Frequently Asked Questions

All about retirement


A. Permanent Insurance. One of the main purposes of a Life Insurance Retirement Plan is to provide tax-free income you can use during your lifetime. In order to do this, there must be a cash value available to pull money from.
The amount in the tax-deferred bucket is going to be a different number for everyone, but there are two things you are trying to accomplish, which can help you determine the amount you want in this bucket in retirement. First, required minimum distributions need to be lower than your standard deduction. Second, your provisional income should not cause your Social Security income to be taxed.
Not necessarily. If tax rates increase you may still be in the same, or higher, tax bracket with less income. Plus, in retirement you will have lost most of your deductions, which means you can make less gross income, but still have the same taxable income.
There are no contribution limits. The amount of money you put into the plan will be based upon your individual needs and circumstances.
You must take equal annual distributions from your tax-deferred bucket for 5 years or until age 59 ½, whichever is longer.
Probably not. When you convert all tax-deferred money in one year you are often faced with the same risk you are trying to eliminate – tax rate risk. A better option for most people is to convert over a period of 5 to 10 years so they can pay taxes on the conversion at a lower rate.
All of it. When you convert any tax-deferred assets into tax-free you must be willing to pay the taxes on the assets you transfer.
It depends. For real estate to work as a source of tax-free income the income from the investment cannot exceed your standard deduction and it can’t create provisional income.
Yes. Which is why you need to do your research and make sure you are setting up the right Life Insurance Retirement Plan from the beginning. You should never look at permanent life insurance as a short-term investment.


Yes. If you believe taxes will be higher at some point in the future than they are today there is still time to work towards lowering, or eliminating, your future tax liability.
There have only been two other times in the history of America where tax rates have been lower than they are now. If you believe your tax rate will be even 1% higher when you retire then it makes sense to make the conversion.
Yes, you can.
But you will have to pay tax on the conversion.
Most of our planning is being done for people who are in their 60’s. If you are in your 60’s you could still have over 30 years to live.
It can work very well. Taxes are not scheduled to go up until January 1, 2026, which means you have time to do planning before taxes go up - even if you are already in retirement.
You can do the conversion at any time. Just remember that if you are under age 59 ½ and you use some of the conversion dollars to pay the tax you will end up paying a 10% penalty on the money you do not reinvest.
During 1944 and 1945 if you made over $200,000 you had to pay 94% on this income.
Yes. In fact, tax-free retirement often works better for those with moderate income than it does for those who have endless amounts of income.
You have two options. First, you can choose to have your annuity payouts inflation adjusted. Second, you can buy multiple annuities, each starting at a different date throughout your retirement.

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