Growing your estate without undue market risk and taxes
Often we see older investors shift gears near retirement and beyond. Many become risk-averse and move their assets into fixed income type investments. Unfortunately, this often results in the assets being exposed to higher rates of income tax and lower rates of return – never a good combination.
Or maybe the older investor cannot fully enjoy their retirement years for fear of spending their children’s inheritance.
The Estate Bond financial planning strategy presents a solution to both of these problems.
How does it work?
- Surplus funds are moved out of the income tax stream and into a tax-exempt life insurance policy.
- Each year a specified amount is transferred from tax exposed savings to the life insurance policy.