The Roth IUl earns compound interest, which means interest-on-top-of-interest. There are indexing strategies with no caps (upper limits), which means they have unlimited earning potential. Additionally there are guaranteed bonuses that are paid every year, which boost your earning potential.
Putting money aside for retirement is important because it means it is earmarked for the future, but it is equally important that you maximize your earnings so compounding can properly grow your money to last your entire life through retirement. Most retirement accounts have “caps” which means they limit how much you earn. Having an “uncapped” strategy will allow you to fully maximize your returns and gives you a big advantage in your retirement years.
Frequently Asked Questions
Most (nearly all) retirement plans such as 457B’s, 401K’s, IRA’s, 403B’s…even Social Security, are “taxable” which means you are taxed at the prevailing (current) tax rate, as you receive the money. Just like as you work now and your wages are taxed, so are retirement accounts. Tax-free Roth IRA’s and Tax-free Roth IUL’s are free from taxes, meaning the money receive is net, after tax and is not reportable as income. This can save the average taxpayer as much as 20% to 25% each year on taxes.
Yes, you can have both and the limits from your Roth IRA do not affect how much you can put into your Roth IUL, and the reverse is true as well.
Accounts that are “indexed” are not invested in the stock market, but instead only copy the gains of the stock market, but NOT the losses. You are protected against market downturns of any kind.
William Roth, the Senator from Delaware (1971 – 2001) who was the namesake of the Roth IRA, is the inspiration behind the Tax Free Roth IUL. Our agency, Life Legends adopted the name “Roth IUL” as a description of the tax-free aspect of the Roth IUL. If you click on this link (link to Roth IRA vs Roth IUL) for a full comparison. But, both allow you to remove money in retirement Tax-Free.
IUL is the abbreviation for Indexed Universal Life. When something is Indexed, it means that it follows a certain kind of strategy (S&P 500, or Bloomberg… or some other earning strategy) and it mirrors the activity of how it performs in the market. Universal Life is a permanent cash value life insurance plan that includes “living benefits” as well. It is through this component of the Roth IUL, that allows it be tax-free income.
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