With the uncertainty in the market these days and the ever looming threat of increased taxes, many investors are looking for alternative strategies to grow wealth. Strategies that can provide protection from market downturns without sacrificing growth and strategies that can provide tax free income streams during retirement. For high income earners, the tax free strategy has a particular appeal.
For a number of years now, life insurance has been one of the fastest growing alternative asset where investors can have protection and create tax-free income. However, a quick search on the internet will show differing opinions on whether or not life insurance is a good place to grow wealth.
In reality, the strategy is well established and proven. I have been using these strategies with clients for over a decade and it is interesting to see many former critics of using life insurance as a way to grow wealth now offering the strategies to their clients.
I recently sat down with Retirement News to discuss some of the pro’s and con’s of using life insurance to grow wealth and tax free income streams.