For many affluent Americans, a high tax rate has increasingly become an accepted aspect of financial life. But with careful planning and the right professional advice, substantial investment portfolios can now legitimately be protected from that high tax bite.
Recent developments in the insurance world have now for the first time made a strategy used for years by family offices and the “super-rich” available for investors with portfolios in the $2 million to $20 million range. Financial advisors can now free these clients’ portfolios from taxes on ordinary income and capital gains without having to change their investment strategies.
This new research focuses on the evolution of hybrid or variable plan structures that can provide adequate retirement benefits at a cost that sponsors can afford. Right now, these plans are just a blip on the radar (just like DC was thirty years ago). This presentation argues that new ideas and proposals for hybrid plans can change the future course of the pension fund industry, with major implications for plan sponsors, consultants, participants, and asset managers.
Our research suggests that standard LTC policies are generally not good value for money if you are in average or above average health. LTC policies are only a good deal for folks who are in significantly below average health, and hence more likely to claim. But insurance companies typically reject those applicants. But even if LTC is poor value for money, most healthy individuals do need LTC coverage to reduce the risk of financial hardship and potential ruin.
There is a better solution, especially for those who enjoy above average health. Our research paper “Long Term Careless?” takes a detailed look at handling the considerable financial strains of long-term care and answers the questions individuals and their advisors need to ask.
Why Is Longevity Important?
For anyone around retirement age you should be pleased to know that on average your chance of reaching age 90 is about double what it would have been if you had been born a generation earlier. Human longevity has been increasing fairly steadily over recent decades due to improvements in medical science as well as lifestyle and environmental factors.
Our Recent Publications:
Tax Freedom for your
The Predictive Power of
The Evolution of Hybrid Plans
Why is Longevity Important?