• Stephen Gardner

Tow Truck Case Study 2

After working with many tow truck drivers and business owners, I've come to realize just how hard the towing business is. Long days, hot days, cold days, people up in your face days. One client's wife recently told me about the day her husband had someone pull a gun on him to try to get his car back.


Well I want to get up in your face, but in a good way. A way that will protect you from losing money. A way that will allow you to legally avoid taxes. A way that will turn your tow truck into a retirement money making machine. A way to recover the money you spend on truck purchases and have that money end up back in your personal possession.


Most business owners eventually get good at making money. Most even get good at finding ways to lower their taxes. Most however, don't figure out how to build solid retirement plans or learn how to make their money work for them in two places. With a properly built insurance contract, you can do everything I just mentioned above.


What I want you to walk away with today is that you already need life insurance to cover your family, lost income if you died, the business expenses and debt you might carry. But what if you could use this tool and some strategy to build a large tax-free nest egg that gave you access to capital when you need it and you could avoid the major expenses of working with a bank? What I am about to share with you will never be taught by banks or Wall Street yet they employ this strategy in their own businesses.


I want to show you an example of a tow truck owner in his early 40's that puts $15,000 away for JUST 5 years. We call this capitalizing or building up your business. Just like you didn't walk into instant success with your towing business, this plan needs some time to get up and running. As you can see based on the contribution and a 6.5% average growth rate, this owner could place money for 5 years and then never contribute another dime to his account.


This should give him around $287,785 at age 70. This money is tax-free and will continue to grow in value. The death benefit has also grown in value over the years. At age 70 he has nearly 5 times more money than the average baby boomer retiring today.

However, it gets better and here's how. Once you have capitalized your plan or built up cash value, you can borrow against the plan and use that money to buy equipment, expand or buy a new truck. For this example, let's say you buy a new truck every 4 years. While you are borrowing against your plan, the money in your plan continues to grow as if it were never gone. It's the only financial vehicle that allows this.


As you pay yourself back, you will ultimately end up placing more money back in your account, but the real genius I show people is when you sell your truck, drop that money into your plan. Here's why, that lump sum of money enters the policy and increases the accumulation value inside your plan. You can then borrow it right back out to purchase the next truck. Loans take 5 minutes and 1 piece of paper. Nothing is simpler! Can you say that about getting a loan from a bank?


Every 4 years this business owner drops the extra money from his or her sold truck in to their plan. They then borrow against that for the next truck. As you do this it bumps your value up and will ultimately result in more money in your tax-free bucket.


9 years into the plan, I show this owner drop $30,000 into their plan. Four years goes by and he or she needs a new truck so they sell the current truck and dump the $30,000 in before purchasing the next truck. They do this a few more times. By 25 years from now, trucks will probably be more expensive so you will pay more but when you sell in 4 years so will the person that buys it from you so I show $35,000 going into the plan. Finally, at age 70, you sell off the final truck and dump one last amount of money into your plan before retiring, selling the business or handing it off to your children. The plan should have around $712,199 of tax-free money for your retirement years. That's a pretty significant increase in your nest egg just by buying the trucks you would have bought any way from your plan and then dumping the money back in when it sells. In this case study, the difference was $424,414 more. This increase is worth taking the time to understand these plans.


Plus you still get to write off the interest and depreciation. I'll share how when we speak.


Now I'd like to ask a few simple questions that have very revealing answers.


Do you plan to save money and retire one day?


Would you like to legally avoid paying taxes in the future?


During your business career, are you going to purchase several trucks to run your business?


Has anyone ever shown you a smarter way to buy trucks from an insurance contract?


Regardless of owning one of my plans or not, are you going to buy trucks?


At age 70 would you rather have $287,785 or $712,199?


No bank is going to show you how to buy your tow trucks this smarter way. No bank is going to encourage you to save in an insurance contract instead of with them. No bank is going to show you how to legally avoid taxes. And no bank is going to show you how to recover the money you lose to interest and depreciation and then how to properly dump the money you got from selling your truck into a plan that will grow your retirement.


Well, I am not a bank! I will show you how to do all this just like I have shown all my clients. Just like I have personally done for a decade. There is a smarter way to behave with money that helps you keep more and have more. Time passes the same for all of us, but we all end up with different results. Let's get you the best results with the money you were already going to save for yourself and the money you were going to spend on your business.


PS - Imagine running multiple trucks through this plan. I'll let you in on a secret, the result is more money and freedom during retirement.





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