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Benefits of Life Insurance as Supplemental Retirement Income
Essentially, every dollar that goes towards your client’s retirement goes through three phases:
- The client puts money in
- The money grows and
- The client takes the money out
The IRS will require the client to pay taxes on at least one of these three phases, however the CLIENT gets to decide which one. It all depends on the investments they choose. Most people will choose to pay tax on the smallest number, the money they put in.
In a successful retirement investment strategy, consistent long-term investment growth means that your client(s) assets continue to grow through each phase. Therefore, what your client puts in should be the smallest. As it grows it should be worth more at the end of the accumulation phase. And with continued potential growth the amount the client is able to take out should be even more.
Learn about the benefits of life insurance as supplemental retirement income.
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