If you’re over the age of 50, you’re probably looking forward to retirement. You've worked hard to provide security for your family by using a number of tools, including life insurance. While some of us choose term life insurance, others may have selected life insurance that accumulates cash value. If you own one of these cash value policies, you may want to work with a trusted financial professional to carefully consider the amount of death benefit your family will need after your passing. You may find that the cash value of your policy exceeds what they will require.
If this is the case, tax law allows you to transform some of the cash value of the policy into products that can provide you with lifetime income. This process is done through what is called a tax-free exchange, or 1035 exchange. This option may allow you to find more financial freedom during your lifetime or even retire earlier than expected.
This is a good option for some, but not all, of us. That’s why it’s so important to consult with a professional advisor, such as a financial planner, to determine whether this option is right for you. At GCW Capital, we specialize in this kind of “outside the box” situation and would be pleased to work with you and provide you with such insight.
GCW Capital, LLC is registered as an investment advisor with the SEC and only transacts business in states where it is properly registered or exempt from registration. Primary office located at 38 Lake Street, Hamburg, NY 14075. Before making any investment decisions, please contact our office at (716) 256-1682 or firstname.lastname@example.org to obtain a copy of our firm ADV Part 2A for more information and fee schedules.