Are you worried about unpredictability?
If you’re worried about how a bank’s unpredictability might impact your Stream Plan, don’t be. Here’s how we protect your retirement even during high-interest-rate periods.
While bank interest rates fluctuate due to factors like supply and demand, government actions, and inflation, predicting their rise and fall is nearly impossible. At Stream, we use our expertise and insights to safeguard your tax-free retirement funds.
Let’s recap
Before we dive in, revisit our Power of the Stream Protection Plan article to refresh your knowledge on how premium financed life insurance works and the benefits of a 0% floor.
This wealth-generating process has been proven for decades
The premium financed insurance model that underpins the Stream Plan is well-established. This approach has helped build wealth for the rich for over 30 years across varying interest rate cycles, including extreme highs.
What’s different is that our strategy enables HENRYs (high-income earners, not rich yet) to benefit just like the ultra-wealthy by using multiple members to mimic one ultra-wealthy member.
We stress-test policies in preparation for high-interest periods
The Stream Protection Plan is specifically designed to withstand challenging economic conditions. We create a tailored case strategy for each client, demonstrating how the Plan will perform even in a prolonged high-interest-rate environment.
How do we do this? By stress-testing. We increase the current rate and project it over the life of the Plan to ensure it can endure extended periods of higher-than-normal interest rates.
Leverage works in your favor
How does leverage lessen the risk? By borrowing 100% of the premium, Stream Plan clients, in fact, benefit from a lower interest rate. For example, if a client pays $50,000 on a $100,000 premium, the entire $100,000 Policy works for the client who’s only borrowed $50,000. Let’s say the borrowing rate is 7%, the effective rate on the total premium is just 3.5% due to the leverage.
Moreover, historically, high interest rates have also driven higher stock returns, further boosting Policy performance.
It’s a long-term strategy, not get-rich-quick
The Stream Plan is designed for long-term gain, with protections in place to navigate and withstand interest rate fluctuations.
The zero floor adds extra peace of mind
But wait, there’s more! The Stream Protection Plan offers returns without downside risk. Our ‘0% floor’ means you never lose money due to market loses, even during volatile periods.
The Stream Protection Plan works
High interest rates can be daunting, but your investment remains secure and effective with Stream’s strategic use of stress testing, leverage, and the Policy’s protective floor. It’s a proven Plan, and we’re committed to helping you achieve your financial goals.
Hello, tax-free retirement!