Tax-Free Retirement
What is Tax-Free Retirement?
Tax-Free Retirement is a plan that allows an individual to access the cash value within their life insurance policy at any time, at any age, tax-free.
How does it work?
Tax-free retirement is based around 3 IRS tax codes. 72(e), cash accumulated in a life insurance policy including gains are tax-free. 7702, you can access the cash value while you are living, tax-free. 101(A), upon death the benefit is paid to the beneficiary tax-free.
Will any Life Insurance policy work?
No. We use an overfunded Indexed-Univeral Life policy for our Tax-Free Retirement program. Along with your monthly premium, we attach your policy to an index to achieve gains to your cash value. Your premium in this program is structured so that you are paying the least amount possible for the cost of insurance, and the most amount possible to fund cash value growth. By doing so, we ensure that if your policy gains 12% in a year, you are netting 11% of that gain with the 1% going to the cost of insurance.
Is this better than a Roth?
Roth IRA and Roth 401(k) plans are a great alternative to tax-deferred plans. However, they have contribution limits, income limitations, and are subject to market volatility. Indexed-Universal Life has no such limitations.
Is IUL better than my 401(k)?
If your company provides a match, please take the match. That is free money, and we do not throw away free money! But your 401(k) is always subject to losses, sometimes huge losses. Also, you are delaying taxes in your 401(k) which could be disastrous in retirement. Lastly, you can not readily access, move, or protect the funds in your 401(k) prior to age 59 1/2. We have proprietary software that will match your 401(k) up against your future IUL so not only can we tell you, we will show you!