Invests $11.5K a year to get $100K+ tax free annually and leaves heirs more than a million!
Name: Kate B
Kate is a young single woman who wants to make sure she can take care of herself in retirement.
Kate works in the technology industry and earns $120K a year, including her annual bonus. When I met her, she had $40K on hand and wanted to save $11.5K a year. She wanted to retire at age 70.
When she called me she already owned an IUL, which she was not happy with. It had been sold to her by an ex-boyfriend who had also given her a copy of my book. After reading the book she called me with some questions. I answered her questions and explained why her current policy was not set up for retirement income.
Better Money Method Approach:
I showed Kate that instead of a making a low monthly payment to her IUL, what she really needed to do was invest her available $40K and her annual savings of $11.5K and invest it all in an IUL over the next four years.
So, over the first four years of her plan, Kate puts $25K a year into the IUL. This annual investment consists of the $40K she has on hand plus the $11.5K she saves each year. Then, starting in the 5th year, she invests $11.5K into the IUL every year until she is 69.
Between ages 38 and 69 Kate will invest a total of $380K. At age 70 she starts receiving $100K a year tax free. This level of income is equivalent to taking a $125K a year distribution from a 401(k) if distribution will be taxed at a rate of 20%.
If Kate only lives to age 80 she will have received a total of $1,354,800 tax free in income between age 70 and 80 for her original investment of $380,000 and she will leave her heirs a tax-free estate of $1,554,675.
If she lives to age 95 she will receive a total of $4,058,000 in tax free income between age 70 and 95. Again for her original investment of just $380,000. And she will leave a tax free estate of $1,226,700.
Contact me to find out if this approach can work for you too.