In a world where most individuals are reliant upon traditional means of saving for their golden years after retirement — whether it be through Roth IRA funds or in a 401(k) — Secure Retirement Strategies offers an additional savings solution. Life Insurance Retirement Plans (LIRP) provide insured individuals an array of exemptions and protections, contrary to most IRAs and 401(k)s, which often carry restrictions, early withdrawal penalties, and taxes.
Why Invest in a LIRP?
Unlike Roth IRA funds and 401(k) accounts, which have age and income restrictions put in place by the Internal Revenue Service (IRS) and may disqualify certain individuals, life insurance retirement plans with Secure Retirement Strategies are available to everyone! For our team of highly-trained financial experts, it’s essential to provide as many individuals with the opportunity to start saving now and ensure a better tomorrow for themselves and their families. In addition to being a savings plan welcome to all, here are a few other reasons to consider beginning a Life Insurance Retirement Plan today:
- Unlimited Contributions— As opposed to the $5,500.00 annually-capped Roth IRA contribution limit set by the IRS, LIRP contributions have no limits. That means individuals can stash away a hundred bucks or contribute hundreds of thousands of dollars to their life insurance retirement plan without restrictions.
- Did Somebody Say “Tax-Free?” — Withdrawing funds from your LIRP, or even taking out a loan against the accumulated value of the plan, is always tax-free. Even in the event that the LIRP-insured individual passes away, so long as the policy is active, the plan’s beneficiaries will receive the account’s funds exempt from income tax.
With LIRP, There’s Room for Growth
Individuals who opt to use a LIRP as their means of saving for retirement or to ensure the security of their loved ones later in life have the added benefit of growing their financial savings through a variety of methods via this form of tax-free life insurance.
- Fixed interest
Typically, fixed interest LIRPs guarantee an annual return percentage for insured individuals, growth which is paid out by the insurer and requires no additional investments by the policyholder. Though most individuals who have a LIRP are encouraged to further diversify their portfolio via low-risk investment opportunities to maximize their returns, fixed interest is a safe way to accrue some extra cash with each passing year.
- Index Funds
For those who are interested in growing their LIRP through direct investment opportunities, index funds are based on the performance of any given stock. Index funds can be an excellent financial growth avenue for individuals to take due to the annual fees which are typically much lower than other direct investment funds.
- Mutual Funds
Similarly to index funds, individuals with life insurance retirement plans have the opportunity to further the growth of their savings by diversifying their financial portfolio via mutual funds. While index funds aim to match investments, mutual funds set sights on paying out more than what was invested into the bonds, stocks, or other securities chosen by an individual.
What Sets LIRP Apart?
In addition to serving as a tax-deferred means of securing surplus funds after one has already maxed out their allowed 401 (k) and IRA contributions for the year, another major advantage of a LIRP is that it can be custom tailored to each individual. Whether one’s life insurance retirement plan includes a whole, variable, or universal indexed life policy, LIRP offers policyholders the freedom to determine which product would be best when saving for their retirement.
With an intelligently-designed LIRP, individuals can protect their retirement savings by purchasing the minimal amount of life insurance death benefit while maximizing the cash value of their savings through tax-free premium contributions.
Secure Your Family’s Future
Across the board, the vast majority of individuals who choose to invest in a LIRP or annuity do so as a means of ensuring that — in the event of their death — their dependents and loved ones receive as much accumulated wealth as possible.
Guarantee Your Source of Retirement Income
Upon retirement, it’s generally not advisable for individuals to rely solely on Social Security for financial stability throughout their golden years. This is especially true when it comes to retired couples, which in the event that one of the individuals passes away, their widow/widower will only continue to receive whichever of the two social securities totals the highest amount, forfeiting the additional monthly income.
In a world of unpredictability, creating a financial safety-net through the establishment of a life insurance retirement plan can provide insured individuals with peace of mind — knowing that in the event of untimely death or long-term illness, their funds are available for self-care or for their beneficiaries. With a LIRP, individuals can rest assured that their policy is readily available to pay a death benefit, or portions of said death benefit can be utilized if long-term care is deemed necessary at any point throughout retirement.
Proceed With Caution; Look Before You LIRP!
Though a carefully-crafted LIRP can serve as a means of securing tax-deferred income for later in life, for tax-free long term care, and to protect the wealth of one’s family in the event of the insured individual’s passing, poorly planned life insurance retirement policies can negatively impact unaware investors when the annual expenses of their plan amount to more than the accumulated growth of the premium contributions.
As the most trusted source for retirement planning and wealth management services, Secure Retirement Strategies’ team of financial experts strive not only to provide our policyholders with the opportunity to maximize their savings for retirement, but more importantly, to ensure that their dependents are financially secure.
To find out more about the ways in which establishing a LIRP with Secure Retirement Strategies can better protect your wealth and the future of your family, give us a call at 610-983-8531 or get in touch with our savings strategists by filling out a contact form through our website today!