Blog #152: Smart Alternatives to
Traditional Retirement Plans (Part 2 of 5)

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(Presentations in this blog were created using the InsMark Illustration System)

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The case study in this Blog involves an extension of Blog #150: Smart Alternatives to Traditional Retirement Plans (Part 1 of 5) in which we introduced a conversion of $600,000 in IRA funds to a Roth IRA coupled with Indexed Universal Life (“IUL”) in order to amplify retirement planning for Robert and Ann Baxter, both age 60.  The results were powerful as we were able to meet their annual retirement cash flow goal of $150,000 after tax -- indexed at 3.00% -- while also providing an increase of almost $4 million in their long-range net worth.  You can review the results below in one of the Wealthy and Wise® graphs from Blog #150:

Strategy 1: Status Quo - Keep the IRA
vs.
Strategy 2: Convert the IRA to a Roth IRA
vs.
Strategy 3: Convert the IRA to a Roth IRA and Add IUL
Image 1

Bob Ritter's blog 152 image-1-strategy-1-vs-strategy-2-vs-strategy-3

This was all accomplished without requiring any additional out-of-pocket cost to fund the income tax on the Roth conversion and the $70,000 of premium on the $951,000 of IUL.  These costs were covered using withdrawals from the Baxter’s taxable account.

Inherited IRA vs. Inherited Roth IRA

There is another significant aspect to this analysis involving a potential inheritance alternative that Robert and Ann can provide for their son, Scott, currently age 35.

For the purpose of this evaluation, let’s assume that Scott inherits either the IRA or the Roth (as calculated in Blog #150) at his age 65, 35 years hence.  Examine the huge difference below.

Comparison of Inherited IRAs
for Scott Baxter
InsMark Illustration System
Image 2

Bob Ritter's blog 152 image-2-comparison-of-inherited-IRAs

Click here to review the reports for this comparison.

Not only does the Roth add considerably to the parents’ net worth as described in Blog #150, it ends up providing Scott with over $11 million of after tax, retirement cash flow, a gain of $9.6 million over the Inherited IRA.

Click here for a discussion on obtaining the numbers necessary for the Image 2 comparison.

Conclusion

The next time you have parents considering a Roth conversion, be sure to bring the issue of inherited IRAs to their attention as it is truly a showstopper.  The impact on heirs of an Inherited Roth makes the original decision to convert to a Roth almost irresistible.

Afterthought

In Blog #151, we discussed the sales opportunities that a Trump presidency provides.

Let’s assume Donald Trump is able to convince the Republican-led Congress to reduce income tax brackets.  In that case, assume that Robert and Ann’s son, Scott, finds himself in a lower pre-retirement tax bracket; however, by the time he retires, the Democrats manage to hike his tax rate to 70%.  In this case, how does the Inherited IRA vs. Inherited Roth IRA comparison look?

Comparison of Inherited IRAs
for Scott Baxter
Retirement Tax Bracket: 70%
InsMark Illustration System
Image 3

Bob Ritter's blog 152 image-3-comparison-of-inherited-IRAs-retirement-tax-bracket

Wow!  After tax cash flow from the Inherited IRA is reduced by 57%.  Anyone want to guess which is more likely to occur – long-range increases or decreases in income tax rates?

Some in Congress (the Senate Committee on Finance) are now weighing the elimination of stretch IRAs to any one other than a spouse thereby requiring distributions over, say, five years. My friend, Gonzalo Garcia, CLU, Partner, AgencyONE, had an interesting comment about this in his January 12 Blog:

For years, we have heard “save for retirement, take advantage of the IRA deduction, take advantage of your employer’s 401(k) match” and for what? So that Congress can conveniently change the laws at their discretion to accelerate the taxes due.

Both Roth IRAs and cash value life insurance avoid this issue – but keep your powder dry as we may have to fight this battle in years to come.

 

InsMark’s Digital Workbook Files

If you would like some help creating customized versions of the presentations in this Blog for your clients, watch the video below on how to download and use InsMark’s Digital Workbook Files.

New Zip File Downloaders
Watch the video.

Digital Workbook Files For This Blog

Blog152.zip

Download all workbook files for all blogs

Experienced Zip File Downloaders Download the zip file, open it, and double click the Workbook file name to open it in your InsMark System.

