The Client
A mid - 40's professional whose business generates $ 1-2 Million of taxable income per year.
The Summary Overview
The annual income tax due ranged upward from mid-6 figures. The client wanted income tax relief with complete liquidity in a very conservative investment.
The Consideration
After checking out pluses and minuses of many alternatives, developed a "cash stash" via the use of no commission (ever) insurance that utilizes $ 900,095 over a five year period (1st year = $ 172,395).
The Result
Use of an S & P "AAA" company provided security in the form of a $ 4,420,000 death benefit (minimum per MEC guidelines) or a first year cash surrender value of $ 180,095 which provides an after-tax internal rate of return of 4.46% (increasing to 6.62%).