Retirement Planning |

Posted on March 6, 2023 by priban

Getting You Ready for Retirement with Retirement Planning

Retirement Planning Protection

Planning for retirement, whether it’s five years away or 25 years away, or 45 years away, is something each of us needs to consider. Making smart choices about how much money you save, and what retirement planning savings vehicles you use, can mean the difference between having the income you need in retirement to live the lifestyle you want, or struggling financially. There is no one-size-fits-all solution when it comes to saving for retirement, but if you prefer a product that offers safety and guarantees, you may want to consider the retirement protection benefits offered by high-yield annuity products and indexed universal life (IUL) insurance policies. These can be funded individually or bundled together, giving you maximum gain potential with absolutely no downside risk.

Each plan is designed specifically for the client, based on the client’s needs, requirements, current circumstances, and budget.

Questions to ask yourself in regard to your eventual retirement:

  • Will Social Security even be there when it’s time for me to retire?
  • Will the company that provides my pension still be around when I retire?
  • Can I afford to take a hit to my retirement money when the market takes a hit (2008 as an example)?
  • Is there a way I can maximize my retirement income while taking zero risk?

If any of these questions give you pause, TALK TO ME (bottom of this post)!

You will never have to worry about losing half of your retirement nest egg due to a market collapse. Imagine, this type of peace of mind while riding market gains.

Isn’t it time that you secure your future?

What are Annuities?

An annuity is essentially an insurance product. With deferred income, the contract holder can accumulate money over a period of years (the “accumulation phase”) by making an initial deposit and watching it grow, by making periodic deposits over time, or by doing both.

Funds invested in retirement planning annuities grow tax-deferred. When you’re ready to start drawing on your annuity, you “annuitize” the contract and turn it into an income stream so you receive a series of regular payments each month, quarter, or year.

The Life Insurance Safe Zone offers High-Yield Annuities with the potential of a 30%+ annualized gain and a guarantee that you will never lose money during bear markets. In other words, you would take advantage of market increases and be protected against market losses, the best of both worlds.

Annuities can be funded using personal savings or transferring current IRA-protected money from your existing IRA/401K products via a rollover into a qualified high-yield annuity, making it a non-taxable event. At the Life Insurance Safe Zone, we will help guide you through the process.

What is Indexed Universal Life (IUL) Insurance?

An Indexed Universal Life (IUL) policy is permanent life insurance coverage with both an insurance component and a cash value savings component. The cash value can be indexed to a financial market index, offering policyholders the upside potential that comes with investing in the markets, with a guarantee that you will never lose money due to market collapses, all while retaining the protection of life insurance coverage, with accelerated benefits.

The IUL is the tax-free component of your retirement planning. The IUL is the little-known secret of the top 1% to keep their retirement Tax-Free.

The Top 3 Reasons why your financial advisor has not told you about this little know secret of the 1%

  • Reason 1: Most financial advisors don’t know that an insurance account like this exists. Nor, do they know how to set it up properly for the account holder.
  • Reason 2: Most financial advisors recommend financial vehicles that the company they’ve contracted with tells them to recommend or vehicles they receive the most compensation.
  • Reason 3: Straight-up lack of knowledge and as a result, less than 0.07% of Americans have what we call a “Tax-Free Retirement Protection/ Living Benefits Account” setup -while more than half the population has a taxable 401(k) or similar tax-deferred retirement account like a Roth IRAs.

The Problem with Your Tax-Deferred 401(K) or IRA Is…

  • You have to pay taxes on a larger portion of the money (when you take money out, the account value will be higher due to gains over the years—meaning you will be taxed heavily).
  • Your money is NOT liquid (you can’t access your money any time you want, and if you do, you’re required to pay large penalties).
  • You are limited to how much you can invest or contribute (plans with most tax benefits have funding limits).
  • Your money is NOT guaranteed (The money in your 401(k) or IRA soars with the market, and plummets with the market.) One bad year like 2008 could cause you to lose 50% of your retirement and be forced to continue to work.
  • You are required to report your earnings to the IRS. (Everything in a 401(k) or IRA is, Uncle Sam’s business)… and we know they will get their “fair share.”
  • You could pay higher taxes in the future. After 2025 many of the tax changes that lowered current tax rates will be gone. In 2026 those changes expire and taxes could go up significantly..

