What Does a Retirement Income Plan Do?

Since employers no longer offer lifetime pensions, a Retirement Income Plan of your own is the perfect investment if you are looking for income, growth and safety.  Depending on your personal situation you can choose from options that provide guaranteed lifetime income, no risk growth and some offer double the income when the time comes for nursing home care.

• Funding - of plans can be via lump sum or periodic payments over time.
  
  
• Investment Options - vary from guaranteed returns, equity indexing, variable and now even hybrid plans where you are able to choose your level of market exposure based on performance each year.
  
  
• Death Benefit - to pass estate funds and income to our spouse/children when we pass.
  
  
• 401k Rollover - Retirement Income Plans are also the perfect place to rollover your ex-employer 401k plans too.  Not only do they have less fees eating into your retirement, but their indexing and guaranteed minimum returns will see your money grow much faster too.
  

Your NEW Life Insurance Income Options

As result, life insurance companies came to the rescue and have built new modern life insurance plans for the living instead - with the following benefits:

• You don't pay taxes on growth or principal ever - this is 100% legal if your policy is set up and funded correctly according to the IRS tax code.
  
  
• Positive growth is guaranteed every year regardless of stock market fluctuation. Historical returns have averaged 5-7% per year net, tax free. Plus lifetime average fees and costs are much less than for mutual funds and portfolios under management.
  
  
• Your account is guaranteed not to go backwards. Gains are locked in when the market goes up and your account bears no loss when the market goes down.
  

• Your money is available when you need it. You can take money out any time you want - for any reason - without penalty - while 100% continues to earn growth and interest.
  
  
• The money you take out is not income and therefore not taxable. And you can use it for whatever you like, whenever you like.

vs Tax-Deferred 401k or IRA

• You must pay taxes - usually when you take income in the future - on the larger amount, meaning more for the IRS.
  
  
• Your money isn't liquid - if you do need to take a hardship withdrawal before 59.5 you'll be heavily penalized.
  
  
• You are limited in how much you can invest via annual funding limits and in many cases based on how much others in your company invest.
  
  
• Your money is not guaranteed. It may increase with the markets, but will also accordingly decline when markets fall. Remember that a 50% drop requires 100% growth, just to get back to where you were before the drop.
  
  
• You are required to report earnings to the IRS. Everything in a 401K or IRA is uncle Sam's business.
  

Why Hasn't My Financial Advisor Told Me About These?

• Most financial advisors don't know accounts like this exist, or if they do - how to set them up to be legally tax-free for the account holder.
  
  
• Most financial advisors recommend financial vehicles that the company they are contracted with, tell them to recommend.
  
  
• They don't want to take a pay cut. In IRAs and 401Ks, advisors are paid fees and commissions on the deferred tax liability as well as the investment, which increases your investing cost. Income Retirement Plans and Cash Value Life Insurance policies if set up correctly will have lower total lifetime fees and lower commissions. Also the best advisors will select the plans with the lowest fees to provide for greater retirement income for you.
  
  

As a result, less than 0.07% of Americans have what we call a compound interest account set up – while more than half the population has a taxable 401K or similar tax deferred retirement account.