Boca Raton, Florida–(Newsfile Corp. – June 22, 2022) – Singer Wealth, an independent financial services company that advises investors and helps them to create growth and income strategies, has revealed its new strategy for those wanting to keep their money both safe and liquid. The firm announced its use of no-load life insurance contracts, which provide investors with a low-risk means of achieving growth while still being able to withdraw funds at any time.
As the US inflation rate escalated to roughly three times the Fed’s target of 2%, after reaching a 40-year-high in May, this introduced significant risks for investors. The consumer price index rose 8.6% in May from a year ago, which signifies the highest increase since 1981. Previously, banks’ interest rates would match inflation; now, banks’ interest rates remain low while inflation continues to rise. Singer Wealth’s insurance strategy offers investors a safe way of protecting their assets in the face of this high inflation.
A no-load life insurance contract is characterized by zero charges being deducted from account value for starting or servicing the policy; comparatively, traditional insurance contracts often have upfront loads and back-end surrender charges. Singer Wealth is utilizing these contracts not only for these reasons but also because of the low risks presented compared to bond or stock investments.
Principals from Singer Wealth highlight that the benefits of no-load contracts include the fact that there are no back-end surrender charges and the money is fully liquid. Additionally, no-load contracts have a minimum guaranteed interest rate of 2.5%, while the insurance costs tend to be around 1.5%; therefore, investors can be confident of making 1% regardless of how well the economy is doing. Singer Wealth underlines that, unlike bank accounts, with no-load life insurance contracts, investors are only taxed when they spend the funds rather than on a yearly basis.
Singer Wealth’s strategy can also defend clients’ finances against today’s stock market volatility. Recently, a ‘bear market’ was confirmed after the stock market saw a decline of over 20%. With no-load life insurance contracts, every year begins afresh; this means that investors see zero additional interest in negative years. However, each year starts over at the closing level of the index; therefore, unlike actual equity investors, account holders don’t need the index to get back to previous levels before they make money again.
The tax-free death benefit has also been cited by Singer Wealth as a motivating factor for utilizing the strategy. This means that all funds are delivered tax-free to one’s heirs at the time of death. Furthermore, one in five 65-year-olds in America will require long-term healthcare for more than five years. In addition to the other aforementioned benefits, these contracts provide an additional pool of funds that can be accessed tax-free in the event one needs long-term care.
As Keith Singer, owner of Singer Wealth, underlines, “Bonds have both credit and interest-rate risks. For instance, through mid-June of 2022, the 20 years treasury bond was down over 25%. Obviously, stocks can have significant investment risks and are unsuitable for the portion of one’s assets that need to be safe and liquid. Singer Wealth’s decision to encourage clients to invest in no-load insurance contracts is motivated by the fact that they offer a very minimal risk while also providing a great opportunity for safe, long-term growth in today’s challenging economic climate.”
Name: Keith Singer
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