Lyle Boss

Boss Financial & Insurance Services

Einstein Quantum Compounding

Use the 4% withdrawal rule, add the inflation factor and guess what? They still cannot compete. Use this tip (below) to explain how a Fixed Indexed Annuity is a solid choice.


Then there is this: "Quantum Compounding"


Understand compounding, then explain our use of compounding in an annuity (do it one at a time) The lay on the final layer, the benefits added to the annuity contract: I call it Quantum Compounding



He won the Nobel Prize, but How About Quantum Annuities?

 

Albert Einstein was ahead of his time. He revolutionized physics thinking, and his theory beginning with the breakout year of 1905, is still the basics of quantum physics today, over 100 years later. When Einstein is remembered for his work, it is almost always E = mc², the theory of relativity. However, a more exciting part of Einstein's life was his view on compound interest. 

 

Albert Einstein called compound interest is "the greatest mathematical discovery of all time."


The Power of Tax Deferral

Compound interest allows the account to grow by earning interest on the original investment and any accumulated interest. Here is a generally accepted definition of compound interest.


The interest is calculated on the initial principal and the accumulated interest of prior periods. Compound interest differs from simple interest in that simple interest is calculated solely as a percentage of the principal sum.


Banks and saving institutions offer compound interest, also referred to as Double Compounding. The downside is when the interest is credited to your account, and it comes with tax liability. The interest is credited, but it is taxable. The tax liability is deferred as long as the accumulated funds are left untouched. Insurance companies offer products that allow for tax deferral and compounding but, under certain situations, can also defer the tax liability. These products are called annuities and life insurance.


This concept is referred to as Triple Compounding.


If some of your savings are placed in an annuity, the benefit of tax deferral provides for:

  • Interest on your principal 
  • Interest on your interest and 
  • Interest on your tax saving, because your interest is free from current income tax in an annuity, can all continue to compound instead of being withdrawn for tax payments. 


Is that all there is? No! There is also Quantum Compounding.


Quantum Compounding builds on Triple Compounding by adding features only found on certain insurance company annuities. 

· Bonus of 5% to 10% of funds deposited, immediate and guaranteed

· Long term care benefits

· Lifetime income provisions

· Annual moveable minimum guarantees

· Complete safety, full guarantees against loss and risk.`

· Enhanced benefits for the beneficiary

· Probate avoidance

 

Consider the use of Quantum Annuities for added benefits and added value to yourself and your retirement.

Lyle Boss picture

Lyle Boss

Boss Financial & Insurance Services

955 Chambers Street

Suite 250

Ogden, Utah 84403

lyleboss@msn.com

(801) 475-9400

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