Tax-Free Retirement Approach – Life Living Benefits
With all of the problems in the world, how is one to suppose to plan for their retirement savings. There are many ways to go but most of the options have to choose from offer some type of risk associated with it. What if I was to ask you to stop contributing to your 401k, IRA, and mutual funds and invest in an insurance product?
When most people think of a life insurance policy they think death benefit. If something happens to me, my house and bills are paid off and my wife will have money to raise our kids.
Living Benefits:
What most people do not grasp is that life insurance is used for its living benefits. You can use your cash value inside your policy to fund your retirement income.
- Your money grows tax-deferred
- Your money can be taken out Tax-Free
- Asset Class
- Min. guarantees
- Upside Potential & No Downside Risk
- Do not pay income tax during retirement
- Money is liquid
- Extend retirement cash flow for up to 30-40 years
Why do you purchase an IRA or 401K? You do it because you want to use the money when you retire. When you retire and take the money, you will be taxed on the interest you deferred for 30+ years.
With a Tax-Free retirement approach using life insurance, you can take that money out for retirement and it will Not be taxed as income.
If you are allocating a $150 a month into a 401K, you can stop the allotment and have the $150 a month go into your insurance policy instead.
Do you want to pay taxes now or the future? Or do you NEVER want to pay taxes on your money? It is very simple, you choose.
The Policies:
There are 2 insurance policies that allow you to build up cash value with NO risk. They are whole life and indexed universal life insurance policies and each of them have no stock market risk.
A whole life insurance policy gives its policy holders’ dividends and an
indexed life insurance policy (IUL) allows policy holders to participate in market gains and no losses.
Either policy works it just depends on your age, health concerns, time horizon and when will the money be dispersed to you as income. Some insurance brokers might like one policy type over another but the numbers are the numbers.
Conclusion:
If you are tired of losses and fees, you should consult with a qualified life insurance broker who will be able to determine if a Tax-Free retirement approach will work best for you.
With all of the problems in the world, how is one to suppose to plan for their retirement savings. There are many ways to go but most of the options have to choose from offer some type of risk associated with it. What if I was to ask you to stop contributing to your 401k, IRA, and mutual funds and invest in an insurance product?