Latest news with #TFP


Int'l Business Times
25-06-2025
- Business
- Int'l Business Times
The Financial Partners Founder On How Smart Business Leaders Are Building Tax-Free Wealth Using Other People's Money
Most people think of life insurance as a cost, a necessary protection policy filed away in a drawer. But what if it could be one of the most powerful tax-free wealth-building tools available? That's the question, Michael (Mike) Smith, Managing Partner and founder of The Financial Partners Group (TFP), believes more business owners and high earners should be asking. "Premium financing life insurance has long been the playbook of the ultra-wealthy," Smith explains. "But the game has changed. We're now helping executives, entrepreneurs, and even professional athletes use this strategy to create tax-free income and preserve wealth for generations. And no, it's not as risky as most people assume." Premium financing is a strategy where a client borrows money from a third-party lender to fund a life insurance policy, usually an indexed universal life (IUL) or similar cash-value vehicle. Instead of tying up capital in hefty annual premiums, the client retains control of their cash while the policy accumulates value over time. According to Smith, this approach flips the traditional insurance conversation on its head. "We're not talking about paying $100 a month to get a death benefit. We're talking about using institutional strategies, used by billionaires, banks, and major corporations, to create a tax-advantaged retirement income and long-term wealth preservation vehicle." In short, the client gets access to market upside without downside risk, IRS-compliant tax-free income through policy loans or withdrawals, and significant death benefit protection for their heirs. Smith further shares that there are minimal upfront out-of-pocket costs. And the biggest kicker is it's built on borrowed money, what he calls "one of the most efficient ways to use leverage in the financial world." Historically, premium financing was reserved for the ultra-wealthy. But Smith says today's savvy professionals, especially those under 55 with strong income, are increasingly using the same tools. "The strategy works particularly well for business owners, executives, professionals, and athletes," he says. "People who have the income and credit profile to qualify, but who don't want to lock up massive amounts of capital." Take one instance that Smith portrays: a couple in their mid-50s earning $550,000 a year, with $5 million projected in retirement savings, all taxable. They want to double their projected retirement income to $40,000 per month tax-free. The traditional route would have required $25,000 per month in new savings. Instead, using premium financing and TFP's Legacy Plan™, they are able to commit just $25,000 per year, using collateral and lender capital to generate the same (or better) outcome. "That's a 12x difference in capital outlay," Smith emphasizes. "Same goal, dramatically different journey." Despite its advantages, premium financing has long been misunderstood, even within the financial advisory world. "A lot of advisors think it's too aggressive, too risky," Smith says. "But that's because they've never been properly educated on how the strategy works, or how the risk is managed. Once I walk them through the actual structure, their response is usually: 'Oh, this isn't nearly as risky as I thought.' And they're right." Smith points to several built-in safeguards: adjustable interest rates, liquidity buffers, collateral management, and carrier guarantees. "Like any financial tool, it has to be designed right. But the risks are far more manageable than most people believe." He adds that even major privately held insurance conglomerates are now leaning into premium financing. "They wouldn't even look at this space a few years ago. Now I'm one of their intermediaries, and they're fully behind it. This goes to show that, even the most conservative financial institutions are recognizing premium financing is an important planning opportunity. And is not as risky as once thought," Smith affirms. One of the most compelling aspects of the strategy is its tax advantage. If properly structured, both withdrawals and loans from the policy's cash value can be taken out tax-free, thanks to longstanding IRS rules protecting life insurance's unique status. "These aren't loopholes," Smith explains. "They're built into the tax code. The industry has powerful lobbying support because the products serve legitimate protection and planning needs. You're putting the money to work inside an IRS-recognized structure." Because of regulations passed in 1987, policies must adhere to specific funding limits, he agrees, but those limits still leave ample room for meaningful wealth growth. With higher tax rates on the horizon and more scrutiny on qualified retirement plans, Smith argues that professionals need smarter ways to diversify and preserve wealth. He states, "You spend your whole life building your business, your career, your income. Then retirement hits, and suddenly, you're giving a huge chunk of it away in taxes. Premium financing changes that trajectory." While the strategy isn't for everyone, health, age, and income requirements apply, Smith believes more advisors should be educating their clients. "This is advanced planning. It's what the best of the best are doing. And it's time more people knew about it."

