Preferred Retirement
SOLUTION
It's the kind of preferential treatment you want. Supplement your retirement income.
When it comes to retirement... we all want to dream big! If retirement savings alone aren't enough to make our retirement dreams a reality, then Preferred Retirement Solution can help.
Some life insurance policies have cash value you can access. Use it as collateral for a tax free bank loan to supplement your retirement income. Unlike traditional loans, the debt is repaid using the proceeds from the life insurance policy.
With the Preferred Retirement Solution, you redirect some of your money from taxable investments to pay the premiums for a permanent life insurance policy.
PUT THE PREFERRED RETIREMENT SOLUTION TO WORK FOR YOU
Save taxes and grow your assets
- By redirecting money from taxable investments into the life insurance policy, you pay less tax today and in the future.
- The funds within the insurance policy grow on a tax-advantaged basis
- Payments above the required premium can accelerate the growth of the value within the policy.
Enjoy your retirement
- You can apply for a Bank loan using the cash surrender value of the policy as collateral.
- A bank loan can supplement your retirement income with a tax-free dollars.
At death, the life insurance proceeds pay of the loan with the balance paid to the beneficiary.
THE PREFERRED SOLUTION
An example: Meet Brian and Kendra
- Brian and Kendra are both 43 years old
- They plan to retire at age 65
- They can put aside $22,000 each year for the next 15 years.
- At age 65, they need $30,000 a year to supplement their retirement income until age 85.
Their options are to use their taxable investments or use the cash value of a life insurance policy as collateral for a bank loan.
Which is the more tax-efficient solution?
Using participating whole life insurance as collateral for a tax-free bank loan, Brian and Kendra supplement their retirement income and create a significantly larger estate.
Benefits of Preferred Retirement Solution:
- Flexibility of deposits and withdrawals
- Tax free supplement retirement income
- Tax exempt growth of assets
- Tax free transfer to next generation
- Immediate estate creation
IT'S THE RIGHT SOLUTION FOR YOU IF …
- You have taxable investments.
- You want to reduce the taxes you pay.
- You want to supplement your retirement income.
- You want to leave money to your loved ones or charity.
- You have an up-to-date will.
" Borrowing to Invest: Using borrowed money to finance the purchase of securities involves greater risk than a purchase using cash resources only. If you borrow money to purchase securities, you have the responsibility of repaying the loan and all interest even if your investment doesn't perform. The use of borrowed funds will magnify losses in situations where the value of your investment declines."