Originally Posted by JetsfanfromtheBURGH
Might be a tad off topic:
Park your a CPA right? What is your take on the wealthy basically overfunding life insurance policies to take advantage of current tax laws? Funding policies up to the threshold of making it a MEC contract. I know a lot of my clients are taking this approach.
I am very anti insurance product for investing unless it is a well designed variable annuity for a certain investor. A MEC was basically collapsed in 1988 by congress and the only tax benefit is tax free growth. A MEC is sold by a greedy commissioned base salesperson who is convinced it is a good idea.
I say bunk.... Want tax free growth, try something with no restrictions. I am fairly well off and manage client money. Would never sell one of these. In fact, when I see them, it is typically becausenthey buyer wants out and now sees the penalty.
Glad you asked?