Note:  If you are viewing this on a cell phone or tablet, the downloaded Workbook file won’t launch in your InsMark System.  Please forward the Workbook where you can launch it on your PC where your InsMark System(s) are installed.

If you obtain the digital workbook for Blog #152, Click here for a guide to its content.

 

Licensing InsMark Systems

To license any of the InsMark software products, visit our Product Center online or contact Julie Nayeri at Julien@insmark.com or 888-InsMark (467-6275).  Institutional inquiries should be directed to David Grant, Senior Vice President – Sales, at dag@insmark.com or (925) 543-0513.

For help on how to use InsMark software, go to The Quickest Way To Learn InsMark.

InsMark’s Referral Resources
(Put our Illustration Experts to Work for Your Practice)

We created the Referral Resources listed below to deliver a “do-it-for-me” illustration service in a way that makes sense for your practice.  All are IMOs and InsMark Agency Platinum Power Producers®, and they are highly skilled at running InsMark software.  They will utilize your choice of insurance company, and they do not require a commission split.

Mention my name when you talk to our Referral Resources as they have promised to take special care of my readers.  My only request is this: if a Referral Resource helps you get the sale, place at least that case through them; otherwise, you will be taking unfair advantage of their generous offer to InsMark licensees.

Save time and get results with any InsMark illustration!

Testimonials

“The InsMark software is indispensable to my entire planning process because it enables me to show my clients that inaction has a price tag.  I can’t afford to go without it!”
David McKnight, Author of The Power of Zero, InsMark Gold Power Producer®, Grafton, WI

“InsMark provides incredible tools to give clients a visual of how they can optimize their wealth.  It’s great for deciding which road to go down.”
Jim Heafner, MBA, CFP, Heafner Financial Solutions, Inc., Charlotte, NC

"InsMark has important marketing information for every one of the producers in my firm — from the newly licensed to the veteran producer."
Gary Curry, President and CEO, ORBA Insurance Services Inc., InsMark Platinum Power Producer®, Gold River, CA

 

Important Note:  The information in this Blog is for educational purposes only.  In all cases, the approval of a client’s legal and tax advisers must be secured regarding the implementation or modification of any planning technique as well as the applicability and consequences of new cases, rulings, or legislation upon existing or impending plans.

“InsMark” and Wealthy and Wise are registered trademarks of InsMark, Inc.

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More Recent Blogs:

Blog #151 – The Trump Presidency: How It Will Impact the Sale of Life Insurance Retirement Plans

Blog #150: Smart Alternatives to Traditional Retirement Plans (Part 1 of 5)

Blog #149: New Technology That Creates Radical Opportunities

Blog #148: More New Logic for Permanent vs. Term (Part 3 of 3)

Blog #147: New Logic for Permanent vs. Term (Part 2 of 3)

 

3 Reasons Why It’s Profitable For You To Share These
Blog Posts With Your Business Associates and
Professional Study Groups (i.e. “LinkedIn”)

 

Robert B. Ritter, Jr. Blog Archive

 

Blog #135: Merging College and Retirement Planning

(Click here for Blog Archive)
(Click here for Blog Index)

(Presentations in this blog were created using InsMark Illustration System and Wealthy and Wise®.)

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Bob Ritter's blog #135 merging college and retirement planning

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Jennifer Haven, age 45, is an author of popular detective novels.  She is vitally interested in supplementing her personal retirement income beyond what can be provided by her $18,000 annual deposit into her Solo 401(k) plan (see Blog #131 for details of such plans).  She is recently divorced and has custody of her daughter Kelsie, age 7.

Jennifer has two primary financial goals:

  • Funding for Kelsie’s college tuition at age 18: $40,000 a year for four years;
  • Annual, spendable, retirement cash flow for herself starting at age 65: $180,000 indexed at 3.00% as an inflation offset.

There are approaches for Jennifer illustrated in this Blog, each one using $1,320,000 of Indexed Universal Life (“IUL”) max-funded with five premiums of $50,000.

First is a simple illustration of values with policy loans producing tax free college funds and retirement cash flow.  The graphic below shows the effect of this approach:

Image 1
Indexed Universal Life

blog-135-image-1-indexed-universal-life

Click here to review the year-by-year numbers of the illustration.

