In the past few decades, people have fallen prey to the myth that risking everything is far more valuable than safety, steady long-term growth and predictable income. Wall Street firms had much to gain by supporting this contrarian belief. Since the advent of the 401K, the stock market has almost quadrupled in total assets. This was a huge payday for Wall Street firms, but was just as much a loss for working class Americans. Prior to this, it is estimated that as much as 50% of people's savings went into High Cash Value Life Insurance.
The possible losses from market risk has to be taken into consideration. The larger this investment grows, the more you have to lose in a down market. In 2008 alone, the average employee lost 14% of their account's value. That may not seem like much to a young person just entering the workforce, but people that were near retirement and had more money invested, suffered a a disproportionate loss. Accounts for these individuals saw a 25% loss. This certainly affected some people's retirement and some either had to continue to work or accept less money during their retirement years.
In addition to market risk, tax risk could be even worse. With our National Debt on the rise, government spending, Social Security and Health Care costs, raising taxes is the only way for our government to to pay for pay for these costs. In addition to higher taxes, you will have less writeoffs and deductions. You will not have your mortgage interest, 401 tax deduction, or child credit/exemptions - inflation alone could bump you into a higher tax bracket. In coming years, taxes could consume as much as 50% of your income, or more.
It doesn't have to be this way...
America's large banks, corporations and super wealthy don't put their money where everyone else does. They use a wealth concept that has been able to stand the test of time, even during our country's most darkest hours. High Cash Value Life insurance is used for it's Tax-Free cash accumulation, liquidity and the Tax-Free, probate free death benefit.
An Indexed Universal Life (IUL) allows withdrawls of your money at anytime with no penalty, there are no losses in a down market and there are no RMD's (Required Minimum Distributions) to consider at age 70 1/2. Also, there is no maximum limit on the amount that can be contributed.
Only a professional should be trusted to assist you with properly structuring an Indexed Universal Life policy for Tax-Free Retirement. There are many ill-informed and untrained agents when it comes to this product. Selecting the appropriate death benefit, payment amount, indexing strategy are what make this the most powerful tool to build retirement income as well as leave a legacy for your family for generations to come.
Our agents at Family First Life are trained directly by our Annuity and Retirement Division and are skilled in this concept. Contact us today to meet with a professional that can show you how much money you can retire with, TAX-FREE!
Michael Pfeil
Licensed Agent
Family First Life
mpfeil@familyfirstlifemd.com
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