Client ROI

Tax alpha is laborious and costly to deliver. Advisor-applied VUL delivers tax alpha in one step.

One Step Tax Alpha

The accelerated value generated in an advisor-applied PPVUL portfolio is substantial.

The table below compares two portfolios with the same investment product mix earning 6% in a taxable portfolio and PPVUL/Registered PPVUL.

The adjustments to gross return consider the federal and state taxes for the taxable portfolio as well as advisor-applied VUL’s low policy-level expenses. The portfolio’s net benefit is shown year by year.

Since advisor-applied VUL shields federal taxes, state income taxes, alternative minimum taxes, and capital gains taxes, a likely increasing tax-rate environment in the foreseeable future for your high-income clients makes PPVUL/Registered PPVUL’s benefits especially valuable.

In one step, and as a tax-free-companion to the taxable portfolio, you create substantial wealth each and every year for your client.

PPVUL’s Tax Benefits

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Key Assumptions:
6% gross return; 30% combined federal and state tax rate; 1% policy-level expenses; 8 bp South Dakota premium tax; no deferred acquisition tax; no policy loads and trailers.
Important Considerations:

This report has been prepared for informational purposes only. It does not constitute an offer or solicitation for the purchase or sale to acquire a life insurance product.The information contained herein has been obtained from sources believed to be reliable, but Advisable Wealth Engines cannot guarantee its accuracy or completeness.

 

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THE COSTLY WAY TO TAX ALPHA

Tax management is a high-value advisor service and one that your top clientsexpect. Today, you deliver higher after-tax returns through gain/loss harvesting, income shifting, gains management, investment vehicle selection, charitable planning, municipal bond investing, and asset location. This result is called Tax Alpha.

The mix of these tactics is uniquely applied to each client, and the Tax Alpha program must be adjusted every year. This means that your service costs increase and per-client profits decline.

PPVUL/Registered PPVUL is a dedicated portfolio underlying your client’s insurance policy, and it delivers Tax Alpha in one step. No longer does an investment’s trading activity, investment structure, or income type matter. All investments receive the same tax-free growth and cash access, just like a tax-exempt institutional investor enjoys.

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