How Will Tax Code Changes Affect High-Net-Worth Investors?
Taxes were a huge part of President Trump’s campaign but so far the Trump administration hasn’t announced any new legislation. However, even though no big tax changes have been made to our country’s tax system they are almost certainly on the way. Depending on your financial status, the expected changes could have a huge impact on you going forward.
Particularly, high net worth individuals are expected to benefit greatly from President Trump’s new tax code. However, when it comes to investing there is a lot of uncertainty as to how any possible tax changes will affect the portfolios of high net worth investors.
Trump has promised to lower taxes on both individuals and corporations. Part of his strategy is to lower capital gains, which would be good news for all investors. However, in order for top investors to stay on top they will have to buy into the right investments to maximize their tax savings.
Many wealth managers are already gearing up for the expected changes and several agree that private placement life insurance is a good bet. According to one wealth-planning manager, PPLIs “provide cash value appreciation based on a segregated investment account and a life insurance investment.”
PPLIs have long been a popular choice for the extremely affluent since the early 1990s, but they are now available to an even larger group of wealthy investors, and they are a great way to accumulate wealth and achieve large tax benefits. Therefore, it’s very likely that many high-net-worth individuals will be adding PPLIs to their portfolios as tax changes take place.
http://www.forbes.com/sites/russalanprince/2017/02/07/changes-in-tax-code-will-lead-to-changes-in-high-net-worth-investment-portfolios/#ce634f681e99
IRS Notice 2009-62 Issued 8/7/09
IRS Notice 2009-62 Issued 8/7/09 The due date for reporting the existence of Offshore Bank Accounts on Treasury Department Form TD F 90-22.1 has been an issue of great confusion in the last few months. Form TD F 90-22.1 is known as Foreign Bank Account Reporting (AKA “FBAR”) For a complete review of this soap…
Income the IRS Can’t Touch
Income the IRS Can’t Touch There’s one readily available and legal source of untaxed income that we know of: municipal bonds. These securities are issued by state and local governments, school districts, hospitals and other public agencies to support community projects and services. To permit these worthy endeavors to raise money economically, Uncle Sam exempts…
Avoiding Real Estate Tax Revaluations
Avoiding Real Estate Tax Revaluations by Steven Singer, CPA As a result of the passage of Proposition 13 almost thirty years ago, real estate owners currently enjoy paying property taxes based on the property’s purchase price, value of improvements and an annual increase of 2% over the previous years’ assessed value. As a result of…
Annuities in Qualified Retirement Plans
Annuities in Qualified Retirement Plans By Russell Hill Using annuities in qualified retirement plans. Qualified annuities reduce your current taxable salary in addition to accumulating tax deferred earnings, when you contribute money to an annuities program through an employer (as one of the investment options in a salary reduction retirement plan). Those who work for…