{"id":80,"date":"2026-06-05T20:08:52","date_gmt":"2026-06-05T20:08:52","guid":{"rendered":"https:\/\/demo-dvs.online\/valentine-financial-consultants-2\/?page_id=80"},"modified":"2026-06-25T00:06:29","modified_gmt":"2026-06-25T00:06:29","slug":"family-governance-education","status":"publish","type":"page","link":"https:\/\/demo-dvs.online\/valentine-financial-consultants-2\/family-governance-education\/","title":{"rendered":"Family Governance & Education"},"content":{"rendered":"\t\t
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\n \t\t\tHNW Employee Bonus & Benefit Plans<\/span>\n\t\t\t\t
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Every 1035 Exchange<\/span>.<\/span>
Every
Direct 401(k) Rollover<\/span>.<\/span>
All Handled By VFC<\/span>.<\/span>
Tax-Free \u00b7 <\/span>Penalty-Free \u00b7 <\/span>Done Right<\/span><\/h1>\t\t\t\t<\/div>\n\t\t\t\t
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VFC handles two distinct tax-free transfer mechanisms for our clients \u2014 both designed to upgrade outdated, underperforming insurance and retirement contracts into modern ones without triggering a tax bill. 1035 exchanges<\/strong>move like-for-like contracts (life-to-life, annuity-to-annuity, LTC-to-LTC) tax-free under IRC \u00a71035.<\/p>\t\t\t\t<\/div>\n\t\t\t\t

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Direct Rollovers<\/strong>move 401(k), IRA, and Roth balances into modern Annuity and IUL-based retirement plans<\/strong>, tax-free, with no mandatory withholding and no early-withdrawal penalty. Same goal, different IRS sections, same result<\/em>\u2014 the client\u2019s money keeps compounding 100% Tax Free<\/strong>inside a materially better contract.<\/p>\t\t\t\t<\/div>\n\t\t

\n \n \t\t\tSpeak With a Strategist <\/span>\n\t\t\t\t\t\u2192<\/span>\n\t\t\n<\/a>\n\t\t\t\n\t\tSee How Direct Rollovers Work\n\t<\/a>\t\t\n<\/div>\n\n<\/div>\n\n<\/div>\n
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\n \t\t\t1 of
Very Few<\/span>\n\t\t\t\t\tFirms In America<\/span>\n\t\t\n<\/div>\n
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We Plan. We Design. We Administer. We Maintain. All Under One Roof.<\/h3>\n\t\t\t\t
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VFC is one of the only firms in America<\/strong>that offers all<\/em>of the high-end corporate bonus and benefit packages and 401(k) alternative plans under a single coordinated practice. 1035 exchanges sit at the intersection of insurance optimization, tax planning, and estate strategy<\/strong>\u2014 we do all three. Most agents don\u2019t know how to execute a clean 1035 exchange. Most CPAs don\u2019t know the strategy exists. We do both.<\/p>\t\t\t\t<\/div>\n\t\t\n<\/div>\n\t\t<\/div>\n\t\t\n<\/div>\n\n<\/div>\n

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\n \t\t\t?<\/span>\n\t\t\t\t\tDid You Know<\/span>\n\t\t\n<\/div>\n\t\t
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Nearly Every Wealthy American Rolls Their 401(k) And IRA Into A Private Life Insurance Retirement Plan Before They Retire.<\/strong>Here\u2019s Why.<\/h2>\t\t\t\t<\/div>\n\t\t
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\n \t\t\tTraditional 401(k) & IRA<\/span>\n\t\t\t\t\t

Hit By Probate. Hit By Taxes.<\/h3>\n\t\t
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Subject to Probate Court<\/strong>\u2014 the inherited balance must pass through a public court process.<\/div>\t\t\t\t<\/div>\n\t\t\t\t
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Heavily Taxed<\/strong>at distribution and at inheritance \u2014 beneficiaries pay ordinary income tax on every dollar withdrawn.<\/div>\t\t\t\t<\/div>\n\t\t\n<\/div>\n\n<\/div>\n
\n \t\t\tPrivate Life Insurance Retirement Plans<\/span>\n\t\t\t\t\t

Bypass Probate. Transfer Tax-Free.<\/h3>\n\t\t
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Bypass Probate Court Entirely<\/strong>\u2014 proceeds pass directly to named beneficiaries.<\/div>\t\t\t\t<\/div>\n\t\t\t\t
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Transfer Tax-Free<\/strong>under IRC \u00a7101 \u2014 the family receives the full benefit, untouched by the IRS.<\/div>\t\t\t\t<\/div>\n\t\t\n<\/div>\n\t\t\t

Annuities \u00b7 IUL \u00b7 Whole Life \u00b7 Permanent Life \u00b7 Term<\/p>\n\t\t\n<\/div>\n\t\t<\/div>\n\t\t\t\t

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This is exactly why VFC builds estate-planning architecture around the Valentine IUL<\/strong>and complementary life insurance products \u2014 for the massive estate-planning tax benefits that traditional retirement accounts simply cannot deliver.<\/p>\t\t\t\t<\/div>\n\t\t\n<\/div>\n\n<\/div>\n

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\n \t\t\tWhat VFC Delivers, By The Numbers<\/span>\n\t\t\t\t\t

Tax-Free. Penalty-Free. No Withholding. Done Right.<\/h3>\n\t\t\n<\/div>\n
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0<\/span>%<\/div>\t\t\t\t<\/div>\n\t\t\t\t
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Tax Triggered<\/strong>Every transfer executed carrier-to-carrier<\/div>\t\t\t\t<\/div>\n\t\t\n<\/div>\n
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7+<\/span><\/div>\t\t\t\t<\/div>\n\t\t\t\t
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Allowed \u00a71035 Exchanges<\/strong>Every type our clients own<\/div>\t\t\t\t<\/div>\n\t\t\n<\/div>\n
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+<\/span>10%<\/span><\/div>\t\t\t\t<\/div>\n\t\t\t\t
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Typical Rollover Bonus<\/strong>Credited to the new contract on day one<\/div>\t\t\t\t<\/div>\n\t\t\n<\/div>\n
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100%<\/span><\/div>\t\t\t\t<\/div>\n\t\t\t\t
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Tax-Free Compounding<\/strong>Continues inside the new contract<\/div>\t\t\t\t<\/div>\n\t\t\n<\/div>\n\t\t<\/div>\n\t\t\n<\/div>\n\n<\/div>\n
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\n \t\t\tWhat A 1035 Exchange Actually Is<\/span>\n\t\t\t\t
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The IRS gives you one tax-free move per policy. Most clients never use it. VFC uses it for every type of contract a client owns.<\/strong><\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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A 1035 exchange \u2014 named after Internal Revenue Code Section 1035 \u2014 allows the owner of a life insurance policy, an annuity contract, or a long-term care policy to exchange that contract for a new one of like kind without triggering income tax on any gain that has built up inside the original contract.<\/strong><\/p>\t\t\t\t<\/div>\n\t\t\t\t

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This is not a refinancing. It is not a withdrawal and reinvestment. It is a specific, IRS-blessed procedure that treats the new contract as a direct continuation of the old one for tax purposes. The cost basis transfers. Any embedded gain stays deferred. No taxable event is created.<\/strong><\/p>\t\t\t\t<\/div>\n\t\t\t\t

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Why this matters:<\/strong>insurance and annuity contracts purchased 10, 15, or 20 years ago are almost always inferior to what the market produces today. Older variable annuities carry M&E and rider fees of 2\u20133% annually; modern fixed and indexed annuities<\/strong>from top-rated carriers charge 0.4% or less. Older universal life policies credit cash value at 1.5\u20133%; modern indexed universal life (IUL)<\/strong>policies offer materially stronger long-term economics with downside protection built in. Older long-term care policies are on rate-increase trajectories nobody warned the original purchasers about; modern hybrid life\/LTC products carry no rate-increase risk.<\/p>\t\t\t\t<\/div>\n\t\t\t\t

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The 1035 exchange is the mechanism that lets clients capture all of those improvements without paying tax on the embedded gain<\/strong>in the original contract. For clients with old contracts holding $100K, $500K, or $2M+ of accumulated value, the avoided tax bill alone can be in the tens or hundreds of thousands.<\/strong><\/p>\t\t\t\t<\/div>\n\t\t\n<\/div>\n

\n \t\t\tThe Provision Most Clients Have Never Heard Of<\/span>\n\t\t\t\t\t

Tax-free, by statute. No private letter ruling required.<\/h3>\n\t\t\t\t
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The 1035 exchange is not a planning trick, not a gray area, not a strategy the IRS might challenge. It is a clear, written statutory provision<\/strong>that has been on the books since 1954 and refined by Treasury regulations for decades.<\/p>\t\t\t\t<\/div>\n\t\t\t\t

