January 13, 2019
INDUSTRY veteran Scott Schwarz states the availability of a 3-faceted financial product that guarantees no loss in principle successfully manages market volatility.
Index Universal Life provides cash accumulation that grows tax-free with compound interest and is protected by both a death benefit and living benefit in the event of disability, chronic or critical illness.
It has a guarantee of never dropping below 0%, taking anyway the risk of poor market performance, while it grows in proportion with market indexes, such as the S&P 500, during up markets. Along with the protection of both death and living benefits, it has become the savvy savings and protection vehicle for most Americans today.
So says Scott Schwarz, owner of Nevertoomuchmoney.com, whose 28 years in the insurance and financial industry have mostly been in administration before getting into sales. “The 0% guaranteed minimum of Index Universal Life takes away risk and provides peace of mind while still allowing investors to enjoy the growth of up markets.
“If the investor becomes disabled, he gets direct payments as living benefits, and if he dies, his beneficiary gets a death benefit that adds the cash accumulation he’s earned on top of it.
“Whereas the 0% minimum has historically been accompanied by a maximum, usually 10%, fierce competition in the financial industry has led several companies to remove those maximums.”
The power of that 0% minimum guarantee is illustrated by comparing a $1 million investment over the course of 10 years from 2000 to 2009. Following the S&P 500 would have created a loss of over 24% without that minimum, but an over 54% gain with it, even with a 10% cap on the gains. Without a cap on gains, that investment would have instead more than doubled – an over 106% gain!
The Pew Research Center, as quoted in the Kansas City Star of November 22, 2018, stated that, “the net worth of the median Baby Boomer household in 2016 was still nearly 18 percent shy of where it sat in 2007”.
To help avoid that volatility and risk, you can get professional guidance at www.nevertoomuchmoney.com and learn valuable tips from their free newsletter, for which you can sign up at the same website.