My client had 1.4 million in IRA money. Based upon his age, the general life expectancy of his family, present income needs, future income needs, and insurability, I proposed taking 500K of IRA money and producing a lifetime income of $3,900 a month. Taxes would of course be paid upon this income stream. With after tax money, we purchase a guranteed 1.2 Million life insurance policy with a LTC rider. When the client passes away, the IRA goes away (no more income or taxes BUT his beneficiary will receive at least 1.2 Million TAX FREE.
Compare this to taking the 500K and letting it grow, then client dies, and the heirs pay income taxes based upon their new income tax bracket.
Variations off this example could create tax savings and Long Term Care options for you.
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