10 Strategic Uses for Cash Value Insurance
- Paydown versus interest only – enhance lifestyle by spending more of your wealth
- Reduce pressure on capital – less capital is needed to produce the same retirement lifestyle
- Reduce pressure on withdrawal rates – less reliance on traditional retirement savings and less worry about market fluctuations
- Reduce income risks – less volatile assets can be used to produce more stable income
- Reduce Taxes – reduce taxes through tax deferred growth of cash values in life insurance, tax preferred loans, and tax free distribution at death
- Capital opportunities – have flexibility to use capital for opportunities that do not create immediate income
- Reduce fear – reduce fear of running out of money
- Inflation protection – reduce the effect of long term inflation by increasing expected retirement income
- Additional income – create additional income through dividends, cash value, or loans
- Reduce risk of tax increase impact – less income coming from taxable sources so lower impact should tax rates rise