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When properly executed as a direct carrier-to-carrier transfer<\/strong>\u2014 the funds never touch the policyholder\u2019s hands \u2014 the exchange is automatically tax-free under \u00a71035. The new carrier accepts the transfer. The IRS receives proper Form 1099-R reporting. The basis transfers. The gain stays deferred.<\/p>\t\t\t\t<\/div>\n\t\t\t\t

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The strategy is invisible until someone tells you about it \u2014 and most agents, advisors, and even CPAs never do.<\/em><\/p>\t\t\t\t<\/div>\n\t\t\n<\/div>\n\t\t<\/div>\n\t\t\n<\/div>\n\n<\/div>\n

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\n \t\t\tWhat VFC Specializes In<\/span>\n\t\t\t\t\t

We 1035 Every Type Of Contract. We Specialize In Where The Money Goes Next.<\/h2>\n\t\t\n<\/div>\n
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Internal Revenue Code \u00a71035 is one of the most powerful and least-understood tools in the tax code for clients who own life insurance, annuities, or long-term care contracts purchased more than five or ten years ago. It allows the tax-free exchange of an existing policy for a new, materially better one<\/strong>\u2014 preserving the original cost basis, deferring all gain, and avoiding the immediate income recognition that would normally come from selling the old contract. VFC 1035-exchanges every type of insurance and annuity contract our clients own<\/strong>, with a firm specialty on the back end in indexed universal life insurance, fixed annuities, and fixed indexed annuities<\/strong>\u2014 the strategies that consistently produce the strongest long-term outcomes for our clients.<\/p>\t\t\t\t<\/div>\n\t\t\t\t

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Indexed products win on the math that matters most: downside protection.<\/strong>The years that destroy compounding are the loss years, and indexed contracts carry a contractual floor that protects against them \u2014 while still participating in the upside years through index-linked crediting. That asymmetric architecture is what produces the long-term results we\u2019re known for.<\/em><\/p>\t\t\t\t<\/div>\n\t\t\t\t

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The Single most common 1035 we execute is the textbook one: variable Annuity into an Indexed Annuity.<\/strong>Same tax-deferred treatment. Dramatically lower fees. Downside protection<\/strong>where the client previously had full market exposure. Upside potential to capture large gains.<\/strong>Frequently better income-rider economics. The exchange is tax-free, the upgrade is real, and the client\u2019s long-term position is materially stronger.<\/strong><\/p>\t\t\t\t<\/div>\n\t\t

\n\t\t
\n \t\t\tSpecialty 01<\/span>\n\t\t\t\t\t

Indexed Universal Life (IUL)<\/h4>\n\t\t\n<\/div>\n
\n \t\t\tSpecialty 02<\/span>\n\t\t\t\t\t

Fixed Annuities<\/h4>\n\t\t\n<\/div>\n
\n \t\t\tSpecialty 03<\/span>\n\t\t\t\t\t

Fixed Indexed Annuities<\/h4>\n\t\t\n<\/div>\n\t\t<\/div>\n\t\t\n<\/div>\n\n<\/div>\n\n<\/div>\n
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\n \t\t\tThe Statutory Authority<\/span>\n\t\t\t\t\t

Internal Revenue Code \u00a71035(a) \u2014 Tax-Free Exchanges Of Insurance Policies<\/h3>\n\t\t
\n \t\t\t\u201cNo gain or loss shall be recognized on the exchange of <\/span>\n\t\t\t\t
\n\t\t\t\t\t
(1)<\/h6>\t\t\t\t<\/div>\n\t\t\t\t\ta contract of life insurance for another contract of life insurance or for an endowment or annuity contract or for a qualified long-term care insurance contract; <\/span>\n\t\t\t\t
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(2)<\/h6>\t\t\t\t<\/div>\n\t\t\t\t\ta contract of endowment insurance for another contract of endowment insurance which provides for regular payments beginning at a date not later than the date payments would have begun under the contract exchanged, for an annuity contract, or for a qualified long-term care insurance contract; <\/span>\n\t\t\t\t
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(3)<\/h6>\t\t\t\t<\/div>\n\t\t\t\t\tan annuity contract for an annuity contract or for a qualified long-term care insurance contract; or <\/span>\n\t\t\t\t
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(4)<\/h6>\t\t\t\t<\/div>\n\t\t\t\t\ta qualified long-term care insurance contract for a qualified long-term care insurance contract.\u201d\n <\/span>\n\t\t\n<\/div>\n\t\t\tThe Seven Allowed 1035 Exchanges<\/span>\n\t\t
\n\t\t
\n \t\t\t01<\/span>\n\t\t
\n \t\t
\n\t\t\t\t\t
Life Insurance \u2192 Life Insurance<\/h6>\t\t\t\t<\/div>\n\t\t\t\t\tSwap an existing life policy for a new, materially better life policy \u2014 same insured, fresh contract.<\/span>\n\t\t\n<\/div>\n\n<\/div>\n
\n \t\t\t02<\/span>\n\t\t
\n \t\t
\n\t\t\t\t\t
Life Insurance \u2192 Annuity<\/h6>\t\t\t\t<\/div>\n\t\t\t\t\tConvert a life insurance policy into an annuity contract while preserving cost basis and deferral.<\/span>\n\t\t\n<\/div>\n\n<\/div>\n
\n \t\t\t03<\/span>\n\t\t
\n \t\t
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Life Insurance \u2192 Long-Term Care (LTC)<\/h6>\t\t\t\t<\/div>\n\t\t\t\t\tRepurpose a life policy into a qualified long-term care contract \u2014 tax-free.<\/span>\n\t\t\n<\/div>\n\n<\/div>\n
\n \t\t\t04<\/span>\n\t\t
\n \t\t
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Annuity \u2192 Annuity<\/h6>\t\t\t\t<\/div>\n\t\t\t\t\tThe signature VFC exchange. Move from an old high-fee annuity into a modern fixed indexed annuity.<\/span>\n\t\t\n<\/div>\n\n<\/div>\n
\n \t\t\t05<\/span>\n\t\t
\n \t\t
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Annuity \u2192 Long-Term Care (LTC)<\/h6>\t\t\t\t<\/div>\n\t\t\t\t\tConvert an existing annuity into a qualified LTC contract to fund future care needs tax-free.<\/span>\n\t\t\n<\/div>\n\n<\/div>\n
\n \t\t\t06<\/span>\n\t\t
\n \t\t
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Endowment \u2192 Endowment<\/h6>\t\t\t\t<\/div>\n\t\t\t\t\tSwap an endowment contract for another endowment with a maturity date no later than the original.<\/span>\n\t\t\n<\/div>\n\n<\/div>\n
\n \t\t\t07<\/span>\n\t\t
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Endowment \u2192 Annuity \/ LTC<\/h6>\t\t\t\t<\/div>\n\t\t\t\t\tExchange an endowment contract for an annuity or qualified long-term care policy.<\/span>\n\t\t\n<\/div>\n\n<\/div>\n\t\t<\/div>\n\t\t\t\t
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Inside those parameters, the exchange is unconditionally tax-free as long as the transfer is executed properly. The execution is where most engagements fail \u2014 not the strategy.<\/em><\/p>\t\t\t\t<\/div>\n\t\t\n<\/div>\n\n<\/div>\n\n<\/div>\n

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\n \t\t\tHow It Works<\/span>\n\t\t\t\t\t

The 1035 Exchange Process, Step By Step.<\/h2>\n\t\t\t\t\t

Here is the exact sequence VFC walks every 1035 exchange engagement through \u2014 from initial policy review to a completed, fully-documented tax-free exchange.<\/p>\n\t\t\n<\/div>\n

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\n\t\t\t\t\t01<\/span>\n\t\t
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Pull And Review The Existing Contract<\/h3>\n\t\t\t\t
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The first step is always the same: get the current in-force illustration from the issuing carrier. The illustration shows actual current performance versus the original sales illustration, the current cost basis, the current cash value, surrender charges (if any), and the rider structure. This is where we determine whether the existing contract is genuinely underperforming \u2014 or whether it\u2019s actually still competitive and should be kept.<\/strong><\/p>\t\t\t\t<\/div>\n\t\t\n<\/div>\n\t\t<\/div>\n\t\t

