- Have you lost 20-30% in the stock market the last few years?
- Are you still in the right track to build for your retirement?
- How do you build enough funds for your kids’ college funding?
- Do you work overtime just for the sake of building “enough” fund for your retirement?
- Do you depend on Medicare and Social Security benefits for your retirement?
Here are some harsh realities:
• Working Longer Won’t Close Retirement Shortfalls.
According to a detailed study by the Employee Benefit and Research Institute (EBRI), the lowest-earning 25 percent of Americans would have to work until age 84 so that 90 percent of them would have even a 50-50 chance of having enough money to afford basic living expenses and out-of-pocket medical care.
• “We are running deficits in the trillions of dollars, not the hundreds of billions of dollars we are being told.” – Sheila Weinberg, Chief Executive of the Institute for Truth in Accounting of Chicago.
Taxpayers are on the hook for a record $57.3 trillion in federal liabilities to cover the lifetime benefits of everyone eligible for Medicare, Social Security and other government programs (USA Today, “Bill for Taxpayers Swells by Trillions,” by Dennis Cauchon, May 19, 2008).
The reason for discrepancy: Accounting standards require corporations and state governments to count new financial obligations, even if the payments will be made later. The federal government doesn’t follow that rule. Instead of counting lifetime benefits for programs such as Social Security, the government counts the cost of benefits for the current year (USA Today, “Bill for Taxpayers Swells by Trillions,” by Dennis Cauchon, May 19, 2008).
Simply put, in 2007, the US government reported an “official” annual deficit of $162 billion, while the “real” deficit for that year supposed to be $2.5 trillion. As of January 2011, the “official” national debt reported to be $14.3 trillion, while the actual “real” national debt stands at $76.1 trillion.
• Taxes will INCREASE drastically in the near future.
If our debt is almost size times worse than we thought, and the government’s only source of revenue to combat this debt is taxation, then taxes will definitely increase drastically in the near future to cover this up.
The Retirement Miracle would:
This is not a one-size-fits-all approach; it’s not for everybody.If you want to know the name of the product… it’s called Index Universal Life Insurance.
Index Universal Life (IUL) is an amazing product with incredible features and benefits. This product was introduced to the market around 1995.
Here are common features and benefits of Index Universal Life (IUL) Insurance:
1. Protection against market loss. This is one of the best features in an IUL. This policy contractually guarantees that your cash value will NEVER have a negative return due to market losses – ever.
2. Upside growth potential. The cash value can also experience the potential for decent growth. If the stock market index that your policy is tracking (often the S&P 500) goes up 5 percent, then your cash value will grow 5 percent too. There is a cap (limit) on the percentage, it is at 14 percent. This means if the market is performing at 20 percent, then you are capped at 14 percent.
The difference is a little over $1,000.
3. Death Benefit. It’s a lump sum of money being paid to the beneficiary in the event of death. For pennies on the dollar, individuals are able to buy protection for their family that will ensure their family can continue in the lifestyle they are accustomed to, even if the income earner was to die prematurely.
4. Cash accumulation. IUL provides the potential cash accumulation within the policy. This cash can be accesses and used at the policy owner discretion, and the policy owner can always make a tax-free withdrawal, up to the total amount of premiums they have paid into the policy. For more information on tax-free withdrawal, please see one of the videos (Video #2) on the right sidebar.
5. No minimum age or income requirement. Life insurance has no minimum age that an individual must attain to put this strategy into place.
6. No mandatory distribution. You get to decide how and when to use your money – not Uncle Sam.
7. Access at any age. Your money is accessible at any age (there is no penalty for early withdrawal like in any tax-qualified plans).
8. Protection from lawsuits. For individuals in high-income professions, especially physicians, due to the threat of a malpractice suit, this can be a good solution
9. Does not create taxation of Social Security Benefits. All money that comes from a tax-qualified plan (401k, SEP, SIMPLE, IRA, etc) during retirement will be included as income that can negatively affect the income taxation of an individual’s Social Security benefit. Money coming out from IUL will not affect this at all.
