A Simple Financial Plan To Maximize Your Wealth and Income with Less Risk
A Life Insurance Retirement Plan (LIRP) is a simple financial plan to maximize your wealth and income with less risk than traditional financial plans.
This little known, private plan can provide complete control of your finances and create generational wealth for your family.
Problems with Other Retirement Plans
Traditional financial plans typically revolve around mutual funds inside of government qualified plans (401k, IRA, SEP, ROTH, etc). These plans are a product of the Internal Revenue Service and dictated as such by the tax code. Usually they are administered by a financial institution.
Qualified retirement plans come with very specific rules from the IRS and Financial Institutions. Following this route with a financial plan relinqueshes control to those institutions.
Banks, wealth management firms, certain financial advisors and other money managers typically are paid in the form of fees. And, while certain entertainers tout this as a favorable way to do business, it can cause a drag on the growth of one’s money.
The IRS offers tax advantages for qualified plans in the form of deductions and deferrals of tax. So, in most cases, these taxes are due at retirement. There are also penalties for early withdrawals.
With traditional financial plans the thought process revolves on being in a lower income tax bracket at retirement and therefore have a lower standard of living. Very little thought is given to inflation nor the uncertainty of future taxes.
Life Insurance Retirement Plan (LIRP) – How It Works
The policyowner takes out a policy, typically on themselves, or the insured. This is no ordinary life insurance policy, it is specifically designed according to the goals and benefits the owner is trying to achieve.
The goals of the plan will vary depending on the individual. These goals are objectives can be met by adhering to the schedule, determined again by the individual.
Life insurance is a private contract between the insurance company and the insured. The particular type of contract we are discussing (LIRP), would be custom built for the policyowner and designed for their retirement goals.
It is also important that the agent be a practitioner of the same type of plan themselves, or else they are only selling products as determined by the company they represent.
Unlike other plans, the policyowner controls this plan and therefore can make adjustments without having to pay unnecessary taxes, interest and fees to others. Specifically the agent and owner must discuss and coordinate these goals prior to the contract being issued.
Life Insurance Retirement Plan Advantages
While no plan is completely perfect, the advantages of a LIRP are as near ideal as they can be. These advantages include liquidity, use and control of the asset from inception through the next generation.
- Permanent Death Benefit
- Safe Harbor for Saving
- High Contributions
- Tax Deferred Growth
- Tax Free Distribution
- Competitive Return
- Disability, Critical Illness and LTC Benefits
- Collateral Opportunities
- No-Loss Provisions
- Guaranteed Loan Option
- Unstructured Loan Payments
It would be hard to accomplish more than 4 or 5 of these advantages with any single asset under other financial plans. Properly structured life insurance is the only asset that can provide all of these benefits allowing the policyowner liquidity, use and control.
How To Create Your Own Plan
To learn how you can create your own plan that takes advantage of a Life Insurance Retirement Plan, contact us for a complimentary financial consultation.
Learn more about retirement income in this video masterclass: Retirement Income – How To Create Tax Free Cash Flow
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