As indicated by the name of the firm, our core business purpose is to enable clients to optimize and protect their family’s economic golcondas (which are the ability to grow wealth and/or the wealth itself). In doing so, the members of the Golconda Partners team will earn the opportunity to intersect our lives with interesting people, continue to grow our skills and experience, and enjoy the work we are doing.

Expertise

The Golconda Partners leadership team brings many years of experience to a narrow area of focus:

• The utilization of Traditional Life Insurance to address the financial consequences of a client’s mortality risk and/or to create a long-term fixed income investment return
• The utilization of Private Placement Life Insurance (PPLI) and Private Placement Annuity (PPA) Investment Accounts to optimize after-tax returns, charitable legacy bequests, retirement and lifestyle income, and intergenerational wealth transfer

Traditional Life Insurance

Life insurance companies offer an array of traditional life insurance policy types, each having a specific set of characteristics: Term, Guaranteed Universal Life (GUL), Whole Life (WL), Universal Life (UL), Index Universal Life (IUL), Guaranteed Variable Universal Life (GVUL), and Variable Universal Life (VUL). We help our clients evaluate the economics and suitability of these policy types for specific financial and estate planning applications.

Private Placement

Private Placement Life Insurance (PPLI) and Private Placement Annuity (PPA) Investment Accounts are used by ultra-high net worth clients to mitigate the impact of the single largest expense of a typical long-term investment portfolio: income taxes payable on realized gains.

Our leadership team has a long history of experience in the PPLI and PPA Investment Account market, and we have guided clients through the analysis and implementation process for some of the largest PPLI and PPA Investment Account portfolios that exist. We have recently developed an unparalleled client service and reporting platform for PPLI and PPA Investment Account portfolios, which we can offer either in conjunction with the implementation of new PPLI and PPA Investment Accounts or as a stand-alone service.

PPLI and PPA Investment Accounts are a small but rapidly growing segment of the $2.5 trillion AUM separate account life insurance and annuity market. The well-developed tax rules and authority that apply to PPLI and PPA Investment Accounts are the same as the tax rules and authority that apply to all other separate account life insurance and annuity policies. Moreover, the pricing for PPLI and PPA Investment Accounts is fully transparent, commoditized, and reflective of both the scale of transactions and the financial sophistication of the market participants.

Client Service

The commitment to consistent high-quality client service is what differentiates a professional insurance brokerage firm (whose objective is to live up to its clients’ highest expectations) from a sales and marketing-oriented insurance brokerage firm (whose objective is to maximize the short-term financial gain of its owners).

The majority of the revenue associated with the implementation and service of a Traditional Life Insurance portfolio is paid to the insurance brokerage firm in the first few years that the policies are in force. The mismatch between the timing of revenue payments and the expected duration of client service creates an inherent conflict of interest. Clients and their professional advisors should keep this in mind when evaluating the culture and reputation of an insurance brokerage firm prior to engaging that insurance brokerage firm’s services.

The revenue associated with the implementation and service of a PPLI and/or PPA Investment Account includes a structuring fee, but it should also include enough asset-based revenue to enable the brokerage firm to perform the necessary reporting, deposit billing, facilitation of investment allocations and reallocations, verifications of fee and charges, and other necessary account management services – and to remain active in the market so up-to-date information can be shared with the client and their professional advisors about available investment vehicles (Insurance-Dedicated Funds and Separately Managed Accounts), newly emerging product offerings, and any relevant tax law clarifications or changes.