How IUL Fits in a Balanced Approach to Tax-Free Retirement

This episode of The Power of Zero Show is part of David McKnight’s conversation with Caleb Guilliams and Tom Wall, PhD.

David touches upon the “dangerous partnership” between the American people and the IRS.

David is an advocate for a balanced, comprehensive, approach to tax-free retirement – he explains why that’s the case.

One of the things David likes about IULs is the fact that they can perform specific applications that no other stream of income, such as Roth IRAs and Roth 401(k)s, can do.

David goes over the unique trait of each of the streams of tax-free income he sees as key components of “the Holy Grail of financial planning”.

A Roth IRA, for example, gives you immediate liquidity, while a Roth 401(k) gives you a match.

A Roth Conversion allows you to convert an unlimited amount of assets to tax-free.

Taking money out of your IRA up to your standard deduction allows you to get a deduction on the front end, grow your money tax-deferred, and take your money out tax-free.

An IUL, on the other hand, enables you to get a death benefit in advance, for the purpose of paying for long-term care.

A balanced, comprehensive, approach to tax-free retirement capitalizes on all the nooks and crannies in the IRS tax code.

David is in agreement with a recent Ernst & Young study inviting people to have 30% of their retirement savings go towards cash-value life insurance.

Mentioned in this episode:

David’s national bestselling book: The Guru Gap: How America’s Financial Gurus Are Leading You Astray, and How to Get Back on Track

DavidMcKnight.com

DavidMcKnightBooks.com

PowerOfZero.com (free video series)

@mcknightandco on Twitter 

@davidcmcknight on Instagram

David McKnight on YouTube

Get David's Tax-free Tool Kit at taxfreetoolkit.com

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Ernst & Young