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when we first bought in to the real estate holding company we were partners in , the life insurance i had was going to be for any taxes since if the partnership held on to the income for lease buyouts we would owe quite a bit of taxes .
without my income from my pay check if i died there was no way we could pay the taxes or the money i owed so we needed the life insurance .
the taxes on profits made in the llc are taxable to us whether we actually recieved the money or the llc retained it.
one of the nice things about having a whole life policy at retirement is you can over fund it for many years .
there is no charges or commissions on money you over fund. usually the policies pay a higher interest rate than you can get since they expect to eat alot of it up towards the policy costs.
that over funded money can be borrowed out at retirement tax free and never payed back. it is a good source of retirement income which can help keep you in the zero percent capital gains bracket .
one of the nice things about having a whole life policy at retirement is you can over fund it for many years .
there is no charges or commissions on money you over fund. usually the policies pay a higher interest rate than you can get since they expect to eat alot of it up towards the policy costs.
that over funded money can be borrowed out at retirement tax free and never payed back. it is a good source of retirement income which can help keep you in the zero percent capital gains bracket .
one of the nice things about having a whole life policy at retirement is you can over fund it for many years .
there is no charges or commissions on money you over fund. usually the policies pay a higher interest rate than you can get since they expect to eat alot of it up towards the policy costs.
that over funded money can be borrowed out at retirement tax free and never payed back. it is a good source of retirement income which can help keep you in the zero percent capital gains bracket .
Hi. There are premium guidelines that need to be followed...you can "overfund" up to a certain point and the contract remains as life insurance. There is a threshold limit and if you overfund the policy beyond that point (meaning it fails the 7-pay test), the contract changes from life insurance to a modified endowment contract, which acts different from a tax perspective.
Lot's of people in the 80's and 90's used Life Insurance as an investment. Douglas R Andrews wrote a book call "Missed Fortune 101", the problem is unless you have an older contract, you really can't use it as an investment vehicle because the guaranteed percentages in the contracts are so low.
Admittedly I know nothing about life insurance except the insurance aspect of it. I've heard people say investments through life insurance is a bad idea. Is this true and why?
life insurance is a product designed for dying. annuities are a product designed for living , investing is done for living.
when you try to mix the two you get a product that is not very good at either.
overfunding is not an investment. it is moving cash you may have in the bank in a cd to the other pocket where you have tax free access at anytime and no fees applied by insurance law in most states.
insurance combined with investing is full of fees and commissions.
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