It is a good presentation of the IUL’s current values - but compared to what?  Most prospects and clients make far better decisions by comparing alternatives.  If you don’t show them, your client may look elsewhere.

To address this issue, we’ll compare the policy to the following financial alternatives -- all with the same deposit pattern as the IUL and matching the after tax college funds and retirement cash flow of the IUL:

  • Tax exempt account (4.00% yield);
  • Tax deferred account (7.00% yield);
  • Equity account (7.00% growth; 2.00% dividend).

The graphic below summarizes the results:

Image 2
Various Financial Alternatives (VFA)

blog-135-image-2-various-financial-alternatives

Click here to review the year-by-year numbers of this comparison.  VFA is certainly a more effective presentation than just the policy illustration shown in Image 1.  While powerful, the IUL needs context to be most effective.  What is missing is a comprehensive integration of the IUL within Jennifer’s overall net worth and cash flow goals.

Below is a summary of her current net worth.

Net Worth
Jennifer Haven

blog-135-img-4-net-worth-yield-growth-assumptions

Click here for comments regarding yield, growth, and Monte Carlo simulations.

Next is a Wealthy and Wise analysis including both a pre- and post-retirement evaluation of goals versus available assets to meet those goals:

  • Strategy 1 is Jennifer’s current assets meeting her two goals of college funds for Kelsie’s tuition and retirement cash flow for herself.
  • Strategy 2 duplicates Strategy 1 plus the addition of the values from the IUL policy featured in Image 1 and Image 2.  The source of the IUL’s five $50,000 premiums are withdrawals from her assets not an out-of-pocket expense she has to absorb, a major difference from the perception of premium cost she has with Image 1 and Image 2.  Strategy 2 also includes a conversion of her Solo 401(k) to a Solo Roth 401(k) spread over 16 years to minimize the tax bite.  (The conversion taxes are also funded by withdrawals from her asset base.)

Below is the graphic summary comparing Strategy 1 with Strategy 2.

Image 3
InsMark Wealthy and Wise® Analysis

blog-135-image-3-InsMark-Wealthy-and-Wise-Analysis-net-worth-cash-flow

The inclusion of the IUL and the Roth in Strategy 2 produces over twice the long-range net worth as Strategy 1.  It is still increasing while Strategy 1 is in a death spiral.  Note again that this increase does not require Jennifer to pay the IUL premiums out-of-pocket; they are withdrawn from her asset base with values of the IUL more than replacing them.  For both Strategies, we used InsMark’s unique Max Net Worth™ algorithm to establish which assets are the most efficient to use for both college and retirement cash flow.

Note: Jennifer’s life expectancy is age 83.  I ran this analysis for 45 years to her age 90 to make sure there are sufficient assets to provide her cash flow requirements past age 83.  (Don’t forget, life expectancy means half that age group is still alive at life expectancy.)  The reason I illustrated the Wealthy and Wise analysis only to age 90 is that so much of her remaining net worth in Strategy 1 (the current retirement plan) at that point is made up of illiquid assets that Jennifer’s retirement cash flow from Strategy 1 will shortly fall below $100,000, reason alone to discard Strategy 1 as an option.

Below is a graphic of Jennifer’s Strategy 1 net worth at age 90:

Image 4
InsMark Wealthy and Wise® Analysis
Strategy 1 - Net Worth at Age 90

blog-135-image-4-strategy-1-net-worth-at-age-90

With only $595,276 of liquid assets remaining in her retirement plan, it is barely enough for one more year’s after tax cash flow.

Below is an alternate graphic of Jennifer’s Strategy 2 net worth at age 90:

Image 5
InsMark Wealthy and Wise® Analysis
Strategy 2 - Net Worth at Age 90

blog-135-image-5-strategy-2-net-worth-at-age-90

Image 5 shows substantial liquid assets remaining with Strategy 2.  With Jennifer’s life expectancy of age 83, is cash flow through age 90 a good enough cushion?  Maybe; maybe not.  Why take the chance if a longer duration is needed?  The 3.00% indexing of her $180,000 of after tax cash flow has grown to $354,000 by age 89, and there are sufficient liquid assets remaining for similar growth thereafter.  Strategy 2 means she can thrive financially well past age 100.

Would Jennifer be better off converting her 401(k) to a Roth as part of Strategy 1?

Click here for that analysis.

