It’s (almost) Impossible to Retire Tax-free Without This!

(watch the video of this blog too)

Retiring completely tax-free is the goal for many retirees, but it’s almost impossible to accomplish with just traditional retirement vehicles.

Roth 401k’s and IRA’s are a great way to position your assets for a tax-free retirement, but with income and contribution limits, most people need another vehicle to start building assets that can be taken out without taxes in retirement.

To fully achieve a tax-free retirement (including your social security), it almost always includes some sort of life insurance vehicle.

For many reasons, it’s one of the best ways to supplement your tax-free roth money, and it can also help you take twice as much income in retirement while buffering yourself from market volatility.

But, not all insurance vehicles are built the same.

To utilize cash-value life insurance for retirement it needs to be a very specific type of policy that is structured not only for accumulation, but for efficient distribution as well.

In other words, it needs to be perfectly structured.

Here are 6 things that your life insurance policy MUST have to be utilized for tax-free retirement planning:

☑️ Guaranteed 0% Loans

You must be able to pull money out of your policy at a (net) 0% cost (otherwise loans being used to supplement retirement income can quickly flip the policy upside down).

☑️ Caps On Variable Loans

Low caps on variable loans give you an opportunity to execute a “positive loan arbitrage” which can actually accelerate the growth of your cash value EVEN when you’re taking money out of the contract 😏

☑️ Interest in Arrears

Interest should be charged 12 months AFTER taking a loan NOT upfront 👏

☑️ Stable Index Caps

Stable caps mean predictable cash value growth (be careful of companies that offer “introductory caps” which are the insurance equivalent of “introductory rates” on credit cards 😅)

☑️ A Financially Stable Company

all good index universal life policies are sponsored by a financially stable company, period. 💪🏻

☑️ Over-loan Protection

As long as $1 remains in the contract, your policy will NEVER be taxed. Make sure you have an over-loan protection rider to guarantee that the policy will be converted to a paid-up policy (if needed) to ensure the policy will never lapse, and therefore will prevent the IRS from EVER sending you a bill‼️🙌🏻

This might seem like a LOT of work, but trust me, it’s worth it to do your due-diligence on the front-end. 🙏🏻

And, I can help. Send me a message for some more info. 😎