Wealth preserved with wisdom, invested with foresight and transferred with intention becomes the foundation of a lasting legacy.
Protect the Future You’ve Worked For.
The Future You’ve Earned.
You’ve spent years building a career, a home, a life worth living. But life has its own plans and even the most prepared clients can’t predict tomorrow.
When it comes to planning for retirement, your savings are only part of the story. They way your money is taxed can have just as much impact on your financial security as how much you’ve set aside. Smart tax planning helps ensure that you keep more of what you’ve worked so hard to earn. Every dollar lost to taxes is a dollar that can’t be used for living expenses, travel, healthcare or legacy planning. By taking advantage of tax-efficient strategies, you can extend the life of your nest egg and enjoy a more comfortable lifestyle throughout retirement.
Future tax rates are uncertain, but building tax flexibility into your retirement plan can help you adapt. Balancing traditional tax deferred accounts like 401(k) or 403(b) with other tax advantaged accounts like ROTH IRAs and IUL policies; we can help you gain control over how and when you pay taxes.
Eliminate Income Tax on Retirement Income
When compared to traditional retirement savings options, the IUL policy holds unique advantages. Traditional retirement plans often have contribution limits, early withdrawal penalties, mandatory distribution rules and risk of loss. In contrast, IUL policies can offer greater flexibility without contribution limits, no early withdrawal penalties and no required minimum distributions. Additionally, unlike other retirement options, the IUL can provide cash value growth that enjoys downside protection. By protecting from loss and enjoying market-indexed growth, the IUL can provide you with more income during retirement.
Increase Your Retirement Income
Protect Your Savings
The S&P 500 Index took nearly six years to recover from the losses caused from the Dot Com Crash of 2000. It took nearly 15 years for the Nasdaq to recover. In 2008, The Global Financial Crisis caused the S&P 500 to drop about 50% from it’s peak and it took about 5.75 years to recover. Most IUL policies have guaranteed floors that act as a minimum earnings rate, protecting you from negative market. By protecting your hard earned savings, you can rest assured that your retirement plan stays on track and your goals are protected.
“45% of workers saw their retirement account balances decrease by thousands of dollars between Spring 2009 and Fall of 2011”
Common Questions
“My financial advisor said IULs are too costly”
Over the life of an IUL policy, total fees and expenses will be less than 401(k) accounts and traditional brokerage accounts. Less fees means you keep more of your money. Unlike traditional 401(k) accounts and IRAs, the IUL offers tax-free income that can be used on your terms. There are no required minimum distributions and no penalties for withdrawals before age 59 1/2. If income tax rates are higher at the time of retirement, the tax-free income potential of an IUL becomes superior to taxable 401(k) and IRA distributions.
“Dave Ramsey said to only get term life insurance”
Dave Ramsey heavily promotes and recommends term life insurance through his “RamseyTrusted parner, Zander Insurance. Term insurance is a straightforward, affordable way to provide temporary income protection for budget-conscious buyers. However, term insurance has significant drawbacks. Since term life insurance expires, if a person needs coverage after the initial term contact, renewing or buying a new policy will be significantly more expensive since premiums are based on older age and health. Many times, if a person develops health problems during the initial term, they may be uninsurable and unable to purchase new coverage.
“Just invest in the stock market and you can’t go wrong”
Investing directly in the market involves substantial risk, relying on accurate advice for the best stock, fund or ETF selection. Over the past 20 years, only 8.2% of large-cap funds beat the S&P 500. That means 92% of financial experts picked the wrong stocks and underperformed the S&P 500 benchmark. Underperforming is an opportunity cost in your retirement funds. Index Universal Life Insurance Policies build real cash value without the risk of direct exposure to the market, and without the risk of losing any money. In March 2009, the stock market sank -50% from it’s peak. It took nearly 6 years just to recover the losses. Owners of IUL policies didn’t lose any money due to a 0% floor. The Indexed Universal Life Insurance Policy provides more stable year-to-year values with downside protection.
“I’m too young for insurance”
We get it, you don’t feel the urgency. However, being young is actually the best time to get life insurance. When you are younger, you are healthier and premium rates are the lowest. Many people who get an indexed universal life insurance policy say they wish they’d purchased it earlier. Plus, the earlier you start, the more time your cash value can grow.
“I’m single. No one depends on me ”
The IUL is not just for married couples or people with children. The IUL provides many benefits for policyowners without dependents.
Permanent Life Insurance with living benefits. You can access the policy death benefit funds for qualifying critical, chronic or terminal illnesses, allowing you to use the cash benefits. This money can pay for home healthcare, assisted living or nursing home care. With critical illness benefit riders, you could receive a lump sum to use however you need, such as medical bills, replacing lost income or lifestyle modifications due to recover. If you are diagnosed with a terminal illness and have 12-24 months life expectancy, you can access a significant portion of your death benefit to cover end-of-life expenses, fulfil bucket list wishes or reduce financial stress during a difficult time.
Tax-free income in retirement. Cash grows tax deferred and you can access your money, through policy loans without triggering income tax. No required minimum distributions if you choose to access funds later in retirement.
“Insurance is too expensive”
Life Insurance is not an expense. Think of it as income replacement for the people that depend on you now and then the tax-free income you’ll receive in retirement. Your car is insured, your home is insured, but your income today supports all aspects of your life. Why wouldn’t you want to protect that for less than a daily lunch combo meal?
“Indexed Universal Life Insurance Policies aren’t for everyone”
That’s right! The indexed universal insurance policy can be a great fit for many people, but not everybody.
The IUL works best for :
People with more than 15 years until their desired retirement year;
Business owners seeking flexible wealth-building tools;
Middle to high-income earners looking for tax-free retirement income strategies;
People who are contributing to their 401(k) employer match levels;
People who do not have a 401(k) but are contributing to an IRA and want to save more than the annual IRA limits.
The IUL is not suited for:
People who need temporary coverage. Term Life Insurance may be a better option, learn more here.
People who cannot commit to funding the policy until retirement
Employees who have not contributed to their employer’s match levels of a 401(k)
Workers who do not have access to a 401(k) but are not first contributing to an IRA or ROTH IRA.