\n\t\t\t\t\t02<\/span>\n\t\t
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Benchmark The Replacement Market<\/h3>\n\t\t\t\t
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For each candidate replacement contract, Allaso Consulting\u2019s carrier desk produces side-by-side quotes from multiple A++ rated carriers. The benchmarking compares everything that matters<\/em>: current crediting rates, internal fees, rider availability, death benefit guarantees, surrender charge schedules, carrier financial strength. A 1035 exchange is only worth executing if the new contract is meaningfully better than the old one.<\/strong><\/p>\t\t\t\t<\/div>\n\t\t\n<\/div>\n\t\t<\/div>\n\t\t

\n\t\t\t\t\t03<\/span>\n\t\t
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Model The Net Long-Term Outcome<\/h3>\n\t\t\t\t
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The exchange itself is tax-free, but the analysis can\u2019t stop there. We model the projected 10, 15, and 20-year performance of the existing contract vs the proposed replacement \u2014 net of any new surrender charge schedule on the new contract, net of any partial surrender fees on the old one, and net of all fees on both sides. The new contract has to win on a net-of-everything basis or we don\u2019t recommend the exchange.<\/em><\/p>\t\t\t\t<\/div>\n\t\t\n<\/div>\n\t\t<\/div>\n\t\t

\n\t\t\t\t\t04<\/span>\n\t\t
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Underwrite The New Contract<\/h3>\n\t\t\t\t
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The new carrier underwrites the policyholder. For life insurance, this means medical exams, medical records review, and ratings determination. For annuities and LTC, underwriting is generally simpler. This is the step that prevents most clients from executing the exchange on their own \u2014 underwriting can decline coverage or rate it higher than the existing contract, in which case the exchange may not be worth executing.<\/strong>The replacement contract has to clear underwriting at favorable terms before we proceed.<\/p>\t\t\t\t<\/div>\n\t\t\n<\/div>\n\t\t<\/div>\n\t\t

\n\t\t\t\t\t05<\/span>\n\t\t
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Execute As A Direct Carrier-To-Carrier Transfer<\/h3>\n\t\t\t\t
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The exchange must be executed as a direct transfer from the old carrier to the new carrier<\/strong>\u2014 the funds cannot touch the policyholder\u2019s hands. We file the Section 1035 exchange forms with both carriers, the old carrier sends the surrender proceeds directly to the new carrier, the new contract is issued, the old contract is terminated. Proper 1099-R reporting (with code 6 for the 1035 exchange) is filed automatically by both carriers.<\/em>Improperly executed exchanges where money briefly touches the policyholder lose \u00a71035 status and become fully taxable \u2014 this is why DIY exchanges fail.<\/p>\t\t\t\t<\/div>\n\t\t\n<\/div>\n\t\t<\/div>\n\t\t\n<\/div>\n\n<\/div>\n\n<\/div>\n

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\n \t\t\tBeyond 1035 \u00b7 Direct Rollovers<\/span>\n\t\t\t\t
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1035 Exchanges Move Insurance Contracts. Direct Rollovers Move Your Retirement Accounts. VFC Handles Both.<\/strong><\/h2>\t\t\t\t<\/div>\n\t\t\n<\/div>\n
\n \t\t
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Section 1035 of the tax code only governs like-for-like<\/em>exchanges of insurance contracts \u2014 life-to-life, annuity-to-annuity, LTC-to-LTC. It does not cover the rollover of qualified retirement accounts.<\/strong>For 401(k), IRA, and Roth balances, the tax-free transfer mechanism is a Direct Rollover<\/strong>\u2014 a different IRS procedure that produces the same tax-free, penalty-free, no-withholding result, executed through carrier-to-carrier transfer.<\/p>\t\t\t\t<\/div>\n\t\t\t\t

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To roll your 401(k) into an annuity product, you execute a direct rollover into an IRA annuity<\/strong>. The process is tax-free, bypasses the mandatory 20% federal withholding, and avoids any early-withdrawal penalty \u2014 as long as the funds move directly between financial institutions and never touch your hands.<\/em>The same procedure applies for moving an IRA or Roth balance into an annuity or properly-designed permanent life insurance retirement plan.<\/p>\t\t\t\t<\/div>\n\t\t\t\t

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The mechanism in plain language: the annuity or life insurance company requests a direct transfer of funds from your old 401(k) custodian to the new contract<\/strong>. Tax deferral is preserved throughout the transfer. The client signs the paperwork; the financial institutions move the money. The client never has to touch the funds \u2014 which is exactly how we keep the rollover tax-free.<\/strong><\/p>\t\t\t\t<\/div>\n\t\t\n<\/div>\n

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\n \t\t\tAccount Type 01<\/span>\n\t\t\t\t\t

401(k) \u2192 IRA Annuity<\/h4>\n\t\t\t\t\t

Direct rollover of your old employer 401(k) into a modern annuity contract held inside an IRA. Tax-deferral preserved. No withholding. No penalty.<\/p>\n\t\t\n<\/div>\n

\n \t\t\tAccount Type 02<\/span>\n\t\t\t\t\t

Traditional IRA \u2192 IRA Annuity<\/h4>\n\t\t\t\t\t

Direct transfer of an existing IRA balance into an annuity contract held inside the same IRA wrapper. Same tax-deferral. Same beneficiary continuity.<\/p>\n\t\t\n<\/div>\n

\n \t\t\tAccount Type 03<\/span>\n\t\t\t\t\t

Roth IRA \u2192 Roth Annuity<\/h4>\n\t\t\t\t\t

Direct transfer of Roth balances into a Roth-eligible annuity contract. Tax-free growth continues. Future distributions stay tax-free.<\/p>\n\t\t\n<\/div>\n\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t\t

Rolling a 401(k) or IRA into a fixed or indexed annuity converts your balance into a contract with an insurance company. In exchange, the insurer guarantees you a monthly income payment for life<\/strong>\u2014 the kind of contractual income guarantee no traditional 401(k) or brokerage account can deliver.<\/p>\t\t\t\t<\/div>\n\t\t\n<\/div>\n\n<\/div>\n

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\n \t\t\tThe VFC Standard<\/span>\n\t\t
\n \t\t\tThe transfer should always be tax-free. <\/span>\n\t\t\t\t
\n\t\t\t\t\tAnything else is execution failure.<\/em>\t\t\t\t<\/div>\n\t\t\n<\/div>\n\t\t
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Valentine Financial Consultants<\/span>\u00b7 Insurance & Retirement Optimization<\/div>\t\t\t\t<\/div>\n\t\t\n<\/div>\n\n<\/div>\n
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\n \t\t\tTwo Real Case Studies, Back To Back<\/span>\n\t\t\t\t
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The Numbers That Show Exactly Why<\/strong>Clients Move.<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\t

Both engagements below follow the same playbook: take an outdated, underperforming contract, transfer it tax-free into a modern policy with better interest crediting, lower fees, cheaper rider costs, and stronger income guarantees \u2014 then show the client exactly what their account looks like 10 to 15 years later.<\/strong> This is the work we do every single day.<\/em><\/p>\t\t\t\t<\/div>\n\t\t\n<\/div>\n\n<\/div>\n\n<\/div>\n

\n
\n
\n \t\t\tExample 01 \u00b7 The 1035 Exchange<\/span>\n\t\t\t\t\t

Variable Annuity \u2192 Fixed Indexed Annuity, Tax-Free.<\/h2>\n\t\t\t\t
\n\t\t\t\t\t

A real VFC engagement \u2014 a 62-year-old client\u2019s outdated non-qualified variable annuity exchanged tax-free into a modern fixed indexed annuity. Average crediting: 9.5% per year over 10 years.<\/strong>At age 72 the client annuitized the contract for guaranteed lifetime income through age 90.<\/p>\t\t\t\t<\/div>\n\t\t\n<\/div>\n

\n
\n \t\t\tClient Engagement \u00b7 1035 Annuity Exchange<\/span>\n\t\t\t\t\t

62-Year-Old Client. Variable Annuity From 2009 Replaced By A Modern Fixed Indexed Annuity. Then Annuitized For Lifetime Income At Age 72.<\/h3>\n\t\t\t\t
\n\t\t\t\t\t

Client: 62-year-old retiree holding a non-qualified variable annuity purchased in 2009. Original purchase: $200,000. Current value: $284,000 ($84K of embedded gain). Surrender charges expired in 2018. Annual all-in fees: 2.85% \u2014 M&E charges, GMIB rider fees, and sub-account expense ratios \u2014 plus full market downside exposure inside the contract<\/strong>. VFC engineered a 1035 exchange into a modern fixed indexed annuity: index-linked crediting potential, contractual 0% floor protecting against loss, dramatically lower fees, and a built-in lifetime income rider designed to be annuitized at age 72. The textbook VFC 1035 exchange.<\/em><\/p>\t\t\t\t<\/div>\n\t\t\n<\/div>\n

