The Rockefeller Life Insurance Strategy for building Multi-Generational Wealth and a Lasting Financial Legacy (2024)

John Davison Rockefeller Sr.

He was an American Business Magnate and a Philanthropist.

He was considered the World's first Modern-day billionaire and the Wealthiest Person to have ever lived.

It is estimated that he would have a Net Worth of almost $400 Billion in today’s Dollars.

He was richer than Elon Musk who has a Net Worth of $240.7 Billion today.

As quoted by Robert Kiyosaki”

"It is not how much you make that counts, but how much Money you keep."

And

As quoted again by Robert Kiyosaki”

"There are only two things you can Invest: Time & Money. Of the two, Time is more important."

The Rockefeller Family have followed a set of Principles and Practices that has protected and grown the family wealth for generations and are still getting paid off the legacy – especially the one John D Rockefeller set up more than 100 years ago. This is a tremendous legacy.

Would we like to build and leave a legacy?

Is it possible for us to live wealthy, not only leave our kids better off than we were, but also spark a financial legacy of wealth and empowerment that lasts for generations?

Well, we can do all of those things utilizing what we call “The Rockefeller Method”?

What is The Rockefeller or Waterfall Life Insurance Strategy

The term “Waterfall Concept” refers to a popularestate planningstrategy that facilitates Tax-Deferred Rollover or Transfer of aCash- Value Life Insurance policyfrom one generation to the other.

Which is not available with other types of Investments which are subject to Year-on-Year Income Tax or Capital Gains Tax.

Irrevocable Life Insurance Trust

• TheRockefellersused the most tax efficient way by a series ofirrevocable truststhat helped pass down wealth to future generations.
• These Trusts both fund and remain funded through life insurance policies, and include strict stipulations that protect the family from the risk of irresponsible behaviour.

Transfer One's Life Insurance Policy To Someone Else

• A person can transfer his rights, title and interest in a life insurance policy to another by assigning it to them.
• This is usually done in order to provide security for a loan or secure the financial interest of the other person. After the insurance policy is assigned, the assignee is set to receive the benefits from it.

Additional Advantages of Waterfall Strategy

• The waterfall concept can also help avoid some of the pitfalls that can apply to gifts and other large-scale transfers of wealth.
• Without requiring the involvement of potential costly lawyers and intermediaries.

This Waterfall of Wealth benefits each generation involved

For us as the Parent or grand parent

• We keep control of the life insurance policy.
• We can reduce our tax liability on some of our other investments by redirecting them into a tax-advantaged life insurance policy.
• While we own the policy, we can use access to the policy’s cash value.

For the kids or future generations

• When ownership transfer happens, our child gets permanent Life insurance for their family.
• They can access the policy’s cash value to pay for things like education, buying a house other real estate, building their own retirement, or continuing the financial legacy that we’ve started for future generations.

The Waterfall of Wealth Method is a great way for us to pass wealth down to future generations in a secure and tax efficient way that still gives us control and use of the funds while we arestill alive.

This is our legacy.

We want to live a long life with great sight and with thriving stamina

It may not be billions like the Rockefellers’, but we have been given the power to create wealth.

Through the power of compounding, a small amount of money can grow over time into a substantial sum.

Compounding and Time are an investor’s best friend.

Always remember "The longer the Policy Term, the more we gain with Tax-Deferred Compound Interest or Perpetual Uninterrupted Compound Interest"

Watch the video “The Rice and the Chessboard” in the comments box which explains Exponential Growth.

Compound Interest causes exponential growth. The power of compounding is one of the most powerful forces in finance. This concept allows investors to create large sums with little initial capital.

"Learn to Produce, Preserve, and Perpetuate Wealth for Generations to come."

If we desire it, we can do it.

The two key Principles of Financial Planning are "Inflation" and "Longevity".

And as stated in the official Report of

The Expert Committee on Longevity Finance was published by the International Financial Services Centres Authority (IFSCA) on April 12, 2022.

International Financial Services Centres Authority (A Statutory Authority established by Government of India)

"Life insurers are uniquely poised to be the only players in the market to cover both the critical risks —

1. The Risk of Dying too Early and

2. The Risk of Living too Long."

It is always wiser to invest in Life Insurance as early as possible and exploit the 8th Wonder of the World "Compound Interest"

with

"Perpetual Uninterrupted Compound Interest"

Aditya Birla Sun Life Insurance | Aditya Birla Health Insurance Company Ltd. | Aditya Birla Capital | Aditya Birla Group

Life Insurance Awareness Month

Gaurav Mohanty

IRDAI Licensed Insurance Advisor,

4 years Million Dollar Round Table Qualified,

Aditya Birla Sun Life Insurance

Mob/Whatsapp : +91-9766420564, +91-9923574241