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BSMG Blog: Protecting the Future of Families and Businesses

Requirements to Change State of Residency

It’s Not as Easy as You Think...

Wealthy clients from high tax states will often consider moving to a lower taxed state to save taxes. These taxes may involve state income taxes and state estate taxes. You may have heard  people say “If I live for more than 180 days in a particular state, then my residence has been changed for state taxes”. This statement has a small degree of truth to it, but it is far from accurate.

The first tax to talk about are state income taxes on retirement benefits. Then, we’ll talk about state estate taxes. Finally, we’ll enumerate the hurdles to jump over when thinking about changing legal residence from the current state of residence to a new state of residence.

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Minimizing Tax Implications by Using Life Insurance for Retirement Income

Do you have investors who have reached their qualified plan annual contribution limits and are looking for additional ways to create supplemental retirement income? Income replacement is often the primary reason to consider purchasing a life insurance policy, it is often overlooked as a component of a solid financial strategy tailored to address ALL your client’s specific needs. While there are many vehicles to choose from, it is important to know how life insurance may fit within your client’s short-term and long term financial goals.

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Five Reasons the Ultra-Affluent Will Still Need Life Insurance, Even Without Estate Taxes

With all the questions looming around what will happen if the proposed elimination of estate taxes goes through. You may be wondering if the affluent will still have a need to buy life insurance and how it will impact your life insurance sales strategies. The knee jerk reaction is that the wealthy will not have the same level of need for a life policy, however there are many reasons, other than estate taxes, why the ultra-wealthy should purchase life insurance. Forbes Insights cites some reasons from Frank Seneco, President of Seneco & Associates, on the subject matter. We have summarized and expanded these insights to offer you an opportunity for new life insurance sales strategies.

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[Infographic] Essential Tax Advantages of Life Insurance


As a financial advisor, you should speak with your clients on a regular basis about making savvy investment decisions to maximize their wealth and savings. Some clients may find the topic of life insurance difficult and perhaps even morbid, but the conversation is an important one. Try approaching the conversation by speaking to the tax advantages that life insurance can offer. 

Use the Essential Tax Advantages of Life Insurance to get talking points for your next meeting!

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Cash Value Life Insurance Offers 3 Key Advantages

Whether your client has estate planning needs, business protection needs, or supplementary retirement needs, cash value life insurance offers great competitive advantages versus alternative financial assets. These advantages fall into three major categories:

1) Tax advantages               

2) Financial and actuarial advantages

3) Legal and contractual advantages

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Top 6 Tax Advantages of Life Insurance


Whether purchased for accumulation, retirement income or for the death benefit, life insurance has many tax benefits. With tax season in full swing, there's no better time than the present to educate your clients on the unique tax advantages associated with owning a life insurance policy.

We asked our in-house tax expert for a summary of the tax advantages of life insurance versus other asset types including; IRAs, NQ Deferred Annuities, Corporate Bonds and U.S. Government Securities. These are the top 6 tax advantages worth discussing with your clients.

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How the Election Results & Tax Reform May Impact the Insurance Industry

As the excitement over last week's election results has slowly started to fade away you might find yourself wondering how a Trump presidency will affect financial advisors? 

We've put together some important considerations that have arisen since Trump announced his tax reform proposals. Keep in mind that each of these proposed changes came out during his campaign and only time will tell whether or not they will come to fruition. Clearly, the U.S. House and U.S. Senate will merge their version of tax reform into the Trump proposals.

Take a look below and be sure to comment on any tax reform proposals that you think may become a reality in the next 4 years. 

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A Brief History of Estate & Gift Taxes

Estate and gift taxes have provided a source of revenue for the United States government for over 150 years and have had many variations. Now that we'll have a Republican president and a Republican majority in the Senate and House of Representatives, what's in store for the future of these taxes? To fully understand how Estate and Gift Taxes could be affected by the political and economic environment, let's take a look at a brief history of how these taxes have evolved. 

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High-Earners Will Pay High Taxes in 2016

Certain high-earners face a double-barreled shot of federal income taxes for 2016. The maximum marginal tax rate for these high-earners remains at 39.6% in 2016 and the provisions of the Affordable Care Act (aka ObamaCare) are still in effect.

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Taxes on Retirees State by State

Have you ever wondered how your state stacks up against others when it comes to taxes on retirees. We found this great interactive map by kplinger.com that shows you how the states compare. 

This detailed map lays out taxes on retirement income, property, purchases and tax breaks. Check out some of the stats we found below. 

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