Rob Hagg

Passing an Inheritance to Family and Charities Is Your Legacy

The Tax Advantages and Economic Leverage of Life Insurance May Be the Optimal Way to Transfer Wealth The economic leverage of life insurance and, in most cases, its tax-free transfer aspect, delivers a financial to beneficiaries like no other product line or planning strategy. Whether indemnifying a single life or two lives, life insurance can pay estate-transfer taxes and costs as well as create an estate with pennies on the dollar. Life insurance is the law of large numbers working for you. Passing an inheritance to family, friends or a beloved charity can financially position them to accomplish goals...

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Tax-Free Life Insurance Offers Different Investment Options

A Risk-Tolerance Test Help Determine the Investment Suitable for You The economic leverage of tax-free income from a non-modified cash value life insurance contract is story enough, but the selection of saving and investment crediting methods leaves it in a league of its own. Determining that crediting method is a matter of ownership suitability and to discover that, you need to undergo a risk-tolerance test. Cash value life insurance has four basic mortality crediting methods: participating dividends, interest rates, indices and subaccounts correlated to the market. Most crediting methods have some degree of risk, so undergoing a risk-tolerance test...

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Tax-Advantaged Products Help Manage Taxes during Retirement

Managing Taxes with Non-Qualified Monies in Retirement Increases Cash Flow The focus on retirement monies is generally in the ERISA qualified plan area. But a successful retirement plan must also include non-qualified monies to help manage taxes and defer Social Security benefits as well as qualified plans to age 70. Non-qualified monies are reverse mortgages, Roth IRAs, annuities and life insurance. The timely deployment of these non-qualified monies can help a retiree maximize their income while potentially reducing their taxes. Non-qualified, tax-advantaged monies can be classified into two categories: tax-deferred, taxable and tax-deferred and tax-free. Tax-Deferred Annuities and Modified...

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The Mortality Revolution’s Impact on Financial Products

Living Longer Is Affecting the Price of Mortality Products The Guinness Book of World Records’ oldest person, Susan M. Jones, died May 12 at the age of 116. Susan was a super-centenarian teenager and a tri-centurion, being born in 1899. But the Guinness Book of World Records all time oldest person who ever lived is still French citizen Jeanne Calment who died August 4, 1997, at 122 years, 164 days. The mortality revolution is extending life expectancy to new frontiers. As Star Trek’s Mr. Spock was fond of saying, “Live long and prosper.” One of the most endearing special...

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What Are You Worth? As It Turns Out—a Lot

Calculating the Human Value of Lifetime Earnings One of the most overlooked aspects of measuring the economic loss of an adult family member or business associate is their earning power over their lifetime. The human value of generating revenue is rarely added to the indemnification formula to quantity the necessary amount of life insurance coverage. But even if lifetime earnings are thrown into the mix, the current low-interest-rate environment is creating a society of woefully under-insured breadwinners. In a recent death-claim scenario, the surviving spouse received a check from the insurance company for $1,000,000 tax free at the passing...

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