Private placement life insurance (PPLI) is a step above
Running Point and its chief investment officer, Michael Ashley Schulman, CFA, were quoted by Play Louder, in an article — by Amaka Chukwuma, “The Online Buzz About Infinite Banking Doesn’t Mean it’s For Everyone – Here’s What You Should Know” — regarding using life insurance to build generational wealth.
The advantages of PPLI
Private placement life insurance (PPLI) is a strong option for generational and multigenerational wealth building. It retains the tax benefits of an insurance wrapper, allows for loans, is professionally managed, and has the opportunity for a significantly wide array of investment choices — including diversification into private credit, hedge funds, real estate, private equity, and other esoteric strategies.
Quoted article excerpt is below:
Michael Ashley Schulman, founding partner, and chief investment officer at Running Point Capital Advisors, admits that infinite banking has yet to become mainstream because of some shortcomings and complexities that individuals would face trying to do infinite banking on their own. He points out that, unlike many financial products or services that are easy to understand, set up, and run (like a 401K) or that can be managed by a financial fiduciary…, setting up, optimizing, and maintaining infinite banking requires solid financial self-discipline. Schulman also says that one is limited by the investment choices and fees provided by the whole life insurance policy. Therefore, one’s investment might not have the opportunity to grow as well as it would in a less fee-intensive account.
Disclosure: The opinions expressed are those of Running Point Capital Advisors, LLC (Running Point) and are subject to change without notice. The opinions referenced are as of the date of publication, may be modified due to changes in the market or economic conditions, and may not necessarily come to pass. Forward-looking statements cannot be guaranteed. Running Point is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. More information about Running Point’s investment advisory services and fees can be found in its Form ADV Part 2, which is available upon request. RP-22-70