Image 5
InsMark Wealthy and Wise® Analysis
Strategy 2 - Net Worth at Age 90

blog-135-image-5-strategy-2-net-worth-at-age-90

Strategy 2 also means more of an inheritance for Kelsie as you can see below:

Image 6
InsMark Wealthy and Wise® Analysis

blog-135-image-6-wealth-to-heirs

Conclusion

Strategy 2 is all good news for Jennifer and Kelsie.

Details of the Analysis

Click here to review the detailed reports in the Wealthy and Wise analysis of Strategy 1 vs. Strategy 2.  The important pages are the first six, and most everything after that is necessary backup.  There are 103 pages in the file.  That is lot to review, but the reason I included them all is to emphasize the need for backup so, when a client’s CPA or attorney asks, “Where did this number come from?”  you will be in a position to show its specific source because every number produced in Wealthy and Wise is backed up in detail.

Maybe Bad News for Some

The bad news for some of you is that a comprehensive analysis like this requires you to gather all of a client’s financial data.  Many of you are used to doing this.  For those of you who are not so comfortable with it, how do feel about asking a prospective client to reveal complete details of financial data?  Clearly, you have to earn a prospective client’s trust to do that.

My suggestion for the best way to gain that confidence is to share examples of how this concept works for others -- this Blog, for example, highlighting the Comparison graphics -- or similar graphics you prepare on your own perhaps with help from an InsMark Referral Resource (more on this below).  We promise you will get a ‘Wow” reaction from most prospective clients.

Questions and Answers

Q.  How difficult is it to gather financial data from prospective clients?

A.  There are typically only two reasons why you can’t get information about financial assets/benefits from what appear to be valid prospects: 1) they don’t trust you (yet) or 2) they don’t have very much in reserve and are embarrassed about it.  Two couples, both of whom appear affluent, may be in quite different financial shape.  You can’t easily spot those in the latter category who are often high livers and spenders but swamped in debt.  Pressing for financial data can often uncover those who aren’t financially sound.

And if you can’t develop a trusting relationship with valid prospective clients, you’ll never get them to reveal very much of their financial data.  A Fact Finder is available in Wealthy and Wise to guide you in your data gathering (see Tools on the main menu bar).  The Fact Finder is best filled out with the client’s active participation.

At first glance the Fact Finder may look intimidating, but on most pages, you will be entering data in only a few of the listed categories.  To acquaint yourself with it, try filling one out for your own situation.  Then, if you enter your data in your copy of Wealthy and Wise -- you may be pleasantly surprised.

Q:  Should college funding always be included in a retirement analysis?

A:  Yes, assuming the parents are involved in paying all or some of the costs.  They are a drain on retirement funds and should be accounted for.

Q:  Why were policy loans used on the IUL for the $40,000 a year for Kelsie’s college tuition funding?

A.  I wanted to use the arbitrage leverage of participating policy loans available with the IUL.  (See Blog #52 for a comparison of participating vs. fixed policy loans.)

Q.  Is cash flow from Social Security always included?

A.  Only if clients believe it will be available based upon their sense of the government’s financial ability to pay it.  In Jennifer’s case, she wanted it included.  Wealthy and Wise includes an after tax Social Security calculator available on any of the arrays on the Expected Cash Flow tab.

Q.  How can a Wealthy and Wise evaluation be reliably projected so far into the future?

A.  It can’t be reliably projected if you perceive retirement planning as a “one and done” analysis.  To be a dependable adviser to your clients, you must meet with them at least once a year and bring all the data current.  Each year represents a fresh look at the future, and this is what turns prospects into clients, not just policyholders.  If you follow this procedure, soon your clients won’t make a significant financial move without asking you to run it through Wealthy and Wise.  Otherwise, changes in finances will make your original evaluation obsolete, and you will lose clients to other advisers.

This approach also gives you a good basis for charging an annual monitoring fee for the analysis.  If you can develop fee revenue from clients who are glued to you for service, it has a significant impact on the value of your practice.  These days, recurring revenue is hard to develop, and monitoring fees are an excellent way to do so.  Blog #98 covers this issue in detail including how to include such fees within a presentation so they are paid for out of plan assets not by addition out-of-pocket costs by the client.  Be sure to check with compliance if you are considering monitoring fees.

