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Tax Planning That Works Use Time Tested Plans To Grow Your Wealth
What is a Section 79 Plan? It depends on who you ask. If you ask an insurance company that offers these plans or an insurance agent that sells them, they will tell you that they are one of the last “tax-favorable” wealth building tools a business owner can use to grow their wealth.
If you ask me what a Section 79 Plan is, I’ll tell you that it’s one of the most over-sold and over-abused life insurance sales gimmicks in the insurance industry. Business owners can grow more wealth NOT using these plans (something you’ll never hear from an insurance agent pitching them).
Who is the ideal client for an insurance agent to pitch this plan to? A profitable small business who has an owner that would like an additional “tax-deductible” wealth building tool to use for retirement (so the market is large).
The sales pitch—Business owner, how you like to fund a plan that…
…allows your money to grows tax-free and where the money can be removed tax free in retirement (unlike a qualified plan where the money coming out is fully taxable)?
…is 30-40% deductible through your business?
…has limited expenses for employees?
Sound great right? Sure, if you don’t know the “real” math and pitfall to these plans.
That’s why I created this site. I wanted consumers and advisors alike learn in a “full-disclosure” manner the problems with Section 79 Plans.
After you learn about the problems with Section 79 Plans, I think, like me, you’ll come to the conclusion that the best course of action is to avoid these plans altogether.
Why You Should Stay Away From Section 79 Life Insurance Plans!
ReplyDeleteTax Planning That Works
Use Time Tested Plans To Grow Your Wealth
What is a Section 79 Plan? It depends on who you ask.
If you ask an insurance company that offers these plans or an insurance agent that sells them, they will tell you that they are one of the last “tax-favorable” wealth building tools a business owner can use to grow their wealth.
If you ask me what a Section 79 Plan is, I’ll tell you that it’s one of the most over-sold and over-abused life insurance sales gimmicks in the insurance industry. Business owners can grow more wealth NOT using these plans (something you’ll never hear from an insurance agent pitching them).
Who is the ideal client for an insurance agent to pitch this plan to? A profitable small business who has an owner that would like an additional “tax-deductible” wealth building tool to use for retirement (so the market is large).
The sales pitch—Business owner, how you like to fund a plan that…
…allows your money to grows tax-free and where the money can be removed tax free in retirement (unlike a qualified plan where the money coming out is fully taxable)?
…is 30-40% deductible through your business?
…has limited expenses for employees?
Sound great right? Sure, if you don’t know the “real” math and pitfall to these plans.
That’s why I created this site. I wanted consumers and advisors alike learn in a “full-disclosure” manner the problems with Section 79 Plans.
After you learn about the problems with Section 79 Plans, I think, like me, you’ll come to the conclusion that the best course of action is to avoid these plans altogether.
Why You Should Stay Away From Section 79 Life Insurance Plans!