Associated Press
30-05-2025
- Business
- Associated Press
The Financial Partners Celebrates 15 Years of Premium Finance Excellence Grounded in Expertise and Legacy
05/30/2025, Duluth, Georgia // PRODIGY: Feature Story // The Financial Partners Group (TFP), a premier life insurance brokerage agency specializing in premium finance, is celebrating its 15th anniversary, marking a milestone in an industry where trust, precision, and consistent performance are paramount. Founded in 2010 by veteran advisor Michael (Mike) Smith (and now retired partner Kathleen M. Donnelly), TFP has earned a national reputation for delivering highly specialized, mathematically sound premium financing strategies for high-net-worth clients through its TFP Legacy Plan. The Financial Partners What started as a means to capture profit and control over business placed outside a former general agency has evolved into a powerhouse niche firm that is now synonymous with integrity and success in the premium finance life insurance (PFLI) sector. 'Most people in financial services shy away from life insurance. I leaned in,' says Smith, whose journey began in 1983 and took a pivotal turn in 2011, when a prominent family office trusted him to restructure a portfolio of life insurance assets. His recommendation, premium financing, was bold, and it set TFP on a trajectory that would define its identity. That project became the proving ground for what would later become the TFP Legacy Plan: a customizable framework that combines leverage, tax advantages, and equity index performance to create maximum death benefit or tax-free retirement income with minimal out-of-pocket cost. 'Premium financing is conceptually simple, but in practice, it's highly complex. If this isn't what you do every day, you shouldn't be doing it without a committed, knowledgeable partner,' Smith explains. That belief underpins the firm's client-first, advisor-supported approach. Smith is hands-on in every major client engagement, guiding strategy design and participating in early client conversations to ensure the plan fits both the client's financial goals and risk tolerance. Despite the controversy that sometimes surrounds premium finance, TFP's track record is a point of pride. Smith further shares, 'We may not be able to prevent everything, but our commitment to due diligence, documentation, and constant client engagement is what has protected our clients.' The TFP Legacy Plan continues to adapt to changes in the market of interest rates, inflation, and estate tax exposure, offering high-net-worth individuals a structured, scalable way to leverage life insurance for tax-free income, estate planning, and wealth transfer. Smith credits his early mentor, a retired industry expert, for urging him to build independent models, a move that now defines TFP's continuous innovation. He shares, 'We've taken the design further, deeper. Every model is custom-built, and every assumption is stress-tested. And if a client isn't mentally or financially suited for premium finance, we'll tell them not to do it.' That honesty has built trust. As for the future, TFP is built to last. In late 2024, Smith finalized a succession plan that included his daughter, Kennedy Smith, and rising team member and Director of Logistics and Case Management, Harris Vinson, each now a minority stakeholder in the firm. 'I want clients to know that this business isn't just about me but a legacy for us and them. Kennedy and Harris are deeply committed, capable, and already driving growth. There's a real, living succession plan here.' Fifteen years long-standing, TFP now enters its next chapter with the same clarity that shaped its founding: delivering precise, customized, and responsibly managed premium finance solutions that protect legacies and amplify wealth. There is no offer to sell, no solicitation of an offer to buy, and no recommendation of any security or any other product or service in this article. Moreover, nothing contained in this should be construed as a recommendation to buy, sell, or hold any investment or security, or to engage in any investment strategy or transaction. It is your responsibility to determine whether any investment, investment strategy, security, or related transaction is appropriate for you based on your investment objectives, financial circumstances, and risk tolerance. Consult your business advisor, attorney, or tax advisor regarding your specific business, legal, or tax situation. Media Contact Name: The Financial Partners Group Email: [email protected] Source published by Submit Press Release >> The Financial Partners Celebrates 15 Years of Premium Finance Excellence Grounded in Expertise and Legacy
Yahoo
30-05-2025
- Business
- Yahoo
The Financial Partners Celebrates 15 Years of Premium Finance Excellence Grounded in Expertise and Legacy
