Insights

By Alan Jahde, JD, LLM (taxation) on 10/07/22

Investors are often programmed to think it’s almost never a good idea to take early withdrawals from a retirement account. It’s the role of advisors to help them understand when it might actually make sense to take the funds and accept the tax liability.

In these scenarios, advisors often recommend that their client move to a Roth IRA and pay the tax upfront on conversion.

But awareness is growing about an alternative solution: a “stretch annuity.” This is an expanded use of a private placement variable annuity (PPVA), and it may allow ultra-high-net-worth (UHNW) families with significant retirement accounts to defer and stretch the tax bill over multiple generations. 

By Alan Jahde, JD, LLM (taxation) on 08/12/22

Oil and water, tinfoil and microwaves, pineapple and pizza (yes, I went there!) – these are just a few examples of things that simply don’t work together.   

In the wealth preservation planning arena, some advisors would add annuities and generational transfer planning to the list I started. It’s an understandable misconception since traditional use cases for annuities are quite narrow. But the reality is this: A private placement variable annuity (PPVA) can be used in a variety of unique ways that support specific planning goals.   

One of the use cases for PPVA we’ve been speaking to a lot of advisors about lately is the “stretch annuity.”  

By Tommy Mayes on 05/12/22

Often I am surprised to hear how many public speakers and other people who have to present to large groups consider themselves to be introverts. I am also an introvert, so I thought I would share a few observations and recommend follow-up reading. Regardless of whether you are an extrovert or an introvert, you need to develop the skills and emotional intelligence to work with both.

By Tommy Mayes on 05/05/22

For several years now, Investors Preferred has been named one of the fastest-growing life insurers. The same is true for 2021, as recently shared by Life Annuity Specialist.

By Alan Jahde, JD, LLM (taxation) on 04/21/22

At Investors Preferred, while working with advisors of ultra-high-net-worth (UHNW) clients, we often hear comments of adversity toward the “i-word” (insurance).

Why would an UHNW individual or family decide to purchase a private placement insurance policy or annuity?

As with most investment structures, this is a solution for specific planning requirements. The short answer is private placement policies are cost-efficient and offer institutional pricing. Therefore, almost 100% of premium paid accrues to cash value in the early years. But, that’s just the high-level response; in this blog I’ll expound upon these important features, which make private placement insurance a valuable tool for wealth planning.

By Alan Jahde, JD, LLM (taxation) on 03/24/22

My first experience with life insurance was as a recent college grad: single, no kids, and no pets. I have no idea why I bought life insurance at the time, other than the agent was a friend and I thought it’d help my chances of going on a date with her. Eventually I dropped the policy, the premium I had paid was wasted, and no cash value had accrued. It was an expensive lesson. 

Unfortunately, experiences like mine and the variability of costs associated with the traditional life insurance products has contributed to many advisors being unable to get past their dislike of insurance products. Because the “i-word” has become taboo, they may not even consider how non-traditional insurance solutions, like private placement, could help with wealth preservation planning for their ultra-high-net-worth clients.