fbpx
Connect with us

Executive Voice

3 Financial Risks You Can Avoid by Utilizing a Solidly Built Life Insurance Retirement Plan (Lirp)

If you haven’t already built a retirement plan, it’s time to get started.

Something that wealthy elites know (that most Americans don’t know) is what financial habits and risks to avoid—and which ones to take advantage of—to build wealth for retirement.

Here are 3 financial risks you can avoid by utilizing a solidly built Life Insurance Retirement Plan (LIRP):

Tax Risk

Taxes are a part of every aspect and stage of our lives. From sales tax to property tax to income tax, it’s an unavoidable duty.

To top that, with taxes comes uncertainty. You don’t know how much taxes you will have to pay in the near future.

Here’s a tip: eliminate tax uncertainty by utilizing Life Insurance Retirement Plan. It is a method where the money you grow inside can be tax-free forever. LIRP is a cornerstone of every family’s financial future. Using LIRP can help eliminate any tax and market uncertainties in the future.

Market Correction Risk

People invest money and chase the hype, looking for more and more returns. Eventually, this hype becomes irrational to the point that the market corrects, or experiences a decline in value.

If you are near retirement, you should be aware of the potential of a market correction. If there is a market correction during your retirement year or month, your retirement fund will look dramatically different.

Here’s a tip: when choosing your investments, make sure you have minimum returns. The minimum return should be between 0-0.75%. If the market crashes, your money will still make 0.75%. Without minimum returns, an investment that earns 10% one year and loses 40% the next year will give you an overall loss of 34% (not just 30%)*. With minimum returns, it guarantees a return, even if it seems insignificant. You are still making a little bit of money, even when other investors are losing.

*Assume you invest $100 and it earns 10% in Year 1. You have $110 at the end of the year. In Year 2, the investment goes down by 40% and you lose $44. Your net loss over two years is $34 ($10 – $44), which equates to 34%, not just 30%.

Inflation Risk

Inflation risk means your money is worth less overtime because the government keeps printing money and the same amount of money buys you less goods and services.

Your money needs to outgrow inflation—it should not lag behind it. That’s why it’s important to invest wisely, rather than following the hype or speculation. The returns you get with your investments mirror how the market index performs, which helps you hedge against inflation.

Here’s a tip: don’t leave money sitting in your checking account. It won’t earn any interest and will lose value overtime. If you have extra money leftover, invest it. Here’s a visual representation of how much your money will grow if you keep it in your checking account versus investing it:

 

  $10,000 in 30 Years What’s Left Behind In Case Something Happens To You
Checking Account (@ 0.5%) $11,614 (Taxable) $10,000
Inflation (@ 2.25%) $19,493 N/A
Sample LIRP (@ 6+%) $24,512 (Tax-Free) $100,000

 

Simply put, the more you invest today, the more you’ll have when you retire.

Build A Tax-Free Retirement with Financial Educator Rick Kam

There are far more risks where these 3 came from. Like any good financial educator will tell you, your financial situation is unique and you need a customized financial plan to achieve your retirement goals.

Born in Hong Kong and raised in Vancouver, Canada, Rick Kam always had a desire to create a legacy he could call his own.

In 2018, Rick got his licenses and became a financial educator.  Then in 2019, he founded Aulegatum Financial Partners. Since its birth, Rick has helped many of his clients build a golden legacy with Aulegatum’s financial services. Rick currently resides in the US with his wife and baby boy.

To learn about the other financial risks to avoid and how to build a tax-free retirement, reach out to Rick Kam.

I work at one of the most active Venture Capital Firms in the world, Alumni Venture Group. Before joining AVG, I Co-founded Beast Media Agency, a digital marketing, and PR company focused on helping founders get their stories featured in online publications. In my free time, I like to interview entrepreneurs, founders, and influencers who are making an impact on the world for publications like The Hustlers Digest, Kivo Daily, Future Sharks, Thrive Global and Disrupt.

Advertisement Become A Crypto Expert

Join Disrupt Magazine

Become A Crypto Expert
Become A Disrupt Contributor

Most Disruptive

Entrepreneurship5 months ago

Navy Veteran Davis Chris Takes the Music Industry by storm

In life, you need to break down anything that might be holding you back and change course if need be...

Entrepreneurship6 months ago

5 Disruptive Leaders Paving the Way in 2021

Where there is uncertainty, lies a whirlwind of opportunity. 2020 was the year that had entrepreneurs learn a great deal...

Politics1 year ago

Brock Pierce Wants To Disrupt The Two Party System And Be Your Next President

We don’t usually cover politics much here at Disrupt, but when Crypto billionaire and friend of the show, Brock Pierce...

Business1 year ago

John Mcafee – Predictions For The Future

John McAfee is a world-famous tech CEO, computer scientist, civil disobedience activist, privacy advocate, and pioneer of the commercial anti-virus...

Finance1 year ago

Gaby Wall Street – Teaching Latinas to Thrive During The Crisis

It’s no secret we are facing one of the most challenging financial times of the last few decades as we...

Entrepreneurship1 year ago

Tony Delgado – The #1 Entrepreneurship Movement In Puerto Rico

Puerto Rican online market is in constant progress. With many entrepreneurs who are coming here to start a business, it...

Entrepreneurship1 year ago

Elena Cardone – The 10X Ladies Conference Is Declaring 2020 The Decade For Women

The next ten years are meant for women to continue growing their potential and succeeding in multiple areas, including business....

Marketing2 years ago

How Josh Elizetxe Built Snow Into a $40 Million Dollar Business

There is nothing quite like an entrepreneur’s determination when starting a business. That’s my original quote by the way (pun...

Entrepreneurship2 years ago

How Jason Capital Became A Self Made Millionaire By 24

Have you ever wanted to earn the respect of everyone who ever looked down on you at some point in...

Entrepreneurship2 years ago

Sam Bakhtiar On His Way To A Quarter Billion

Dr. Saman Bakhtiar, who prefers being referred as Sam, lives in an 8200 square foot $5.2 million house, Sam is...

Trending

Copyright © 2020 Disrupt ™ Magazine - Disrupt is a Minority Owned Privately Held Company

Disrupt ™ is the voice of Latino entrepreneurs around the world. We are part of a global movement to increase diversity in the technology industry and we are focused on using entrepreneurship to grow new economies in underserved communities around the world. We enable millennials to become what they want to become in life by learning new skills and leveraging the power of the digital economy. We are living proof that all you need to succeed in this new economy is a landing page and a dream. Disrupt tells the stories of the world top entrepreneurs, developers, creators, and digital marketers and help empower them to teach others the skills they used to grow their careers, chase their passions and create financial freedom for themselves, their families, and their lives, all while living out their true purpose. We recognize the fact that most young people are opting to skip college in exchange for entrepreneurship and real-life experience. This Podcast was designed to give them a taste of that.