance products index your gains when the market is up so you do not experience a loss when the market is down. You even earn a small percentage (floor rate) on your indexed gains when the market is down, whereas a variable account would be experiencing a loss.
Not only do you not lose, you still earn a little something!
No need to stress about tax penalties for early withdrawal from an Indexed Universal Life (IUL) Insurance product.
Need funds to purchase a car? A house?
Have an unexpected medical expenses?
Retiring early and need to supplement your income?
It's your money, use it when you need it.
When the time comes for your loved ones to inherit your assets, they will receive the full cash value + the death benefit from your Indexed Universal Life (IUL) Insurance policy completely tax free.
Especially when planning for the financial future of your family should your income suddenly no longer be able to contribute to your household if you pass away unexpectedly.
Term life insurance products are the least expensive way to ensure your heirs are cared for in the event of your death. Term policies do not offer indexed growth accounts within them but the death benefit can help pay for funeral expenses, pay off debt, and help your family transition into a new financial chapter.
Oh, by the way, your loved ones receive this money completely TAX FREE!
Interested in obtaining useful financial education that most of us didn't learn in our education system?
My partners at HLJ Growth Agency and I are proud to offer a short 45 minute workshop we call "Money 101".
Money 101 is FREE and virtual!
There are multiple virtual workshops a month so you can tune in when it's most convenient for you! Please contact me if you're interested in attending an in-person event!
To be clear, these workshops are NOT sales seminars.
These sessions are for education only. Nobody will be asking for a credit card.
This is high level information in a group setting. Any specific questions about your specific circumstances are answered on a 1:1 basis initiated by you.
"The best time to plant a tree was 20 years ago.
The second best time is now."
- Chinese proverb
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