Put These Strategies to Work

Accumulation

A parent or grandparent purchases a whole life insurance policy on themselves or a younger family member (child or grandchild). 

Tax-Deferred Growth

The policy accumulates cash value over time, with growth generally tax-deferred. 

Transfer

The policy can be transferred to the younger generation (the insured) either during the policyholder's lifetime or upon their death. 

Beneficiary Designation

The policy can be structured to pass directly to the next generation, potentially avoiding probate and estate taxes. 

Family Banking

The cash value of the policy can be accessed through policy loans to fund family needs, like education or business ventures, and then repaid, perpetuating the cycle. 

Perpetuation

The death benefit from the policy can be used to purchase new policies on subsequent generations, creating a continuous cycle of wealth transfer. 

Tax Advantages

Whole life insurance offers tax-advantaged growth and potentially tax-free death benefits. 

Estate Planning

It can help streamline wealth transfer, potentially reducing estate taxes and avoiding probate. 

Family Legacy

It creates a mechanism for long-term wealth preservation and transfer to future generations. 

Family Banking

The cash value can be used as a source of internal financing for family needs. 

Variations

The Waterfall Method can be customized based on individual circumstances and objectives, with variations including:

Trust Integration

Using trusts to hold the life insurance policies and manage the distribution of wealth. 

Extending the strategy to include multiple generations (grandparents, parents, children, grandchildren). 

Different Policy Types

Exploring different types of life insurance policies based on specific needs and goals. Whole life with average 4% dividends or IUL at 6.5% compounding interest.

Income Shield $300k 

10% bonus - Lifetime Income (Pension) & Well being Rider 6.5 fixed compounded rate with market participation tradeline rate credits. Allows 10% penalty free withdrawal of total contract value stair step in years 2-10 Ex: Year 4- 40% 5- 50% 

Asset Shield $300k 

23% bonus - Asset Accumulation Growth with Enhanced market participation rates towards, Blackrock, Nasdaq, Etc. for the 1st ten years of maturity .95% charge per year. Allows 2% penalty free withdrawal in the first year and up to 12% of contract value in years 2-10.

Estate Shield $300k

A guaranteed 35% Benefits Account Value Bonus on all first year premiums- this is different from Bonus Interest Lifetime Income (Pension) & Well being Rider 6.5 fixed compounded rate with market participation tradeline rate credits. This vehicle is a hybrid of both Asset Shield and Income Shield because it still allows you to earn interest and grow after activating the income portion which allows the income from year to year to increase. Allows 10% penalty free withdrawal of total contract value stair step in years 2-10 Ex: Year 4- 40% 5- 50% 

KaiZen $600k 

5 year retirement plan that offers 3 to 1 match using bank loan. Maturity in 10 years, bank take back loan, you keep interest. Allows up to 60% more growth.