If you prefer a “one and done” solution, comprehensive retirement planning is not for you.  That is not to say there isn’t plenty of opportunity for you -- just not in this field.

Q:  What if there are not sufficient assets and benefits to produce the desired cash flow?

A:  This will occur, and when it does, your clients have several options, and Wealthy and Wise can deal with any of them:

  • Commit more to savings and investments;
  • Defer including inflation on desired cash flow;
  • Reduce the amount of desired cash flow;
  • Reduce the number of years of desired cash flow;
  • Defer the starting date for desired cash flow;
  • Manage assets more aggressively.

Reducing cash flow goals doesn’t necessarily mean there will always be a shortage.  Each year as you develop the annual review, add back some of what’s missing, typically by committing more to IUL.

Licensing InsMark Systems

To license the InsMark Illustration System or Wealthy and Wise, visit us online or contact Julie Nayeri at julien@insmark.com or 888-InsMark (467-6275). Institutional inquiries should be directed to David Grant, Senior Vice President - Sales, at dag@insmark.com or (925) 543-0513.

 

InsMark’s Digital Workbook Files

If you would like some help creating customized versions of the presentations in this Blog for your clients, watch the video below on how to download and use InsMark’s Digital Workbook Files.

New Zip File Downloaders
Watch the video.

Digital Workbook Files For This Blog

Blog135.zip

Download all workbook files for all blogs

Experienced Zip File Downloaders Download the zip file, open it, and double click the Workbook file name to open it in your InsMark System.

Note:  If you are viewing this on a cell phone or tablet, the downloaded Workbook file won’t launch in your InsMark System.  Please forward the Workbook where you can launch it on your PC where your InsMark System(s) are installed.

 

InsMark’s Referral Resources
(Put our Illustration Experts to Work for Your Practice)

We created the Referral Resources listed below to deliver a “do-it-for-me” illustration service in a way that makes sense for your practice.  All are IMOs and InsMark Agency Platinum Power Producers®, and they are highly skilled at running InsMark software.  They will utilize your choice of insurance company, and they do not require a commission split.

Mention my name when you talk to our Referral Resources as they have promised to take special care of my readers.  My only request is this: if a Referral Resource helps you get the sale, place at least that case through them; otherwise, you will be taking unfair advantage of their generous offer to InsMark licensees.

Save time and get results with any InsMark illustration!

Testimonials

“The reason I use InsMark products is because they are so good at explaining financial concepts to all three parties: 1) the producer trying to explain the idea; 2) the computer technician trying to illustrate it; 3) the customer trying to understand it.”
Rich Linsday, CLU, AEP, ChFC, InsMark Power Producer®, Top of the Table, International Forum, Pasadena, CA

“InsMark is the Picasso of the financial services world – their marketing savvy never fails to amaze me.”
Doug Peete, Past President, Top of the Table, InsMark Silver Power Producer®, Overland Park, KS

“The InsMark software is indispensable to my entire planning process because it enables me to show my clients that inaction has a price tag.  I can’t afford to go without it!”
David McKnight, Author of The Power of Zero, InsMark Gold Power Producer®, Grafton, WI

 

Important Note #1:  The hypothetical values associated with this Blog assume the nonguaranteed values shown continue in all years.  This is not likely, and actual results may be more or less favorable.

Important Note #2:  Many of you are rightly concerned about the potential tax bomb in life insurance that can accidentally be triggered by a careless policyowner.  Click here to read Blog #51: Avoiding the Tax Bomb in Life Insurance.

Important Note #3:  The information in this Blog is for educational purposes only.  In all cases, the approval of a client’s legal and tax advisers must be secured regarding the implementation or modification of any planning technique as well as the applicability and consequences of new cases, rulings, or legislation upon existing or impending plans.

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More Recent Blogs:

Blog #134: Best Strategy for an IRA (Part 2 of 2)

Blog #133: Best Strategy for an IRA (Part 1 of 2)

Blog #132: The Calculation Magic of Wealthy and Wise®

Blog #131: Don’t Burn the Nest Egg™

Blog #130: Should I or Shouldn’t I?

