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The Future of Retirement is Here


After the Greatest Generation, along came the Baby Boomers, and in 1978, the Boomers changed everything with the 401k.

Recently, I wrote about the pros and cons of how the “Greatest Generation” employees came back from WWII and spent their entire careers with the same company because at retirement they would get a lifetime pension. After the Greatest Generation, along came the Baby Boomers, and in 1978, the Boomers changed everything with the 401k. Now 38 years later the 401k has proven to be a complete disaster because almost no one can afford to retire, and employee turnover rates and costs have skyrocketed.

So what’s next? The truth is what’s next is already here.

1. We bring back the pension plan and restore financial security in retirement to Americans.

2. We finance the pension plans using bank financing.

The financial leverage will make the plans affordable and the vesting periods will mitigate employee turnover rates and costs.

How do we do it? Let’s start with this concept.

Step One: A healthcare organization decides to offer lifetime pension benefits to a 40-year-old physician.

Step Two: Utilizing a $150,000 business line of credit as collateral, the company takes out a $1,400,000 bank loan.

Step Three: Over the next seven years, the money is put into a permanent cash value life insurance policy.

Step Four: The healthcare organization services only the interest portion of the loan, while the cash value in the life insurance policy grows tax-deferred.

Step Five: In the 13th and 14th year of the plan, the loan principal is paid back from the cash value of the life insurance policy.

Step Six: At age 70 the physician enjoys a lifetime tax free income of $120,000 per year from the life insurance policy in the form of policy loans.

To anyone in their mid-40s, 50s, or 60s who is worried about retirement, it’s a very attractive offer. Moreover, it will be a boom for industries like the medical field which is 1/6th of our economy and where physician and nurse shortages are an enormous problem. How big is that problem? I'll cover that in an upcoming Alemian file episode.

In the meantime, if you have questions or comments send an email to, or visit my website Absolutely make sure you come back here next week for another edition of The Alemian File.

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