What if there was such thing as a fund that is protected tax-free cash?
What if the fund could be used to supplement or replace your 401k retirement planning: used for your kids’ college fund; is protected from all creditors including the IRS; can be used by your family or business if you die; used anytime you want or need without penalty; or could serve any or all of the above functions?
What if you could sell it?
Did I mention that it’s tax-free?
Qualified vs non-qualified retirement plans
Do you understand the difference?
Would you rather be in charge of how much and when you contribute as well as how and when you can access you money or would you rather that be determined by the IRS?
A qualified plan is called what it is because it is qualified by the IRS and has rules that must be followed or there are penalties. For example: How much money can be put into it, when you can take money out without penalty, and more.
The trade-off is that as long as your money is in a qualified plan it’s not taxed. It’s not taxed until you take the money out.
Is that really a benefit?
Do you think the IRS “allows” this for your benefit?
A non-qualified plan does not have to adhere to those same rules. There are conditions but the conditions are clear. You can have several non-qualified plans and tailor them to your situation.
What if you could pay taxes on the money before putting it in the fund and never pay another penny in taxes on that money?
Would you rather pay taxes on the seed or the harvest?
Is it one of those self-directed retirement plans?
Is it a non-qualified pension plan?
You’re free to call it whatever you like. However, technically it can’t actually be called a retirement plan for a variety of reasons.
What is it you ask?
It’s called permanent life insurance.
It’s safe money.
Is there anything better?
What it costs depends on two main factors: Your health and your age.
Is your health likely to improve decline with age?
Are you getting older or younger?
The cost is also determined by the kind of policy you choose-universal life (UL) or whole life (WL).
There are different kinds of both.
If you’re willing to take some risk, universal life is the one you want.
If you want something that is completely 100% guaranteed, whole life is what you want.
Both have cost of insurance built into the premium and both have cash value. With universal life there are more moving parts which is why there is some risk involved.
Both allow for the flexibility to over-fund the policy with the overage going directly into the cash value, which can be accessed while alive.
In the end
After death, the plan completes itself by paying a tax-free death benefit to a named beneficiary.