The Financial Partners is celebrating its 15 years in the insurance industry with a clear mission to continue its legacy. Duluth, Georgia, May 30, 2025 (GLOBE NEWSWIRE) -- The Financial Partners Group (TFP), a premier life insurance brokerage agency specializing in premium finance, is celebrating its 15th anniversary, marking a milestone in an industry where trust, precision, and consistent performance are paramount. Founded in 2010 by veteran advisor Michael (Mike) Smith (and now retired partner Kathleen M. Donnelly), TFP has earned a national reputation for delivering highly specialized, mathematically sound premium financing strategies for high-net-worth clients through its TFP Legacy Plan. The Financial Partners What started as a means to capture profit and control over business placed outside a former general agency has evolved into a powerhouse niche firm that is now synonymous with integrity and success in the premium finance life insurance (PFLI) sector. 'Most people in financial services shy away from life insurance. I leaned in,' says Smith, whose journey began in 1983 and took a pivotal turn in 2011, when a prominent family office trusted him to restructure a portfolio of life insurance assets. His recommendation, premium financing, was bold, and it set TFP on a trajectory that would define its identity. That project became the proving ground for what would later become the TFP Legacy Plan: a customizable framework that combines leverage, tax advantages, and equity index performance to create maximum death benefit or tax-free retirement income with minimal out-of-pocket cost. 'Premium financing is conceptually simple, but in practice, it's highly complex. If this isn't what you do every day, you shouldn't be doing it without a committed, knowledgeable partner,' Smith explains. That belief underpins the firm's client-first, advisor-supported approach. Smith is hands-on in every major client engagement, guiding strategy design and participating in early client conversations to ensure the plan fits both the client's financial goals and risk tolerance. Despite the controversy that sometimes surrounds premium finance, TFP's track record is a point of pride. Smith further shares, 'We may not be able to prevent everything, but our commitment to due diligence, documentation, and constant client engagement is what has protected our clients.' The TFP Legacy Plan continues to adapt to changes in the market of interest rates, inflation, and estate tax exposure, offering high-net-worth individuals a structured, scalable way to leverage life insurance for tax-free income, estate planning, and wealth transfer. Smith credits his early mentor, a retired industry expert, for urging him to build independent models, a move that now defines TFP's continuous innovation. He shares, 'We've taken the design further, deeper. Every model is custom-built, and every assumption is stress-tested. And if a client isn't mentally or financially suited for premium finance, we'll tell them not to do it.' That honesty has built trust. As for the future, TFP is built to last. In late 2024, Smith finalized a succession plan that included his daughter, Kennedy Smith, and rising team member and Director of Logistics and Case Management, Harris Vinson, each now a minority stakeholder in the firm. 'I want clients to know that this business isn't just about me but a legacy for us and them. Kennedy and Harris are deeply committed, capable, and already driving growth. There's a real, living succession plan here.' Fifteen years long-standing, TFP now enters its next chapter with the same clarity that shaped its founding: delivering precise, customized, and responsibly managed premium finance solutions that protect legacies and amplify wealth. There is no offer to sell, no solicitation of an offer to buy, and no recommendation of any security or any other product or service in this article. Moreover, nothing contained in this should be construed as a recommendation to buy, sell, or hold any investment or security, or to engage in any investment strategy or transaction. It is your responsibility to determine whether any investment, investment strategy, security, or related transaction is appropriate for you based on your investment objectives, financial circumstances, and risk tolerance. Consult your business advisor, attorney, or tax advisor regarding your specific business, legal, or tax situation. Media Contact Name: The Financial Partners Group Email: info@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-05-2025
- Business
- Yahoo
Budzinski reacts to SNAP cuts approved by Agriculture Committee
ILLINOIS (WCIA) — Cuts could be coming to the Supplemental Nutrition Assistance Program, better known as SNAP. The cuts were voted on by the Agriculture Committee in the U.S. House Wednesday evening. The bill will move on to a full vote by the House of Representatives. Over 13% of Central Illinoisans are food insecure: EIF, Feeding America Supporters of the cuts said that SNAP has ballooned in cost. Some changes the legislation would make includes: Requiring states to shoulder a share of the benefit costs beginning in FY2028 Blocks future increases to the cost of Future Thrifty Food Plan (TFP) Increases the work requirement for able-bodied adults without dependents from 54 to 64 Ends SNAP-Ed (an educational program that helps people stretch out their SNAP money, cook healthy meals, and lead active lifestyles) Requires that to be eligible for SNAP, an individual must be a U.S. Citizen or green card holder Congresswoman Nikki Budzinski (IL-13) spoke out against the cuts during the budget reconciliation bill in the House Agriculture Committee Tuesday evening. She said the the $313 billion in SNAP cuts would impact families in need, as well as farmers and the food supply chain. 'This will take away food for SNAP households that are home to a child, an old adult or a disabled adult,' Budzinski said. 'And for what? To pay for tax cuts for the wealthiest people in this country.' You can find the full text of the budget resolution here. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
