A Simple Way To Build Generational Wealth For Your Family While Alive

[Taadow]

Ok you guys are making good points. Guess ill try to save up quick to get a minimum of $2000 plus

what i wanna ask you though and something i have always been curious about is with life insurance policies, what happens if one of these companies comes to an end. kind of random i know im just curious

That's what the FDIC is for.

Companies are (supposed to be) regulated by the states to make sure they can handle the business they write so they can still honor their policies in case they become solvent.

 

[CASHAPP]

1. Beneficiaries may not deposit proceeds into investments.

2. Returns may (more than likely will) be less than 5-10%.

3. Income may suffer interruptions i.e. firing, laid-off, et al.

4. Term policy premium may fail to be paid.

As someone who worked in the insurance industry

Yes you can do this
And white people do it all the time

But for whatever reason we think life insurance is only for funerals

So if i decide to go with the whole life insurance option, to replace my idea in the OP, what is the annual fee to manage this equity account? I'm trying to budget as much as possible. or are equity accounts free?

i also wanna have a revocable trust to put a minor on since i know everyone says its not smart to put minors on life insurance policies and to set up a trust

 

[dark_magic]

So if i decide to go with the whole life insurance option, to replace my idea in the OP, what is the annual fee to manage this equity account? I'm trying to budget as much as possible. or are equity accounts free?

i also wanna have a revocable trust to put a minor on since i know everyone says its not smart to put minors on life insurance policies and to set up a trust

You are conflating several elements here.
Let's separate them out followed by their combination.

You have insurance which is for purposes of risk transference.
You have investing (technically speculation, but I'll cover that another time).
You have estate planning.
You have cash flow and allocation.

A whole life insurance policy can be done for as little as $250 - $350 per month.
The fees on any accounts for investing are determined by the manager of the account or funds.
As to estate planning, an estate planning attorney should be consulted for designing an estate plan that is right for you. You should at least have a will, but you can take it far beyond that such as a living (inter vivos) trust. Beneficiaries are specified in insurance policies.

Cash flow and allocation are critical. This is the keystone of your personal economy. You should always seek to maximize your cash flow and minimize expenses such as taxes as well as consumption. A tax management strategy will be helpful at this juncture.

 

[ImmaGetJoeClarkArrested]

So long as they have a normal job, an extra 50-100k additional income will provide them a comfortable life.

I’m raising a family of entrepreneurs so will it work the same, worse, or better??

 

[dark_magic]

I’m raising a family of entrepreneurs so will it work the same, worse, or better??

I like where all this is going.

There is one element we haven't discussed yet and that is cash flow. Better yet, acquisition of cash flowing investments and assets.

 

[CASHAPP]

You are conflating several elements here.
Let's separate them out followed by their combination.

You have insurance which is for purposes of risk transference.
You have investing (technically speculation, but I'll cover that another time).
You have estate planning.
You have cash flow and allocation.

A whole life insurance policy can be done for as little as $250 - $350 per month.
The fees on any accounts for investing are determined by the manager of the account or funds.
As to estate planning, an estate planning attorney should be consulted for designing an estate plan that is right for you. You should at least have a will, but you can take it far beyond that. Beneficiaries are specified in insurance policies.

Cash flow and allocation are critical. This is the keystone of your personal economy. You should always seek to maximize your cash flow and minimize expenses such as taxes as well as consumption. A tax management strategy will be helpful at this juncture.

Yes please let me know about the investing aspect another time in regards to the equity. This topic may be sticked for a while so we got time.

I don't gotta worry about estate planning now until when im older and in my career or getting ready to think about it

 

[Taadow]

A whole life insurance policy can be done for as little as $250 - $350 per month.
The fees on any accounts for investing are determined by the manager of the account or funds.

This dude is telling you right, but I'll add to this:

The cost of any of this depends on what you want and the insurance company, and those can vary by state.

Insurance is just like any other business; they need clients, and they're trying to work for you.
I say that to say you can only do so much researching online to get your questions answered -
you gotta go look somebody in their face and see if they have what you want...but you gotta know what you want.

One client I had got a Whole Life policy for (going off memory) about half a mill...it only cost him $700 something.
Instead of paying by month, he just wrote one check for that amount every year...and we set it up about April, so basically he just uses his tax return to pay his premium for the whole year. Simple as that.

 

[dark_magic]

Yes please let me know about the investing aspect another time in regards to the equity. This topic may be sticked for a while so we got time.

Before doing any "investing", one needs to understand the difference between investing and speculation.
The best resources for understanding this are either of the books written by Benjamin Graham, The Intelligent Investor or Securities Analysis.
By the way, Benjamin Graham was Warren Buffets mentor.

Ironically enough, Warren Buffet runs Berkshire Hathaway, an insurance company (in part)(technically, it is a holding company).

I don't gotta worry about estate planning now until when im older and in my career or getting ready to think about it

You and I differ on this opinion. Death can come at any time. You never know when your time will be called. Estate planning should be done now and become an ongoing habit.

 

[Taadow]

You and I differ on this opinion. Death can come at any time. You never know when your time will be called. Estate planning should be done now and become an ongoing habit.

Agree.

Think about it this way @ATLANTA, everything you have at this moment is your "estate".
If you die tomorrow, who is gonna get all of that?



The answer is, if you don't have your "estate" planned for the Government is gonna get it.

 

[CASHAPP]

This dude is telling you right, but I'll add to this:

The cost of any of this depends on what you want and the insurance company, and those can vary by state.

Insurance is just like any other business; they need clients, and they're trying to work for you.
I say that to say you can only do so much researching online to get your questions answered -
you gotta go look somebody in their face and see if they have what you want...but you gotta know what you want.

One client I had got a Whole Life policy for (going off memory) about half a mill...it only cost him $700 something.
Instead of paying by month, he just wrote one check for that amount every year...and we set it up about April, so basically he just uses his tax return to pay his premium for the whole year. Simple as that.

This is some really sexy advice yall dropping

building wealth is a bad bytch

 

[dark_magic]

This is some really sexy advice yall dropping

building wealth is a bad bytch

You wait until you have a completely designed personal economy.

No one will be able to tell you anything .....

This is financial education.

 

[CASHAPP]

Agree.

Think about it this way @ATLANTA, everything you have at this moment is your "estate".
If you die tomorrow, who is gonna get all of that?



The answer is, if you don't have your "estate" planned for the Government is gonna get it.

But brehs i don't have my own house yet though

Just trying to make sure fam is good for the next 4 years starting next year that im at college.

Leaving my mom a Christmas gift with not only the whole life insurance but the equity account telling her she gets a bonus stipend every year

I would go down as a legend in our family history

 

[dark_magic]

But brehs i don't have my own house yet though

Just trying to make sure fam is good for the next 4 years starting next year that im at college.

Leaving my mom a Christmas gift with not only the whole life insurance but the equity account telling her she gets a bonus stipend every year

I would go down as a legend in our family history

Now you can become really creative here ....

Get the bag. Flip it and tumble it.

Get all the scholarships and grants you can get your hammy fists on.

What you have left over after paying the costs of college is yours.

You could deposit that into a whole life insurance policy if you have one.

I'm not sure if the money could be deposited in a RothIRA as well. I would have to research that. I'm thinking that it won't be eligible for contributions.

 

[50CentStan]

ima read up on this tomorrow in the AM, good shyt breh

 

[Taadow]

But brehs i don't have my own house yet though

Do you have a car?
Do you have a bank account with money in it?
Do you have jewelry?
Are you a beneficiary on someone else's' insurance?


That's all a part of your "estate".