Personal Retirement Planning – A Little Different, But Bigger And Better
There is a report of a citrus farmer in Florida who has grown a grapefruit that looks exactly like an orange, except that it is bigger and yellow!
Sometimes the best planning solutions for our clients may also look different than what they request, but prove to be bigger and even better.
Many clients want to save more for retirement but have already maxed out on contributions they can make to available qualified plans or an IRA. What is a good alternative that you can suggest?
If your client is insurable, an overfunded UL policy is attractive for many reasons, especially when compared to another popular retirement vehicle, a Roth IRA! While offering similar features, the UL plan may be bigger and better.
Consider:
- Plan availability – Anyone can fund for retirement with a life policy, despite the amount of their income.
- Contribution deductibility? – No. Just like a Roth, funding is done with after-tax dollars.
- Contribution limits – Funding is restricted only by the size of the policy.
- Tax-deferred account growth – Just like any life policy.
- Tax-favored supplemental income – Available through first-in/first-out withdrawals and policy loans.
- Early withdrawal penalties – None! Account values can be accessed even prior to age 59-1/2 without tax penalties.
- Plan self-completion! – The death benefit immediately achieves retirement planning goals for heirs in the event of pre-mature death, on a tax-free basis!
We can help determine the most effective product with the best premium/death benefit structure and the presentation ledgers you will need for your next opportunity. For support on all your business and estate planning case contact Tom Virkler, JD – Director of Advanced Markets, at 706-614-3796 or tom@cpsadvancedmarkets.com.
For What It’s Worth – It seems that comparisons to oranges are often difficult. Those in the know say there is no word that phonetically rhymes with orange.