IUL for Retirement

[lovin the job]

Is anyone really making a push for IUL as a superior vehicle for retirement?

I'm meeting a client who makes 125k and contributes 12% with a 3% match. He also puts 300/month into a 529. He's 38 and his kids are 2&4.
I'm planning on illustrating taking the difference between the 15 & 3 % after taxes, (700/month) in a IUL paying to 65. Then showing 300/month for 16 years to fund college. Thoughts?

 

[Deepsea]

Annual payments instead of monthly---better for client

 

[scagnt83]

Is anyone really making a push for IUL as a superior vehicle for retirement?

I'm meeting a client who makes 125k and contributes 12% with a 3% match. He also puts 300/month into a 529. He's 38 and his kids are 2&4.
I'm planning on illustrating taking the difference between the 15 & 3 % after taxes, (700/month) in a IUL paying to 65. Then showing 300/month for 16 years to fund college. Thoughts?

IULs can be good for a high earner who already has qualified accounts.

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Annual payments instead of monthly---better for client

Not necessarily.

Some policies allocate premiums monthly, others quarterly. By having index allocations multiple times throughout the year, it hedges your sequencing risk.

Some do allow for an annual payment to be DCAd over the months/quarters. But not all.

But you do save 5% or so by paying annual.