Life&Health Advisor: Legacy & The Finance of Retirement
JeffNat President Larry Greenberg is featured in an article from Life&Health Advisor Magazine that focuses on the topics of Legacy Planning and the Finance of Retirement. According to the article, the most successful RIAs and fee-based advisors are retooling their business to serve multiple generations. And legacy planning is becoming increasingly important.
In a recent survey by Jefferson National, 75 percent of advisors said that Boomers will continue to be their primary target for new clients over the next five years. Boomers are reaching retirement age at the same time that Gen Xers are in their prime earning years-this presents a massive opportunity. Over the next 30 to 40 years, more than $30 trillion—almost twice the GDP of the United States—will pass from Boomers to Gen X and Millennial heirs.
To capitalize on this opportunity, more than half of advisors have a strategy in place to retain the heirs of their clients. Nearly two-thirds say that legacy planning is important or extremely important to their clients. The vast majority report that trusts are a top solution.
More advisors are funding a trust with an investment-only variable annuity (IOVA). This is important because tax rates on trust income are high—even at very low thresholds. With low costs that help maximize tax-deferred growth, and the right choice of funds to enhance diversification and manage volatility, IOVAs can help clients build and maintain more wealth within the trust.
To learn more about how to tax-optimize a trust, download the article here.