Jeff had always been a go-getter, so it was no surprise to his friends and family that by the time he reached age 50, the small transportation business he started in college had grown significantly.
Unfortunately, though, Jeff spent the majority of his time at work, and he was starting to feel burnt out. He also felt that his three sons were growing up way too fast, and Jeff hoped to spend more time with them. But, while he planned to retire at age 70, he feared that the volatile stock market would continue to decimate his portfolio, rendering him unable to retire at any age!
In helping him to realize his retirement goal, Jeff’s financial advisor put together some possible scenarios – one being a life insurance retirement plan. The advisor noted that if Jeff could contribute $40,000 annually to the LIRP over a 15 year period, his total premiums of $600,000 could help him to reach his goal, with:
- Over $141,000 per year in annual tax-free income from age 70 to age 90
- Immediate death benefit coverage of $725,474 – growing to more than $1.4 million – so if the unexpected occured, Jeff’s sons could still fund their college educations, and have some additional financial security going forward