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A 7702 plan?
Its like, umm...., a Super-Roth, right?!? Best thing since sliced bread, wish I was selling a 7702 plan.
On a serious note, never knew that was the section that defined it all. You learn something new every day.
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A 7702 plan?
[FONT="]Sorry guys. I had to run out. The product is a modified Whole Life policy with an Annuity Rider that can be registered as a Roth IRA starting in the second year.[/FONT]
[FONT="]Do you know any other carriers that offer this?[/FONT]
A self-directed IRA cannot be funded with life insurance.
A life insurance cannot have a deferred annuity rider (it could have an annuitization option).
Let me guess...
You are starting off with how their benefits work and then you show them how a Roth Ira works. You show the tax savings and investment returns. Once they agree to doing $50 biweekly or some other amount you show them how you put "guarantees" on their investments. If they die thier family gets the money. If the become disabled it will keep contributing. If they live they will have so much money!
First year money goes completely towards the whole life policy. The 2nd year the money gets split between the whole life and the annuity.
This sound about right?
This sounds like a way to get in the door and sell life insurance, but I think you better make sure your E&O policy is paid. The first smart agent who follows you is going to explain what is going on and likely make you look a bit silly. There is nothing wrong with selling both, but the question is if the client needs life insurance and he goes toes up how are you going to explain that one... also, how will you explain the fact that most of his "retirement money" is worth nothing at the end of the first few years? Maybe you have thought all this through, but I would like to see the illustrations you are using.
It is how you percieve it. I did it for 6 months and then decided I didn't want to do it anymore. I always had mixed feelings about it.
On the one hand postal employees are not taking any responsibilty for their future and haven't a clue as to whats going on. So for those people you are helping them or at least getting them to do something.
On the other hand. Would you buy a non-med whole life policy and put money into an annuity or would you buy a term policy and put money into a Roth IRA with Mutual Funds?
Is your IMO out of michigan?
Is your commission 40%?
50% advanced?