I know what you’re thinking. Awesome! A conversation about Life Insurance my favorite subject!
Ok, maybe not that much enthusiasm, however, if that Cash Value Life Insurance could be used for…
Income-tax-free death benefit to protect heirs at death, replacing lost income
Tax-deferred growth of policy cash values over lifetime
Tax-free distributions from the policy during retirement
Creditor protection of cash values in many states
Life insurance has no government-imposed annual contribution limits, like a 401k plan
No mandatory withdrawals from insurance policies at age 701⁄2
Withdrawals from policies prior to age 591⁄2 are not subject to
early withdrawal penalties
Adds to the overall tax diversification of retirement income sources
Life insurance provides flexibility to tailor the design for individual needs
Travel
Personal Development
If you could accomplish all this, wouldn’t it make sense to have a complimentary strategy session with someone from our team?
Let’s give you more information first.
The Main Concern:
For many higher income clients, the need to find additional ways to save for retirement has become one of their biggest concerns.
If the client’s employer offers it, qualified plans such as 401(k) plans provide an excellent way to save for retirement. But annual contributions to these plans are limited (to $22,500 in 2023) and they may fall short of many clients’ needs.
High-income earners are disadvantaged in that the portion of their income that can be set aside in a traditional tax-advantaged manner is smaller. These clients need to find additional ways of saving, especially since the length of retirement has increased along with the average life expectancy.
Life insurance can be structured to provide supplemental retirement income on a tax-advantaged basis during retirement.
In the years before retirement, premiums accumulate cash values that grow tax-deferred. Throughout a client’s lifetime, a tax-free death benefit provides protection to their family should premature death occur.
During retirement years, the cash values can be used for tax-free supplemental retirement income through a combination of tax-advantaged withdrawals and loans.
If you would like a no obligation, second opinion into using Life Insurance to Supplement Retirement Income please contact us at info@commonfinancialsense.com
We look forward to helping you change your financial future.
Until Next Time…
