Smoking Will Cost You 6+ Million Dollars!

Last week I took my daughter to the mall. While walking in, she saw someone she knew from school and he was smoking. My daughter said, "Dad, that's gross!". I then replied, "That will probably cost him over a million dollars, too!". Today I wanted to run an Indexed Universal Life (IUL) Illustration just to see what this seemingly small amount of money each day would really cost a person in lost potential income gains.


The boy we saw was 16 years of age. If you use a cost per pack of cigarettes of $7.50 and assume a pack-a-day habit, you will spend $2,737.50 in one year or $228.12 per month on your habit.   If you were to invest $228.12 per month into an IUL from age 16 to age 65, you would be able to draw $183,766 per year, TAX-FREE, from age 65 to age 100! All of this without your money being at risk, like a 401K or IRA and then having to pay the IRS tax on your money. This investment also provides your loved ones with a TAX-FREE death benefit!


The assumptions used in this Illustration, are as follows:

• 20 Year Backcast of the S&P 500 with an average rate of return of 8.10%.
• Top 5 of the 7 Indexing Strategies used to provide diversification.
• Increasing Death Benefit Option used to Age 65 and Level from 65 to 100.
• Minimum Death benefit selected to increase cash accumulation.
• Premiums stop at age 65, as account will be fully funded.
• Withdrawls taken from age 65 to 100.

Illustration

This is a perfect example of how small, consistent actions can compound into something huge over time! Insurance companies don't advertise anything flashy, but what they offer are risk averse products that consistently perform, year after year.



Michael Pfeil

Family First Life
mpfeil@FamilyFirstLifeMD.com