You can pay the money back when you have it during your lifetime or with death benefits upon your death.
Flexibility makes a living benefit life insurance valuable. It is more than a supplemental retirement plan. The Wealthy use it as a liquid tax-sheltered way to preserve capital and earn a reasonable Rate of Return. It’s their safe money emergency fund!
What Would You Choose, a New Boat or a More Secure Retirement?
Tax-Free IUL vs. Boat Purchase. What’s The Opportunity Costs?
Examining a Tax-Free IUL vs. boat purchase
A client asked for my opinion on his borrowing $75,000 to purchase a boat.
Life is full of trade offs. What would you do? Enjoy the boat or go for an extra $17,509 a year in tax-free income for life? You would need $583,000 in an annuity or 401(k) to generate the same $17,509 in after-tax income.
New boat vs. a more secure retirement?
You might have been able to do both. If you started a tax-free pension alternative several years ago, you might be able to borrow tax-free the $75,000 from your tax-free retirement plan, and pay yourself the interest, rather than the bank or finance company.
Are You Worried Your Retirement Money Will Run Out?
Many people run out of money 7 to 10 years into retirement. With increasing life expectancy your money might have to last 30+ years in retirement if you retire in your 60s almost as long as your working years.
Want to make sure it doesn’t happen to you? Watch the Retirement-Toolbox video to find steps you can take now.
Tax-Free Pension Alternative
There is a little known IRS approved strategy that the wealthiest top 10% of American Families, including the top 1% have been using for more than 20 years to cut taxes and preserve capital.
The Strategy works. The Tax-Free IUL can produce a Tax-Free Income You Won’t Outlive! The strategy has also been known to double, even triple after tax income compared to a 401(k) or 403(b) retirement plan. It has been called the Tax-Free Pension Alternative.
Tax-Free Income for Life
If you can double even triple your after-tax income, your money will last longer. Going with a tax-free retirement plan also insulates you from future tax hikes. A Zero taxed tax-free plan is better than a heavily taxed qualified plan, such as an IRA, 401(k) or 403(b) retirement plan.
The Tax-Free IUL has no down side risk. You don’t lose money when the markets go down. Annual gains are locked in, so you never give back interest previously earned. You share in market upside, up to an annual cap rate. Current caps are 13% to 16% depending on the index you choose.
Your withdrawals are tax-free penalty free at any age for any reason. Withdrawals from your qualified plans are heavily taxed and subject to early withdrawal penalties of 10% if you are under age 59 1/2.
Do You Hate Paying Taxes & Losing Money in the Stock Market?
What if there was a vehicle that eliminates taxes on retirement income and stock market losses too?
Watch the Retirement-Toolbox Video to find out how it works.
There is an under the radar IRS strategy that the wealthiest top 10% of American Families, including the top 1% have been using for more than 20 years to cut taxes and preserve capital.
Most advisors never heard about the strategy or they have not realized how powerful it has become with Living Benefit Life Insurance.
You earn a reasonable rate of return. Your gains are locked in annually, so you never give back profits already earned. You share in market upside, subject to a cap on annual gains, currently 13% to 16% depending on index chosen. You can access your money tax-free, penalty free at any age for any reason.
Would you be OK earning 6% to 9% with no downside risk?
Doesn’t that sound like an idea you should examine?
Tax Free is Better: Sara’s Story Demonstrates the Power of Living Benefit Life Insurance
Sara 68 understood the Living Benefit Life Insurance concept. The tax-free death benefit was another plus.
Sara had been stuck in a 1% World of Bank CDs. Worried about stock market losses, Sara kept her money in low yielding Bank CDs. This impacted her life style and her ability to leave a legacy to her children and grandchildren.
We introduced Sara to the Tax-Free Pension Alternative, also known as living benefit life insurance or the Tax-Free IUL, where you don’t lose money when the markets go down. Sara would need $3,400,000 in CDs to generate the same after-tax income that $300,000 invested and accrued for 4 years will produce based on projected returns that are below historical averages. Sara loved this safe income strategy.
