Did you know that your life insurance can double as a tax-free retirement account? Nunes Partners offers indexed universal life insurance plans that allow you to save for retirement without placing funds in the stock market. We’ll help you plan for your future, while protecting your family in case of tragedy.
At Nunes Partners, we’ve worked with 1099 contractors who need to start saving for retirement and individuals looking for alternatives to their employer-sponsored 401k. Whether you want to use your retirement to travel or relax with your grandkids, we’ll help you meet your financial goals. If an IUL policy isn’t right for you, we can discuss other options. Our mission is to provide employers, families, and individuals alternatives to the traditional healthcare and retirement models, so we’ll work with you to find the best solution.
Using an IUL for retirement works similarly to a Roth IRA. You’ll be paying a monthly premium based on the size of your life insurance policy. Part of that premium will go toward administrative fees and your death benefit, but the rest goes into a cash value account. The cash value account will grow over time, but since you already paid income tax on that money, any interest that it accrues will be tax-free. When you turn 65, you can turn that cash value account into a steady stream of retirement income, while keeping your death benefit in place.
Benefits of IULs include greater flexibility and the ability to withdraw funds early without being penalized. With an IRA or 401k, there are heavy tax penalties for withdrawing funds before you reach retirement age. IULs, however, let you withdraw cash tax free up to the amount that you’ve accrued in the plan. You can even borrow against the money in your IUL to help you purchase a home, business, or new car. IULs allow you to prepare for the future, but still have access to your savings in case of emergency.
IULs are also a great option for savings accounts. IULs are tied to a stock market index, so they will accrue much higher interest rates than a traditional savings account—sometimes as high as 12%! They also have a floor of 0%, so if the stock market performs poorly or crashes, you may stop accruing interest, but you won’t lose money.
You may also want to consider an IUL for your child’s college savings account. Though it may seem odd to take out a life insurance policy for your child, an IUL will give them more options for their future.
Unlike other college savings accounts, IUL funds don’t have to be used for college. If your child decides not to get a 4-year degree or go to trade school, they can use the money for a wedding or to buy a house. IUL funds also don’t need to be reported for FAFSA, so your child will still be eligible for financial aid. They’ll also have built-in life insurance and a start on their retirement savings.
If you have questions about IULs or other retirement options with Nunes Partners, contact us today. We can help you financially prepare for your future and live the life you want.
