Financial Planning Month

Considering The Options

October is Financial Planning Month, which focuses attention on efforts such as retirement planning, creating a business succession plan, estate tax planning, or determining familial goals for charitable giving.  These endeavors can be tackled using life insurance.

Retirement planning can be a big undertaking with the need evolving as the years progress.  With the specter of higher federal income and capital gains taxes looming large due to unprecedented government spending and budget deficits, individuals with substantial assets are looking for ways to manage the impact of tax increases on their investment gains – now and in the future.  A Life Insurance Retirement Plan (LIRP) implements life insurance to fund a retirement plan.  Follow this link to review an article that highlights the details:  Saving Enough For Retirement As Income Tax Rates Rise.

Creating a business succession plan often involves drafting a buy/sell agreement, which can be funded using life insurance.  Policies can be purchased by the company or by the business owners to provide the immediate liquidity necessary to buy out interest in the business upon death, ensuring that heirs receive a cash inheritance while allowing the remaining owners to continue to run and maintain the business.  Follow this link to review an article that highlights the details:  Business Succession: Meticulous Planning Is A Must.

Estate tax planning is an important consideration for many ultra-high-net-worth families who can lose up to 40% in federal estate taxes alone.  They may feel that life insurance is unnecessary because they have such immense wealth to be passed on to future generations.  However, without proper planning, a large portion of an estate can easily be relinquished to estate taxes. This loss in value can compound liquidity problems for loved ones.  Follow this link to review an article that highlights the details:  Life Insurance For The Ultra High Net Worth.

Charitable giving might become a more prominent part of financial planning in the coming years.  According to Forbes, “Over the next two decades, parents and grandparents are expected to pass down trillions of dollars (approximately $84 trillion, by one estimate) to charities and younger generations—particularly, Millennials and Gen Xers.”  There are many factors that indicate the next affluent generation will be replete with philanthropists.  Life insurance can be an advantageous vehicle to use when implementing a charitable plan.  Follow this link to review an article that highlights the details:  Using Life Insurance to Fund Charitable Gifts

Starting now provides a head start on financial goals as fiscal years close and the new year approaches.  Getting a step ahead can be beneficial in the long run and Financial Planning Month creates an opportunity to do so.  Contact us with any questions or opportunities to help your clients achieve their goals.  This is what we enjoy doing for only a select number of families, businesses, and charitable institutions each year, and we look forward to hearing from you.