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CAP Planning in action with…

Here are 2 stories of Cash Values- saving the day! I had two experiences in the past few weeks that reinforced for me how CAP Plan cash values go far further than just being efficient for debt management.

The first is a doctor client that has used his cash values to leverage them for investment opportunities. His cash values are growing the same and his dividends are the same as if he hadn’t loaned against his cash values. I call this an AND asset which means your money is growing in two places at once. Most assets are OR assets, you either have money in one place (mutual funds) or in another (real estate). Your money is only working in one place. You can learn how to have AND assets working for you. The money is also working in the investment and increasing his wealth. That by itself is a really good deal but it isn’t the whole story. His income had reduced because he has stopped performing surgeries. They were building a new home and were not selling their current home until the move was finished. As it happens there were additional funds needed to complete the new home. He approached several banks for the needed funds for “only” a 3 week time frame. He was turned down by all of the banks, because his income had reduced. He has a very good net worth but it wasn’t liquid. He called me and I suggested he loan against his cash value- he said but I didn’t qualify with the bank! I reminded him he didn’t need to qualify and we would send the money needed directly to his checking account in a few days. He was surprised and greatly appreciative- he was able to close on his new home. After the sale of his current home- he repaid the cash value loan!

The second story was about a self employed client. He was having trouble with a loan on a piece of land. After he showed the bank his cash value account – close to $400,000, these concerns were alleviated. My client looked at me and said- if you hadn’t help me put the money away each month over the years I would never have had $400,000 I could access whenever I wanted or needed it. The moral is that the consistent “tap on the shoulder” to deposit the money is key. Many people might say it is “forced saving” I say it is consistent, simple and all it does is work to build significant money that is available with no strings attached or qualifying needed. I can help you build the same money that is tax efficient and you control it to build your wealth. Reach out and ask me how!


This case study is based on an actual client situation but is meant for informational purposes only. The case study is in no way intended to be used as a primary basis for insurance or investment decisions. Similar results are not guaranteed and will vary based the individual client situations. Clients should consult with their own financial, tax, legal, and accounting advisors before implementing any insurance or investment plan. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security or investment product.

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