A collection of insightful and informative articles from Myerson Wealth's “Recipes for Success” newsletter
It almost goes without saying: these are tumultuous times! So much so, we can’t help but wonder – what lies on the other side? Is it greater gratitude for front-line medical professionals and essential service industry employees? More virtual opportunities in business and education? Societal changes to meeting and greeting? Increased tax rates to pay for the stimulus? Perhaps new investment strategies to better weather future market volatility?
Whatever happens, when our grandchildren and their progeny study history, this period of our lives will be in those texts, as life as we know it will look dramatically different when this is all said and done. This is Life Reimagined.
With regard to financial security and income tax minimization, you may be asking, “What actions can my clients or I take now to protect assets down the road?” We believe we have an answer.
Think of Maximum-Funded Indexed Universal Life (IUL) as another type of “LIFE” reimagined. Typically, when considering the need for life insurance, one imagines this from the perspective of the amount of coverage required to protect one’s family or business. However, when reimagined and intelligently engineered using the maximum-funding technique, life insurance metamorphosizes into an investment strategy that is nothing short of win-win-win:
IUL acts as a long-term wealth accumulation strategy with an inherent built-in “safety net” when, not if, the market drops in any given year. Some other benefits include the following:
Without going too deeply into the technical components of Max-Funded IUL, it is worth mentioning some basic mechanics:
With all that in mind, max-funded IUL can be suitable not only for individuals looking to grow personal wealth for their own retirement benefit, but also for business owners who may wish to accumulate cash to fund existing or future Executive Compensation arrangements.
IUL comes with complexity, and before entering an IUL accumulation plan, this complexity needs to be fully explained to and accepted by the policy-owner. If properly engineered and managed, max-funded IUL can form the backbone of an exceptional long-term accumulation strategy, not only as a tool to grow wealth but also as the source of funds from which to withdraw when the market makes a massive correction on one’s equity portfolio. Since the cash account will not be impacted by the correction, other equity-based assets can be left alone to recover. All of this is within a tax-favored environment.
Truly LIFE reimagined.