How to get out of the worst financial cycle: A proven strategy we can all use

financial strategy

At some point, we all confront situations that put or financial well-being at risk. Fortunately, there is a financial strategy that can help us get out of these statistics. 

Let’s talk about a reality that many of us live: 

If you are in one or more of these statistics, let me ask you: What are you going to do when an emergency comes up? If you have to go to the hospital, of your car breaks down, if your washing machine breaks, how are you going to pay for it? Would you have to go into debt? Ask your family for money? What if something major happens like a critical or chronic injury, you lose your job, a loved one passes away… are you financially prepared? 

Thinking about the future, how prepared are you for retirement? Any money you set aside for the future helps, but have you done the math on how much you will have when it is time to retire? Or are you expecting government help? It is projected that social security will run out by 2035 (and this doesn’t take into account the effects of the pandemic). My name is Luis Ramos and I am a licensed financial professional. My job is to help you in your finances and recommend financial strategies that will help you reach your financial goals, whether that is saving money for an emergency fund, for retirement or to prepare for unexpected situations. 

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A financial strategy for all your financial goals

Whatever your financial goal is, there is a financial strategy that can help you achieve them. I recommend an Index Universal Life (IUL). 

Index = Your money is tied to an index that imitates the stock market behavior (but isn’t in the stock market). 

Universal = Although this used to be known as a strategy for the rich, nowadays modern IULs are for everyone. They adapt to the needs and goals of each person. 

Life = It’s a life insurance contract for life (until 121 years). 

An IUL is an insurance policy that accumulates cash value. It serves as a tool to save money. It’s tied to an index that imitates the behavior of the stock market, but your money is not exposed to the stock market, so you never lose money when the stock market plummets, thanks to the 0% floor. You accumulate an average of 6% to 10%, helping you to double your money every 8 to 10 years. 

You might ask yourself, why should I invest in an IUL instead of a retirement account like a 401K? First, because of what we said that your money is not exposed to the stock market. And second, because your money grows TAX-FREE and you can access your money tax-free. 

An IUL also has the following benefits: 

  • Life insurance that transfers to your beneficiaries tax-free
  • Insurance that protects you in case of critical or chronic conditions such as work accidents that make it difficult to care for yourself, and chronic conditions such as cancer. 


With an IUL: 

  • Your money grows tax-free on an average of 6% to 10%
  • Has a 0% floor (you never lose) and a max of 13% to 15%
  • Life insurance that transfers tax-free to your beneficiaries
  • Cash advance for critical or chronic conditions

How does an IUL help you? 

Cash Value

If an IUL is well structured, it can accumulate cash value, but it has to be structured correctly (by a financial professional such as myself). To grow your savings, it’s up to you to be very aggressive with your contributions so you maximize your investment potential. 

Depending on what you save each month, your IUL could accumulate around $20,000 the first five years. How would you feel if you could save that money for your future? I see it as a hobby. My work, asides from being a financial professional of course, is to invest in my policy. 

What can you do with your IUL? 

  • Emergency fund  – If you don’t have one yet, you would have a solid emergency fund, taking you out of the 78% of people that live paycheck to paycheck and the 70% of those that have less than $1,000 in a savings account. 
  • Investor – From year 10 and thereafter, the value of the IUL policy goes through the roof, putting you in an excellent position as an investor. If a good-priced property comes up, business opportunities with high-income potential, you have the funds to invest. You can be your own bank because your IUL policy has liquidity (easy access to your money). You don’t have to turn to credit. 
  • Retirement – You arrived at your retirement with your house and car paid for. The only things you have to pay are expenses like utilities, food, clothes and the occasional splurge. What if I told you that your IUL could have at least half a million dollars, how would you feel regarding your retirement? You would feel much more in peace, right? 

Protection in Life

As much as we don’t like to think about it, we have to protect ourselves for medical situations that can seriously affect our quality of life. On top of having to deal with an illness, you also have to take into account how it will affect your finances. Here are some ways and IUL financial strategy will help: 

  • Terminal  Conditions – Your coverage can advance a percentage of the value of your policy to support you in these difficult times. 
  • Critical – an organ transplant, a heart attack, loss of vision, it advances a percentage of your coverage. This way, you only have to worry about getting better. 
  • Chronic – If you find yourself in a situation that you need help to bathe yourself, to eat, to dress, to take care of yourself for more than three months, it also advances a percentage of your coverage. You don’t have to rely on asking for money from a family member, donations or government help. 

Life Insurance

Our life will eventually end. The best thing we can do is to leave our family in a good financial position. With an IUL financial strategy, the life insurance amount grows with the years, so the more time you have with the policy, the more money you will leave to your beneficiaries. The value of your policy, plus what you have accumulated in cash value, transfer to your family tax-free and cannot be touched by creditors. 


Now that you know the main benefits of an IUL, what are you waiting for? Get in touch with me today to discuss your situation and see how we can support you to prepare your finances for the future.

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