Suppose you are a 65 year old man and you would like to make sure your wife will have at least $1,000,000 to live on and give to your children upon your death. An extremely inefficient way to do this would be to hold the money in CD's or investments. The best way to pass 1 milliion dollars tax free to your beneficiaries is through a permanent life insurance contract and possibly a Life Insurance Trust. For this article let's just look at how the life insurance numbers break down:
Retirement models we've seen in tha past from brokerage houses and mutual fund companies have failed due to two reasons. The earnings aren't what they hoped and people are living longer than what was expected. This only demonstrates once again how important it is to have guaranteed forms of income, even if you live to be 107. Think it's not possible? Check this article out I just found on Bankrate.com...
Death Taxes, also known as estate taxes are coming back. The U.S. Government needs money and they figured out the Amercan public doesn't care about their money as much once they are dead. How do you like that? You pay taxes on everything while you are living but once you die Uncle Sam can take up to 55% of your total assets.
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