With A Tax-Free Retirement Account:

  • You earn 30-40 times more interest than with a regular bank account. (Historically, qualified individuals earned 3-6% a year.)
  • Your money is Liquid (All money put into and made in your cash value account is cash—you can withdraw any amount—at any time—without fear of penalty). It’s YOUR money.
  • You are NOT required to report earnings to the IRS. (The IRS doesn’t classify income as “income” inside this kind of account. Not Uncle Sam’s Business. IRS Code 7702)
  • And there are many more wonderful fiscal things you can do with an account like this. With Tax-Free Retirement Protection your money, hard-earned retirement savings, and peace of mind are all protected
  • When structured correctly, the account can give a Tax-Free Income for Life
  • These accounts have a Tax-Free Death Benefit
  • Your account is protected from market fluctuations
  • Think of it as a ROTH IRA with a Living and Death Benefit attached to it!

Frequently Asked Questions: Tax-Free Retirement Accounts:

How Can You Use Annuities and IULs for Retirement Protection?

There are many reasons for choosing retirement protection annuities and IUL products. The most common reason many people use annuities is for channeling their savings into a regular income stream during retirement.

Funds from Social Security and pensions may not be enough to allow you to live the lifestyle you want when you retire. Choosing a retirement protection annuity can give you an additional paycheck every month to supplement those other income sources – giving you the funds necessary to travel, pay your expenses each month, buy gifts for loved ones, and more.

Similarly, IUL policies offer you the option of accumulating cash inside your life insurance policy – cash that you can use for any purpose.

How Does Retirement Protection Work?

When you purchase a deferred annuity as part of your retirement planning, you enter into a contract with the issuing insurance company. During the accumulation phase, when you’re able to add funds, your funds will grow on a tax-deferred basis. When you’re ready to turn your annuity into a stream of cash, you’ll have various payout options to choose from.

An Indexed Universal Life (IUL) policy includes both a death benefit amount and a cash value component. Your cash value account, to which you can make additional payments at any time, can be tied to a market index so you have the upside of investing in the stock market without the financial risk. The first step toward ensuring you have the income you need during your retirement years is to contact The Life Insurance Safe Zone. We can help you understand the various products available that will best meet your needs.

If designed correctly, the cash value within the IUL will substantially eclipse your total premiums. Let The Life Insurance Safe Zone show you how at retirement, this cash value can be accessed tax-free, over a specified number of years.

Choose The Life Insurance Safe Zone For Retirement Protection

At The Life Insurance Safe Zone, we understand insurance and retirement products. Rather than trying to sell you proprietary products, we work with more than 30 insurance agencies to create custom insurance policies and annuity contracts for our clients.

We understand that everybody has a different financial picture, and different goals, so we never take a cookie-cutter approach. We will take the time to fully understand your family’s needs, budget, and concerns so that we can find the perfect fit for you. At The Life Insurance Safe Zone, we are fully committed to protecting your life’s journey.

Let The Life Insurance Safe Zone design a custom plan for your family. See how it compares to what you currently have in place. No commitment, no fees, only the promise of a bright future. Make your golden years truly golden.

Frequently Asked Questions

Q: What are the advantages of Retirement Protection?

Many of the annuity and life insurance products available through The Life Insurance Safe Zone come with guarantees that can be invaluable to those concerned about not having enough retirement income from other sources.

The best part is that choosing a product with guarantees does not mean you have to give up the potential for growth in your annuity or cash value life insurance policy.

Q: Do I qualify for Retirement Protection?

Most annuities used for retirement protection are “guaranteed issue” products that require no underwriting, so nearly everyone qualifies.

Because of the life insurance component of IUL policies, you need to meet the insurance company’s underwriting criteria in order to qualify for the product. Additionally, many IUL policies don’t require a medical exam, which can save you some time overall.

Q: Can I afford Retirement Protection?

There are fees and expenses associated with any type of retirement planning vehicle, and retirement protection annuities and insurance products are no different.

When you work with The Life Insurance Safe Zone to explore retirement protection options, we’ll explain the fee structure of various products and answer any questions you have to help you make an informed decision.

Q: When should I buy Retirement Protection?

When you are saving for your retirement, the best time to buy retirement protection through annuities or life insurance is now.

Most people purchase an annuity before they reach retirement age. Annuity products often come with surrender charges for a period of time after making the initial purchase, so it’s important to understand how each policy you are considering treats withdrawals, especially in the early years of the contract.

Because an IUL policy has a life insurance component, the cost you pay will be based in part on your age at the time you purchase the policy. The younger you are, the more affordable the premiums are. This means you may be able to direct additional funds to the policy cash value to be used during your retirement.

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