 

3 Reasons Why It’s Profitable For You To Share These
Blog Posts With Your Business Associates and
Professional Study Groups (i.e. “LinkedIn”)

 

Robert B. Ritter, Jr. Blog Archive

 

Blog #131: Don’t Burn the Nest Egg™

(Click here for Blog Archive)
(Click here for Blog Index)

(Presentations in this blog were created using the InsMark Illustration System.)

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Bob Ritter's blog #131 Dont-Burn-the-Nest-Egg

“Don’t Burn the Nest Egg” is a trademark of InsMark, Inc.

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Andy MacGregor is the managing member of MacGregor Cars, LLC, a luxury car search company for upscale clients.  The LLC has no other members or employees.

Andy, age 40, is about to install what he considers the beginning of his “nest egg”, an Individual 401(k) -- also known as a Solo 401(k) -- with a $50,000 annual, deductible contribution.  In his 40% marginal state and federal tax bracket, it will cost him $30,000 to make the $50,000 contribution.

According to Investopedia, a nest egg is a substantial sum of money that has been saved or invested for a specific purpose and is generally earmarked for longer-term objectives, the most common being retirement.

Andy’s nest egg would be significantly better-funded if the after tax cost of the $50,000 contribution to the 401(k) -- $30,000 in his case -- were placed in max-funded indexed universal life (“IUL”).  The proof of this follows.

“Nest egg” has referred to savings since the late 17th century.  The term is believed to have been derived from poultry farmers’ tactic of placing eggs - both real and fake - in hens’ nests to induce them to lay more eggs, which meant more income for these farmers.

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The Mathematics

Below is a graphic of the results of the IUL.

Image 1
Indexed Universal Life

blog-131-Image-1-Indexed-Universal-Life

Click here to review the full IUL illustration from the InsMark Illustration System.

A Solo 401(k), however, is a tax deferred investment, so let’s match that against the IUL using the same crediting rate of 7.00% as the IUL.  Below is a graphic of the customized comparison from the Other Investments vs. Your Policy module in the InsMark Illustration System:

Image 2
Solo 401(k)
vs.
Indexed Universal Life

blog-131-Image-2-Solo-401K-vs-Indexed-Universal-Life

Click here to review the full comparison of a Solo 401(k) vs. IUL.  As you can see on Page 3.  the Solo 401(k) crashes and burns at Andy’s age 85 which is another good reminder for your clients -- Don’t Burn the Nest Egg™.

As you can see on Page 4, Andy needs an annual, pre-tax equivalent rate of return of 9.04% on the Solo 401(k) to match the long-range values of the IUL.  That’s 204 basis points more than the 7.00% illustrated for the IUL.

Roth Solo 401(k)

A Roth Solo 401(k) is also an available option for Andy.  His non-deductible annual contribution for 2016 for this plan is limited to $18,000 so let’s compare that with an $18,000 annual premium for the IUL.  As the analysis below proves, any funds considered for the Roth Solo 401(k) should be directed to IUL.

Image 3
Roth Solo 401(k)
vs.
Indexed Universal Life

blog-131-Image-3-Roth-Solo-401-K-vs-Indexed-Universal-Life

Click here to review the full comparison of a Roth Solo 401(k) vs. IUL.  Andy needs a rate of return of 8.96% on the Roth Solo 401(k) to match the long-range values of the IUL.

Conclusion

Comparing the after tax costs of funding and the after tax retirement cash flow, IUL is significantly better than any of the following retirement plans:

  • IRA;
  • Roth IRA;
  • Keogh;
  • 401(k);
  • Solo 401(k);
  • Roth Solo 401(k);
  • 457 plan;
  • Profit sharing plan.

Other Important Advantages to the IUL

Unlike the alternative retirement plans noted above:

  • IUL provides a significant death benefit for Andy’s family in all years.
  • IUL requires no complex client calculations to establish the funding level because there are no contribution limits to IUL.
  • Waiver of premium can be attached to IUL in the event of disability.
  • There is no 10% premature distribution tax on cash flow from IUL.
  • Tax free loans can be taken from the IUL with no IRS limits or payback requirements.
  • IUL can maintain its “Nest Egg” qualities throughout the years illustrated.

The Challenge

Total U.S. retirement assets are close to $30 trillion.  Are you getting your share of contributions to those plans redirected to IUL?  An entire career could be based on this project.

