Is your retirement safe?

Hazardous Investing


With all of the uncertainty in the market these days do you ever wonder why the media and brokers keep on saying, Now is the time to invest in your 401(k), put more money in!  The answer is very simple, they are paid to have that opinion.

For some of us investing in something that has no guarantee when we need to have a degree of certainty seems like a bad idea.  Well you are probably asking yourself how safe is this Family Banking PlanSM concept so we thought we would provide you with some answers to commonly asked questions.

1. Where does my money go and how safe is it?

When you start your Family Banking PlanSM you will be funding a permanent life insurance policy issued by one of the strongest life insurance companies in the world which also happens to be a mutual company.  A mutual company is owned by the policyholders and therefore makes decisions based on the long term viability of the company not the short term wishes of shareholders.

The life insurance companies that AllianceGroup works with have always paid a dividend even when market conditions were unfavorable.

People think that banks are the best place to keep money, however Insurance companies are more highly regulated and are required by law to keep one dollar of assets on the books for each dollar of insurance in force.

2. So where do the insurance companies invest?

  • The majority of money is invested in investment grade fixed income assets and commercial mortgages, with less than 1% being invested in government debt.
  • In the United States life insurance companies are regulated by state regulators.
  • The selected insurer maintains more than four times the capital required by its regulators, attesting to the company’s strong capital position and its ability to meet future policy owner obligations now and in the future.
  • During recent economic meltdowns the insurer have very minimal losses.
  • The insurer has never missed paying a dividend since it was founded in 1904

 3. What about inflation?

Due to the fact that the majority of the insurers assets are in long term  investment grade bonds they are positioned well for inflation.  When inflation happens interest rates increase and that drives up the interest rates or return on bonds as well.  This has been the case in the past and should hold true in the future.

Due to the fact that you will be baking on yourself with your Family Banking PlanSM you will be taught how to use a dollar more than one time and this also helps to offset inflation.

When your AllianceGroup advisor structures your Family Banking PlanSM policy, he or she will make sure that the plan is designed to become more efficient every year.  With your increasing death benefit and cash values you have yet another hedge against inflation.

4. What about deflation?

Remember that the insurer has invested in long term investment grade bonds and that that are doing this on an ongoing basis as new funds come into the company.  What this means is that when deflation takes place and interest rates drop that the return on existing bond investments will have a premium and therefore a greater return for the policy holders, you.

5. What happens if the stock market booms, will I see that in my Family Banking PlanSM?

No you will not see those dramatic increases as your plan as the insured has invested in long term investment grade bonds, not speculative stocks.  While at first this might seem like a downside, you have to realize that with your Family Banking PlanSM you are taking the slow and steady path to a strong financial future and when the market drops 20%-30% in a year you will not be faced with those losses.

If you are investing for the excitement and rush then the Family Banking PlanSM is probably not for you.  If you want to be the one at the dinner party with a smile on your face when the market is crashing, as you do not have to worry about losses, then you owe it to yourself and your family to take our Wealth Transfer Analysis now.

The nice thing about having money in your Family Banking PlanSM is that if an opportunity arises where you want to invest you have access to your money to make that investment.  Many of our clients have stories about how their plan has allowed them to make a quick investment that has provided great returns.


Leave a Reply

Your email address will not be published. Required fields are marked *