Nov 11, 2022
How I Lower My Taxes with Life Insurance
I want to show you a trick on how to use the Sacred Account to lower your taxes!
So first, what is the Sacred Account?
It is High Early Cash Value Dividend Paying Whole Insurance.
Here is a quick breakdown of how it works!
- If I put in $1, that $1 will grow at 3–5% per year on over the long haul, tax free.
- I can borrow 70–90% of that dollar and will pay a total interest cost of about 1–3%. BUT while I borrow this, my dollar keeps growing at 3–5% like it never left!
- I can then use the money I’ve borrowed for whatever I want. It should be things that either increase my income, or lower my expenses, or help me keep more of my money!
- I pay myself back.
What does this have to do with lowering my taxes?
Well check this out.
Let’s say I put $7,500 into my Sacred Account.
My entire $7,500 is growing at 3–5% tax free, long term.
I then borrow $6,000 out of my Sacred Account.
My $7,500 is still growing at 3–5% like it never left. I will owe 1–3% interest cost on my $6,000 that I’ve borrowed.
I take my $6,000 and put it into a Self-Directed Traditional IRA and get a tax deduction on my $6,000.
I use the money saved on my taxes to pay myself back.
So here is the math on all of this.
Let’s say I make 4% on my $7500. That’s $300 I’ve earned.
Let’s say my cost of interest is 2%. That’s $120 I must pay in interest.
Let’s say my tax rate between state and federal is 25%. That’s $1500 I’ve saved on my taxes.
So my total return is $1500 + $300.
My cost is $120.
I’ve netted $1680.
On my $7500, that is a 22.40% rate of return that year, not even including the investing I do within my IRA.
This is just 1 simple, basic strategy that I can use my life insurance for and there are many more like it!
To get a full understanding of how the life insurance works and other strategies to reduce your taxes, I want to offer you a free copy of my book The Blueprint to Financial Freedom.
Click here to get your free copy!
When you order my book, not only do you get the exact strategies of the Top 1% on how to achieve greater Financial Freedom in life, but you also get a free Course Supervisor who will ensure you understand the book and finish it, plus a free Coaching Call to implement what you’ve learned!
Click here to order!
To Purpose, Wealth & Freedom,
Jerry Fetta
Jerry Fetta is the CEO and Founder of Wealth DynamX. He is a nationally recognized financial expert featured in Forbes, Yahoo Finance, Fox, Chicago Weekly News, New York Finance, interviewed on over 45 podcasts with world renowned experts, earning endorsements and affiliations throughout his career with names like Kevin O’Leary, Grant Cardone, Dave Ramsey, and Pamela Yellen.
Jerry’s mission in life is to help create millions of financially educated and solvent families achieving greater financial freedom and sharing the truth about money with those around them.
Learn more at www.WealthDynamX.com
(DISCLAIMER: The information in this content should not be considered tax, financial, investment, or any kind of professional advice. Only a professional diagnosis of your specific situation can determine which strategies are appropriate for your needs. Wealth DynamX can and does not provide advice unless/until engaged by you.)