Financial Independence – $246,000 a Year in Tax-Free Income For Life at Age 66
A Reachable Goal for a 25 year old.
What will you do? Watch the video and find out how you could achieve something similar.
Discover the Tax-Free Pension Alternative, also known as living benefit life insurance or the Tax-Free IUL.
A wise client called the Tax-Free IUL spectacular, a game changer! No downside risk. Tax-free income for life and a reasonable rate of return. He called it “The 401(k) Replacement!”
John age 25 was impressed enough to take control of his retirement. He’s on his way to financial independence. Imagine what you could do for your family.
He’ll retire at age 66 with $246,000 in tax-free income for life based on the historical rate of return. John comprehended the magic of tax-free compounding right away. It is even better and more powerful because you don’t lose money when the markets go down and your gains are locked in annually.
When you don’t lose money, you are never digging out of an investment hole, plus you never give back previous gains. Knowledge + action have empowered John and he is on his way to a wealthy retirement.
Living Benefit Life Insurance Rescue’s Robert’s Retirement
Robert 51, had no retirement savings and realized he had to do something about this. He chose Living Benefit Life Insurance also known as a tax free IUL after reviewing the Retirement-Toolbox videos and eBook.
Robert’s Plan: Save $1,000 a month for the next 20 years in the tax-free IUL. This tax-free pension alternative projects $57,000 a year in tax-free income for life at age 71, based on the historical 8.11% rate of return earned by the plan. His actual returns will vary and the variance could be substantial.
Interest earned is tied to market indices, such as the S&P 500 index. In exchange for no downside risk when the markets go down, there is a cap on annual upside, currently 13%. Caps change annually.
Robert qualifies for life insurance. The Tax-Free IUL is living benefit life insurance. The primary focus is living benefits as opposed to traditional life insurance which is primarily focused on death benefits.
Jack and Carol used the Tax-Free IUL to create a Tax-Free Pension Alternative for their granddaughters. What a legacy, tax-free income for life.
They recognized the power of tax-free compounding. Their annual gifting strategy will set their granddaughters up for life.
Living Benefit Life Insurance is very flexible and safe.
You don’t lose money when the markets go down. You participate and share in market upside, up to an annual cap rate. Annual gains are locked in so you never give back interest previously earned. Withdrawals are tax-free penalty free at any age for any reason.
The granddaughters won’t have to wait for their deaths to enjoy the living benefits of this legacy. They will be able to use the tax-free living benefits for college tuition, weddings, down payments on a house or any other reason. Thanking their grandparents each time.
How Living Benefit Life Insurance Rescued David’s Retirement
David did not put enough away for retirement and was facing a retirement short-fall. The Tax-Free Pension Alternative, also known as living benefit life insurance or the Tax-Free IUL provided a rescue strategy to provide a tax-free retirement income David won’t outlive.
You can use this as a catch up solution if you have not put enough away for retirement. Qualified plans (IRAs, 401(k)s 403(b)s) have annual contribution limitations- see chart. There are no such limitations with the tax-free retirement plans. You can set up a tax-free IUL or tax-free pension alternative where you contribute $100,000 a year for 3 to 5 years or longer, so long as the insurance company will accept the amount you want to contribute.
Retirement Plans are heavily taxed. Did you know that if you withdraw $50,000 from you 401(k), the IRS could take $20,000? Did you know if you leave $500,000 in your 401(k) to your spouse or kids, the IRS could take $200,000? Living Benefit Life Insurance is a little known IRS strategy that the wealthiest top 10% of American Families, including the top 1% have been using for more than 20 years to cut taxes and preserve capital.
Tax-Free IULs are an IRS Alternative To 401(k) and 403(b) retirement plans with no downside risk.
• You don’t lose money when the markets go down!
• Share in Market Upside when Markets go up!
• Earn Reasonable Rates of Return!
• Gains Locked In Annually!
• Tax-Free Penalty Free Withdrawals at any age!
• Tax-Free Income You Won’t Outlive!
Contact us at 800-955-7898 for a personal illustration.