Roth sounds great right? After-tax money going in, tax-free coming out. Only one small catch maybe two. You can only add $5,000 if you are under the age of 50 and $6,500 if you are 50+ with earned income and oh yeah, you have to leave it in there until you are 59.5. There are some provisions to access this money for a first time home purchase and/or qualified college tuition, but what if you want to save more than that and you own a house and have already graduated from college?
What if there was a vehicle, not governed by the government, under ERISA rules? What if there was a vehicle you could put after-tax dollars in and access the growth tax-free before 59.5? What if you could add whatever amount you wanted each year? What if that money could grow guaranteed? What if that growth could be accessed before 59.5 for anything you wanted not just a house purchase or schooling? What if that vehicle existed right now? What if you didn’t have to be restricted on how much you put in? What if that vehicle wasn’t restricted by income? What if you could contribute to it even if you didn’t have earned income?
The suspense is killing you, I am sure, but that vehicle is real, it’s here now and has been for a couple hundred years. Yes, you guessed it, it’s life insurance. Not any old life insurance though, cash-value, whole life insurance.
Most people hear those two words and cringe. But, what if you saw it in a different way? What if you saw it as an asset designed to accumulate cash and tax-free income? What if you saw it in a way that helped to finance the things in life you’re going to buy like cars, rental properties and your home?
What if you saw life insurance as a vehicle to store money like a Roth IRA? Remember the old tortoise and the hare story? Well, many of us are the hare when it comes to investments in our 401K and then we start a Roth IRA with the same investments. With after-tax money, you have already paid tax. It’s like checking account money until you put it in a ROTH IRA. Our feeling is that after-tax money should have a different risk tolerance than the hare or 401K money.
Whole life can act as the consistent, liquid, tax-free, non-government tortoise to your portfolio and may allow you to take more risk in the stock market because it acts like a guaranteed bond portfolio, with tax-free income potential. If you want to know more about the Super Roth….You can.
If you want to know more about the Super Roth, you can. Click here to learn more.