\n
\n\t\t
\n \t\t\tExisting Contract<\/span>\n\t\t\t\t\t

2009 Variable Annuity<\/h4>\n\t\t
\n \t\t\tCurrent Value<\/span>\n\t\t\t\t\t$284,000<\/span>\n\t\t\n<\/div>\n
\n \t\t\tAverage Annual Return<\/span>\n\t\t\t\t\t~4\u20135%<\/span>\n\t\t\n<\/div>\n
\n \t\t\tTotal Annual Fees<\/span>\n\t\t\t\t\t2.85%<\/span>\n\t\t\n<\/div>\n
\n \t\t\tDownside Protection<\/span>\n\t\t\t\t\tNone<\/span>\n\t\t\n<\/div>\n
\n \t\t\tLifetime Income Rider<\/span>\n\t\t\t\t\tExpensive Add-On<\/span>\n\t\t\n<\/div>\n
\n \t\t\tAnnual Fee Drag<\/span>\n\t\t\t\t\t$8,094 \/ yr<\/span>\n\t\t\n<\/div>\n\n<\/div>\n
\n \t\t\t\u00a71035
Tax-Free<\/span>\n\t\t\n<\/div>\n
\n \t\t\tReplacement Contract<\/span>\n\t\t\t\t\t

2024 Fixed Indexed Annuity<\/h4>\n\t\t
\n \t\t\tValue At Transfer<\/span>\n\t\t\t\t\t$284,000<\/span>\n\t\t\n<\/div>\n
\n \t\t\tAvg Annual Return Achieved<\/span>\n\t\t\t\t\t9.5%<\/span>\n\t\t\n<\/div>\n
\n \t\t\tTotal Annual Fees<\/span>\n\t\t\t\t\t0.40%<\/span>\n\t\t\n<\/div>\n
\n \t\t\tDownside Protection<\/span>\n\t\t\t\t\t0% Floor<\/span>\n\t\t\n<\/div>\n
\n \t\t\tLifetime Income Rider<\/span>\n\t\t\t\t\tBuilt-In<\/span>\n\t\t\n<\/div>\n
\n \t\t\tAnnual Fee Drag<\/span>\n\t\t\t\t\t$1,136 \/ yr<\/span>\n\t\t\n<\/div>\n\n<\/div>\n\t\t<\/div>\n\t\t
\n \t\t\t10 Years Of Compounded Growth At 9.5%<\/span>\n\t\t
\n \t\t\t$284,000 grows to <\/span>\n\t\t\t\t
\n\t\t\t\t\t
$702,400<\/h6>\t\t\t\t<\/div>\n\t\t\t\t\tby age 72<\/span>\n\t\t\t\t\tTax-deferred. Zero loss years. Carrier-credited.<\/span>\n\t\t\n<\/div>\n\n<\/div>\n
\n \t\t\tAnnuitization At Age 72 \u00b7 Guaranteed Lifetime Income<\/span>\n\t\t\t\t\t

Annual Lifetime Payout, Age 72 Through Age 90 (And Beyond)<\/h4>\n\t\t
\n
\n\t\t\t\t
\n\t\t\t\t\t
Accumulated Value At Year 10 (Age 72)<\/strong>Starting point for annuitization<\/div>\t\t\t\t<\/div>\n\t\t\t\t\t$702,400<\/span>\n\t\t\t\t<\/div>\n\t\t
\n\t\t\t\t
\n\t\t\t\t\t
Lifetime Income Rider Payout Rate<\/strong>Guaranteed, age-72 single-life<\/div>\t\t\t\t<\/div>\n\t\t\t\t\t8.0%<\/span>\n\t\t\t\t<\/div>\n\t\t
\n\t\t\t\t
\n\t\t\t\t\t
Guaranteed Annual Income For Life<\/strong>Paid from age 72 through age 90 and beyond<\/div>\t\t\t\t<\/div>\n\t\t\t\t\t$56,192 \/ yr<\/span>\n\t\t\t\t<\/div>\n\t\t
\n\t\t\t\t
\n\t\t\t\t\t
Tax-Free Portion Each Year<\/strong>Return of $200K cost basis via exclusion ratio<\/div>\t\t\t\t<\/div>\n\t\t\t\t\t~$14,300 \/ yr<\/span>\n\t\t\t\t<\/div>\n\t\t
\n\t\t\t\t
\n\t\t\t\t\t
Total Income, Age 72 To Age 90 (18 Years)<\/strong>Cumulative lifetime payments<\/div>\t\t\t\t<\/div>\n\t\t\t\t\t$1,011,456<\/span>\n\t\t\t\t<\/div>\n\t\t\n<\/div>\n\n<\/div>\n\n<\/div>\n
\n \t\t
\n\t\t\t\t\t

What made this engagement work:<\/strong>The original surrender charge schedule had fully expired, leaving zero penalty on exit. The $84K of embedded gain stayed fully tax-deferred under \u00a71035 because the transfer went carrier-to-carrier \u2014 the client never received the funds personally. Over the next 10 years, the new fixed indexed annuity credited an average of 9.5% per year<\/strong>with zero loss years<\/em>thanks to the contractual 0% floor \u2014 growing the contract from $284,000 to $702,400. At age 72 the client annuitized through the built-in lifetime income rider for $56,192\/year guaranteed for life<\/strong>, with roughly $14,300 of each annual payment treated as tax-free return of cost basis via the exclusion ratio. By age 90, the client will have received over $1 million in guaranteed lifetime income from a contract that started at $284,000.<\/em><\/p>\t\t\t\t<\/div>\n\t\t\n<\/div>\n\n<\/div>\n\n<\/div>\n\n<\/div>\n

\n
\n
\n \t\t\tExample 02 \u00b7 The Direct Rollover<\/span>\n\t\t\t\t
\n\t\t\t\t\t

Old 401(k) \u2192 IRA Fixed Indexed Annuity. +10% Bonus On Day One.<\/strong><\/h2>\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\t

A 58-year-old business owner\u2019s dormant prior-employer 401(k) directly rolled into a modern IRA-held fixed indexed annuity. 10% premium bonus credited day one.<\/strong>Average crediting: 8.8% per year over 15 years.<\/strong>Lifetime income withdrawals begin at year 15.<\/p>\t\t\t\t<\/div>\n\t\t\n<\/div>\n

\n
\n \t\t\tClient Engagement \u00b7 Direct Rollover<\/span>\n\t\t\t\t\t

58-Year-Old Business Owner. Prior-Employer 401(k) Rolled Into IRA Annuity. $42,500 Added Day One. $1.65 Million At Year 15.<\/h3>\n\t\t\t\t
\n\t\t\t\t\t

Client: 58-year-old business owner with a dormant 401(k) from a former employer, sitting in default target-date funds since they changed jobs eight years ago. Current balance: $425,000. All-in fees: ~0.95% (fund expense plus plan recordkeeping). No downside protection. No income guarantee. Just market exposure with no retirement income plan.<\/strong>The replacement: a modern fixed indexed annuity held inside a new IRA, with a lifetime income withdrawal rider and a 10% premium bonus credited on the full rollover balance the day the contract was issued.<\/strong><\/p>\t\t\t\t<\/div>\n\t\t\n<\/div>\n

\n
\n\t\t
\n \t\t\tExisting Account<\/span>\n\t\t\t\t\t

Dormant Prior-Employer 401(k)<\/h4>\n\t\t
\n \t\t\tCurrent Balance<\/span>\n\t\t\t\t\t$425,000<\/span>\n\t\t\n<\/div>\n
\n \t\t\tAverage Annual Return<\/span>\n\t\t\t\t\t~5\u20136%<\/span>\n\t\t\n<\/div>\n
\n \t\t\tAll-In Fees<\/span>\n\t\t\t\t\t~0.95%<\/span>\n\t\t\n<\/div>\n
\n \t\t\tDownside Protection<\/span>\n\t\t\t\t\tNone<\/span>\n\t\t\n<\/div>\n
\n \t\t\tIncome Guarantee<\/span>\n\t\t\t\t\tNone<\/span>\n\t\t\n<\/div>\n
\n \t\t\tAnnual Fee Drag<\/span>\n\t\t\t\t\t~$4,038 \/ yr<\/span>\n\t\t\n<\/div>\n\n<\/div>\n
\n \t\t\tDirect
Rollover<\/span>\n\t\t\n<\/div>\n
\n \t\t\tNew Contract<\/span>\n\t\t\t\t\t

