Understanding Wealth

Who exactly are the wealthy?

When you think about the amount of income you make on an annual basis, do you consider yourself to be making an average income? What you’ll discover is you may think you’re just like every other individual, but your income may be classified as an “uncommon” amount.

Media personalities on the TV or Radio try to get the most amount of exposure they possibly can. This leads to more book sales and more publicity. Just think about it. If you wanted to sell the most amount of books you possibly can, would you target 75% of Americans or just 25%?

With this in mind, the financial advice you receive through these media sources are targeting a specific audience: the 75%.

The advice they give is very sound and suitable for the audience they’re targeting, but the question really becomes: are you a part of the 75% of the population – or the 25%?

If you were to be considered to be in the Top 1% of Americans based on the amount of income you make, how much do you think you would need to make? $1,000,000? $2,000,000?

You actually only need to make $380,354. This includes your spouse’s income – if applicable. That’s not a very large amount at all. If you make this amount or more, consider yourself “The Elite” and “The 1%”.

The diagram above displays the top 25% of income earners in America.

If you make $67,280 or more in annual income, you are the Top 25% of income earners in America. You make an uncommon amount of income compared to the general population.

With this in mind, the government then appropriates the amount of taxes you pay for in correlation to the amount of income you make.

Therefore, the majority of taxes – a staggering amount of 84% – solely comes from the Top 25% of wage earners. Keep this in mind as you review what you’re doing for your financial future.

Getting Started

For more information and to get started on building a brighter future, please contact us by phone at (800) 501-2702 or via email at info@cleardiamondlife.com

Characteristics of Wealth Accumulation Vehicles

In today’s financial industry, there are many financial products, or vehicles, which can help you accumulate wealth. Some offer tax deferred options, while some others offer guarantees, etc. With so many vehicles out there, it can get confusing and that’s why it is so important to have a trusted advisor to help guide you along the way so that you achieve your financial needs and goals.

First, let’s break down the several characteristics that every American would like to have in a financial vehicle so that they can experience the most financial gain possible:

What you want…

  • No Risk – this characteristic depends on the tradeoff, however in today’s volatile market, taking a risk has shown numerous times to be very expensive and disappointing

  • Guarantees – no matter what condition the market may be in, this option delivers dependability that your money will not be lost

  • No Penalties – within any emergency when money must be taken out, you are not penalized for any withdrawal

  • Liquidity, Use, and Control – this allows you to have access and control of your money at all times

  • Protection – if the market were to plunge tomorrow, you are protected from any financial loss

  • Leverage – you are able to borrow against your investment and leverage your assets

  • Tax Deferred – postpone paying taxes until a later date

  • Tax Free – paying NO taxes when accumulating your wealth and also when making any withdrawals

  • Collateral – can protect a lender from financial harm in the event you, the borrower, default on an original agreement in the event of death

  • Tax Deductible Payments – claim a tax deduction when making contribution payments

  • Disability Benefit – insures your earned income in the event of a disability

  • Wealth Transfers – the transfer of money from one individual to another

Now that we have the appropriate characteristics of what you would want in a wealth accumulation vehicle, let’s take a look at all the financial vehicles out there. The diagram below illustrates seven financial vehicles and compares their characteristics with the characteristics you want. The green boxes reflect the characteristics you prefer while the red boxes show how that vehicle cannot offer you that certain characteristic.

As you can see, there are a variety of ways to save for retirement. We specialize in working with you to have a tax-diversified portfolio – comprising of assets in taxable, tax-deferred, and tax-free accounts – so that you’re best positioned to manage cash flow during retirement.

Getting Started

For more information and to get started on building a brighter future, please contact us by phone at (800) 501-2702 or via email at info@cleardiamondlife.com


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