The retirement savings gap in the United States is nothing new – for at least the last decade experts have warned that savings rates are down. Exacerbating the issue is the pandemic of 2020.
Basic Taxation for ICOLI
ICOLI can provide improvements to your investment returns, but how is this asset treated for tax purposes? ICOLI Taxation ICOLI is a tax-preferred asset. (See IRC secs. 7702, 72(e), and 101(j)) Taxation Investment into the contract…
Group Term Life Is Not Enough
Learn about a new and easy option to offer your employees more coverage. The economic environment and health concerns brought on by the global pandemic have many Americans thinking more thoughtfully about financial plans and security.
2021 Q2 Tax Planning for Corporate Investments
Now is the time to tax-plan for your company’s equity investments. Why now? President Biden has proposed an increase in C corporation tax rates, which would raise the federal rate from 21% to 28%. Corporations can choose to take action…
Are Your Company’s Current Investments Available Tax-free
A common misconception is that ICOLI (Insurance Company-Owned Life Insurance) is just a general account investment. It is not. Traditional market traded investments are available within an ICOLI wrapper – likely, some that you already own.
Potentially Increase Equity Yield by up to +150bps
Wrapping your current equity funds in ICOLI can increase your yield. Insurance company owned life insurance (ICOLI) is an investment strategy that insurance companies commonly use to wrap their on-balance sheet investments.
Presidential Tax Rate Proposal
With the passing of the COVID-19 relief bill, the White House is now focusing its efforts on the tax plan proposal, scheduled to be on the docket for summer of 2021. This tax package proposes many alterations to the current tax code…
BOLI Market Update – 4th Quarter 2020
Fed Signals Rates Will Stay Low – Purchases Accelerate in Q4 Into the twelfth year of historically low interest rates, and with the Federal Reserve announcing rates will not move until 2023, several headwinds continue to put a damper on bank earnings.
Creating Tax-Free and RBC Efficient Equity Position
High reward, high risk? Insurance companies commonly attempt to increase portfolio yield by increasing allocations to higher risk investments. If the investment performs as desired the associated taxes reduce returns.
How to Minimize Your Risk-Based Capital Reserving
Minimizing your risk-based capital reserving maximizes the amount of capital invested in your portfolio. A common way in which insurance carriers reduce their risk-based capital reserving is by wrapping a portion of their on-balance sheet…