Project Description

LIRP Age 35

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Creating certainty in an unpredictable financial world.

Ever since Paige was a little girl, she dreamed of starting her own fashion design company. So, at age 35, she decided to take the plunge. Unfortunately, though, in order to come up with the funding she needed, she took money out of her former employer’s 401(k) account.

When Paige talked with her financial advisor about making up for the “lost” tax-advantaged retirement funds, he suggested that she consider a LIRP, and he showed her how contributing $12,000 per year over the next 20 years, her premiums would stop at age 55, but her benefits could be substantial, including:

  •   $112,673 per year in annual tax-free income for 30 years, starting at age 60 (amounting to total distributions of nearly ($3 million)
  •   Protection for her survivors, starting at $484K and growing to more than $1.7 million

There were other benefits, too – especially in comparison to a traditional retirement plan, such as:

  •   No required minimum distribution at age 72
  •   No annual maximum contribution

Plus, if Paige needed any additional funding for her business, the LIRP could allow her to access funds without having to go to a traditional bank or lender.

$12,000

Annually paid for 20 years

$240,000

total premiums paid

$112,673

Annualized tax free income

$2,929,489

total distributions from ages 60 to 90

$484,873

Initial death benefit

$1,725,501

death benefit @ age 90

0%
FREE

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