• 3 Military Tactics to Use for Defeating Debt

    Eric Patterson

    November 21st, 2014

    tacticWinter is quickly approaching and every year without fail I’m reminded of how awesome it is to get that first snow. Nothing is more memorable than the epic snowball battles I had in college on the campus of Virginia Tech as a military cadet. The game was every man for himself, and though I was easily outnumbered, I would always rely on military tactics to cause my adversaries to retreat.

    I think of debt the same way. When it comes to battling it, every man is for himself. Unlike the snowball wars engaged by playful college kids, debt plays with a very heavy hand that can leave you broken and financially scarred. But, just like I used the military tactics from school to beat the enemy, those same tactics can be used to defeat debt.

    There are actual proven strategies that we can leverage to completely obliterate debt. It’s called the Infinite Banking Concept.

    Tactic #1 -Know your Enemy: 

    Conventional wisdom says we should pay down debt that has the highest interest rate. That’s not necessarily true. You’re much better off paying down the debt that is the most inefficient. Look at the ratio of the debt balance versus the minimum payment.

    Tactic #2 -Use Your Firepower Wisely:

    When you know which debt to tackle first, it often times makes sense to take out a loan from your policy to accelerate the pay down of debt.

    Tactic #3  -Remain Disciplined:

    Paying down debt takes discipline, no doubt about it.  Using your insurance policy incentivizes you to stick to the long term debt repayment plan knowing that all the loan payments are going straight back into your personal economy for long term growth and future utility.

    Talk to an agent at Paradigm Life. With knowledge and the right plan of action you can easily develop personalized strategies to win your battle over debt.

    Eric Patterson

  • Using the Annual Paid-Up Additions Rider

    Paradigm Life

    November 20th, 2014

    APUARWhole Life insurance is a unique vehicle for your money. How can this be, when typically life insurance is thought of as a product needed only for when you (cough cough) croak? The reason is that with Whole Life you get immediate living benefits (including a cash value), and a death benefit. Owners of whole life insurance policies maximize the living benefits from their policies in any way they see fit. For instance, if you need financing for a car, new home or college tuition, you can easily borrow from your policy, not a bank.

    What is (APUAR) or Annual Paid Up Addition Rider?

    A Paid Up Addition is an additional set of terms added to your original whole life insurance policy that helps you customize the policy to suit your needs. Because the purpose of riders offer additional individual benefits to you, the rider is charged as an extra premium.

    Benefits of APUAR

    Paid Up Additions are so valuable because it immediately increases the cash value of your whole life policy, which then increases the guaranteed death benefit. Paid Up Additions Riders provide the holder with additional protection and provisions. There are many advantages to adding Paid Up Additions, one being that it adds immediate policy growth. A good insurance agent will always consider the use of riders when structuring your whole life policy to increase your protection and benefits.

    What Makes a Paid Up Addition Annual?

    When a PUAR becomes annual, or (APUAR), it simply refers to how you decide to pay your premium. For instance, your rider payment is scheduled in conjunction with the same method as your policy’s premium-annually, semi-annual, quarterly or monthly, and is combined in the total premium amount that is due.

    Deciding if an Annual Paid Up Additions Rider is Right for YOU

    The best way to determine if Paid Up Additions are right for you is to get clear about your financial needs today and in the future. Meet with a Paradigm Life agent and get your free in-depth analysis on PUA riders.

  • How to Retire in a Bear Market

    Justin Martin

    November 18th, 2014

    bearBefore I became an agent at Paradigm Life, I worked for many years as a stock broker. When the economy was on a down swing I would advise my clients to, “invest for the long-run.” During bear market periods I wanted clients to see farther than the moment at hand, and hold their positions until we could see corrections-even if they were slight.

    Some clients though, who depended on returns for retirement, did not have the time to wait, so in distress would quickly sell portions of their 401(k)s and IRAs to provide supplemental income.

    Whether you are reacting to a bear market, or preparing to retire in a bear market, there are immediate solutions that can mitigate this plight.

    1. Buy Yourself Time

    According to a MetLife Survey, the years immediately before and after retirement are the worst times to lose money. And of course, there is no good time to lose money. But, when trying to fight against market volatility you have to buy time-how?

    Consider Working Longer

    It’s the last thing you want to hear, but a few extra years working income will postpone you tapping into your valuable assets too soon.

    (“Retirement Income and the Sensitive Sequence of Returns,” authored by Moshe A. Milevsky, Ph.D. and Anna Anaimova, 2009 – MetLife)

    2. Diversify

    As a person who advocates and sells Whole Life Insurance, I constantly educate clients on how diversifying doesn’t just mean diversifying in the market. You need to create a solid platform of assets like:


    -gold and silver

    -mutual funds and bonds

    -Whole Life Insurance

    Whole Life Insurance or Cash Value Insurance is a tool that allows you to optimize other performing investments. For instance, with retirement, when the market is down, you use the cash value of your whole life policy to supplement income.  When the market is up, use your 401(k) or IRA. The same support from your policy also goes for all preforming assets. In short, Whole Life Insurance is a safety net.

    3. Get Help and Make a Plan

    A lot of my clients have retirement questions that should have been addressed years earlier. Don’t feel bad if this is you too. Many baby boomers who invested in 401(k)s found themselves at a loss when they realized retirement in the next 5-10 years seemed unattainable (usatoday.com). The Best thing to do now is get help. Education is everywhere (Infinite 101), not to mention that we offer free consultations with any agent to help you get on track for retirement.

    Retiring during a bear market doesn’t have to be painful. When meeting with a Paradigm Life Agent, ask him or her to show you the VOLATILITY BUFFER, and you can correctly calculate with a professional, the right numbers to help keep you secure during your non-working years. To find more information about Whole Life Insurance and Retirement visit our Resource Page.

    Justin Martin