Many customers don't realize they qualify for a 7702 exchange program. Many doctors, lawyers, professionals who earn more than typical guidelines for the Roth Savings Programs will benefit by looking at the 7702 exchange.
"An IRS approved Private Plan under Internal Revenue Code 7702 (sections a-d) is a superior choice (view investment matrix) to traditional qualified plans such as a 401k, IRA, or other tax qualified plans for many people."
It is our job at American Insurance and Financial Services to sit down with you and show you the various options that are out there.
Our approach is the guaranteed approach with includes a moderate tax deferred gain. In the long run, the safe approach works and you don't have to worry about the ups and downs of the stock market because your risk is guaranteed in your contract with the underwriter.
At first glance a retirement plan that allows you full access to cash values, earns interest based on market gains but without the market risk and is 100% tax free may seem complicated or counter intuitive but I assure you that it is not.
The systems that are in place to protect your money are backed by the insurance industry, one of the strongest industries in the Country. Many of the companies that we work with have been in business since before the Great Depression and have developed a conservative This is an excellent long term success formula for creating wealth consistently and 100% tax free.
Many retirements programs assume you will begin paying taxes when you realize the income. With a 7702 you will have the tax deferred income during accumilation but you also avoid having to realize that income during retirement.
Life Insurance Retirement Plan (LIRP), under Internal Revenue Code Section 7702
The Situation
Will you have enough retirement income?
If you’ve caught yourself wondering whether or not you will have enough income at retirement to continue your current standard of living, you are not alone. In fact, having enough retirement income is one of the leading concerns facing Americans today.
Due to the limits on contributions for qualified plans and social security benefits, individuals earning high incomes may find that a diminishing percentage of their current compensation can be replaced at retirement through these two sources. In fact, as the chart below illustrates, as the annual income of an individual in a 401(k) plan increases, the percentage of compensation replaced by both the 401(k) plan and social security actually decreases.
Annual Compensation Replacement Example
Compensation
$50,000
$70,000
$100,000
$150,000
$200,000
$250,000
401(k) plan deposit 10% of compensation1
$5,000
$7,000
$10,000
$15,000
$15,500
$15,500
401(k) plan income2 beginning at age 67
$17,148
$24,012
$34,307
$51,467
$53,183
$53,183
Social Security,3 beginning at age 67
$19,764
$23,424
$27,588
$28,644
$28,644
$28,644
Total Retirement Income
$36,912
$47,436
$61,895
$80,111
$81,827
$81,827
% of compensation
73.8%
67.8%
61.9%
53.4%
40.9%
32.7%
As you can see, the higher your earned income, the more you suffer from reverse discrimination due to limitations on qualified plans and capped social security retirement benefits.
The examples and perspective in this article may not represent a worldwide view of the subject. Please improve this article and discuss the issue on the talk page. (December 2010)
To Learn about a Fixed Index Universal Plan: GO HERE
Fixed universal life insurance is regulated by state insurance departments and sold through insurance agents, banks, or registered representatives. These products provide a downside guarantee of 1% - 2%, and a company-declared current interest rate (around 5.00% as of 3/19/09). Fixed universal life policies are a very conservative interest-sensitive life insurance product.
Indexed universal life is a type of fixed universal life insurance product, which is regulated and distributed in the same manner as fixed universal life. By contrast, indexed life usually provides a downside guarantee of 1% or less, but receive potentially higher upside interest crediting, based on the performance of an outside stock index (such as the Standard and Poors 500, a.k.a. S&P 500). Indexed life products have a floor of zero, so a consumer's money is always protected from downturns in the market. However, indexed life also has upside interest crediting potential of 15% or more (although still limited). Indexed life insurance is a moderately conservative interest-sensitive life insurance product.
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