Explore Strategies to Safeguard Your 'Conservative' Investments in the Evolving Bond Market

If you're a business owner navigating the complexities of the bond market, you're not alone.

Bonds, once synonymous with stability, have seen a rollercoaster of returns, leaving us pondering the next move for our hard-earned money.

But what if there's a unique solution that not only shields your investments from market fluctuations but also unlocks a stream of 100% tax-free income?

Intrigued?

Let’s explore an innovative strategy tailored for business owners that transforms how you view stability and financial freedom in an ever-changing market.

Investors like you traditionally turn to bonds for consistent income and stability of principal.

But let's face it, recent turbulence in the bond market has been unnerving, with significant negative returns in 2022, leaving many of us wondering where to place our "conservative" investments.

Even with a positive turn in 2023, uncertainties persist about the future of bonds.

Frequently, we gauge the bond market using iShares US Core Bond ETF (AGG) as a barometer. AGG experienced an impressive 4.90% return in November, ranking among its top performances in the last 30 years.

However, this followed a steep decline of 6.03% in September, highlighting the unexpected volatility in what is considered a "stable" asset class.

Talk about volatility in a “stable” asset class!

Now that we've delved into these challenges, let's shift our focus to the solution!

What if there was a way to invest in bonds that not only remove principal risk but also generate 100% tax-free income? 

There is! 

Here's where Fusion Strategies introduces a distinctive approach for you: whole-life policies issued by mutual insurance companies.

This strategy not only eliminates principal risk but also generates 100% tax-free income, addressing key concerns in the ever-changing bond market.

“You may already own life insurance and not realize that this scenario is available to you.”

How can life insurance solve my investment challenges?

Let's start by addressing the role that life insurance plays in addressing your investment challenges.

We need to distinguish between two fundamental types of life insurance companies: public and mutual. 

Major names like Prudential and MetLife follow a conventional client-service model. As their client, you receive a service from them in the form of life insurance.

However, the game changes with mutual insurers – the kind we advocate for. As a policyholder in a mutual company, you're not just a client; you own a piece of the company. 

👉 Now, you might be asking yourself, 'How can this ownership structure benefit me directly?

Since mutual policyholders own the company, they are also entitled to receive a portion of the business’ profits in the form of a dividend. 

This dividend creates another income stream for policy owners on top of the interest they earn on their cash.

Whole life insurance that’s issued by mutual insurers returns an interest rate that is set at the beginning of each year. 

This rate is fairly competitive with bond market rates in order to attract capital. 

Paying this annual interest is a contractual obligation of the insurance company. 

A second, but possibly more attractive, a feature of whole life insurance is that investors’ principal values can NEVER go down due to bond market performance. 

Remember what we saw in 2022!

How does whole life insurance ensure stability and protection for my investment?

Perhaps the most compelling aspect for you as a business owner is the tax efficiency of this strategy.

On top of this, don’t forget the annual dividend one would receive as a mutual policyholder.

The interest and dividend income earned from whole-life policies are entirely tax-free for you.

When withdrawn properly, these funds can be deposited into your checking account tax-free, presenting a unique opportunity for a tax-free retirement lifestyle.

How can I achieve tax-free income in retirement?

The interest and dividend income is earned tax-free to the policyholder. 

When this money is taken from the policy properly, this money can be deposited into your checking account tax-free as well. 

Imagine the freedom of a tax-free retirement, where your hard-earned money works for you.

Reach out to us today and let's explore how this tailored approach can be the financial security and peace of mind your business investments deserve in an ever-evolving market. Our team is ready to collaborate with you, offering tailored solutions that align with your business goals.