2024 IRA Fixed Indexed Annuity<\/h4>\n\t\t
\n \t\t\tBalance + 10% Bonus Day One<\/span>\n\t\t\t\t\t$467,500<\/span>\n\t\t\n<\/div>\n
\n \t\t\tAvg Annual Return Achieved<\/span>\n\t\t\t\t\t8.8%<\/span>\n\t\t\n<\/div>\n
\n \t\t\tInternal Fees<\/span>\n\t\t\t\t\t~0.40%<\/span>\n\t\t\n<\/div>\n
\n \t\t\tDownside Protection<\/span>\n\t\t\t\t\t0% Floor<\/span>\n\t\t\n<\/div>\n
\n \t\t\tIncome Guarantee<\/span>\n\t\t\t\t\tLifetime Rider<\/span>\n\t\t\n<\/div>\n
\n \t\t\tAnnual Fee Drag<\/span>\n\t\t\t\t\t~$1,870 \/ yr<\/span>\n\t\t\n<\/div>\n\n<\/div>\n\t\t<\/div>\n\t\t
\n \t\t\t15 Years Of Compounded Growth At 8.8%<\/span>\n\t\t
\n \t\t\t$467,500 grows to <\/span>\n\t\t\t\t
\n\t\t\t\t\t
$1,653,600<\/h6>\t\t\t\t<\/div>\n\t\t\t\t\tby age 73<\/span>\n\t\t\t\t\tTax-deferred. Zero loss years. Bonus-boosted.<\/span>\n\t\t\n<\/div>\n\n<\/div>\n
\n \t\t\tAt Year 15 \u00b7 Accumulated Value & Withdrawal Options<\/span>\n\t\t\t\t\t

Two Ways To Access The $1.65 Million Account, Age 73 Onward<\/h4>\n\t\t
\n
\n\t\t\t\t
\n\t\t\t\t\t
Rollover Balance Plus 10% Bonus, Year 0<\/strong>Day one of the new contract<\/div>\t\t\t\t<\/div>\n\t\t\t\t\t$467,500<\/span>\n\t\t\t\t<\/div>\n\t\t
\n\t\t\t\t
\n\t\t\t\t\t
Compounded Value At Year 15<\/strong>After 15 years at 8.8% average crediting<\/div>\t\t\t\t<\/div>\n\t\t\t\t\t$1,653,600<\/span>\n\t\t\t\t<\/div>\n\t\t
\n\t\t\t\t
\n\t\t\t\t\t
Option A \u00b7 Lifetime Withdrawal Rider<\/strong>Guaranteed annual income for life, balance keeps compounding<\/div>\t\t\t\t<\/div>\n\t\t\t\t\t$107,484 \/ yr<\/span>\n\t\t\t\t<\/div>\n\t\t
\n\t\t\t\t
\n\t\t\t\t\t
Option B \u00b7 Single-Life Annuitization<\/strong>Higher annual payout, balance converts to lifetime income<\/div>\t\t\t\t<\/div>\n\t\t\t\t\t$137,249 \/ yr<\/span>\n\t\t\t\t<\/div>\n\t\t
\n\t\t\t\t
\n\t\t\t\t\t
Total Withdrawals, Year 15 To Age 90 (17 Years)<\/strong>Lifetime rider option, cumulative<\/div>\t\t\t\t<\/div>\n\t\t\t\t\t$1,827,228<\/span>\n\t\t\t\t<\/div>\n\t\t\n<\/div>\n\n<\/div>\n\n<\/div>\n
\n \t\t
\n\t\t\t\t\t

What made this engagement work:<\/strong>The old 401(k) belonged to a former employer, so distribution restrictions had lifted. The transfer was executed as a direct trustee-to-trustee rollover<\/strong>\u2014 the new IRA custodian requested the funds from the old 401(k) administrator and received them carrier-to-carrier. The client never touched the money.<\/em>Tax-deferral was preserved, no 20% federal withholding was triggered, no early-withdrawal penalty applied, and the 10% premium bonus credited $42,500 to the new annuity on day one of issue.<\/strong>Over the next 15 years, the contract averaged 8.8% per year with zero loss years<\/strong>thanks to the contractual 0% floor \u2014 growing from $467,500 to $1,653,600. At age 73 the client began drawing $107,484\/year through the lifetime withdrawal rider<\/strong>, with the underlying balance still in the contract and continuing to compound. Across 17 years of withdrawals through age 90, the client will receive over $1.8 million in lifetime income from a $425,000 starting balance \u2014 with downside protection the entire way.<\/em><\/p>\t\t\t\t<\/div>\n\t\t\n<\/div>\n\n<\/div>\n\n<\/div>\n\n<\/div>\n

\n
\n
\n\t\t
\n \t\t\tIf You Own An Annuity More Than 10 Years Old<\/span>\n\t\t\t\t\t

Old Annuity Contracts Are Almost Always Outdated. Modern Replacements Pay You To Move.<\/h2>\n\t\t\t\t
\n\t\t\t\t\t

Annuity products written 10, 15, or 20 years ago were designed for a different interest-rate environment, a different actuarial table, and a different generation of riders. Anyone holding one of those older contracts is almost certainly leaving money on the table<\/strong>\u2014 sometimes a great deal of money.<\/p>\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t\t

The most striking part of modernizing an old annuity: many of today\u2019s top-rated carriers offer a premium bonus<\/em>on the rollover balance \u2014 commonly 7% to 10% or more \u2014 credited directly to the new contract on day one. You walk into the new policy with more money than you walked out of the old one with.<\/strong><\/p>\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t\t

What gets upgraded with a new contract: better crediting rate terms, better payout terms, better income riders, better long-term care riders, modern enhanced death benefit features, and fully updated beneficiary and estate documentation. Everything that was state-of-the-art twenty years ago has been materially improved since.<\/em><\/p>\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t\t

VFC\u2019s offer is simple: free review.<\/strong>Send us your old annuity statement, your old IRA statement, your old 401(k) summary, your old life insurance policy \u2014 whatever you have. We pull the in-force illustration, we benchmark against the modern market, and we show you exactly what a properly designed replacement would look like. If your existing contract is genuinely still competitive, we tell you so and recommend keeping it. If it isn\u2019t, we show you the math on the upgrade.<\/em><\/p>\t\t\t\t<\/div>\n\t\t\n<\/div>\n

\n \t\t\tTypical Rollover Bonus<\/span>\n\t\t\t\t
\n\t\t\t\t\t
+<\/span>10%<\/span><\/div>\t\t\t\t<\/div>\n\t\t\t\t\t

Premium Bonus Credited At Day One<\/h3>\n\t\t\t\t
\n\t\t\t\t\t

Many modern annuity contracts offer a 7\u201310%+ premium bonus<\/strong>on the rollover balance \u2014 credited directly to the new contract the moment it\u2019s issued. A $500,000 rollover becomes a $550,000 contract on day one.<\/p>\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t\t

The bonus is offered because carriers compete aggressively for rollover dollars. VFC + Allaso Consulting know which carriers are paying it, when, and on which products.<\/strong><\/p>\t\t\t\t<\/div>\n\t\t\n<\/div>\n\t\t<\/div>\n\t\t\n<\/div>\n\n<\/div>\n

\n
\n
\n\t\t
\n \t\t\tFree Comparison \u00b7 401(k) vs Valentine IUL Plan<\/span>\n\t\t\t\t\t

The 401(k) Is Antiquated. The Modern Entrepreneur Needs Something Built For The Way Wealth Actually Compounds.<\/h2>\n\t\t\t\t
\n\t\t\t\t\t

VFC offers a free, side-by-side comparison<\/strong>of your current 401(k) plan against the Valentine IUL Plan<\/em>\u2014 a properly designed indexed universal life insurance retirement structure built specifically for high-net-worth business owners and entrepreneurs who have outgrown the traditional 401(k).<\/p>\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t\t

Why we offer the comparison: most 401(k) plans are not viable retirement vehicles for the modern entrepreneur.<\/strong>Contribution caps are too low. Investment options are limited. Tax treatment is suboptimal for high earners. Distributions are fully taxable in retirement. Early access is penalized. Required Minimum Distributions force you to draw down on the IRS\u2019s schedule, not yours. The architecture was built in 1978 for the kind of working career nobody actually has anymore.<\/em><\/p>\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t\t

The Valentine IUL Plan addresses all of it: no contribution caps, market-linked upside with contractual downside protection, tax-free retirement income through policy loans, no RMDs, full access to cash value at any age, and a permanent death benefit that passes tax-free to your family.<\/strong>See the full breakdown on our .<\/p>\t\t\t\t<\/div>\n\t\t

