Ok, so IUL's have gotten my attention ...

[Tahoe Ray]

So as long as I show less than $193k on my taxes, I can contribute up to $56,000 a year to a Solo 401k?

And then I can choose to put that in a low fee Vanguard Indexed fund or whatever? And a certain % Roth?

What happens if my income shows over the $193k or whatever it increases to year to year?

That's a roth 401k vs a roth IRA as far as the funding limits. They are different (with the roth IRA being restricted to 193k/yr)

You can have a low fee Vangaurd indexed fund in a Roth IRA. A roth is not an investment, it is a tax code. You can have all kinds of stuff in there. You want to short $BYND with puts because you think they're garbage, you can do that too.

Your CPA should be helping you with this stuff.

Just don't ask them for investment advice. They'll gladly give it but unless they're on the financial services side of the business as well, their advice in our universe normally sucks.

 

[Allen Trent]

Definitely get with someone to zero in on figuring out best retirement plan types for your specific situation.

Keep in mind, missing deposits into retirement plan accounts doesnt have specific consequences other than not building up as much in retirement accounts. Taking a couple years or couple decades off IUL or WL premium payments has catastrophic long term consequences because you bought the largest insurance chassis to fit your perfect world best case contributions. See what happens to that IUL if you deposit 0 in years 10-15 or change to 10k in years 10-27.

Again, i own these plans, i love them all for different reasons

 

[Tahoe Ray]

Definitely get with someone to zero in on figuring out best retirement plan types for your specific situation.

Keep in mind, missing deposits into retirement plan accounts doesnt have specific consequences other than not building up as much in retirement accounts. Taking a couple years or couple decades off IUL or WL premium payments has catastrophic long term consequences because you bought the largest insurance chassis to fit your perfect world best case contributions. See what happens to that IUL in you deposit 0 in years 10-15 or change to 10k in years 10-27.

Again, i own these plans, i love them all for different reasons

Great point. Most of us are business owners and can kill it in some years and have down years otherwise.

I have a buddy who is a mortgage broker who has income that can fluctuate by up to 500k annually.

Imagine that 36k "requirement" for savings if you only make 100k in a given year. Not pretty.

 

[Allen Trent]

Now we’re talking.

BTW. even if you were to proceed to do the 36k per year IUL, the Symetra policy looks to be really light on the max distributions starting at age 66. Minnesota Life shows annual distributions from age 66 to age 100 of $180k or more per year, nearly 60k more per year than the Symetra illustrations.

but who knows how either will look in 28 to 62 years, right. they are merely illustrations, but isn't it odd how an illustration at 6% only shows 118k per year, but another one at 6% shows 180k per year in distributions. one must have a lot more in internal expenses than the other, but we wont know for decades which was more accurate in those various projections on expenses, etc

CORRECTION---with it noted that the Symmetra was run showing 5%, I ran the Minn Life at 5% and the max distribution is extremely close between the 2 with it being about 121K . isn't it crazy what a 1% difference in an assumption can do---literally changes the max distribution illustration by 1/3 of the projected amount able to be distributed.

 

[Tahoe Ray]

BTW. even if you were to proceed to do the 36k per year IUL, the Symetra policy looks to be really light on the max distributions starting at age 66. Minnesota Life shows annual distributions from age 66 to age 100 of $180k or more per year, nearly 60k more per year than the Symetra illustrations.

but who knows how either will look in 28 to 62 years, right. they are merely illustrations, but isn't it odd how an illustration at 6% only shows 118k per year, but another one at 6% shows 180k per year in distributions. one must have a lot more in internal expenses than the other, but we wont know for decades which was more accurate in those various projections on expenses, etc

To be fair, the Symetra illustration was run at 5%.

 

[Allen Trent]

To be fair, the Symetra illustration was run at 5%.

Thanks. I saw it as 6%, but it was pretty blurry when I was trying to look at it on my phone.

 

[Tahoe Ray]

Thanks. I saw it as 6%, but it was pretty blurry when I was trying to look at it on my phone.

It was an illustration for ants.

 

[pfg1]

And a good WL will deliver what that 5% IUL does on income, with a substantially bigger death benefit. That's the real kicker.. a few zero's every 10yrs, your IUL is into WL range...but without the guarantees.

Alot of good info here. One thing to also consider... as Ray said, the PLI is a bond alternative. So you can have that as your safe money, and be more aggressive in your equities investing. Plus, at retirement time... you now have a different bucket to pull "income" from in the down years, which will hedge your equities at that time also, while lowering your provisional income as well. And yes, if you keel over early... you are covered quite well! Good stuff!

 

[HoosierLife]

And a good WL will deliver what that 5% IUL does on income, with a substantially bigger death benefit. That's the real kicker.. a few zero's every 10yrs, your IUL is into WL range...but without the guarantees.

Alot of good info here. One thing to also consider... as Ray said, the PLI is a bond alternative. So you can have that as your safe money, and be more aggressive in your equities investing. Plus, at retirement time... you now have a different bucket to pull "income" from in the down years, which will hedge your equities at that time also, while lowering your provisional income as well. And yes, if you keel over early... you are covered quite well! Good stuff!

What's a PLI?

 

[pfg1]

What's a PLI?

Permanent Life Insurance