Most Americans are not on track to reach their retirements goals, but it’s usually not for lack of trying. Several factors that are outside of your control seem to be making it more and more dificult to get to where you want to go.
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People are living longer,

which means you need to save more money to last for the long haul
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Fewer companies are offering private pensions,

which puts the burden on personal savings
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The low interest rate environment

creates a growing skepticism that savings will keep pace with inflation

THREE ATTRIBUTES OF THE PERFECT RETIREMENT VEHICLE

IS THERE A BETTER WAY TO PLAN FOR A COMFORTABLE RETIREMENT?

Unfortunately, the perfect financial vehicle doesn’t exist.
arrow A tax diversified retirement strategy comes close.

HOW DOES TAX DIVERSIFICATION WORK?

By structuring your savings among different types of retirement accounts, you can minimize your tax obligations and keep more of your hard-earned money for the future.

Diversifying your tax strategy can be beneficial

TradicionalIRAs and 401(k)s RothIRA Cash Value LifeInsurance
Money In Tax deductible After tax After tax
Growth Tax deferred Tax free Tax deferred
Money Out Taxable Tax free Tax free

A PERMANENT LIFE INSURANCE POLICY COULD BE PART OF YOUR RETIREMENT PLANING STRATEGY

A cash value life insurance policy can protect your family against financial loss resulting from the death of a loved one. It can also help to prepare you for future expenses by accumulating cash value on a tax-deferred basis. And while distributions from your pre-tax retirement accunts like your 401(k) will be taxed, any excess accumulated policy value from your life insurance policy can be accessed tax free. You can take tax-free withdrawals* up to the cost basis, or borrow tax-free loans from your policy for any purpose during your lifetime - including retirement, college tuition, or other expenses. Loans and withdrawals* will reduce the policy’s death benefit, so be sure to keep your life insurance needs in mind when considering these transactions.
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Put more money in your retirement pocket. Here’s how...


Propposed annual retirement income for a single filer = $40,000
Plan A: Using traditional
pre-tax retirement accounts
Plan B: Using tax
diversified strategy
Source of income Withdraw $40,000
from 401k
Withdraw $20,000
from 401k
Withdraw* $20,000 from
cash value life insurance
Taxable 100% 100% 0%
Tax rate 25% 25% 0%
Tax amount $10,000 15% 0%
Anual amount to
spend in retirement
$30,000 $37,000 -> $7,000 more in your retirement pocket
Hypothetical example for illustrative purposes only. Assumes a $40,000 withdrawal for retirement income and that no additional income is received. If additional income is received, the tax rates shown would be different. This does not represent the performance of any particular insurance or financial product. Your actual results will vary and may be more or less favorable Assumed marginal federal incomet ax bracket under current rates. For purposes of this example, it is assumed that state and federal taxes make the average tax rate the same as the marginal tax rate.