No one likes paying taxes! In fact, most people would prefer to avoid paying taxes today at almost any cost. Many individuals place their money in a 401(k), IRA, SEP, or SIMPLE retirement accounts thinking they are saving taxes.
Do you want to know if qualified plans actually save taxes? Qualified plans do save taxes at the beginning, however, that is not the whole story. You have to look at the total picture to see which is the better option for retirement savings. How about fees, total income, total taxes and total benefit to your family?
What if you need money from your 401(k) before you are 59.5 years old You will have to pay taxes and a 10% penalty on this money. What if you take a loan from your 401(k) and then leave your company? The loan will typically be due in 2 months. This is your money. Why can’t you use it when you want without penalty?
An IUL will provide you with access to your money at any age without penalty and taxes, if structured correctly.
Watch the following video to see the numbers behind a qualified plan, such as a 401(k), compared to an indexed universal life insurance policy for your retirement savings.
Would you like to see how your numbers look in this same calculator? Schedule a short 15 minute appointment and we will put this report together for you with no obligation.