We’re here to help you feel confident in your financial future.
When it comes to planning for your retirement, security means everything. Whether you are looking to secure a reliable stream of income during your retirement or to provide for your loved ones after you’re gone, Secure Retirement Strategies can plan for a brighter future. Our team of expert financial professionals is passionate about helping individuals and families achieve their retirement goals.
Our company currently offers strategic financial planning services to residents living in and around the following Pennsylvania and New Jersey counties:
A Life Insurance Retirement Plan (LIRP) is a very powerful, yet pretty basic, financial planning tool that has been used in the financial planning industry for decades. Unlike traditional life insurance plans, a LIRP is a life insurance plan that features a savings component that allows you to withdraw funds while you’re still alive. A LIRP can be used to:
If you are like most people that are saving for the future, you have accumulated a good portion of your wealth in two of the three investment buckets. These are the taxable and tax-deferred buckets. While many investors are aware of how important it is to invest funds in these buckets, they do not account for the impact that higher taxes will have on diminishing all of the wealth you have gained. It is important to include the third bucket, the tax-free investment, in your plan.
In the United States, things such as federal government spending on social welfare programs, our national debt, and the large numbers of baby boomers exiting the workforce, are set to cause our tax rates are to skyrocket. To combat these issues, many Americans are in fact turning to tax-free accumulation and distribution tools like a Life Insurance Retirement Plan as a way of avoiding the impact of raising taxes.
Let’s take a 30,000-foot view of what a Life Insurance Retirement Plan is. A Life Insurance Retirement Plan is an accumulation and distribution tool that shares many of the tax-free attributes as a Roth IRA but without many of the restrictions. When you design a LIRP properly, it gives you many desirable features of which include no income limitations. Remember the IRS imposes income limitations on who can put money in a Roth IRA, but a LIRP has no contribution limits. Furthermore, with the LIRP, you will not get any 1099’s issued, so your money gets to grow tax-free.
Typically with the LIRP, when the index is positive, you participate up to about 12.5%. When the index is negative, you get zero. You do not give back or lose any money. The LIRP has an average return of between 7% and 9% per year.
Furthermore, you can typically use 95% of the death benefit for long-term care or chronic illness. Every year at the policy’s anniversary date, you can change indexes if you’d like. If you ever need to skip premiums, you can do so, and the LIRP comes with a lapse guarantee rider so you cannot lapse the coverage.
We like to tell people a Life Insurance Retirement Plan is a Roth IRA plus more. Typically, we like to put the money in a LIRP over a five year period instead of all at once. This ensures that we don’t buy too much death benefit or move you into a higher tax bracket.
In our professional opinion, the LIRP is a excellent financial tool to have in your financial planning strategy. It provides tax-free income, a death benefit for legacy, long-term care coverage, no 1099’s and does not hit your tax return —it’s definitely a win-win for those who chose to invest.
Let us help you plan for a prosperous financial future! Contact us today to learn more about Life Insurance Retirement Plans and our retirement strategies such as:
All of our professional retirement investment strategies are available to residents living in the following counties and their surrounding areas:
Contact our company today to learn more about Life Insurance Retirement Plans!