A Whole New Way of Thinking about - Retirement Funding
Why it Works
In a traditional 162 Bonus Plan an employer pays a bonus or other compensation to an employee for which the employer receives a tax deduction as with any other payment of wages. The employee then pays all income taxes on the compensation received and uses after-tax monies to fund a life insurance policy. Many traditional 162 plans fail due to insufficient cash flow. They are entered into by employees with the expectation that they can over fund the insurance policies for 10 years or more. Inevitably situations change over time and the employees find that they can no longer continue the required funding level and the plan fails, resulting in disappointing returns for the employee and insufficient retirement savings.
The Kai-Zen PlanTM solves these critical issues in several ways:
- Individuals are only required to fund the plan for 1-5 years;
- Additional funding is secured through a bank loan providing a 3:1leverage;
- The insurance policies used in The Kai-Zen PlanTM are specially selected and constructed in order to provide for maximum cash accumulation
“Innovation is the creation of the new or the re-arranging of the old in a new way.”
Michael Vance
