CNBC, on May 12, 2016, shared the results of a study that directly impacts the conversations you have with clients.
Wealthy Americans (investable assets of at least one million) were asked their thoughts about their children’s financial futures. In April, 2016, nearly 40% said they felt their children would be worse off than they were.
Anxiety “triggers” included fear of higher taxes in the future and the current negative campaign rhetoric focused on business/corporate profitability. The study actually breaks down attitudes based on political party affiliation. Of the “independents”, 37% felt their children would be worse off, 45% of the Republicans felt that way, and 33% of the Democrats.
WHAT IS THE MOST COST EFFECTIVE WAY TO PROVIDE FINANCIAL OPPORTUNITY TO FUTURE GENERATIONS? THE ANSWER IS, OF COURSE, LIFE INSURANCE.
What other financial product provides immediate liquidity for pennies on the dollar? Other assets can be inherited but will they be liquid? Are they taxable to the heirs? If properly set up, life insurance can be received not only income tax free but also state inheritance and federal estate tax free.
Ask you clients how they feel about the financial futures of their children and grandchildren—and provide a cost effective way to help out. Talk about a gift of love!
Call today for ideas, quotes and solutions.
Pat Joline, CLU, ChFC