The estate tax cuts in the new Tax Reform Bill, which was passed in both the House and Senate last week, could help foster continuous future investing among a person’s heirs and will help ensure that real estate and businesses remain in the family.
You might mention Tom Brady, who notched another super bowl victory. Stephen Curry helped lead the Golden State Warriors to an NBA championship. But if you want to know who scored financially, it’s a slightly different roster.
How does a kid from South Bronx grow up to build one of the most successful financial service companies in the country and handle mega policies for a foster of wealthy clients that includes 17 billionaires? Hard work, presentation and determination.
Pursuing a lead in the rough neighborhood of the South Bronx, Archer enters a building with people fighting and urine in the elevator, where two people try to mug him. “‘I’m taking my life in my hands here,’” thought Archer, who actually grew up not too far away in the same neighborhood. “That was the straw that broke the camel’s back.”
When President Trump signed the Tax Cuts and Jobs Act of 2017 in December that doubled the threshold for estate taxes, the natural assumption was that estate planning – and life insurance’s place in it – was no longer relevant for a majority of clients.
A lot of things have changed for Tom Archer since he played second base at St. John the Baptist High School in West Islip, went to college on a baseball scholarship and had an opportunity to further his baseball career professionally but was sidelined with a leg injury.
Cash-value life insurance could prove to be a valuable asset for clients looking to couple an insurance need with tax and portfolio diversification in retirement. But there are some major caveats involved – namely, product considerations are complex and numerous, and using this strategy inappropriately in a retirement income plan can trigger major pitfalls for clients.
To most people, life insurance only becomes valuable when the policy pays out, providing cash for others. But some increasingly are using policies as an investment vehicle, pouring in money to see it accumulate tax free and save securely.
A New York based insurance advisor has sold an insurance policy to someone in the entertainment industry that tops the amount listed by Guinness World Records by nearly $100 million, records show. The Archer Financial Group, which specializes in life insurance for the wealthy, was contacted by Guinness last week to start the process of updating the record.
“The reason so many gifts take place around the holidays is [because] around this time people are philanthropic,” says Thomas J. Archer, founder of The Archer Financial Group, a boutique life insurance advisory firm in Manhattan. However, it is important to consider your charitable goals for the long term, too, he says.