Many of our clients come to us with concerns regarding traditional retirement accounts such as 401(k), 403(b), 457, and traditional IRA’s. Whether it’s the up and down “roller coaster” stock market, high management fees, or wanting to pay taxes at a known tax rate today instead of the unknown tomorrow, people are actively looking for an alternative.
Our solution to them is the #AfterTaxIndexingStrategy , also known as Indexed Universal Life Insurance (IUL). This plan is allowable under IRS code sec. 7702 – by using a life insurance vehicle, you are able to take tax free policy loans. Life Insurance paired with a Fixed Indexing strategy equals an unbeatable pension plan and is 100% tailored to you. The insurance company that holds your account uses a stock market index as a benchmark or indicator for how much interest to credit you. This can be done based on a monthly and/or annual average. By using this method and removing the “negative years” in the stock market, the insurance company is able to provide a guaranteed minimum interest rate (rates vary with depending on company). These plans can be funded monthly, annually, or with a lump sum and are designed for long-term cash value accumulation.