Policyholders may also share in the dividends declared by the insurance company. They can be taken in cash, used to increase coverage or used to increase your future cash values. As the costs of elder home care and nursing homes increase, long term care insurance policies are showing their worth. These kinds of costs can exhaust income-generating assets long before you die. Insuring your retirement This little-known strategy uses a universal life insurance policy to provide cash flow in retirement.
Growth is tax-deferred inside the policy.
The retiree uses the cash value of the policy as security for a series of loans, which are used to invest for retirement income. This makes the loan interest tax-deductible. Interest, however, is allowed to capitalize and the loan is ultimately repaid with the tax-exempt death benefit when the policyholder dies. Discretionary Money Management Discretionary money management is a micro version of the methods big pension funds and mutual funds manage their clients' money. The investor entrusts his or her investments to a portfolio manager, who assumes the daily decision-making and administration of the money.