Benefits of a GRAT when market values are low

CIBC Private Wealth US

This is the first in a six-part series that focuses on proactive planning strategies in a volatile market.

Global pandemic fears, plunging stocks, the Fed’s emergency interest rate cut and a steep decline in 10-year Treasury yields wreaked havoc on many investment portfolios in recent weeks.

Regardless of how bleak the situation may appear, low stock prices and rock-bottom interest rates are creating potentially ideal conditions for certain wealth planning strategies. While increased market volatility can be unnerving for even the best investors, times like these can also present opportunities to implement wealth transfer strategies that can generate significant tax savings. One such strategy is the grantor retained annuity trust (GRAT).

Learn more about proactive planning during a time of uncertainty and volatility:
https://private-wealth.us.cibc.com/blog/-/blogs/proactive-planning-during-a-time-of-uncertainty-and-volatility