13-05-2025
- Business
- Yahoo
House Republicans propose major reforms to SNAP
House Republicans rolled out legislation Monday evening that would make significant changes to the Supplemental Nutrition Assistance Program (SNAP), as the party seeks deep cuts to federal spending as part of a broader plan to advance President Trump's legislative agenda. The 97-page text from the House Agriculture Committee includes provisions that would require states to cover a portion of SNAP benefit costs, tighten eligibility requirements for the program and seek to block the federal government from being able to increase monthly benefits in the future. The panel is set to hold a meeting on the legislation later Tuesday afternoon, with hopes to advance the text out of committee. The proposal comes as Republicans are assembling a sprawling package across multiple committees to enact Trump's tax priorities, boost funding for defense and his deportation plans, and significantly cut federal spending. For their role in the party's overall goal to find more than a trillion dollars in savings, Republicans on the House Agriculture Committee were tasked with crafting recommendations for at least $230 billion in cuts. The GOP-led committee touted the legislation on social media upon its rollout as a measure that would restore SNAP 'to its original intent' and promote 'work, not welfare—while saving taxpayer dollars and investing in American agriculture.' While SNAP benefits are currently funded by the federal government, the proposal calls for the federal share of the cost of allotments to go from 100 percent in the next two fiscal years to 95 percent in fiscal 2028 'and each fiscal year thereafter.' It also includes language to increase the states' 5 percent share of benefit costs in fiscal 2028 depending on its payment error rate. If the error rate is 6 percent or higher, states would be subject to a sliding scale that could see its share of allotments rise to a range of between 15 percent and 25 percent. Democrats have sharply criticized the proposal, which they argue could lead to states cutting benefits on their own. The measure explicitly blocks the Department of Agriculture from increasing the cost of the Thrifty Food Plan (TFP), which is used to determine benefit amounts for the program, based on a reevaluation or other updates. Republicans have accused former President Biden of abusing his power when its 2021 TFP reevaluation led to a 21 percent increase in SNAP benefits, which they say goes against decades of precedent in ensuring cost-neutrality as part of the process. But Democrats have previously pushed back against efforts that would rein in the administration's ability to increase benefits, particularly as research has found millions were kept out of poverty after SNAP benefits were boosted during the coronavirus pandemic. Rep. Glenn Thompson (R-Pa.), chair of the committee, told The Hill ahead of the release that he expects the measure will 'honor my principles I set forward in terms of facilitating a farm bill as the first principle.' He added that he thinks the proposed changes will make a deal on a new farm bill 'more likely' this year. Congress agreed to another extension of the 2018 farm bill as part of a larger government funding compromise last year after bipartisan talks on a new farm deal fell apart. The bill would also decrease the administrative cost the federal government is required to pay to help cover program operations in the states by 25 percent, yanks back some funds from Democrats' Inflation Reduction Act, with a host of other farm provisions. Sen. Amy Klobuchar (Minn.), the top Democrat on the Senate Agriculture Committee, warned Monday night that the House Republicans' proposal would make it harder for Congress to pass a bipartisan farm bill later this year, however. 'Instead of working with Democrats to lower costs from President Trump's across-the-board tariffs, House Republicans have decided to pull the rug out from under families by cutting the SNAP benefits that 42 million Americans rely on to put food on the table – all to fund a tax cut for billionaires,' Klobuchar said in a statement. 'This means more seniors, veterans, people with disabilities and children will go to bed hungry. It means farmers, who are already operating on razor-thin margins, will see billions in lost revenue. It will mean job losses and lost wages for everyone who is a part of the food system – from truck drivers to local grocers,' she argued. Julia Manchester contributed. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.