Doesn't that sound awesome? Retiring with tax free dollars. Almost sounds too good to be true. My friends, as of this writing if you own the product I am about to explain, you have a tax free retirement vehicle second to none. If you don't, we should talk.
I bring this to your attention because we're all beginning to see the how tax qualified retirement plans (401K, IRAs, SEPs and other pension plans) haven't been performing as advertised. I won't even get into the imposed limits of these plans since I am writing about an alternative. As a matter of fact
, it very well might be time to Retire the 401K according to an article in Time Magazine.
Social Security Not Really A Worry
For everyone who is wondering if social security will be there for them when they retire, quit worrying. It isn’t there today. The government melded the SS funds into the general account so as to make the deficit look smaller than it really was.
By the way, you shouldn’t even have this particular worry – about this thing some call a government shell game -on your worry list because they are in the proverbial stuck position. If they tell the truth about the zero dollars in the kitty, the current crop of SS payers will revolt immediately if not sooner. And, those folks receiving the checks will start a panic unlike any seen in any country throughout recorded history. Basically, they have to keep up the charade and send out the checks. Hence, no worries.
Back to my tax free retirement. Today, maybe more than ever, people are looking for stock market alternatives, savings flexibility and something that can be used in addition to other plans. I think you probably are nodding your head in total agreement so I’ll move right into this little jewel.
EIUL
EIUL is the acronym for equity-indexed universal life insurance. It is permanent life insurance offering all the benefits of universal life with accumulation values tied to a stock market index.
An EIUL policy comes with two parts. One is a fixed interest rate component while the second part is an indexed account option.
I bring this to your attention because we're all beginning to see the how tax qualified retirement plans (401K, IRAs, SEPs and other pension plans) haven't been performing as advertised. I won't even get into the imposed limits of these plans since I am writing about an alternative. As a matter of fact
, it very well might be time to Retire the 401K according to an article in Time Magazine.
Social Security Not Really A Worry
For everyone who is wondering if social security will be there for them when they retire, quit worrying. It isn’t there today. The government melded the SS funds into the general account so as to make the deficit look smaller than it really was.
By the way, you shouldn’t even have this particular worry – about this thing some call a government shell game -on your worry list because they are in the proverbial stuck position. If they tell the truth about the zero dollars in the kitty, the current crop of SS payers will revolt immediately if not sooner. And, those folks receiving the checks will start a panic unlike any seen in any country throughout recorded history. Basically, they have to keep up the charade and send out the checks. Hence, no worries.
Back to my tax free retirement. Today, maybe more than ever, people are looking for stock market alternatives, savings flexibility and something that can be used in addition to other plans. I think you probably are nodding your head in total agreement so I’ll move right into this little jewel.
EIUL
EIUL is the acronym for equity-indexed universal life insurance. It is permanent life insurance offering all the benefits of universal life with accumulation values tied to a stock market index.
An EIUL policy comes with two parts. One is a fixed interest rate component while the second part is an indexed account option.
This creature called an EIUL has the ability to receive index-linked gains. In years in which the index does well, interest-crediting rates will rise, and in years in which the index performs poorly, interest crediting will fall but without a loss to your principal. Stated another way, when the linked index rises so does your cash accumulation. On the other hand when the index tanks, the capital tied to the index component doesn’t take a hit.
The policy owner is protected with minimum-guaranteed interest rates in case of stock-market losses. That’s why it won’t tank.
The index used by most insurance companies is the S&P 500. Today as you probably know, it is tanking and tanking like a rock in water. Theory says if you bought one today, you should be in the cat bird’s seat because what goes down must go up.
The policy owner is protected with minimum-guaranteed interest rates in case of stock-market losses. That’s why it won’t tank.
The index used by most insurance companies is the S&P 500. Today as you probably know, it is tanking and tanking like a rock in water. Theory says if you bought one today, you should be in the cat bird’s seat because what goes down must go up.
What this means to you the policy holder is the potential to realize higher upside returns without any risk on the downside. Therefore, it becomes a very unique and attractive cash-accumulation vehicle.
Tricks And Techniques
As with all investment vehicles there are tricks and techniques to building cash in a EIUL. I do not intend to explain each and everyone. However, I will tell you the technique of over-funding is popular with a lot of people who buy one. Couple that with selecting an interest strategy and you have one heck of an investment.
Tricks And Techniques
As with all investment vehicles there are tricks and techniques to building cash in a EIUL. I do not intend to explain each and everyone. However, I will tell you the technique of over-funding is popular with a lot of people who buy one. Couple that with selecting an interest strategy and you have one heck of an investment.
Since the IRS does not tax borrowed cash value dollars, I bet you can immediately deduce how you will take your tax free dollars at retirement. Finally, remember to keep the policy in force until death. This prevents the nasty tax bug from sneaking in the back door.
If this little expose has whetted your appetite for more knowledge, we would be happy to send you some information about the EIUL options that are available. This may be the perfect place to stash dollars for your “golden” years.
After all, you won’t stop needing money when you hit that life segment called retirement. It is almost impossible to not only outlive, but be taxed out of, your retirement set aside dollars if you have done well in real estate and other investments, and kept your EIUL force fed to the maximum.
Something to thing about, right?
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