The Academy of Financial Services 35th Annual Meeting

The wealth of high net worth individuals in the U.S. is known to be sensitive to future tax uncertainty. Unfortunately, these same individuals have limited or no access to tax-efficient investment accounts such as Roth IRAs, Roth 401(k)s, or Roth 403(b)s, limiting their ability to exploit optimal drawdown strategies in retirement or for philanthropic pursuits. In this article, we demonstrate how Private Placement Life Insurance (PPLI) can provide a tax-efficient alternative and quantify how it can be used to optimize multi-generational value. We also highlight how the tax-efficient benefits outweigh the professional service costs of establishing and maintaining the PPLI structure.