Understanding Your Options In Retirement

Whether it’s because we’re so busy, or we think things are already taken care of, or perhaps someone’s financial outlook has changed, we often suffer for lack of understanding all of the options at our disposal when it comes to retirement planning.  Most of us have been told about traditional methods of retirement saving (Roth IRAs, 401k’s, 403b’s, pensions, etc.), but we don’t have a comprehensive assessment of what’s available to us.

Here, Marc Smith, managing partner at Secure Retirement Strategies, explains one of those methods of retirement planning known as a 702J, LIRP, or Life Insurance Retirement Plan.

Pairing our in-depth, experienced understanding of these and other strategies with a full picture of your financial outlook is one way in which Secure Retirement Strategies outperforms other planning firms.

Full transcript below


Hi, this is Mark Smith again today. Hopefully you’re doing well. If I could show you a product, been around for a while, a lot of people haven’t heard of it. It’s called a LIRP, an LIRP, life insurance retirement plan. Been around all the way since about 1986. You can look it up. It’s the IRS code 7702.

It’s out there. It’s not new. It’s been out there for quite a while. People primarily buy this for tax-free long-term care, tax-free death benefit, but most of all, it’s going to give you a tax-free income. So it works like this: if you’re taking money from an IRA, you would put money into this product over a five-year period.

We wouldn’t have you do it over three years. IRS approved for five years. After the fifth year, it’s going into the S&P 500 where you’re getting about 11% of the gains, zero on the downside. And then it’s going to give you a figure of tax-free income. Typically if you start this when you’re age 60 and you make payments into it until age 65, at 65, 66, we’re going to start tax-free income that will go all the way to age 100.

It’s an unbelievable tool. Especially today, we know the taxes are going up, not down. Look at what’s going on with the deficit that we have look at after COVID. Look at the cities. Look at the pension plans struggling. Try to get yourself as much tax-free income as you can going into the future.