Retirement Planning

Safe Retirement Plans
The many uses of annuities in retirement

There are many categories of annuities.
Things we consider in making our recommendations:

  • Filling the need for a “self-funded pension” to create a guaranteed retirement income stream
    • Lottery winnings and Pension Plans that each pay lifetime income benefits are paid using annuities! We can create one for you!
  • Primary purpose – Growth & Accumulation, Income (deferred or immediate), Long-term care use or Legacy
  • Nature of pay-out commitmentfixed periodfixed amount, or lifetime (for single person or for joint payments)
  • Tax statusqualified or nonqualified
  • Premium payment arrangement – single premium or flexible premium

Tax-Free Retirement Account (TFRA)

Indexed Universal Life Insurance Policies (IUL)

  • Indexed Universal Life (IUL) insurance policies issued by insurance companies combine the best aspects of the whole life and variable life insurance.
  • The main distinguishing feature of this type of life insurance is that it allows you to invest the cash value in index options that follow the movement of an index, such as the Dow Jones Industrial Average and the S&P 500.

Benefits of Indexed Universal Life Insurance

  • You can earn a credited interest rate that is higher than traditional cash-value policies, without subjecting yourself to unnecessary risk.
  • Just like any permanent life policy, equity indexed universal life insurance provides the cash value element. The difference is that here you have the option to participate indirectly in the upward movement of a stock index without the downside risk associated with the stock market. The interest in the cash values increases based on the upward movement of a stock index.
  • Indexed universal life offers several tax advantages: death proceeds are not subject to tax at death; cash values build up tax-deferred and you can (if properly designed) usually access funds tax-free for education, retirement, or other purposes.
  • With indexed universal life policies, we like to say Zero is the Hero! Because 0% is the worst year you can have. You can never suffer a loss, like in the stock market! Some insurance companies even offer a guarantee of a minimum interest rate for a gain each year.

How an IUL policy works

  • IUL policies feature a flexible premium and a cash value side fund.
  • When premiums are paid into the policy, the insurance company invests the premiums.

Taxation of IUL policies

  • IUL policies are life insurance policies, which have generally received favorable tax treatment from Congress.
  • Cash Value of the policy grows tax-deferred
  • Access to cash value is generally tax free at any time, provided the policy remains in force.
  • No income tax or capital gains tax on loans against in force policies
  • No 10% penalty on proceeds received prior to age 59-1/2


  • TFRAs using IUL policies have favorable tax treatment
  • No restrictions on what the cash value can be used for
  • Provide a tax-free cash death benefit for the policy beneficiary in the event of the death of the insured.
  • The cash value in an IUL policy generally receives some creditor protection, depending on the state, and does not count against the family for the purposes of determining need-based financial aid for college.
  • No annual contribution limits, like there are in Qualified retirement plans like 401(k), 403(b), Traditional & Roth IRAs, etc.
  • TFRAs using IUL policies have become popular savings vehicles for many individuals, especially those who earn too much to qualify for retirement accounts, such as IRAs or 401ks, or who have maximized allowable contributions.
  • IUL policies do provide some safety of capital, because the policy owner is guaranteed a minimum crediting rating.

One very important note: These policies are not your grandfather’s permanent life insurance and have got to be set up properly and used properly in order to receive the maximum benefits from them. This requires the guidance of a knowledgeable, licensed and trained financial professional! Not all Financial Professionals know how to do this the right way.

Call us today to see how we can help!
(904) 657-0896