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It’s Time to Change the Focus of ‘Buy Term, Invest the Difference’ Arguments
If you have spent much time listening to financial pundits, you are probably familiar with the phrase “buy term and invest the difference”. This hotly contested concept has been widely discussed in the financial industry for years.1 Proponents of this strategy believe that you should purchase a term policy, then invest the difference in premium […]
What Common Buy-Sell Situations Give Rise to Transfer-for-Value Concerns?
Situation: Using life insurance as a funding vehicle for a buy-sell arrangement gives rise to several potential tax traps, especially in out-of-the-ordinary owner/beneficiary structures. To this author it seems that more than almost any other area, buy-sell agreement funding, modification, and termination give rise to potential transfer-for-value traps. This Counselor’s Corner discusses some of the […]
SERPs Provide Supplemental Retirement Income
Have the limitations of qualified plan funding reduced the ability of your business clients to provide highly compensated executives with retirement benefits? Would your business clients be interested in providing a supplemental benefit to a select group of key executives as long as the arrangement binds the executive to the company? Or, do you have […]
