Old Problems - New Thinking

The problems that exist in the world today cannot be solved by the level of thinking that created them.

- Albert Einstein

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TOP 10 REASONS TO USE STOCK TO CASH

Investor with highly concentrated stock position needs diversification but does not wish to sell, pull out of the market, and possibly pay capital gains taxes. Investor keeps stocks and reinvests loan proceeds in fixed annuity products or other safe investments that offer principal protection and investment diversification. Reinvested proceeds offer downside protection, while stock collateral drives potential upside.
Investor bullish on his own portfolio, or having a low cost basis, would like liquidity but does not wish to sell. This is often the case in the senior market, where the elderly have held their stocks for many years and now have income needs. Loan proceeds are commonly reinvested into single premium immediate annuities to create guaranteed cash flow.

Investor understands and appreciates need for life insurance, annuities, estate planning, retirement planning or has other important financial goals, but has insufficient cash flow to fund these objectives. Investor no longer has to choose between stock investment plans and insurance needs. Both are attainable with Stock to Cash.

Investor has an emotional attachment to a particular stock or stocks, has income needs or other financial planning needs, but refuses to sell. This reason is perhaps the least rational, but most important. Stock to Cash offers a sensible and sensitive solution.

Investor has cash or other high basis assets and desires to invest in the stock market but is concerned about market risk. Investor can purchase stocks and immediately borrow 90%. Loan proceeds are reinvested into a guaranteed instrument such as a fixed annuity or life insurance contract. Guaranteed products act as a floor to protect the 90% proceeds while collateral is still fully leveraged in the market.
Investor has at least $100,000 in an IRA that will be subject to income and estate taxes at death, and wishes to reduce taxes and leverage these qualified assets as much as possible. Investor can distribute cash, purchase stocks, borrow 90% and roll loan proceeds into new IRA within 60 days. A qualified bonus annuity can be used to restore the value of the new IRA. Meanwhile, the collateral portfolio is appreciating outside of the qualified plan and can be tapped into at the end of the loan term at capital gains tax rates rather than ordinary income tax.
Investor wants to set up a charitable remainder trust (CRT), but does not want to relinquish the upside potential of his stock portfolio. Instead of gifting low basis, highly appreciated stocks to a CRT where trustee will sell stock and reinvest in income-producing investments, investor can keep stocks, borrow 90% and give cash to CRT. In addition to keeping the upside of the collateral portfolio, investor can currently deduct up to 50% of AGI for making a cash gift, rather than 30%.
Charity wants to encourage current charitable gifts and sponsors a program that allows donors to keep their portfolios while giving a portion of the loan proceeds away. The balance of the loan proceeds is placed in an SPDA, SPIA or life insurance policy, depending on the needs of the donor and his family. Donor also benefits if portfolio appreciates.
Small charity wants to offer its own charitable gift annuity. Portion of loan proceeds are gifted to charity, and balance is reinvested into commercial guaranteed SPIA for benefit of donor. In addition, a small portion is placed in deferred annuity to cover any tax cost triggered by walk-away. If stock appreciates and loan is paid back, the deferred annuity can be gifted to charity as well.
Investor wants to own real estate and invest in the stock market at the same time. Investor can borrow against stocks to purchase real estate or other startup venture.



Stock to Cash - A Simple Solution

Any intelligent fool can make things bigger and more complex... It takes a touch of genius - and a lot of courage to move in the opposite direction.

- Albert Einstein

Stock to Cash® Audio
and Video Presentations

View Stock to Cash Presentation with Audio

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minute online presentation:

Understanding Stock
to Cash®

Stock to Cash featured on World Business Review, hosted by General Alexander Haig, Secretary of State under Ronald Reagan.

Alexander Haig's World Business Review (with retired Emerging Money Co-Chair Charles Horn and Alexander Capital President Bill Chapman.)

 


 
 

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Nothing contained herein should be considered tax, legal, regulatory or investment advice. Stock to Cash may involve the sale of fixed life insurance and/or annuity products. Not all products available in all states. Determining the suitability of any product or concept is the sole responsibility of the professional advisor after having considered all of the relevant facts and circumstances. Stock to Cash® and Emerging Money® are registered service marks of Emerging Money Corporation.