(Newswire.net — November 19, 2013) Wilmington, DE — Ken Brackett who is fully licensed in Securities, Life Insurance, Long Term Care and Health Insurance, has a different take when it comes to Life Insurance. He does not agree with so many salespeople who push Life Insurance. Up until the resolve of the “Fiscal Cliff”, there was a legitimate concern with wealth transfer and what portion of it would be subject to the Estate Tax. Now that the Estate Tax exclusion has gone from $1 million to over $5 million, there is less need for the Irrevocable Life Insurance Trusts which hold Life Insurance outside of a taxable estate.
Ken meets with many people who are sold Life Insurance for their newborns or young children. This makes no sense whatsoever as these children are not income producers and no one will recognize a loss of income from their passing. There is merit for Life Insurance for the parents where there is a mortgage remaining and when their passing would represent a loss of income.
Ken Brackett is one of the traditional advisers who looks at Life Insurance as just that – a death benefit and not as an investment. The fallacy of Life Insurance is that it is not illustrated from an inflation perspective. Think of how many people were allured 18 years ago by the prospect of a $1 million dollar payout today. After 18 years, that payout is worth less than $400k in today’s dollars. Now factor in all of the premiums that they paid over the years and you typically see a Return On Investment of less than 3% a year. Investments in the stock market in that same time frame have more than double those returns.
About: Ken Brackett is the founder and owner of Lighthouse Financial Advisory Group and the Two-Time Winner of the Five-Star Wealth Manage Award by Philadelphia Magazine and Delaware Today Magazine. Lighthouse Financial is fully registered with the National Ethics Bureau, the Better Business Bureau, the National Association of Securities Dealers and Delaware State. Within the New Castle County area, Ken is a well-known and important educator in finances and a Registered Investment Advisor. His classes for the retired are oversold on a consistent basis and he had worked on plans for the University of Pennsylvania, General Electric, DuPont and Rohm & Haas retirees. He graduated in 1988 with a Bachelor’s degree in accounting and finance and, since 1991, has worked with those in the senior age group.