Ten years ago, an article came out with a similar title to our podcast episode. And this is the first in a series where we are going to unpack each of these ten points, these ten reasons, and help you understand the difference between an Indexed Universal Life policy and a Whole Life policy. We want you to hear both sides, so you are well-informed and can make the best decisions for yourself and your family.
Today we are focusing on number ten and number nine, counting it down. #10 is “Internal costs are not guaranteed” and #9 is “Mortality charges are not guaranteed.” Listen as we explain what is meant by these “guarantees.” We like to make these concepts simple and easy for you to understand. And if you have any questions, we have answers and reports we can share with you or your agent. Just reach out to bobby@renovatingretirement.com, and we’re happy to share!
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About Charlie Jewett
Charlie Jewett is an author, speaker, recruiter, trainer, consumer advocate and investment advisor from San Diego, CA. As the “Financial Services Whistleblower” Charlie has been trying to change the way that industry professionals and consumers think about retirement since 2005. With considerable years of experience and an array of professional certifications, Charlie focuses on stock market alternatives combined with tax-free retirement income and provides educational materials that help people to create their ideal retirement plan. He is the host of two podcasts, Renovating Retirement and Target Practice for Advisors, as well as the author of “Renovating Retirement” and “Two Ways to Be Debt Free”, both available on Amazon Kindle.
About Bobby Alford
Bobby Alford has walked an unconventional path to becoming the CEO of Renovating Retirement. He spent 10 years in the US Submarine force, both as an officer and enlisted person, earning a degree in nuclear engineering along the way. Bobby then joined corporate America and worked for a Fortune 50 company in operations, finance, and sales management roles. After getting his MBA, he began working with military veterans to improve their retirement options. At that point he found Charlie Jewett and learned how to truly impact a person's financial life using the MERIT model of planning. Bobby joined Charlie and now uses his skills to grow their company toward achieving the goal of creating $1 billion dollars of annual tax-Free money for their clients.
For the second episode of the series Cash Flow & Investment Strategies for Real Estate Investors, Charlie Jewett and Bobby Alford dive deeper into equity, the most misunderstood asset class in the financial industry.
Home equity
As discussed, home ownership is the biggest asset in people’s lives. If that home ownership develops into an asset class, then that becomes the most held asset, and that asset is equity. Home equity or equity in real estate is defined as the difference between the value of the house and what you owe. How do you put this home equity to work for you?
Two ways to be debt-free: Traditional vs balance sheet method
Leveraging your home value
In an equity savings account, leveraging your home value - your largest asset – and putting it to work for you becomes a game changer in retirement and wealth creation. With proper equity management or proper use of real estate, you could have four increasing incomes for one fixed payment where you're paying the fixed payment with depreciating dollars. Plus, the IRS is incentivizing you to do these things, and they will reward you in tax savings, mortgage interest write-offs and depreciation, recouping the value of assets over time from your taxes.
The main risk in paying your house in full is that the money you used is not earning compound interest. It's in the walls of the house and not invested anywhere and you only earn interest based on the appreciation of the value of your home. Meanwhile, the lowest you pay a property down to, you permanently lower the tax-deductible mortgage you are allowed to have on that house
Ultimately, you either end up with all the money in the house or end up with a whole bunch of money in an account earning interest and saving. You could pay off your mortgage but you chose not to, so where do you want to end up? Where should your equity dollar be?
About Charlie Jewett
Charlie Jewett is an author, speaker, recruiter, trainer, consumer advocate and investment advisor from San Diego, CA. As the “Financial Services Whistleblower” Charlie has been trying to change the way that industry professionals and consumers think about retirement since 2005. With considerable years of experience and an array of professional certifications, Charlie focuses on stock market alternatives combined with tax-free retirement income and provides educational materials that help people to create their ideal retirement plan. He is the host of two podcasts, Renovating Retirement and Target Practice for Advisors, as well as the author of “Renovating Retirement” and “Two Ways to Be Debt Free”, both available on Amazon Kindle.
About Bobby Alford
Bobby Alford has walked an unconventional path to becoming the CEO of Renovating Retirement. He spent 10 years in the US Submarine force, both as an officer and enlisted person, earning a degree in nuclear engineering along the way. Bobby then joined corporate America and worked for a Fortune 50 company in operations, finance, and sales management roles. After getting his MBA, he began working with military veterans to improve their retirement options. At that point he found Charlie Jewett and learned how to truly impact a person's financial life using the MERIT model of planning. Bobby joined Charlie and now uses his skills to grow their company toward achieving the goal of creating $1 billion dollars of annual tax-Free money for their clients.
Web/Social Links
Website: https://renovatingretirement.com