” Michael & Sarah: Maintaining Control

What three objectives would your perfect financial plan accomplish?

Creative Planning Strategies

2020-11-19T17:33:32-05:00

What three objectives would your perfect financial plan accomplish?

https://cpsnyc.com/testimonials/thought-5-three-objectives/

Creative Planning Strategies

Michael & Sarah: Maintaining Control

Michael and Sarah were successful real estate investors who followed a consistent program of annual reinvestment. They had a combined net worth of $80M, supported by an annual gross income of $4M. They were concerned about protecting their legacy to their children and about estate taxes, but believed that their only estate planning options would come at a tremendous lost opportunity cost to their investment strategy. While they wanted to provide a solid foundation for their three children, they didn’t want it to diminish their real estate investment activity. As a longstanding CPS client, Michael knew that 3D Wealth™ Strategies might provide an answer.

Financial Overview

Michael and Sarah’s assets were allocated between investment real estate ($35M), equities ($35M) and personal real estate ($10M). Their annual income of $4M allowed them to enjoy a comfortable lifestyle with $1.2M in annual living expenses, pay their $1.8M annual tax liabilities and reinvest $1M annually into their real estate portfolio.

The 3D Wealth™ Difference

As part of their 3D Wealth™ strategy, Michael and Sarah were able to create a new $92M income and estate tax-free legacy for their children through the death benefit on their joint and survivor whole life policy. This was done with no negative impact to their investment activities by using the leveraged whole life structure, a loan regime split-dollar agreement and a new dynasty trust. Their real estate investment side fund is now appreciating inside their new dynasty trust, along with their new life insurance policies. By deploying a custom 3D Wealth™ strategy, Michael and Sarah were able to:

Retain control over their asset allocation
Reduce lost opportunity costs
Create estate tax efficiencies
Enhance legacy for their children

“Scott is an expert in his field. He pays attention to detail, he has absolute integrity. He is passionate, knowledgeable, and he takes a genuine interest in achieving the best for his clients.”

Randi Woythaler
Retired Independent Investor

Creative Planning Strategies

2020-10-26T19:55:39-04:00

Randi Woythaler
Retired Independent Investor

“Scott is an expert in his field. He pays attention to detail, he has absolute integrity. He is passionate, knowledgeable, and he takes a genuine interest in achieving the best for his clients.”

https://cpsnyc.com/testimonials/randi-woythaler/

Creative Planning Strategies

Registered representative of, and securities offered through Hornor, Townsend & Kent, LLC (HTK), Member FINRA/SIPC, 600 Dresher Road, Horsham, PA 19044. 800-873-7637, www.htk.com. HTK is a wholly-owned subsidiary of The Penn Mutual Life Insurance Company. Creative Planning Strategies is unaffiliated with HTK. HTK does not offer tax or legal advice. Always consult a qualified adviser regarding your individual circumstances. Our representatives are licensed to offer insurance and security products in our resident state of NY, in addition to many other states. For additional licensing information please contact our office. This is not an offer or solicitation of products and/or services in states where not properly licensed and/or registered.
All investing involves risk including the possible loss of principal. No strategy assures success or prevents loss. The cost and availability of life insurance depend on factors such as age, health, and the type and amount of insurance purchased. Before implementing a strategy involving life insurance, it would be prudent to make sure you are insurable. As with most financial decisions, there are expenses associated with the purchase of life insurance. Some policies commonly have mortality and expense charges; if a policy is surrendered prematurely, there may be surrender charges and income tax implications. Any guarantees are contingent on the financial strength and claims-paying ability of the issuing insurance company.
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