MARKETING
Gearing Up from page 14
R . J . Kelly , CLU , ChFC , RICP , is the founder and chief visionary officer of Wealth Legacy Group ®, Inc . He explained the smart advisor understands and works with and within the environment that exists .
For Mr . Kelly , the smart advisor understands and works with and within the environment that exists . There are certainly challenges in this new pandemic environment , but that has opened new opportunities as well :
“ My dear , late mother had a saying that always sounded very wise and elegant to me : ‘ It is indeed an ill wind that does no man good .’ As a child , I had no idea what it meant , but as an adult , I have seen this expression fit many situations . Here are a few examples : In this season of COVID-19 , a surprising number of individuals and companies are having their best years ever — my own firm included ! Interest rates are low to help the struggling economy , but this has made for a boom in buying homes , refinancing mortgages , and buying or selling businesses . And another benefit — low interest rates enable successful clients to borrow funds from lenders to purchase large life insurance contracts for purposes like these :
• Estate planning and generational transfer needs .
• Buy-sell agreement funding .
• Creating significant amounts of tax-free income via non-taxable loans from properly designed life insurance contracts .
‘ If the bull didn ’ t have horns … everyone would be a matador !’ The same is true for this area of planning ... there is no way I would try this without a skilled partner .
R . J . Kelly
Serious money
“ So far this year , we have placed contracts with a $ 400,000 annual premium and a $ 563,000 annual premium . And we have four more in the hopper for a combined additional annual premium of $ 1,550,000 . For a kid from little Yakima , Washington , this is some serious money !
“ As another saying goes : ‘ If the bull didn ’ t have horns … everyone would be a matador !’ The same is true for this area of planning in which I work . Even having some sound experience under my belt , there is no way I would try this without a skilled partner that has been in this arena for more than 25 years . They have arranged the financing programs with major players in the lending space . One case we placed is starting at 2.0 % and has a guaranteed cap for the first ten years of a very attractive number . Others start out at 2.75 % including a certain margin as a minimum . But because the base rate is so low to start with , rates can move up quite a bit higher without changing the interest rate to the client .
Gearing Up continued on page 18
If you don ’ t have a great case manager , why not consider hiring an underwriting case manager to work remotely . This kind of arrangement may not be for everyone , but it has sure been working out well for us !
R . J . Kelly
16 Perspectives Q4 2021