Petrocelli Blog

Retirement and Legacy Arrangement

Posted by Petrocelli Financial at 4:15pm on October 17, 2017

The Retirement and Legacy Arrangement (RALA) is an innovative strategy designed to address multiple wealth planning objectives, including retirement, estate and asset protection planning. If properly designed, funded and maintained, the RALA strategy can be utilized to supplement your retirement income while creating a legacy for your family in a tax-advantageous and asset protected manner.

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Income Tax Planning

Posted by Petrocelli Financial at 1:00pm on September 13, 2017

The American Taxpayer Relief Act of 2012 extended prior law for certain income tax rates; however, it also increased income tax rates on upper income earners. Specifically, an inflation adjusted top income tax bracket of 39.6% applies in 2017 to income above $470,700 for married couples filing jointly or $418,400 for single taxpayers.

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Asset Protection Strategies

Posted by Petrocelli Financial at 10:55am on August 03, 2017

The use of asset protection strategies has gained the attention of wealthy Americans over the years as the legal system has become increasingly subject to unwarranted litigation. As a result, creditor protection can play a significant role in planning for many individuals.

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Basic Estate Planning

Posted by Petrocelli Financial at 12:05pm on July 19, 2017

Regardless of your level of wealth, the failure to establish an estate plan can be detrimental to your family. A properly structured estate plan helps ensure that your family and financial goals are addressed during your life, if incapacitated, and after your death. The following provides an introductory discussion regarding essential planning individuals should consider, as well as an overview of lifetime gifting strategies and longterm trust planning.

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Choosing the Right Insurance Mix

Posted by Petrocelli Financial at 9:30am on June 10, 2017

Should you purchase term insurance or is permanent insurance the better buy? If you already own a term policy, should you convert it to a permanent plan, such as whole life? Or is a flexible plan such as universal life the way to go?

There are no simple, easy answers to these questions. And that is not because the three kinds of insurance are so complex and difficult to understand—actually, the differences between them are basic and easily comprehensible, as we will see below. No, what makes these questions difficult is that the answers depend on you, your budget and your needs. One kind of insurance is not necessarily ‘better” than the other, and they are certainly not mutually exclusive. More than likely, your choice will not be “either/or” but “the best mix.”

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Executive Bonus Arrangement

Posted by Petrocelli Financial at 1:35pm on April 17, 2017

An executive bonus arrangement, also sometimes referred to as a “Section 162 Bonus Plan,” is a benefit arrangement in which an employer pays bonus compensation to selected executives in the form of premium payments on the executives’ personally owned life insurance policies. It is most easily described as employer-funded personal life insurance.

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Sales Strategies: Bob Petrocelli, New York Life Insurance Company

Posted by Petrocelli Financial at 3:55pm on April 6, 2017

Veteran insurance broker Bob Petrocelli built his business the old-fashioned way: He earned it, one cold call at a time. Upon joining New York Life as a 24-year-old newbie in 1979, Petrocelli picked up the phonebook and started dialing—or dropping in on—any business that seemed successful. “I would walk right in and ask to speak to the owner,” recalls Petrocelli, who grew up in Larchmont and now lives in Rye. “It wasn’t easy, but I was doggedly determined.”

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Divorce Planning

Posted by Petrocelli Financial at 12:50pm on March 19, 2017

Of all the areas of financial planning, divorce planning is probably the most emotionally difficult. Family concerns and sensitive emotional issues come to the forefront and are of primary importance to the parties involved, including the children. The financial issues often are pushed into the background. This is an unfortunate situation because divorce is one of the most common reasons for bankruptcy for one or both of the divorcing spouses.

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Cash Flow Analysis

Posted by Petrocelli Financial at 9:20am on February 8, 2017

Cash flow analysis begins with identifying income inflows and outflows. The process of gathering accurate inflows and outflows data is crucial to the process – "forgetting" certain inflows and/or outflows may have disastrous effects on a client's long-term financial situation. Client checklists of income inflows and outflows can be very valuable in the process, and decrease the likelihood that the client will overlook certain information.

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Employer Sponsored Split Dollar

Posted by Petrocelli Financial at 10:20am on January 11, 2017

Split dollar life insurance is not a type of insurance, but rather a method for dividing the premiums, ownership interests, and benefits of a permanent life insurance policy between two parties. There are two basics forms of split dollar taxation: economic benefit regime and loan regime. Split dollar plans may be sponsored by an employer in a work setting, or an individual or trust in a private setting. This Guidepost discusses employer sponsored split dollar plans. A separate Guidepost is available that describes private split dollar plans.

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Transfer for Value Rule

Posted by Petrocelli Financial at 4:20pm on December 1, 2016

Life insurance death benefit is generally received income tax free by the policy beneficiary. However, if an interest in a policy is transferred for valuable consideration, any death benefit received by the transferee in excess of the amount of the consideration plus subsequent premiums paid by the transferee will be income taxable. This is called the transfer for value rule. Transfer of an interest in a policy in violation of the transfer for value rule may have significant and unanticipated impact on policy beneficiaries.

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Asset Titling

Posted by Petrocelli Financial at 12:45pm on October 14, 2016

Even if wills and revocable living trusts are drafted to maximize estate savings, titling and beneficiary designations of property may prevent the documents from operating as intended. Additionally, assets may not pass to the intended beneficiaries if not titled properly.

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