No matter what names are given to a variety of Life Insurance policies, by numerous substantial Life Insurance Companies-THERE ARE ONLY TWO FUNDAMENTAL TYPES OF POLICIES; TERM and PERMANENT;
Both term and permanent have a place in financial planning, and both serve to protect and add value for two very distinct reasons;
Term; Protection only, the simplicity of coverage, low initial cost.
Permanent; Tax-advantaged, numerous living benefits, tax-deferred cash build-up, and tax-free retirement when properly funded.
- Low initial cost
- Cost goes up over time
- No cash or equity build-up
- Coverage ends at some point because the cost becomes prohibitive
- Higher cost at inception
- Cost can remain level
- Has equity living benefits
- Coverage can last to age 120-when properly funded
The Retirement Question: Taxable or Tax-Free?
For most people, the two most compelling reason that cause a roadblock to a safe and secure retirement is volatility (of the stock market) and taxation (unknown higher limits).
There are primarily four ways to accumulate money; one has more advantages than others, depending on where you are in your journey of accumulation, distribution or wealth transfer.
Primary Accumulation alternatives:
- Free Money – Gifts/401(k) match
- Tax-Free Money / loans-life Insurance
- Tax-Deferred Money / During Accumulation
- Taxable Money / Distribution of all qualified plans.
To Defer or Not to Defer my taxes is a question that CPA’s, Financial Advisors, Life Insurance Agents, Economists will continue to debate for time infinitum because the financial winds of volatility and uncertainty blow in ways to continue the mystique for all of the time.
Tax-Deferral will partner you up with the IRS, to share with them at
a later date, at an unknown tax rate, or you may pay now when taxes are at the lowest in years, and most likely will never be this low again, and then you can look forward to a TAX-FREE Retirement forever.
There are, however, educated choices you can make that will allow a large degree of predictability and certainty and tranquility.
“Life Insurance-is the biggest benefit in the tax code because the money comes out Tax-Free and there is no limit to this tax break. Life Insurance is the best way to leverage money. And too, the single best way to leverage the tax code to
build real wealth, real money that is Free and Clear of Taxes. Tax-Free Money!! Wow!”
The LASER FUND — excerpt from the book—June 2018
Insights on an IRS approved TAX-FREE retirement income from a CPA’s perspective._
As a CPA, Sydney Weston is meticulous about her finances. When she heard about The LASER Fund through a professional networking group, she, like many people learning about these strategies for the first time, was impressed…but hesitant. She wondered if it could really provide benefits that IRAs and 401(K)s could not.
She examined details like IRS codes 7702 and 72(e), She explored the safety of entrusting her money to 100-year-plus insurance institutions and a 0% floor during market downturns. She weighed the living benefits, such as tax-free retirement income.
Her thorough analysis did not stop there. She enlisted the keen eyes of colleagues, including a chartered financial planner and tax attorney. These professionals confirmed that the IRS codes were employed to create exactly the tax-free retirement income that had been suggested; that the IRS codes 7702 and 72(e) would in fact give her tax-free benefits for life, and that the structured format of the LASER Fund could provide the safe, cost effective, and tax-advantaged solution she was looking for.
She opened a LASER Fund, and now enjoys the confidence of tax-free income—even to age 100 and beyond—and an income-tax-free death benefit for her heirs when she passes on…
Bill Newport, LUTCF Excerpt from the forth-coming book “The LASER Fund” out in June 2018.
- “Life Insurance is the biggest benefit in the IRS tax code because the money comes out tax-free and there is no limit to this tax break. Life Insurance is the best way leverage money and too, the single best way to leverage the tax code to build real wealth that is free and clear of taxes. Tax-free money, wowr’ll” – Ed Slott, CPA
- Question: What portion of your assets would you like to have in a savings program which shares in the market gains without sharing in the market losses? Creating a TAX-FREE Retirement Income—for life-
- According to the “Employee Benefit Research Institute” with 1,160,000 participants and 45,000 401(K)’s the average 401(K) runs out of money in only 7-8 years, and even with a full company match of 6% that is only extended to 8-10 years, meaning no more income.-
- “Its not what you don’t know that gets you in trouble, its what you know for sure, that just ain’t so”.
- When your Plan Administrator told you how to lock in your gains in your 401(K) each year, so those gains would be free from loss ever again; did you do that?
- Question. If everything you thought that was good about your 401(K) turned out to be not so good—how soon would you want to know this?
Question: Have you ever considered how much of your 401(K) you don’t own?
Middle America invested $1.9 billion dollars into a Private Pension Plan (IUL) just last year alone-,
The following will summarize how a properly funded (IUL) successfully creates an IRS approved Tax-Free savings retirement income plan (“Private Pension Plan”)…
- Potential for Accumulation: Your assets will be linked to a market index. Each year when that index increases in value, your policy will be credited in value and the principal will be ‘locked in and reset:
- Principal Protection: If the value of the index falls in any one year, funds linked to that Index ARE PROTECTED by a floor of ‘zero percent interest Which means you NEVER have a negative credit to your account—no downside risk, ever, due to market volatility.
- Tax Advantages: The principal and cash value accumulation within the policy is the collateral for future “TAX-FREE” loans from the insurance company. The life insurance repays the ‘loans’ upon your demise, and all remaining funds are TAX-FREE to your heirs.
- Self-Completing: This is first and always a Life Insurance policy. So heirs receive the ‘death benefit’ upon the demise of the insured, whenever that may occur, ‘less any outstanding loans and interest:
- flexibility of benefits: There are NO tax penalties for early distributions (even before 59 1/2.) of cash values through policy loans. Also with a ‘living benefits rider’ a portion of the ‘death benefit’ may be accessed upon qualifying health events. ( Consult your agent and policy for details )…
- Since the IRS has approved this ‘safe-money’ alternative TAX-FREE RETIREMENT INCOME plan with the ‘living benefits’ outlined above and a tax-free income you can NEVER OUTLIVE, shouldn’t you take advantage of this for your future financial-security and for that of your family as well…
- I will welcome your thoughts and a conversation to answer all of your questions and concerns to your complete understanding and satisfaction— Thank you… Bill
Good Afternoon Future Retiree,
Should you ‘Google’ Albert Einstein’s “The 8th wonder of the world”, you would learn that it is the ‘miracle of time and compound interest’. Now add to that “The 9th wonder of the world” which is—”The miracle of time and compound interest INSIDE A SHELTER FROM TAX’. And finally add to the 8th and 9th “wonders of the world” the all-consuming 10th “wonder of the world” that of NO stock market or mutual fund risk or losses, ever, and you have created an IRS approved “near perfect” savings TAX-FREE RETIREMENT INCOME PLAN—YOU CAN NEVER OUTLIVE. Incontrovertibly to be safer, more cost-effective, and more TAX-ADVANTAGED than ANY 401(K), IRA or even a Roth IRA… Would you like to have a conversation to see some real life ‘math and science’ numbers that would prove this for your consideration (and your CPA’s too)? Thank you in advance… Bill 702-379-2593 chester19577cox.net