Have you diversified… enough?

Posted By: Jason Powers ICOR Blog & News ,

Diversity is healthy for any environment or situation. Eat too much of the same thing, even if it’s nutritious, and your body will lack other essential vitamins and minerals. Our gardens flourish the most when we plant variety of fruit, veggies, plants and flowers. And of course, diversifying our assets is common knowledge. However, how many of us actually act on that wisdom?

 

I’ve talked to multiple people in the last two weeks who are nervous about the stock market, world events, and the projected impact on real estate. But what actions can we take today to hedge against unknown changes? Diversify with an asset that is arguably the most secure and functional product available. I’m not saying to lock away money in a CD for a rainy day. I’m saying that today is the best time to look at utilizing the primary tool used to establish the wealthiest families in our country- a properly structured, dividend paying whole life insurance policy.

 

By using a properly structured policy, you are investing in an asset that will grow regardless of what happens in the future. You’ll also be able to use the money you place in a policy by accessing an unstructured policy loan. You’ll have cash ready when the market drops and properties become available. You’ll can be a lender, not just a borrower. And unlike borrowing from a traditional retirement plan, if you end up in a difficult situation, you’re not committed to monthly payments that can strain your finances.

 

This is how Colorado entrepreneur and real estate investor, Stan Bullis, was able to move quickly on opportunities in Cañon City, CO. Within eight days of learning about an auction of the historic St. Cloud Hotel on Main Street, cash was in hand to bid on the property, and won at only $80,000! To help protect that investment and diversify, he was then able to purchase other cash-flowing properties in the area and is working to revitalize the Colorado gem of a city.

 

If this process of using a policy sounds unfamiliar, it’s possible that it is one of the best kept secrets for how the wealthy become and stay wealthy. It is how the Rockefellers remain a financial powerhouse after 150 plus years. It is how Walt Disney started Disney Land and McDonald’s became a household name. Maybe most importantly, it is where banks place the money that we deposit. For just one example look at page 170 of the Wells Fargo 2020 Annual Report (just google). The first line asset class states “Corporate/bank-owned life insurance”.

 

There are two simple steps you can take today to diversify. First, email Jason K. Powers or me to see how this structure applies to your situation. Second, register for the in-person tour of Cañon City to capture a vision of how diversification can change the trajectory of your financial future.

 

Jason K. Powers- jpowers@unbridledwealth.com

Olivia McGraw- omcgraw@unbridledwealth.com