My only guess is to re-finance an amount of loan from your real estate then use that capital to buy life insurance. So that the interest from the re-financed amount can be used for tax deduction, plus property depreciation, maintenance expenses to be used for more tax benefits. Like others said, there are too many ways for the wealth to properly deduct tax, and yet if you do not have EA license, I'd recommend you not to make suggestions on taxation or such, just to CYA.
What are the biggest things we can do for the mega rich?
- Thread starter Affluence
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My only guess is to re-finance an amount of loan from your real estate then use that capital to buy life insurance. So that the interest from the re-financed amount can be used for tax deduction, plus property depreciation, maintenance expenses to be used for more tax benefits. Like others said, there are too many ways for the wealth to properly deduct tax, and yet if you do not have EA license, I'd recommend you not to make suggestions on taxation or such, just to CYA.
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Since there is an income tax course that is REQUIRED for CFP, ChFC, and CLU... I would suggest that knowing the tax code is essential on these things and is also incidental to the advice given.
I always differentiate between tax advice and tax filing advice. I don't give tax filing advice. I CAN talk about the tax benefits (and consequences) of whatever strategy I'm proposing so the clients can make a fully informed decision.
By the way, if you ever hear Van Mueller speak, or subscribe to his newsletter, he recommends that all insurance agents print and read the 1040 tax filing instructions every year.
Where I lived at the time, there is a company that publishes a cross-reference telephone directory called Bresser's, which you could find in the reference section of the local library. It is a telephone and address book that lists and categorizes every residential neighborhood in Metro Detroit by net worth and zip code rating (A, B, C, and D), with "A" being the highest. Back when I began my career, cold-calling was still permitted, there were no cell phones or internet.
I simply focused on the A and B zip codes, called and asked if they were interested in receiving free information on a few select financial planning topics, along with a complimentary consultation in my office.
After making a few dollars with that strategy, I began inviting people from those same areas to attend dinner seminars. That was my recipe.
Even though cold-calling is prohibited, the Bresser's directory is still useful; however, only for agents marketing in Michigan. In all the states that I hold licenses, I have yet to find another state that publishes such valuable information in one source.
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Corpuschristi
Expert
- 68
This is when forming your own private placement insurance fund. Requires a few million to fund but you can invest in hedge funds, real estate, etc. Also using a self directed 401k to divert $124,000 annually tax deferred. Utilization of a CRUT (Charitable Remainder Unified Trust) to exempt capital gains and harvest out over a million of qualified retirement funds. There are several different strategies that the wealthy can use, but if you don't have the proper training you WILL SCREW IT UP. As DHK says partner with someone who can help you and split the case work. The education will be invaluable.
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DHK and I do not agree on much in terms of Cash value life insurance, but I agree with him totally on this statement.