Life insurance has been traditionally viewed as “expensive”, but the client’s perception is markedly different when the results shown in this Blog are achieved.  Once again, here is Bill Boersma’s comment from his article in the December 2014 issue of Trusts & Estates in which he discusses life insurance as an asset class:

“I can only wonder if another asset with the same qualities would be implemented more frequently if it wasn’t called life insurance.”

IUL vs. Defined Contribution Plans

Below are links to other Blogs on this general subject that may be of interest to you:

Note:  These links are easily found in the Blog Index which is a resource you should use to identify Blogs on specific subjects that interest you.  To identify the ones listed above, I selected Blogs By Sales Concept followed by Retirement Planning and Wealth Management.

Licensing InsMark Systems

To license the InsMark Illustration System, visit us online or contact Julie Nayeri at julien@insmark.com or 888-InsMark (467-6275).  Institutional inquiries should be directed to David Grant, Senior Vice President - Sales, at dag@insmark.com or (925) 543-0513.

 

InsMark’s Digital Workbook Files

If you would like some help creating customized versions of the presentations in this Blog for your clients, watch the video below on how to download and use InsMark’s Digital Workbook Files.

New Zip File Downloaders
Watch the video.

Digital Workbook Files For This Blog

Blog131.zip

Download all workbook files for all blogs

Experienced Zip File Downloaders Download the zip file, open it, and double click the Workbook file name to open it in your InsMark System.

Note:  If you are viewing this on a cell phone or tablet, the downloaded Workbook file won’t launch in your InsMark System.  Please forward the Workbook where you can launch it on your PC where your InsMark System(s) are installed.

 

InsMark’s Referral Resources
(Put our Illustration Experts to Work for Your Practice)

We created the Referral Resources listed below to deliver a “do-it-for-me” illustration service in a way that makes sense for your practice.  All are IMOs and InsMark Agency Platinum Power Producers®, and they are highly skilled at running InsMark software.  They will utilize your choice of insurance company, and they do not require a commission split.

Mention my name when you talk to our Referral Resources as they have promised to take special care of my readers.  My only request is this: if a Referral Resource helps you get the sale, place at least that case through them; otherwise, you will be taking unfair advantage of their generous offer to InsMark licensees.

Save time and get results with any InsMark illustration!

Testimonials:

“The reason I use InsMark products is because they are so good at explaining financial concepts to all three parties: 1) the producer trying to explain the idea; 2) the computer technician trying to illustrate it; 3) the customer trying to understand it.”
Rich Linsday, CLU, AEP, ChFC, InsMark Power Producer®, Top of the Table, International Forum, Pasadena, CA

“Thanks to InsMark, we recently set business goals in our firm that I basically thought were ridiculously unachievable - until now.”
Brian Langford, InsMark Platinum Power Producer®, Plano, TX

“InsMark is an absolutely mind blowing experience.”
Larry Gustafson, InsMark Platinum Power Producer®, Denver, CO

 

Important Note #1:  The hypothetical life insurance illustrations associated with this Blog assumes the nonguaranteed values shown continue in all years.  This is not likely, and actual results may be more or less favorable.  Actual illustrations are not valid unless accompanied by a basic illustration from the issuing life insurance company.

Important Note #2:  Many of you are rightly concerned about the potential tax bomb in life insurance that can accidentally be triggered by a careless policyowner.  Click here to read Blog #51: Avoiding the Tax Bomb in Life Insurance.

Important Note #3:  The information in this Blog is for educational purposes only.  In all cases, the approval of a client’s legal and tax advisers must be secured regarding the implementation or modification of any planning technique as well as the applicability and consequences of new cases, rulings, or legislation upon existing or impending plans.

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More Recent Blogs:

Blog #130: Should I or Shouldn’t I?

Blog #129: Leveraged Executive Bonus Plan with Bank-Funding of the Income Tax (Part 3 of 3)

Blog #128: Leveraged Executive Bonus Plan with Bank-Funding of the Income Tax (Part 2 of 3)

Blog #127: Leveraged Executive Bonus Plan with
Bank-Funding of the Income Tax (Part 1 of 3)

Blog #126: The Leverage of Bank-Funded Estate Liquidity

 

3 Reasons Why It’s Profitable For You To Share These
Blog Posts With Your Business Associates and
Professional Study Groups (i.e. “LinkedIn”)

 

Robert B. Ritter, Jr. Blog Archive