By Gregory L. Hoernschemeyer, CLU^® | Senior Vice President, Registered Representative, HORAN Wealth

More Than Investments: Stewarding the Whole of Your Wealth

At HORAN Wealth, our role goes beyond managing your investments. Stewarding wealth means helping families and business leaders plan for every stage of life—including the challenges that come when wealth is transferred. One of the most overlooked tools in this process is life insurance.

For ultra-high-net-worth families (UNHW), business owners, and sophisticated investors, life insurance provides more than a safety net. It delivers three benefits that are especially valuable: liquidity, diversification, and tax advantages. Without these, even significant wealth can be eroded by taxes, forced sales, or poor timing in the markets.

(This is especially relevant in states such as Pennsylvania and Kentucky, which impose an inheritance tax in addition to federal estate tax obligations).

And importantly, these principles don't apply only to UHNW households. Many affluent families—even those who don't yet consider themselves "UHNW"—encounter the same estate, liquidity, and tax challenges in their planning.

This is also one of the timely topics we'll explore further in our upcoming November 12 Private Wealth Briefing.

Liquidity When It Matters Most

Many wealthy families and business leaders hold assets that are illiquid—such as closely held businesses, real estate, or concentrated stock positions. When an owner passes away, those assets can be difficult to access quickly. Estate taxes and other obligations don't wait, and without liquidity, families can be forced into fire sales that diminish long-term value.

Life insurance provides immediate, tax-free liquidity when it's needed most. It can cover estate taxes, equalize inheritances among heirs, and help business partners fund buy-sell agreements. For families, it can mean continuity. For business leaders, it can mean stability at a pivotal moment.

A Source of Diversification Outside the Markets

Sophisticated investors understand the importance of diversification. Yet many don't realize that traditional asset classes often move together—and during market downturns, liquidity can dry up across the board.

Life insurance is an asset whose cash value component grows at a steady rate, independent of volatility. Its death benefit is guaranteed and not tied to market performance. For high-net-worth families, adding life insurance to a portfolio can reduce systematic risk and bring balance to an otherwise market-dependent mix.

Tax Advantages That Multiply Across Generations

Taxes are among the greatest threats to transferring wealth efficiently. Federal estate taxes can claim up to 40% of an estate, and inheritance taxes in certain states add to the burden. Retirement accounts left to non-spousal heirs can lose up to half their value in income taxes.

Life insurance brings unique tax benefits:

• Cash value grows on a tax-deferred basis.
• Death benefits are generally received income-tax free.
• With proper trust planning, life insurance proceeds can avoid estate and generation-skipping taxes.

For families thinking generationally, this means more wealth passed on—and less lost to taxes.

What This Means for You

• Wealthy Families: Life insurance ensures your heirs are not forced to sell family businesses or property to meet estate obligations. It preserves continuity and family legacy.
• Business Leaders: Properly structured insurance provides the liquidity needed to buy out partners or settle obligations without jeopardizing the enterprise you've built.
• Astute Investors: As an uncorrelated asset class, life insurance brings diversification, stability, and tax efficiency to sophisticated portfolios.

Looking Ahead

At HORAN Wealth, our insurance team helps families and business leaders navigate this complex landscape with clarity and confidence. I'll be sharing more on this topic—and answering your questions directly—at our upcoming Private Wealth Briefing on November 12:

Beyond the Balance Sheet: Building Family Trust, Purpose & Prosperity.

We believe legacy is something to be shared together—which is why this event is designed for your entire family. Clients are encouraged to bring spouses, children, and even grandchildren into the conversation. Together, you'll explore ideas that spark connection and planning across generations.

This is a private invitation-only event. Please reach out to your HORAN advisor or email us at privatewealth@horanwealth.com.

As always, the best place to start is with a conversation. At HORAN, we've spent four generations guiding families to live more abundantly and productively—now and for generations to come. Learn more at horanwealth.com.

If you'd like to explore the topic in greater detail, we are also attaching the full M Financial article on life insurance for ultra-high-net-worth families.

About Gregory L. Hoernschemeyer

Gregory L. Hoernschemeyer, CLU^®, Senior Vice President, is both your personal advocate and an insurance consultant for individuals and businesses. Greg helps clients navigate the complex world of life, disability, and long-term care insurance products, bringing perspective and discipline to provide better care and greater security. He views client relationships as partnerships that create lasting value and a brighter financial future.

Securities offered through M Holdings Securities, Inc., an unaffiliated registered broker-dealer, member FINRA | SIPC. Investment advisory services offered by HORAN Wealth, LLC, registered with the U.S. Securities and Exchange Commission. Not FDIC Insured | No Bank Guarantee | May Lose Value

The information herein has been obtained from sources believed to be reliable, but we cannot assure its accuracy or completeness. Neither the information nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Any reference to past performance is not to be implied or construed as a guarantee of future results. Market conditions can vary widely over time and there is always the potential of losing money when investing in securities. HORAN Wealth and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only and is not intended to provide and should not be relied on for tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.