As a financial advisor, it's our job to alleviate any financial concerns our client's may have. I believe we are at the stage where an advisor should start preparing their clients for the federal government's proposed tax changes.
At this time, life insurance remains tax-exempt and can provide great ways to accumulate tax-deferred capital corporately.
One way is a corporate insured retirement plan. A company can purchase a UL policy and assign the cash value as collateral for bank loans which can then be used for re-investment or income. The loan can be repaid at death.
Of course, we still have more questions than answers for the proposed changes. But, now is the time to look for ways to deal with them and have contingency plans going forward. It's a great way to demonstrate your expertise while alleviating any concerns your clients may have. So be pro-active! Please reach out to me if you would like to discuss this further.
Business Development Manager
Qualified Financial Services