For most successful people, a financially secure retirement is a key goal. Unfortunately, relatively few options accumulate sufficient retirement funds in a tax-efficient way.
Traditional retirement accounts such as 401(k)s and IRAs offer the benefits of tax-deductible or pre-tax contributions and tax-deferred growth, but they also have annual contribution maximums. These limits may restrict affluent individuals from fully achieving their financial objectives.
Cash value life insurance can be a valuable means of saving additional funds for retirement. Premiums paid into permanent life insurance contracts can generate a cash value that grows tax-deferred. At retirement, tax-favored loans and withdrawals can be used to access the cash value, creating the cashflow to supplement other retirement income.
In addition, life insurance policies feature a death benefit that in most cases will be received income-tax-free by heirs. Certain exceptions may apply, and you should seek the advice of your professional advisor.
Cash value life insurance varieties include:
Some of these policies involve market risk, including the loss of principal. A properly licensed and qualified insurance professional can help determine the appropriate form of insurance to fit specific needs.
This material is intended for informational purposes only and should not be construed as legal or tax advice. It is not intended to replace the advice of a qualified attorney, tax advisor, or plan provider. © Copyright 2019 M Financial Group. All rights reserved. 2460156.1 Expires 03/2021