The Family Retirement Plan is like no other retirement program. If you are tired of losing your hard earned retirement money due to market risk and volatility, then you’ve come to the right place. What could be worse than losing any of your retirement savings and potentially having to work more years when you should be retiring? How about getting taxed heavily when withdrawing your retirement income?
Life insurance is normally thought of as a “Death Benefit”,
but it can be structured as a Tax-Free Retirement Account.
Phases of Retirement Planning
 IUL Contribution Limits
UNLIMITED Contribution
Contribution Phase
When you deposit money into your account, you pay taxes up front at the current tax rate.
Accumulation Phase
While your money grows, it is Tax-Free.
Distribution Phase
When you withdraw from your account, the funds are 100% Tax Free.
Transfer Phase
Upon transfer, the funds are transferred to beneficiaries 100% Tax Free.
Traditional IRA vs Index Universal Life
With a Traditional IRA, you receive a Tax Break on the contribution, but when you withdraw the funds (the bigger circle), 100% is TAXABLE.
With an Indexed Universal Life Policy, taxes are paid on the contribution (the smaller circle), but when you withdraw the funds, 100% is Tax Free. There are no limits on the amount you can contribute into this type of policy.
What do we think of when we hear the word Life Insurance?
Many of us think it is just a Tax Free Death Benefit.
While this is true, it can be designed as Living Benefit as well if structured properly.
There is No Contribution Limit on the amount we can deposit into your Index Universal Life policy.
Interest grows Tax Free and can be withdrawn before age 59 via a loan. Additionally it will provide a Tax Free Death Benefit to your beneficiaries.
How Interest is Credited in Your Tax Free Retirement Account
The following example is how the Index Universal Policy compared to an investment in the stock market. When the market goes up, you keep the gains up to a cap and when the market goes down,
you keep all your gains and no losses – ever! Also, there is a minimum guarantee of either 1 or 2% if the index goes down.
That’s a $12,705 Tax Free Difference!
Compared to Money Invested in the Stock Market, your account goes up and down. Gains are not locked in and there are no minimum guarantees.
In an Index Universal Life policy, your gains grow tax free, tax free withdrawals, and Tax Free Death Benefit to your beneficiaries.
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