Of all the advantages that a life insurance retirement plan has to offer, the one you may be most excited to hear about is a LIRP’s immunity to stock market downturns. Want to learn more?
Watch this episode of our podcast, and keep reading.
When you’re trying to plan your financial future, the stock market is likely near the top of your list of concerns. Market conditions are always volatile, and this unpredictably only increases in an election year. But you can protect your retirement funds from adverse market conditions with a LIRP.
Zero is your hero.
Now, don’t get us wrong – it’s not accurate to say you won’t want to follow the stock market when you have a LIRP. What we are saying is that you’ll be able to do so without the anxiety that comes with the risk of losing money. That’s because a LIRP tracks market gains but does not fall in the event of a market downturn. In a good year, you’ll gain a percentage that’s directly proportionate to S&P 500 earnings, all the way up to a cap of 12.25%.
But let’s talk about a worst-case scenario, where the market falls by, say, 25%. You won’t make any money, but you won’t lose a dime. With LIRPs, it’s impossible for the index to fall below zero! What this means is you can earn tax-free income without the risk of losing your savings, an advantage not offered with a traditional Roth IRA.
And the benefits don’t stop there.
On top of this income, you can put your savings toward long-term care or provide for your loved ones with a tax-free death benefit. Long-term care doesn’t have to be provided by a predetermined physician within an insurance network. Any physician, such as the family doctor you’ve known and trusted for years, can act as the gatekeeper on this component of the LIRP.
Getting the most out of a LIRP requires a lot of careful planning and well-informed decision-making. Fortunately for people in the Hunterdon County, Mercer County, Middlesex County, Somerset County, Burlington County, or Camden County areas of NJ, or the Bucks County, Montgomery County, Northampton County, or Lehigh County areas of PA, these life insurance plans can become a lot simpler with the expert counsel of Secure Retirement Strategies. Contact us today for a consultation!