As I’ve stated in a few different places on this website, a tool that ALL advisors need to know about and use appropriately in a financial plan for clients (even Fee-Only advisors) is a “good” cash value life policy (what I call Retirement Life™.
Why Retirement Life™? Because they can have the following characteristics:
–100% principal protection (money never goes backwards due to negative returns).
–Positive gains in a stock index are locked in every year (minus dividends).
-A free long-term care benefit
–Money grows tax-free
–Money comes out tax-free
A good Retirement Life™ policy over the last 20 years would have generated a tax-free rate of return of 7.44%.
FYI, Retirement Life™ policies pay some form of a commission to the advisors using them.
Because Fee-Only advisors who have sworn a cult-like oath to never making a commission, in 20 years I’ve never seen one recommend Retirement Life™ to a client (and I can count on one hand the number of Fee-Only advisors who know anything about Retirement Life™).
It really defies logic that any advisor should refuse to learn about and use a protective wealth-building tool with the above-listed characteristics. This is the reason I decided to create this website (to put consumers on notice of the limitations and biases of Fee-Only advisors).
Learn more about Retirement Life™
You can also click on the following to watch a brief overview video of what I call Safe Money tool #1 (to learn about what I call Safe Money tool #2, click here).
Roccy DeFrancesco, JD
Author of Bad Advisors: How to Identify Them; How to Avoid Them