10. Avoids Probate. The death benefit is paid directly to that beneficiary within days of the death of the insured.
Index Universal Life (IUL) Insurance is for you if you are:
1) Already a Tax-Qualified Plan contributors (you are contributing to your company’s 401k, IRA, etc),
2) High-income earners making more than $160,000 per year (individually or jointly as married couple),
3)Individuals who want to save more than $4,000 per year in a tax-favored environment.
Let’s do the final check. If you find yourself having a “YES” more than two or three of these options below, then very likely IUL is a great strategy for you:
- I am someone who wants to receive tax-free income during retirement.
- I am someone who wants to build a college funding plan for my kids, and then some.
- I am someone who has a need for life insurance.
- I am someone who wants to save more per year than what a Roth IRA allows.
- I am someone who is currently investing in a tax-qualified plan above the company matched contribution.
- I am someone who is contributing to a deferred compensation plan.
- I am someone who makes more than $160,000 per year (individually or jointly with my spouse).
- I am someone who has a desire to multiply my assets for the benefit of something I believe in.
If you answered YES for more than two or three times of the questions above, then our recommendation is to setup a personal consultation with one of our experts.
You will also get The Retirement Miracle book complimentary as a gift from us when you do your personal consultation.
Many doctors make more than $160,000 per year, which is the phase-out limit for being able to contribute to a Roth IRA. Therefore, they have no tax-free retirement option available to them other than life insurance. And even for those who make less than the phase-out limit, a Roth IRA only allows a few thousand dollars per year for the contribution amount.
Doctors generally need IUL because:
- They need to protect a large income for their families.
- They carry high debt (often this is due to starting out in debt from large medical school bills and low wages during their residency and internship years).
- Protection from lawsuits. For individuals in high-income professions, especially physicians, due to the threat of a malpractice suit, this can be a good solution.
Many business owners don’t get started putting money away for retirement than for most other professions because:
- Money is lean in the early years, thus they don’t begin a habit of saving right from the start.
- The business is hungry. There is always something that is calling for more cash.
- Most business owners start their business by acquiring substantial debt.
- Most business owners are so engrossed with starting and running their company that they haven’t taken the time to research where they would save money even if they could.
- Many business owners who can and would save money for retirement don’t want to use tax-qualified plans because funding a plan for themselves means that they usually need to fund it for their employees as well.
Index Universal Life Insurance is the perfect retirement solution for business owners because it overcomes all of the obstacles above:
- Index Universal Life Insurance can provide Tax-Free income if it is properly funded.
- Business owners need life insurance to cover their business debt and to provide for their families if they were to die.
- Since Index Universal Life Insurance is not considered a tax-qualified plan according to the IRS, there is no requirement for the business owner to fund a similar plan for his or her employees.
- It’s simple and easy. There are no separate record keeping or tax forms required (Uncle Sam doesn’t even know when an individual policy exists).
- It provides instant liquidity (for pennies on the dollar) to the owner’s heirs or estate if the owner decides to keep the business until his or her death.
- Cash value can be treated as Asset to the company.
- It has NO age or income requirements for contributions (you can start this for your children or grandchildren the week after they are born and let it accumulate during all those additional decades of their lives.
- It grows without annual taxation.
- The money can be accessed tax-free.
- It is incredibly flexible since you decide the payment methods.
- The actual cost of insurance is very inexpensive because it is based on the age of the child.
- You decide when (if ever) to transfer ownership to the child.
Index Universal Life Insurance is the perfect option for your children or grandchildren.
This could be the greatest gift a parent or grandparent could bestow upon the next generation. A gift your kid will never be able to repay. A gift that will produce a harvest long after you are gone. A gift that could make a difference in the lives of thousands if your child or grandchild follows the principle set forth above.
Conclusion: Why wait? By using the Indexed Universal Life (IUL) Insurance, you never have to factor in any negative numbers (it’s contractually guaranteed to NEVER have a negative return. EVER). Not in a year. No matter how much a stock market goes down. The worst you can do in any given year is zero percent increase.