Life to The Fullest

Sean HarrisIncome, Legacy, Planning, Retirement

“Happiness is not something ready-made. It comes from your own actions”. I wish we could attribute that quote to ourselves, but it came from someone far wiser than us. Instead, we like to say, “Life is short. Plan to enjoy it,” same sentiment, right? The point is this: we often dedicate so much of our lives to fulfilling the obligations of living that we don’t leave any time to actually enjoy it. That’s the reason it’s so crucial to have a plan for your retirement. Once you reach that phase of your life, the majority of your obligations are behind you and your time is truly yours. But if you haven’t secured the necessary income, you won’t be able to use that time doing what you really want.

That’s where we come in. We’ve worked with hundreds of clients in Texas to secure the retirement income they need to achieve their target lifestyle beyond employment. We use a variety of investment vehicles to provide our clients with both retirement income and a legacy if they choose. One of these instruments is Indexed Universal Life Insurance (IUL). The reason we like IULs is because of their flexibility and greater opportunity to accumulate cash value relative to what people typically think of when they hear “life insurance” plan.

These policies are tied to a stock market index, but they are not subject to such wild fluctuation or high levels of risk. So, they provide the potential for growth based on market gains but, and here’s the kicker, they have a floor of zero which protects you if the associated target index takes a dive. You’ll typically receive interest credits for a significant portion of the upside of market performance, and that’s a small sacrifice for the security that IULs provide.

The second reason IULs are a wise endeavor is that, if structured appropriately, none of the gains you receive are subject to income tax or its little brother, capital gains tax. Yes, that’s right – IULs can be a source of completely tax-free growth in the cash value of your plan. Even retirement accounts are taxed prior to contributing or upon distribution which is a good reason to incorporate an IUL into your retirement investment portfolio.

The third big selling point from our perspective is leverage, and this is where the no-strings-attached flexibility of these policies comes in. Unlike a regular life insurance policy, you can use it for much more than just the death benefit. You have the option of advancing the death benefit through various accelerated benefit riders. For example, if you are diagnosed with a chronic illness, you can use it to supplement long-term care costs. And, if you’re diagnosed with a terminal illness, usually you can take the full death benefit and use it as you please.

The purpose of something like an Indexed Universal Life policy, as well as an overall retirement strategy, is to make sure you have the income you need to handle anything that life might throw at you. But it also provides peace of mind so you can take advantage of, and enjoy, your retirement years. If you want to explore your options for securing your retirement income, feel free to reach out to one of our advisors. We can help you build a solid, comfortable future. Because when it comes down to it, what are you doing with your life if not living it to the fullest?