Live to work, or work to live? For most, it is neither, but rather a combination of passion around one’s work combined with love of family and a desire for time with them.
Retirement is rapidly approaching one-third of one’s life. Planning for those decades of living ensures that the years are comfortable from a financial perspective.
Doug McClure, CEO of Global Investment Strategies, describes it this way:
“We work our whole lives so we can comfortably enjoy the fruits of those labors in our retirement years. This requires planning to protect income and cash flow, and also to insure against the unforeseen and unexpected.
Life insurance is a flexible tool for protecting assets and income; for deferring taxes; and for protection in the event health issues or long term care issues arise.”
In terms of securing assets and income in retirement years, there are several solutions available:
LIFE INSURANCE SOLUTIONS
Traditional Term or Permanent Life insurance provides liquidity for an estate, or to enhance the estate for the beneficiaries. Life Insurance as part of an estate plan provides solutions to reduce taxation and provide liquidity to beneficiaries if taxes are owed.
Premium financing is used in several different solutions. This solution has been primarily used by large estate planning to eliminate the issue of gift taxes. More recently it has been used to front load life insurance policies to maximize the potential tax-free income desires of wealthy individuals.
Sum of Premium Increasing
Option one – Sum of premiums increases the death benefit by the amount of premium paid into the policy allowing for a significant transfer of wealth or liquidity to the beneficiaries. Option two – The less expensive Increasing Death Benefit Option increases the Death Benefit by the amount of cash value buildup in the policy.
Life Insurance Tax Free Retirement Solutions
This Life insurance solution provides tax free income from a Life Insurance policy. Cash value is built up tax deferred and by the method of loaning dollars from the owners, policy income is tax free.
Annuity Guaranteed Life Income Solutions
This annuity plan transfers the risk of outliving your money. The insurance company receives a single premium from the client. In return the Insurance company guarantee’s that for the life, no matter how old, an annual or monthly payment will be made to the owner no matter if there is any money left in the account.
Guarantee Annuity Income Stream Solutions
Life Insurance Retirement Plan (LIRP) – As a life insurance policy designed to take advantage of tax treatment of life insurance, it is suited for investors with high income, which may exclude them from participating in Roth IRAs. A LIRP can provide a long-term accumulation vehicle for supplemental retirement income. In addition, at your death, it offers a benefit to help replace lost income for those who depend on you.
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