\n \n \t\t\tRequest Your Free Comparison <\/span>\n\t\t\t\t\t\u2192<\/span>\n\t\t\n<\/a>\n\t\t\t\n\t\tSee The 401(k) Alternative\n\t<\/a>\t\t\n<\/div>\n\n<\/div>\n
\n \t\t\tSide-By-Side<\/span>\n\t\t\t\t\t

What The Comparison Shows.<\/h3>\n\t\t
\n\t\t
\n \t\t\tLegacy<\/span>\n\t\t\t\t\tStandard 401(k)<\/span>\n\t\t\n<\/div>\n\t\t\tvs<\/span>\n\t\t
\n \t\t\tModern<\/span>\n\t\t\t\t\tValentine IUL Plan<\/span>\n\t\t\n<\/div>\n\t\t<\/div>\n\t\t
\n \t\t
\n\t\t\t\t\t
Contribution Caps:<\/strong>401(k) capped at IRS limits \u2014 IUL has no contribution cap.<\/div>\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\t
Market Loss Exposure:<\/strong>401(k) full downside \u2014 IUL contractual 0% floor.<\/div>\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\t
Tax At Distribution:<\/strong>401(k) fully taxable \u2014 IUL tax-free policy loans.<\/div>\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\t
RMDs After Age 73:<\/strong>401(k) mandatory \u2014 IUL no RMDs ever.<\/div>\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\t
Early Access:<\/strong>401(k) 10% penalty \u2014 IUL access at any age.<\/div>\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\t
Death Benefit:<\/strong>401(k) account value only \u2014 IUL tax-free death benefit.<\/div>\t\t\t\t<\/div>\n\t\t\n<\/div>\n\n<\/div>\n\t\t<\/div>\n\t\t\n<\/div>\n\n<\/div>\n
\n
\n
\n\t\t
\n \t\t\tSchedule Your Free Policy & Account Review<\/span>\n\t\t\t\t
\n\t\t\t\t\t

See Exactly How Much Money Your Outdated Traditional Retirement Plans<\/span>Are Actually Costing You.<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\t

Every old annuity, 401(k), IRA, Roth, and life insurance policy you own can be reviewed for free by VFC and our exclusive insurance partner Allaso Consulting<\/strong>\u2014 against the modern market, against the best top-tier carrier products, and against the new design features that simply didn\u2019t exist when most of these contracts were issued.<\/p>\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t\t

The review tells you exactly what your existing contracts are earning, exactly what they\u2019re costing in fees and rider charges, and exactly what the upgrade math looks like \u2014 better interest crediting, lower internal costs, downside protection, lifetime income guarantees, day-one rollover bonuses, modernized estate documentation. Every consultation includes a written side-by-side comparison so you can see the numbers before any decision is made.<\/strong><\/p>\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t\t

This is the work we do every single day \u2014 we take outdated annuities, dormant 401(k)s, old IRAs, old Roth accounts, and underperforming life insurance contracts, and we move them tax-free into modern, fully-tailored, properly-designed<\/em>retirement and insurance vehicles that match your current age, your investment goals, and your actual retirement income needs. The transfer keeps every dollar of tax deferral intact. The upgrade boosts the policy value, modernizes every feature, and gives you a contract built for the next phase of your financial life \u2014 not the phase of life you were in when the old one was sold to you.<\/strong><\/p>\t\t\t\t<\/div>\n\t\t\n<\/div>\n

\n \t\t\tWhat\u2019s Included \u00b7 No Cost, No Obligation<\/span>\n\t\t\t\t\t

The VFC + Allaso Free Review.<\/h3>\n\t\t
\n
\n \t\t
\n\t\t\t\t\t
Full In-Force Illustration Pull<\/strong>We request the current performance illustration on every contract you currently own.<\/div>\t\t\t\t<\/div>\n\t\t\n<\/div>\n
\n \t\t
\n\t\t\t\t\t
Market-Wide Carrier Benchmarking<\/strong>We compare your existing contracts against the top A++ and A+ rated carriers writing modern indexed strategies.<\/div>\t\t\t\t<\/div>\n\t\t\n<\/div>\n
\n \t\t
\n\t\t\t\t\t
Written Side-By-Side Comparison<\/strong>Exact numbers on fees saved, interest rate improvements, rider economics, and projected long-term value.<\/div>\t\t\t\t<\/div>\n\t\t\n<\/div>\n
\n \t\t
\n\t\t\t\t\t
Tax-Free Transfer Mapping<\/strong>We map exactly how the 1035 exchange or direct rollover would execute \u2014 carrier-to-carrier, no withholding, no penalty.<\/div>\t\t\t\t<\/div>\n\t\t\n<\/div>\n
\n \t\t
\n\t\t\t\t\t
Custom Policy Design<\/strong>If the upgrade math works, VFC and Allaso design a new contract tailored to your age, goals, and income needs.<\/div>\t\t\t\t<\/div>\n\t\t\n<\/div>\n
\n \t\t
\n\t\t\t\t\t
Day-One Bonus Identification<\/strong>We identify which modern carriers are offering rollover bonuses on your balance \u2014 commonly 7\u201310%+ added the day the new contract is issued.<\/div>\t\t\t\t<\/div>\n\t\t\n<\/div>\n\n<\/div>\n
\n \n \t\t\tSchedule Your Free Review <\/span>\n\t\t\t\t\t\u2192<\/span>\n\t\t\n<\/a>\n\t\t\t\n\t\tCall: (754) 399-4808\n\t<\/a>\t\t\t\t\t\n\t\tEmail A Strategist\n\t<\/a>\t\t\n<\/div>\n\t\t
\n\t\t\t\t\t
VFC + Allaso Consulting<\/strong>\u2014 one of the only firms in America offering this complete review under one roof.<\/div>\t\t\t\t<\/div>\n\t\t\n<\/div>\n\t\t<\/div>\n\t\t\n<\/div>\n\n<\/div>\n
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\n \t\t\tWhat VFC Hunts For<\/span>\n\t\t\t\t\t

Four Categories Of Contracts Where 1035 Exchanges Almost Always Win.<\/h2>\n\t\t\t\t
\n\t\t\t\t\t

These are the four most common policy types we encounter in client portfolios where a 1035 exchange delivers materially better outcomes. If you own any of the four below, an exchange analysis is worth running.<\/strong><\/p>\t\t\t\t<\/div>\n\t\t\n<\/div>\n

\n\t\t
\n \t\t\tTarget 01<\/span>\n\t\t\t\t\t

Variable Annuities \u2192 Fixed Indexed Annuities<\/h3>\n\t\t\t\t
\n\t\t\t\t\t

The single most common 1035 opportunity, and the signature VFC exchange<\/strong>. Variable annuities sold in the 2000s and early 2010s typically carry 2\u20133% in M&E and rider fees and expose the client\u2019s account value directly to market loss<\/em>. Once the original surrender charge schedule has expired, there\u2019s nothing holding the client in the old contract.<\/p>\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t\t

VFC routinely exchanges these into modern fixed indexed annuities<\/strong>with the same or better income guarantees, the same beneficiary designations, the same tax-deferred status, dramatically lower fees, and a contractual floor that eliminates market downside \u2014 all without triggering tax on the accumulated gain.<\/strong>The fee savings alone compounded over a remaining lifetime frequently exceed $100K; the downside protection is what protects the compounding in the first place.<\/p>\t\t\t\t<\/div>\n\t\t\n<\/div>\n

\n \t\t\tTarget 02<\/span>\n\t\t\t\t\t

Underperforming Whole Life & Universal Life \u2192 Indexed Universal Life<\/h3>\n\t\t\t\t\t

Permanent life insurance sold in the 1990s and 2000s frequently carries crediting rates of 1.5\u20133% \u2014 the result of declining interest-rate environments and aggressive original sales illustrations that never panned out. The death benefit is still in force, but the cash value is barely growing.<\/p>\n\t\t\t\t

\n\t\t\t\t\t

Modern indexed universal life (IUL) is VFC\u2019s firm specialty<\/strong>and consistently delivers materially better long-term economics than older universal life contracts. IUL provides index-linked crediting potential with a contractual floor that protects against market downside \u2014 an architecture that simply did not exist when most of these older policies were sold. A 1035 exchange preserves the cost basis, maintains continuous death benefit coverage, and resets the policy onto a competitive crediting trajectory<\/em>\u2014 without the policyholder owing tax on any embedded gain in the old contract.<\/p>\t\t\t\t<\/div>\n\t\t\n<\/div>\n

