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To: Uncle Miltie
Reason number 6 to not have a 401k or IRA for you stock market, mutual fund lovers.:

Lets' say you put 500 a month into an IRA or 401k for 35 years and gain 7.5%. You deferred 70,000. You would have 1 million when you retire. However, you will pay about 350,000 in taxes during a ten year roll out. And you will have about 34,000 a year in income after taxes through retirement.

If you put the money into an indexed-universal life program, you will pay the 70,000 in taxes over your work years and no taxes during retirement. Retirement income: 75,000 per year.

Who's retirement are you planning yours or Uncle Sam's?

25 posted on 02/16/2009 8:48:01 AM PST by nufsed
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To: nufsed

Try that with Roth IRAs and tell me how it compares; I would seriously like to know. No load mutual funds don’t charge sales commissions but insurance companies do.


26 posted on 02/16/2009 8:54:34 AM PST by csmusaret (You can't spell Democrat without R-A-T.)
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To: nufsed
"indexed-universal life program"

With AIG? I think not.

30 posted on 02/16/2009 9:10:03 AM PST by Uncle Miltie (A trillion here, a trillion there, and pretty soon youÂ’re talking about Zimbabwe money.)
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To: nufsed
If you put the money into an indexed-universal life program, you will pay the 70,000 in taxes over your work years and no taxes during retirement. Retirement income: 75,000 per year.

Who's retirement are you planning yours or Uncle Sam's?

But you must leave a significant percentage of the cash in the account absent triggering the death benefit or you get hit with even more taxes than what you paid over time.

Not saying such a plan is not of value, I have one as part of my retirement planning, but I have looked at where I want it as part of the funds I am currently directing toward retirement planning (and in this case life insurance). It is expensive ass life insurance, but some of the tax related aspects make it prudent decision for a (small) portion of my retirement portfolio.

Be cautioned - it does have it's downfalls, particularly if you want to utilize the money before you die...

67 posted on 02/16/2009 1:48:41 PM PST by !1776!
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