Aaron Abrahms, Principal at Winged Keel Group, offers insight in a recent Forbes article—D.C. Dysfunction Affects Long-Term Asset Allocation. As high tax rates are likely to continue, Private Placement Life Insurance and Annuities (PPLI and PPVA) can be a valuable allocation tool to optimize after-tax returns.
Aaron commented: “After-tax returns are increasingly the mandate of Family Office Chief Investment Officers. If structured properly, Private Placement Life Insurance and Annuities have the potential to significantly increase the after-tax return generated by certain tax-inefficient strategies, such as credit, direct lending, and high turnover hedge funds.”