Adding Whole Life Insurance Cash Value As A Volatility Buffer In Retirement
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The next potential use for whole life insurance in lifetime financial planning is using the cash value as a volatility buffer asset to help manage the sequence-of-returns risk for investment portfolio distributions. Retirement spending can be sourced to the cash value after a market downturn to avoid selling portfolio assets at a loss. Returns for buffer assets should not be correlated with the financial portfolio, since…
