CDRates are traditionally low; somewhere between 2 and 3%. What if you were able to earn 3 or 4 times that—lets say, in the neighborhood of 6 and 8%? You’d probably be interested. What if you were able to earn that level of interest, and also preserve the principal tax-free for your heirs? You’d probably be very interested. 
The strategy is actually quite simple. A client purchases both a single premium immediate annuity (or a SPIA), and a life insurance policy. Because SPIAs are paying between 5 and 8% today, there is a significant gain in annual income based on the same principal amount you may have in a CD which is only earning around 2 or 3%. Some of the money you gain in annual income is used to pay for the life insurance policy, insuring that the money you have taken from the CDs to pay for the annuity is still passed on to your heirs—in the form of a tax-sheltered inheritance. The annual income from the SPIA has more than doubled the income potential for some of the clients that have been working with Cornerstone Financial Resources.
If you would like to find out how this strategy to boost your income while still insuring an inheritance for your loved ones, please call our office today to find out about our next seminar date, or make an appointment to sit down with Todd.
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Dear Author cornerstonefr.com !
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