Index
Universal Life. It allows you to grow a retirement fund
utilizing a crediting method based on the S&P500 and other
Indices, up to a cap rate of 15%, but also protects your
principle and locks-in your gains on an annual basis without
being stuck in a fixed product that barely keeps pace with
inflation. It allows you a tax-free income stream for
retirement and 100% tax-free transfer of wealth to heirs.
It is affordable, permanent, premium life insurance that
protects your family and business and also serves as your
retirement platform.
Deferred Plan vs
NonDeferred Plan/
Taxation Issues:
We clearly understand the concept of directing "tax-deferred"
dollars into a plan to bolster the initial account value and on
the surface it seems like a good idea. However,
after meeting with hundreds of baby-boom retiree's in the last
two years, we have listened to outcomes and compared notes and
numbers to take a closer look at how we prepare for retirement.
Our issue with traditional deferred plans is that "tax-deferred"
status simply means "tax-delayed" and delayed to what? Our tax
rates continue to rise over time and the bigger problem is we
will have gradually lost all of our best tax deductions over
that time. Dependents grow up and move out on their own, we pay
off our mortgages and home equity loans, we eventually exhaust
our business write-offs. When you begin to draw on your
retirement savings you will now be taxed on these dollars anyway
but also on all of the growth in the account that has occurred
over the years. You find yourself paying federal, state, and
local taxes out of your savings dollars that were meant to
support you through retirement but with few if any deductions
and higher tax rates than you had decades ago. Aside from the
ultimate taxation consequences of tax deferred plans, the other
big concern with being invested in standard equities
products (including within ROTH IRA's) is that you are
still at the mercy of the markets with your retirement savings.
With no protection of principle or growth within the account
We advocate that from this point forward you use after-tax
dollars to fund a "tax advantaged status" plan with no IRS penalty, no age restrictions, no
deferred taxation. We utilize a product that allows you to grow
your retirement savings with "tax-advantaged" status instead of
"tax-deferred". Allowing you a tax-free retirement income stream
and 100% tax-free transfer of wealth to heirs. For a
person in the average 28% tax bracket, it would require a yield
of 9.7% in a standard "taxable" equities product to equal a
modest yield of 7% in a "tax-advantaged" product such as our
IUL. To compare to a 15% tax-exempt yield it would require a
comparable "taxable" yield of 20.8%. You can clearly see the
advantage of utilizing a "tax-advantaged" retirement product,
especially in tough economic times that may yield only modest
returns in all markets.
If you are already invested into an IRA, 401k, 403b or any
Deferred Plan or Qualified Plan retirement product of any kind,
our program will work hand-in-hand to compliment your existing
plan. Let us show you how to utilize those taxable and
market sensitive accounts first, in the early years of
retirement, allowing your new "tax advantaged" side to grow and
maximize its benefits and retirement income stream for a more
secure retirement with future account growth protected from
market loss and accessed tax-free along with a 100% tax-free
transfer of wealth to your beneficiaries.
Financial independence in retirement can still be yours! Let us
help you set the course. Contact us for a no-obligation review
and customized Illustration of where you can go from here.
What is IUL