770 accounts

[DEVIL DOG HOG]

Has anyone heard or know about the 770 accounts?

[hog.goblin]

permanent insurance

[hog.goblin]

permanent insurance

Starting to hear several clients talk about the 770 "tax-free account" more and more.  I've been telling them it's just a version of permanent insurance, which it is, but if anyone has more detail I would be interested.

FYI, I'm telling to run from whoever is selling it.  But the more I know the better.

[DEVIL DOG HOG]

It appears at the bottom of some articles on MSN.  It tells how FDR and JFK invested in 770s. I don't know how true their facts are.

[JoeyCapital]

Meh, easy to sell because people refuse to look more than 30 seconds into the future. If the policy ever lapses you not only have to repay all the loans you have taken out, you  have also now made them all taxable. Do a little research into the cost of insurance for a relatively young person vs the COI for a retirement age individual and you will see just how dicey it is.

Sounds great, but a scheme like this is a great way to get yourself bankrupt and in trouble with the IRS in your retirement years.