Saving 40% of Your Wealth and Other Tax Strategies w/Stephanie Walter
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Episode Description
Welcome to the Freedom Point Real Estate podcast! Today, Jeremy Dyer questions Stephanie Walter about why people should avoid overfunding their 401k, how real estate investors can set up tax-free retirement cash-flow, and some common misconceptions amongst investors about utilizing a whole-term life insurance policy.
Stephanie Walter is a wealth strategist, speaker, syndicator and the CEO of ERBE Wealth. She “retired” and sold her insurance business of 16 years in 2021 by following the key principles she teaches busy professionals to use. She teaches hard working professional people to “unlearn” what most of us have been wired to think about money and she re-educates people to learn the secrets of the wealthy investor that can be life transforming. Over years of working with her investors, Stephanie discovered that the very wealthy view and use money differently than the rest of us; they actively have their money working for them — sometimes in several places at the same time! In addition, they use leverage to accelerate their wealth and give them tax free income upon retirement. Stephanie realized these strategies are not well known to the average investor. Her passion is teaching the overworked but well-paid individual looking for a better life, these concepts on attaining lasting wealth. Stephanie’s belief is that her strategy for achieving wealth is available to everyone who is willing change their mindset. If you are ready to seek the truth and take control of your financial future get in touch with Stephanie today.
CONNECT WITH STEPHANIE WALTER!
LinkedIn: https://www.linkedin.com/in/stephanie-walter-057594196/
Website: https://erbewealth.com/
Facebook: https://www.facebook.com/erbewealth
CONNECT WITH JEREMY DYER!
Website: https://startingpointcapital.com/
Instagram: https://www.instagram.com/startingpointcapital/
LinkedIn: https://www.linkedin.com/in/jeremydyer
Facebook: https://www.facebook.com/startingpointcapital
Book a Call! https://calendly.com/startingpointcapital/discuss-investing-with-jeremy-dyer?month=2023-12
Summary
Tip #1: Understand the Power of Perspective
"I find that people changing people's perspective to really look at their money and what the return will be as far as income goes is pretty eye-opening to most people."
Many investors focus on the accumulation of wealth without considering the impact of taxes and inflation on their returns. Shifting this perspective can reveal more efficient strategies for long-term financial growth. By prioritizing after-tax income, investors can make more informed decisions about where to allocate their funds.
Tip #2: Leverage Passive Real Estate Investing
"Passive investing in real estate challenges conventional investment wisdom."
Real estate can offer consistent cash flow and potential tax benefits that traditional investments like stocks and bonds might not provide. Passive investing allows individuals to benefit from real estate returns without the day-to-day management responsibilities, making it a valuable addition to a diversified portfolio.
Tip #3: Utilize Index Universal Life Insurance
"The underlying policy that we’re talking about is an Index Universal Life, which was rolled out in 2006."
Index Universal Life (IUL) insurance can be a powerful tool for building tax-free retirement income. It combines the benefits of life insurance with the potential for cash value growth linked to market indexes, offering both protection and investment opportunities.
Tip #4: Consider Strategic Rollouts from 401(k)s
"Trump in 2017 passed the Tax Cut and Jobs Act which lowered the marginal tax rates."
With current tax rates at historic lows, now is an opportune time to consider rolling out funds from traditional 401(k)s into tax-free vehicles like IULs. This strategic move can minimize tax liabilities and enhance retirement income.
Tip #5: Explore Premium Financing for High Net-Worth Individuals
"We take advantage of a loan given to us by a bank."
Premium financing allows high net-worth individuals to leverage bank loans to fund their life insurance policies. This strategy can significantly enhance the policy's value and provide substantial tax-free retirement income without liquidating other assets.
Tip #6: Address Estate Taxes Proactively
"Estate taxes are sunsetting at the end of this year."
With upcoming changes in estate tax laws, it’s crucial for wealthy individuals to plan ahead. Utilizing life insurance policies can help cover estate taxes, ensuring that heirs do not have to sell off valuable assets at unfavorable times.
Tip #7: Match Bank Contributions for Middle-Income Investors
"The match allows a bank to contribute a million to your policy."
For investors with moderate wealth, matched bank contributions can significantly enhance their life insurance policies. This approach provides additional capital without requiring personal collateral, making it an accessible option for many.
Tip #8: Start Young for Greater Benefits
"The younger and healthier you are, the cheaper the cost of insurance."
Younger investors benefit from lower insurance costs and more significant growth potential within their policies. Starting early maximizes the advantages of tax-free income and compounding growth over time.
Tip #9: Consider the Long-Term Implications of Tax Strategies
"It's great to have a conversation to go over everybody’s goals and their retirement goals."
Tax strategies should align with long-term financial goals. Consulting with experts can help tailor these strategies to individual circumstances, ensuring that they support overall financial well-being and retirement plans.
Tip #10: Stay Informed and Adaptable
"I love talking to people even if I can’t help everyone, I like to point people in the right direction."
Continuous learning and adapting to new financial strategies are essential for maintaining and growing wealth. Staying informed about changes in tax laws and investment opportunities can help investors make proactive decisions.