\n \t\t\tTarget 03<\/span>\n\t\t\t\t\t

Indexed Annuities With Crushed Cap Rates<\/h3>\n\t\t\t\t
\n\t\t\t\t\t

Indexed annuities sold before 2018 typically had attractive index-participation cap rates at issue \u2014 often 8\u201312%. Carriers have systematically reduced those caps over subsequent years, in many cases down to 2\u20134%. The contract is still earning, but at a fraction of what the client expected and was sold.<\/em><\/p>\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t\t

Newer indexed annuity products from competing carriers frequently offer cap rates 2\u20134 percentage points higher, with more favorable index options and lower fees. A 1035 exchange captures the better cap structure without surrendering the tax-deferred status.<\/strong><\/p>\t\t\t\t<\/div>\n\t\t\n<\/div>\n

\n \t\t\tTarget 04<\/span>\n\t\t\t\t\t

Traditional LTC Policies (Pre-2015)<\/h3>\n\t\t\t\t\t

Standalone long-term care policies purchased before 2015 are notorious for repeated rate increases. Most carriers have raised premiums 40\u201380%+ over the policy\u2019s life, with further increases likely. The original purchasers were generally not warned about the rate-increase trajectory.<\/p>\n\t\t\t\t

\n\t\t\t\t\t

Modern hybrid life\/LTC products<\/strong>eliminate the rate-increase risk by combining permanent life insurance with LTC benefits inside a single contract. A 1035 exchange from a traditional LTC policy into a hybrid product can be funded with the existing policy\u2019s cash value or surrender value<\/em>\u2014 often with zero out-of-pocket cost \u2014 and eliminates the rate-increase exposure permanently.<\/p>\t\t\t\t<\/div>\n\t\t\n<\/div>\n\t\t<\/div>\n\t\t\n<\/div>\n\n<\/div>\n

\n
\n
\n \t\t\tWhy The Math Works<\/span>\n\t\t\t\t\t

What A 1035 Exchange Actually Delivers.<\/h2>\n\t\t\t\t\t

For the policyholder considering an exchange, and for the family or business that ultimately receives the contract\u2019s proceeds, the upgrade is meaningful and durable.<\/p>\n\t\t\n<\/div>\n

\n\t\t
\n \t\t
\n\t\t\t\t\t

For The Policyholder<\/span>What You Get<\/h3>\t\t\t\t<\/div>\n\t\t
\n
\n \t\t
\n\t\t\t\t\t
Tax-Free Upgrade<\/h6>\t\t\t\t<\/div>\n\t\t\t\t\tAvoid the income tax that would normally be due on the accumulated gain inside the old contract \u2014 potentially tens or hundreds of thousands in avoided tax.<\/span>\n\t\t\n<\/div>\n
\n \t\t
\n\t\t\t\t\t
Lower Annual Fees<\/h6>\t\t\t\t<\/div>\n\t\t\t\t\tModern contracts typically charge 50\u201390% less in M&E, rider, and administrative fees \u2014 saving thousands per year that compound over the remaining policy life.<\/span>\n\t\t\n<\/div>\n
\n \t\t
\n\t\t\t\t\t
Better Performance Potential<\/h6>\t\t\t\t<\/div>\n\t\t\t\t\tHigher crediting rates, better index caps, stronger riders \u2014 all the structural improvements that have happened in the insurance market over the last 10\u201320 years.<\/span>\n\t\t\n<\/div>\n
\n \t\t
\n\t\t\t\t\t
Preserved Cost Basis<\/h6>\t\t\t\t<\/div>\n\t\t\t\t\tYour original cost basis transfers to the new contract under \u00a71035, maintaining all future tax advantages.<\/span>\n\t\t\n<\/div>\n
\n \t\t
\n\t\t\t\t\t
No Coverage Interruption<\/h6>\t\t\t\t<\/div>\n\t\t\t\t\tFor life insurance exchanges, the new contract is issued before the old one terminates \u2014 coverage is continuous, no gap, no underwriting risk during transition.<\/span>\n\t\t\n<\/div>\n
\n \t\t
\n\t\t\t\t\t
Updated Beneficiaries & Ownership<\/h6>\t\t\t\t<\/div>\n\t\t\t\t\tThe exchange is a natural moment to confirm beneficiary designations are current and the ownership structure (personal, trust, business) is still correct.<\/span>\n\t\t\n<\/div>\n\n<\/div>\n\n<\/div>\n
\n \t\t
\n\t\t\t\t\t

For The Family \/ Business<\/span>What They Receive<\/h3>\t\t\t\t<\/div>\n\t\t
\n
\n \t\t
\n\t\t\t\t\t
More Death Benefit For The Same Premium<\/h6>\t\t\t\t<\/div>\n\t\t\t\t\tBetter policy economics frequently translate into materially higher death benefit at the same or lower premium \u2014 the family receives more, not less.<\/span>\n\t\t\n<\/div>\n
\n \t\t
\n\t\t\t\t\t
Tax-Free Proceeds Under \u00a7101<\/h6>\t\t\t\t<\/div>\n\t\t\t\t\tThe death benefit on the new contract passes income-tax-free to beneficiaries under IRC \u00a7101, same as the original.<\/span>\n\t\t\n<\/div>\n
\n \t\t
\n\t\t\t\t\t
Stronger Carrier Behind The Promise<\/h6>\t\t\t\t<\/div>\n\t\t\t\t\tThe exchange is an opportunity to move to a higher-rated carrier (A++ vs A or A-) with stronger financial strength behind the policy promise.<\/span>\n\t\t\n<\/div>\n
\n \t\t
\n\t\t\t\t\t
Eliminated Rate-Increase Risk (LTC)<\/h6>\t\t\t\t<\/div>\n\t\t\t\t\tFor LTC exchanges into hybrid products, the family no longer faces the threat of future premium increases on the inherited policy structure.<\/span>\n\t\t\n<\/div>\n
\n \t\t
\n\t\t\t\t\t
Lower Lifetime Costs On Annuities<\/h6>\t\t\t\t<\/div>\n\t\t\t\t\tFor annuity contracts that will eventually be inherited, the lower fee structure means more of the asset compounds for beneficiaries.<\/span>\n\t\t\n<\/div>\n
\n \t\t
\n\t\t\t\t\t
Cleaner Estate Administration<\/h6>\t\t\t\t<\/div>\n\t\t\t\t\tModern contracts with clear beneficiary structures, no surrender penalties, and updated documentation simplify estate settlement.<\/span>\n\t\t\n<\/div>\n\n<\/div>\n\n<\/div>\n\t\t<\/div>\n\t\t\n<\/div>\n\n<\/div>\n
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\n \t\t\tConnected Strategies<\/span>\n\t\t\t\t\t

1035 Exchanges Are The Tune-Up For Every Other Strategy.<\/h2>\n\t\t\n<\/div>\n
\n\t\t\n \t\t\t401(k) Alternatives<\/span>\n\t\t\t\t\t

The Valentine IUL Plan<\/h4>\n\t\t\t\t\t

The modern entrepreneur\u2019s alternative to the antiquated 401(k) \u2014 the destination for most direct rollovers.<\/p>\n\t\t\n<\/a>\n\n \t\t\tCOLI \u00b7 SERP \u00b7 Key Person<\/span>\n\t\t\t\t\t

Refresh Old Executive Coverage<\/h4>\n\t\t\t\t\t

Older COLI and key person policies frequently underperform \u2014 1035 exchanges restore them.<\/p>\n\t\t\n<\/a>\n\n \t\t\tBuy-Sell<\/span>\n\t\t\t\t\t

Modernize Buy-Sell Funding<\/h4>\n\t\t\t\t\t

If your existing buy-sell-funded policy is decades old, an exchange may unlock better economics.<\/p>\n\t\t\n<\/a>\n\n \t\t\tPremium Financing<\/span>\n\t\t\t\t\t

Restructure Financed Policies<\/h4>\n\t\t\t\t\t

Underperforming premium-financed policies can sometimes be exchanged to improve overall economics.<\/p>\n\t\t\n<\/a>\n\t\t<\/div>\n\t\t\n<\/div>\n\n<\/div>\n

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\n \t\t\tCommon Questions<\/span>\n\t\t\t\t\t

1035 Exchanges \u2014 Questions Clients Ask First.<\/h2>\n\t\t\n<\/div>\n
\n
\n \t\t\t

What\u2019s the difference between a 1035 exchange and a direct rollover?<\/h4>\n\t\t\t\t
\n\t\t\t\t\t

