Case Study

THE SITUATION:
Olympic Gold Medalist, 25

Needs a reliable stream of income during retirement and a significant death benefit to insure the financial stability of the client’s heirs.

THE SOLUTION:
Leveraged Planning®

The Leveraged Planning strategy entailed the use of the client’s corporate entity as the borrower in a $1,000,000 loan transaction through GFD. The proceeds of the loan were used to fund the seven required premiums on a life insurance policy, the face value of which was over $6,000,000 (see details below).... read more

THE SITUATION:
Michael Cena, 40

Michael Cena needs at least an expected annual income of $200,000 (pre-tax) for 25 years to retire comfortably. He also wanted to be able to provide for his family's needs if anything should happen to him.

THE SOLUTION:
Leveraged Planning®

At 40, Michael’s appetite for risk had lessened as his time horizon was shortened substantially. Because of this, he was looking at many options that were likely to produce lower returns than he might have hoped to earn. Narrowing down his options,... read more

THE SITUATION:
Charles Wharton, 43

Dr. Wharton, a solo dental practitioner, needs additional retirement income that he hopes will provide him with at least $200,000 per year for 20 years.

THE SOLUTION:
Leveraged Planning®

Dr. Wharton chose a high cash value universal life insurance policy as the best means for securing a steady tax-advantaged retirement income.

Dr. Wharton’s practice, an LLC, becomes the borrower of a Leveraged Planning solution commercial loan to fund the premiums for his life insurance policy.... read more

THE SITUATION:
David White, 53, & REVTECH Services, Inc.

REVTECH Services, Inc. needed to implement a buy/sell arrangement on behalf of their CEO, David White, 53, to provide for added liquidity for both White and the firm in the event of his departure or death.

THE SOLUTION:
Leveraged Planning®

REVTECH and Mr. White elected to use a life insurance policy to provide the funding necessary to maintain business continuity and provide compensation for Mr. White’s interest in the business. A commercial loan was chosen as... read more

THE SITUATION:
Steven Coles, 55

Mr. Coles needed an exit strategy for himself when the time came to sell his company. Implementing a buy-sell plan was the clear solution, but a funding source was still in question.

THE SOLUTION:
Leveraged Planning®

Mr. Coles chose to fund his buy-sell plan using a high cash value life insurance policy. This would provide him adequate income after the sale while retaining financial flexibility in the intervening years.

Mr. Coles company takes out a Leveraged Planning loan to fund... read more

THE SITUATION:
Susan Collins, 62

Mrs. Collins had a gross total estate value slightly in excess of $50 million. She was looking for a way to bequest at least $10 milion to each of her three children ($30 million total) – with the balance going into a charitable trust for division among several different organizations.

THE SOLUTION:
Leveraged Planning®

The estate tax for each of the three individual bequests to her children was anticipated to be $3.3 million ($9.9 million in total). Since Mrs. Collins was committed to... read more

THE SITUATION:
John Wynkoop, 62

John Wynkoop purchased a whole life policy in 1985. Many years and a policy loan later, he needed an option to prevent a policy lapse due to declining cash surrender value (CSV) - a decline caused by onerous interest payments on the existing policy loan from the carrier.

Mr. Wynkoop had been depleting the CSV of the policy in order to service the outstanding balance of over $2.33mm on an existing policy loan. By 2013, there was less than $100,000 of value remaining in the policy and he was directing the annual dividends... read more