Corporate Retirement Strategy | Business Owner Solutions
The Corporate Retirement Strategy using tax-exempt life Insurance.
Being a business owner comes with unique risks because a steady increase in the value of your business can result in significant tax bills. Corporations are taxed at the top marginal rate on traditional investment assets and the income doesn’t qualify for the small business deduction. Capital gain taxes may apply when these assets are sold or reallocated, reducing corporate assets.
Solution
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With the corporate investment shelter strategy, you can draw net dividends from holding company every year for your retirement starting at age 65 until age 85, Holding company transfers the excess assets to a universal life insurance policy. The policy funds its invested to match their asset allocation objectives.
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The policy funds grow tax-deferred during their lifetime (there is no corporate tax on growth).
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Upon death of the second parent, the policy pays Holding company a tax free death benefit, and allows some or all the proceeds to be paid out as a tax free capital dividend.
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The children receive the maximum after tax value of the corporate investments.
Call today to see how corporate investment shelter strategy could work for your business.
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