Why Indexed Universal Life Insurance Might Be the New 401(K)

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The Case for Indexed Universal Life Insurance as the New 401(k)

Investors are constantly looking for strategies to outperform the current inflation rate. That is why so many people are investing in indexed universal life (IUL) insurance policies to achieve their goals. This concept has evolved over time into a more competitive substitute for whole life insurance and 401(k)s.

This article will outline some of the critical factors you should consider when comparing these three investing approaches.

What distinguishes whole life insurance from IULs?

An IUL policy can be executed at a higher rate, typically around 7%—a figure chosen by the stock market—and with no cap on that money if done correctly. However, whole life policies typically have a fixed rate of around 3% to 4%.

This is how an IUL can consistently outpace inflation on any whole life policy.

How do various investments fare during a recession?

Two consecutive quarters of negative GDP growth mark a recession, and the United States would have been in one as of this past July.

How can you beat the recession now? First, you have to answer this question because the current inflation rate is 9.1%: What tools do you have to beat inflation? So many large corporations place a significant portion of their shares in life insurance. Why? because they are aware of the influence of compound interest.

Now is the perfect time for you, as a business owner, to ask yourself the following questions.

1. Who serves as my financial planner or advisor?

2. Am I confident I have all the modern instruments to surpass inflation over time?

3. Will it take me another 10 or even 20 years to make up for my losses from the previous 90 days? Or will I be able to recover those losses in the following three to four years?

If an IUL is adequately funded, you can recover the same amount considerably more rapidly than you might with a 401(k), which could take five to 10 years. That is a result of compound interest’s exceptional ability to outperform inflation.

When can an IUL be superior to a standard 401(k)?

A 401(k) is a tax code the IRS has provided to allow you to pay taxes on the harvest, not the seed. Under the Reagan Administration, the 401(k) plan was introduced in the 1980s as a tax haven and a place for wealthy CEOs to invest their money over time.

They discovered that you could get more tax refunds later in life and raise more money from the middle class if you persuaded the middle class to invest all of their money in 401(k)s.

While some would argue that the idea has become antiquated, this has developed into a well-known retirement savings strategy.

Life insurance offers several advantages compared to a 401(k).

Thanks to life insurance, you can assume that you’ll always have money flowing in, even if the market declines. Your money is secured at the interest rate decided upon when you purchase it. Your entire investment never has to experience a setback because of a market downturn.

The IUL model is more complicated as the stock market sets the rate. However, the cash worth of this investment can increase in value due to compound interest thanks to IRS tax regulation 7702.

With this option, you can obtain a tax-free lifetime retirement income and leave a death benefit for your children.

Contact Information:
Email: [email protected]
Phone: 2178542386

Bio:
Bill and his associates of Faith Financial Advisors have over 30 years’ experience in the financial services industry.
He has been a Federal Employee (FERS) independent advocate and an affiliate of PSRE, Public Sector Retirement Educators, a Federal Contractor and Registered Vendor to the Federal Government, also an affiliate of TSP Withdrawal Consultants.
Bill will help you understand the FERS Benefits and TSP withdrawal options in detail while also helping to guide you in your Social Security choices.
Our primary goal is to guide you into your ment with no regrets; safe, predictable, stable and for life using forward thinking ideas and concepts.

Bullet points:
> Financial Services consultant since 1984
> FERS independent advocate and an affiliate of Public Sector Retirement Educators (PSRE), a Federal Contractor and Registered Vendors to the
Federal Government
> Affiliate of TSP Withdrawal Consultants
> His goal is to guide individuals into retirement with safe, and predictable choices for stability using forward thinking ideas and concepts.