What is Risk Pooling?

What is Risk Pooling?

by Optic Staff, August 22, 2016

“Central Banks are going all in”

 

  • Negative rates
  • Substantial quantitative easing in Europe and Japan
  • Presents long-term risks-globally

 

“Collapse of commodities followed by a decent recovery”

 

“Bond and Stock markets continue to set new records”

  • Do the fundamentals of companies and economies align with this?

 

“After years of government stimulus in the U.S. and abroad we are still in ultra-slow growth mode”

 

“Geopolitical & macro risks versus central banks and elevated asset pricing– this inconsistency can continue for a while but FUNDAMENTALS MATTER”

“Risk pooling will out perform the market every time”

Yes, I’m on another flight.

Oh how I love to fly and write. I’ve been in Indianapolis since Monday.

Attending continuing education classes.

Why does this matter to you?

It does and it doesn’t.

Let me explain.

——-It does——

Above are a few of the forces at play in our global economy.

These forces affect a lot of people in a major way.

Remember that life?

The life you lived prior to having us do your planning?

The life where these global economic forces played a major role in your life.

Your money went up, your money went down.
High risk = high reward.
Low risk = low reward.  Blah blah blah

And you NEVER knew when it was going to do either one.

What was life like then?

The life of not knowing but hoping.

Scarcity
Lack
Poverty mentality
Fear
Doubt
Worry and on and on.

——–It doesn’t———

What is risk pooling?

(When I ask that question it feels like I’m asking Who is John Galt? For those of you that are Atlas Shrugged fans you will understand. And smile I’m sure.)

For those of you who are not.
I invite you to google it.

Back to risk pooling.

Risk pooling is exactly what you are participating in when you purchase Life Insurance.

Pooling the risk. 

The law of large numbers.

Risk pooling has in fact, out performed Wall Street. 

As you now know a top MUTUAL Life Insurance company is one of the safest, most profitable financial institutions in America.

Let me introduce Scott Davison.
He is a President and CEO of one of these mutual life insurance companies.
Untitled

I was fortunate to spend some time with him and other various executives this last week.

Scott reemphasized the importance and significance of a mutual Life Insurance company.

He said, 

  • We are writing long term liabilities when we sell our permanent products. (Boom, Whole Life)

 

  • We make sure we can and will always be able to pay these liabilities. 

 

  • He, himself, buys whole life. Yes, I asked him. He said it always works. (Economic Value of Certainty) 

 

  • 10 years from now, EVERY ONE of your clients will thank you. 

 

  • We have the strongest balance sheet. 

 

  • We put $ back into our company (hmmm, sounds familiar doesn’t it? #1 Investment. Your own Business has been, and will always be, your highest rate of return) 

 

  • In 2008 we still made a profit while everyone else lost.

Well as you can see, I could go on and on but I’m not today.

Risk pooling produces a higher rate of return to you, the policy holder, of these whole life insurance products.

What this means to you is that you can know versus hope that what you are doing with your money is safe.
It is secure and it is liquid.

Allowing you to actually plan for the future.

Allowing you to maximize the growth in your #1 Investment; your business/career.

Allowing you to transfer that risk to an insurance company versus retaining it.

Allowing you to not worry about what tax rates will do in the future.

Allowing you to enjoy life more than ever before knowing versus hoping.

Allowing you to THINK LEGACY.

Creating more today than ever before.
Expanding 
Growing
Contributing 

On and on and on.

Enough for today.

Thank you all again for trusting in me.
In our team here at Optic Financial.

Yes, we are growing.
More on the growth of Optic Financial in one of my next emails. Stay tuned for some exciting news.

In Prosperity,

Michael Isom