Both move money tax-free from one tax-advantaged contract to another. The mechanics are different.<\/strong>A 1035 exchange (under IRC \u00a71035) moves like-for-like insurance contracts<\/em>\u2014 life insurance to life insurance, annuity to annuity, LTC to LTC. A direct rollover moves qualified retirement account balances<\/em>\u2014 401(k), IRA, or Roth \u2014 into a new contract (often an IRA-held annuity or properly designed life insurance retirement plan). Different IRS section. Same tax-free outcome. VFC handles both.<\/p>\t\t\t\t<\/div>\n\t\t\n<\/div>\n

\n \t\t\t

Why does the money never touch my account on a direct rollover?<\/h4>\n\t\t\t\t
\n\t\t\t\t\t

Because the moment the funds hit a bank account titled to you personally, the IRS treats it as a distribution \u2014 triggering immediate taxation, 20% mandatory federal withholding, and a 10% early-withdrawal penalty if you\u2019re under 59\u00bd. By executing the transfer carrier-to-carrier, we keep the funds in qualified status the entire time<\/strong>, which is how the rollover stays tax-free and penalty-free. The financial institutions handle everything between themselves; you sign the paperwork.<\/p>\t\t\t\t<\/div>\n\t\t\n<\/div>\n

\n \t\t\t

What if my old annuity is 10 or 20 years old?<\/h4>\n\t\t\t\t
\n\t\t\t\t\t

It\u2019s almost certainly outdated, and an upgrade is almost always worth running. Older annuities carry inferior crediting rates, weaker income riders, dated death benefit features, and outdated estate documentation. Many modern carriers offer a 7\u201310%+ premium bonus credited on day one<\/strong>to win your rollover \u2014 meaning you walk into the new contract with more money than you walked out of the old one with. We do this analysis for free.<\/p>\t\t\t\t<\/div>\n\t\t\n<\/div>\n

\n \t\t\t

Can I roll my old employer 401(k) into an annuity or IUL?<\/h4>\n\t\t\t\t
\n\t\t\t\t\t

Yes. Old employer 401(k) balances can be directly rolled into an IRA-held annuity<\/strong>\u2014 tax-free, no withholding, no penalty \u2014 using the same carrier-to-carrier mechanism we use for 1035 exchanges. Once the balance is inside the IRA annuity, it grows tax-deferred and converts into guaranteed lifetime income at the time you choose. For self-employed business owners and high-income earners, this is frequently the single most consequential rollover we run. See our for the broader strategy.<\/p>\t\t\t\t<\/div>\n\t\t\n<\/div>\n

\n \t\t\t

Why hasn\u2019t my current agent suggested this?<\/h4>\n\t\t\t\t
\n\t\t\t\t\t

Three reasons, usually. First, executing a 1035 exchange or direct rollover means moving the contract \u2014 which often means the original agent loses the renewal commission. Second, many agents simply don\u2019t know how the procedures work, particularly across different product types. Third, the analysis required to determine whether an exchange or rollover is worth doing is sophisticated \u2014 it requires pulling in-force illustrations, modeling net long-term economics, and benchmarking against the market.<\/strong>Most agents don\u2019t have the time or carrier access to do that work.<\/p>\t\t\t\t<\/div>\n\t\t\n<\/div>\n

\n \t\t\t

Are there any tax surprises I should know about?<\/h4>\n\t\t\t\t
\n\t\t\t\t\t

1035 exchanges are tax-free when properly executed, but complications can arise: if the old contract has an outstanding loan, the loan may need to be repaid first; if the new contract is materially different in ways that exceed \u00a71035 limits (like exchanging annuities for life insurance, which is not allowed), the exchange can be partially or fully taxable. Direct rollovers carry their own rules \u2014 particularly the 60-day deadline on indirect rollovers and the once-per-12-month IRA rollover limit. VFC\u2019s role is to identify these issues before any transfer happens.<\/strong><\/p>\t\t\t\t<\/div>\n\t\t\n<\/div>\n

\n \t\t\t

What if my old policy has surrender charges remaining?<\/h4>\n\t\t\t\t
\n\t\t\t\t\t

This is a critical part of the analysis. If surrender charges are still in force, the exchange may not be worth executing \u2014 the new contract has to deliver enough improvement to overcome the surrender cost. For older policies (typically 10+ years old) the surrender charge schedule has usually expired<\/strong>, eliminating this concern. For newer policies still inside the surrender window, we usually recommend waiting.<\/p>\t\t\t\t<\/div>\n\t\t\n<\/div>\n

\n \t\t\t

What if I\u2019m not sure my old policy or 401(k) is worth moving?<\/h4>\n\t\t\t\t
\n\t\t\t\t\t

That\u2019s exactly what our free review is for. VFC + Allaso Consulting will pull the in-force illustration on your existing contract or the summary on your existing 401(k)\/IRA, benchmark it against the modern market, and produce a written analysis showing whether a move is worth executing \u2014 or whether your existing setup is actually still competitive. The analysis is free.<\/strong>You only proceed if the math clearly supports the move.<\/p>\t\t\t\t<\/div>\n\t\t\n<\/div>\n\n<\/div>\n\n<\/div>\n\n<\/div>\n

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\n
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\n \t\t
\n\t\t\t\t\t
A.<\/span><\/div>\t\t\t\t<\/div>\n\t\t
\n \n<\/div>\n\t\t\tAllaso Consulting<\/span>\n\t\t\t\t\t

VFC\u2019s Exclusive Insurance Partner \u00b7 Independent Brokerage \u00b7 A++ & A+ Carrier Access<\/p>\n\t\t\n<\/div>\n

\n \t\t\tIn Partnership With<\/span>\n\t\t\t\t\t

The independent insurance brokerage behind every VFC 1035 exchange.<\/h2>\n\t\t\t\t
\n\t\t\t\t\t

VFC\u2019s insurance practice operates in exclusive partnership with Allaso Consulting<\/strong>\u2014 an independent insurance brokerage with direct access to the full top tier of the American insurance market. Allaso is not captive to any single carrier. They are not paid more to recommend one product over another. Their model is identical to ours: produce the best independent recommendation for the client, every time.<\/strong><\/p>\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t\t

That partnership is the structural reason we deliver better policy rates and better contract designs than clients typically encounter through a single-carrier captive agent. We benchmark every replacement contract across dozens of A++ and A+ rated carriers<\/strong>writing indexed universal life, fixed annuities, and fixed indexed annuities \u2014 and place each policy with whichever carrier delivers the strongest economics for the specific client.<\/p>\t\t\t\t<\/div>\n\t\t\t\t\t

Allaso has the carrier relationships. VFC has the strategy framework. Together, the exchange is comprehensive, the placement is independent, and the outcome is the best available to the client.<\/p>\n\t\t\n<\/div>\n\t\t<\/div>\n\t\t\n<\/div>\n\n<\/div>\n

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\n \t\t\t

Find Out What Your Old Contracts & Accounts Are Actually Costing You.<\/h2>\n\t\t\t\t
\n\t\t\t\t\t

Every old life insurance policy, annuity, LTC contract, 401(k), IRA, and Roth balance should be reviewed periodically against the modern market. If any of yours is more than ten years old \u2014 or more than five years old in a fast-moving category \u2014 a free VFC review is almost always worth running.<\/strong>Even if the conclusion is to keep what you have.<\/p>\t\t\t\t<\/div>\n\t\t\n \t\t\tRequest Your Free Review <\/span>\n\t\t\t\t\t\u2192<\/span>\n\t\t\n<\/a>\n\n<\/div>\n\n<\/div>\n

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\n \n<\/div>\n\n<\/div>\n\n<\/div>\n\n \n<\/a>\n\n<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

HNW Employee Bonus & Benefit Plans Every 1035 Exchange.Every Direct 401(k) Rollover.All Handled By VFC.Tax-Free \u00b7 Penalty-Free \u00b7 Done Right<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-80","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/demo-dvs.online\/valentine-financial-consultants-2\/wp-json\/wp\/v2\/pages\/80","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/demo-dvs.online\/valentine-financial-consultants-2\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/demo-dvs.online\/valentine-financial-consultants-2\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/demo-dvs.online\/valentine-financial-consultants-2\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/demo-dvs.online\/valentine-financial-consultants-2\/wp-json\/wp\/v2\/comments?post=80"}],"version-history":[{"count":17,"href":"https:\/\/demo-dvs.online\/valentine-financial-consultants-2\/wp-json\/wp\/v2\/pages\/80\/revisions"}],"predecessor-version":[{"id":547,"href":"https:\/\/demo-dvs.online\/valentine-financial-consultants-2\/wp-json\/wp\/v2\/pages\/80\/revisions\/547"}],"wp:attachment":[{"href":"https:\/\/demo-dvs.online\/valentine-financial-consultants-2\/wp-json\/wp\/v2\/media?parent=80"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}