Do You Need a LIRP For Retirement? Consider These 4 Benefits Before You Decide:

There are two types of retirement-savers: those who feel that they’ve squirreled away enough money not to need any form of life insurance, and those who are looking to enter their golden years with as diversified of a savings portfolio as possible. Though the first individual may enjoy a comfortable retirement once their retirement income starts flowing in, they will have missed out on an array of financial benefits had they invested in a Life Insurance Retirement Plan (LIRP). As a third retirement savings vehicle, LIRPs share similarities with common savings such as Roth IRAs and traditional 401(k)s but feature benefits such as tax-free status with unlimited annual contribution limits.

As the most trusted partner for retirement planning strategies in Bucks County, PA, we strive to provide our clients the financial expertise and trusted retirement savings products to ensure their Golden Years are not only comfortable, but also as prosperous as possible.

Here are just 4 of the reasons why you should consider investing in a LIRP as soon as possible:

1. LIRPs Are a Smarter Way to Save For Pre-Retirement Needs

It’s in every adult’s best interest to have readily accessible emergency savings for the unexpected financial obstacles life throws our way along the road to retirement, and especially after retirement. Though most individuals with five to six figures stashed away in their bank accounts, collecting minimal returns on annual interest, have the ability to initially afford or financially manage an emergency situation, those same people are actually losing out on growth opportunities which LIRPs make possible.

Whether LIRP policyholders opt to take a risk-free fixed interest return or are looking to weigh the rewards of growing their family’s nest-egg by investing in index or mutual funds, LIRPs provide flexible avenues for portfolio diversification and future growth. All the while, they retain the guaranteed minimum of a 0% ground floor on returns, meaning that they never have to worry about their LIRP being negatively affected by market-down years.

2. Take Advantage of LIRP Tax Benefits

We typically advise that our clients utilize as many savings vehicles as possible to protect their legacy heading towards retirement. However, LIRPs, unlike traditional savings such as 401(k)s, Defined Benefit Pensions, and Roth IRAs, all of which are subject to distribution taxes and early withdrawal penalties, offer individuals a tax-exempt means of wealth protection and distribution when they need it.

Did you know all of these other retirement income sources are taxed by the IRS in some way? :
  • Roth IRAs
  • 401(k)s
  • Social Security
  • Deferred Compensation
  • Defined Benefit Pensions
  • Real Estate
  • Brokerage Accounts (taxable)
  • Annuities
  • Retirement Accounts
  • Profit Sharing Plans

Contrary to the $5,500 annual contributions limits or age requirements of IRAs set by the IRS, LIRPs allow for limitless contributions and are available to individuals of every age. So, no matter how much liquid you’re trying to pump into retirement savings on an annual basis, LIRPs with SRS are bottomless tanks where your savings will be protected. Depending on which particular tax bracket you fall into, especially as tax rates have risen on well-off individuals with recent reforms and the changes in future years, it’s advisable to take advantage of a LIRP’s tax-free distributions.

3. Use a LIRP as Your Safety Net

For clients who wish to reap the rewards of stock investment without the risks associated with market losses, LIRPs offer individuals the means of growing their assets while having the peace of mind knowing that they’ll never feel the negative financial impacts of down-market trends throughout the years.

Whereas other stock market hopefuls are required to redeem significant shares during a down-market to support their ongoing lifestyles, LIRP holders can simply wait for the market to recover while allocating any needed funds from their LIRP until their stocks rebound. Since LIRPs return 0% when their stocks have tanked, even in the event of a complete crash of the market, individuals with life insurance retirement plans can go about their lives unimpacted until the stock market bounces back and there’s positive growth once again.

4. Invest in a LIRP for Its Death Benefits During Retirement

Most individuals working diligently to save up for retirement to ensure their family’s financial stability in the event of their untimely death are well aware of the harsh taxes that will be imposed upon their legacy. That’s why many retirees refrain from overspending and try to save as much money for their loved ones as possible. But what if they had the chance to secure tax-free distributions to their family after passing away?

Certainly, they would have increased their spending throughout retirement had they known that their postpartum distributions would be untaxed. Well, Secure Retirement Strategies is here to tell you that this opportunity is possible with our custom-tailored Life Insurance Retirement Plans.   

Though most individuals get least excited about the permanent death benefits provided by LIRPs after learning of the tax benefits, LIRPs from SRS offer clients a unique opportunity to provide their family with tax-free, guaranteed accounts-receivable, maintaining the ability to maximize their spending throughout retirement. After decades of hard work and saving up for a secure retirement, we feel that you deserve to enjoy as much of your nest egg as possible while protecting your family’s financial legacy.

Do you have a plan in place if you fall victim to an illness or severe injury?

Attempting to claim early distributions from other retirement income sources may result in hefty penalties, diminishing your much-needed savings. On the other hand, your LIRP from Secure Retirement Strategies can be structured so that the policyholder’s death benefits are legally accessible for tax-free distributions while the policyholder is still alive!   

Start Securing Your Retirement Income Today!

Once you’ve established a flourishing LIRP with Secure Retirement Strategies, you’ll have the incredible opportunity to maximize annual contributions tax-free while purchasing minimal life insurance, diversify your financial portfolio through guaranteed or market-based returns, and have penalty-free access to your savings when you need to free up some liquid funds for family expenses.

By turning to SRS for a LIRP or any of our other retirement income strategies in Bucks County, PA, you’ll receive more than our financial expertise or the most comprehensive retirement plans available. More importantly, you’ll receive the peace of mind knowing that our dedicated team is working tirelessly to ensure a better future for you and your family.

To find out more information about partnering with Secure Retirement Strategies for a LIRP, give us a call today at 610-983-8531 or fill out a contact form through the website to take the first step along the path of smarter retirement savings.