Although I invest in the stock market and actively buy/sell real estate, I'd like to share another strategy I use for a portion of my overall portfolio.
Please understand that this is a BASIC overview of "Max funding an IUL" strategy also known as a "Life Insurance Retirement Plan", I did not mention all of the features and inner-workings of this concept. Since these can be completely custom built to a person's specific needs, budget and goal, I can't possibly fit everything into one video.
For more information on how this strategy may work for you, please read through the FAQ below and then contact me at email@example.com
1. I heard permanent insurance is “expensive”, is this true? Permanent insurance is a great value when structured properly with the right carrier, through the right broker that will take the time to make sure it fits your needs. Just as with any product or service (vehicles, electronics, clothing, etc) bad, inefficient, or over-priced versions exist amongst the quality ones.
2. Am I able to implement this strategy based on what I can budget for? Yes! If your budget is $100/monthly, a custom policy can be structured showing that amount and what it could provide for you in tax-free income.
3. What if I run into an emergency and have to temporarily discontinue the monthly contribution? As long as you have some cash value built up inside the policy, you are OK. Please note that if payments are discontinued for an extended period, your cash value will decrease and could eventually lapse if the policy is forgotten. It is best to prepare for emergencies with a savings account first.
4. If I receive a raise at work or run into extra money can I put it into my policy? Yes. Up to the “max” amount which will be unique to your specific policy.
5. I don’t need insurance right now, should I still consider this strategy? While you may not need insurance just yet, it is likely you will need it in the future. Although in the future the cost of insurance will be higher due to your increase in age. Also, your health at that future point in time may not permit you to receive this type of insurance. Additionally, the more time you give your cash value to compound, the more it will grow for use in the future.
6. I haven’t maxed out my Roth IRA yet but this strategy seems similar, is this true? Yes, after-tax money placed inside this policy can be used tax-free in the future. This is a great way to save and invest more tax-free money than the Roth IRA alone. It is important to ensure you take full advantage of employer retirement plan matches. Please note it is also important to implement this strategy while you are young, healthy and insurable. A suitable plan can be built for your specific situation.
7. If a health issue arises AFTER my policy is placed in-force, am I still covered? Yes, of course. Once your policy is issued (in-force) and premiums are paid, you are covered.
8. My older relative had a “whole life” policy and it lapsed and/or didn’t grow much, what was that about? Most old “whole life” (1970’s, 1980’s, 1990’s) were inefficient, expensive, and often illustrated with unrealistic returns. Just the as crash ratings and safety of vehicles have improved greatly since then, the insurance industry and products have as well. Above all, your policy should reflect your needs and be illustrated with realistic numbers.
9. What is the best way to explore this tax-free wealth concept further? Work with an independent insurance broker that will build a policy around your budget, goals, and desired outcome. An independent broker is able to use any insurance carrier rather than being confined to just one. This ensures you receive the right policy for your specific goals. I help implement this strategy for people daily. I can be reached at Kennyrobinsonchannel@gmail.com (U.S. Citizens or Permanent residents only)
Forbes article on this concept: https://www.forbes.com/sites/davidrae/2018/09/20/rich-person-roth/