A collection of insightful and informative articles from Myerson Wealth's “Recipes for Success” newsletter
My son asked if he could make a Thanksgiving dish and opted to prepare the mashed potatoes. While his effort was good, the potatoes were somewhat stodgy and did not look like they could feed the 22 guests we had for dinner. He asked how he could fix them. I suggested he add some homemade chicken stock and a small amount of horseradish to kick up the flavor. The potatoes turned out to be a major hit……essentially, the same product as originally prepared, but now enhanced to serve many more people, and with added flavor and no additional fat!
This is directly analogous to one of the most common opportunities often overlooked by my clients. MANY clients have life insurance policies purchased a number of years ago, which have grown large cash values no longer (or never) intended to be used during their lifetimes. Changes in the insurance environment over the last ten plus years have provided an opportunity to use the cash value in those policies to significantly expand the death benefit, remove the fat, and enhance the flavor by providing guarantees that were not present in the cash value policies.
Myerson Wealth just completed a case on a Male, Age 73, who had a cash value of approx. $1.5M in policies with a death benefit totaling $4,200,000. We were able to underwrite this individual and perform a 1035 tax-free conversion of this cash into new policies totaling $6,250,000 on a lifetime guaranteed basis.
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