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In the late 1960’s, a financial officer at a Fortune 500 company looking for a way to retain key executives discovered a new way to create enormous wealth for them. After surveying his key executives to find out what their objectives were, most said that their financial goal was to become a millionaire. After a lot of research and study of the financial products available, he came up with a program where his company could say to a key executive, “If you continue to work for us until you retire, in addition to your normal retirement benefits, we’ll pay you $1,000,000 in cash and if you die while you are employed with us in addition to your regular group life insurance plans, we’ll pay your wife $1,000,000 in cash.” The funding vehicle he used to provide these benefits also allowed the company to RECOVER ITS COSTS which made the plan as desirable to the stockholders as it was to the executives. The plan he came up with (described below) for his company’s executives, you can use for yourself at your company. It does not have to be done for every employee. It can be done for as few as one, you! When an individual wage earner creates wealth, they not only benefit from it, but so does their spouse, their children, and in many cases their grandchildren. Most wealth is not created overnight. A systematic plan of wealth creation may be destroyed or disrupted by many events including the death of the wage earner. When the company promised to pay the key executive’s family the money he hoped to create during his working lifetime, it gave the executive a great deal of satisfaction and immediate peace of mind to know that his loved ones would enjoy what he hoped to create for them even if he didn’t. When the company promised to pay him the $1,000,000 upon retirement in addition to all other company’s benefits, it made him an awfully happy camper. The plan increased retention and morale. Here’s what the financial officer did to fund this program at no cost to the company. Working with the respresentatives of a life insurance company, they designed a special life insurance policy that his company purchased on the life of each executive. The special policy would provide enough money to pay the death benefit or retirement benefit, and return to the company all the money it paid in premiums. Prior to this time, life insurance had been used in minimal amounts to keep a person’s loved ones from poverty after the death of the wage earner. The financial officer discovered life insurance owned by a corporation worked even better as a wealth creation vehicle. Today, almost all of the Fortune 500 companies have installed similar plans for key executives as have many other public and privately held corporations. Today’s programs may be $1,000,000, however many are $5, $10 or $25 million. If you’d like more information on how
this program and one of the special policies would work for you call
800/543-3289. If you’re in
Houston, call 713/686-5433 or e-mail us at the bottom of this page. |
