Millions of Americans have used Life Insurance Retirement Plans (LIRPs) as a powerful investment tool. These folks know that putting their money in a LIRP is almost as secure as keeping it in a bank account — but with much higher returns. If you want a safe and steady path to better financial security, then a LIRP may be the right choice for you.
Watch our new video to learn why so many Americans choose this incredible retirement plan, then read below for an in-depth look into the many benefits of a LIRP.
Protect Your Money
During the 2008 stock market crash, many Americans who saved for the future with traditional investment strategies saw their portfolios plummet and their retirement pushed back by years.
That’s why the Secure Retirement Strategies team recommends a LIRP. A LIRP provides a minimum guarantee for your investment returns, so you’ll never get less than 3 or 4%. No, you may not receive the same big gains that come from investing during a bull market, but you will never lose your savings.
A Safety Net for Every Situation
A LIRP provides benefits for you and the people you care about that will last your entire lifetime. It lets you enjoy a steady stream of tax-free income to support your retirement, while also allowing you to borrow against your cash value. If a tragedy does strike, however, such as death, disability, or long-term illness, then you and your family will be protected. In fact, your LIRP can be designed so that your life insurance benefit increases each year as your investment grows.
A Tax-Free Retirement Strategy
The majority of retirement strategies are either fully taxed or tax-deferred:
Fully Taxed: You pay annual taxes on the gains you receive from your investments.
Tax-Deferred: You only pay taxes on your gains when you withdraw funds.
In contrast, a LIRP is completely tax-free! How is that possible? First of all, the money you invest in this retirement plan is paid with after-tax money, so the government is already partially paid.
But what about the gains you make on your investments? If you choose to withdraw the money from those gains, then yes, you have to pay taxes. But you don’t have to withdraw cash to access your profits. Instead, you can borrow from your gains instead of withdrawing them, which lets you access your money without paying an extra penny in taxes.
Of course, that leads to another question…
“Don’t I have to pay interest on that loan?”
You do pay interest when you borrow from your LIRP, but you also receive interest from your LIRP, so the loan typically ends up being around 0%. Therefore, no matter how high your state’s taxes may climb, your retirement fund is safe.
No Penalties for Early Withdrawal
Maybe you want to retire at age 58, or maybe you want to borrow against your retirement savings when you’re just 45. With a 401k, you face an early withdrawal penalty that will take a significant bite out of your cash. A LIRP, on the other hand, lets you access your money with no taxes and no penalties.
Pay for Long-Term Care
The costs of long-term care can be a burden on many seniors and their families, and the number of Americans who require long-term care will more than double by 2050. With a LIRP, you don’t have to gamble on good health. This plan protects against the high costs of long-term care and can even offer accelerated life insurance benefits if you have a terminal illness.
No Funding Limit
Certain retirement plans, such as a Roth IRA, will only allow people below a certain income threshold to invest, and they have additional limits on how much you can put into your retirement investments. There are no limits on the amount of money that you can place into a LIRP, however, and there is no income threshold that stops you from fully funding a LIRP.
Start a Business
Have you always dreamed of being an entrepreneur? Convincing a bank to finance your start-up can be challenging. When you have a LIRP, however, you can borrow money at nearly 0% net cost and pay it back with flexible terms. You don’t even have to worry about late payments! This borrowing ability may also be helpful for other major life events like renovating your home or funding your child’s college education.
There is a LIRP That Meets Your Needs
There are many different LIRP options available to ensure that you are prepared for the future. At Secure Retirement Strategies, our financial experts will help you to determine the best fit for your needs. If you think that a LIRP may be the right choice for your family, then please call us today at 866-481-5211.