Cut the government out of your retirement savings

Most investors would agree that the sooner you eliminate the government from taxing your investments, the better. First, there's the danger of inflating tax rates. Secondly, it cost a lot less to pay taxes on the seed money than it would be to pay taxes on the growth and withdrawals. Unfortunately, there are very few investment choices that protect investors from future taxation. In fact, the only one that allows investors to avoid taxes on earnings (with the ability to pass money onto their heirs tax free) are those designed to conform to IRS code 7702(a).  This type of asset class provides safety, liquidity and competitive returns.

What is a 7702(a) Plan?

In the 1970's, the financial industry wanted to find an investment that would allow their clients the opportunity to grow their money tax-deferred, withdraw it tax-free, and transfer their money to their heirs tax-free. The stock brokerage house E.F. Hutton came to the conclusion that the only IRS approved way to accomplish this was through a life insurance contract.

Peter W. Mullin
Founding Chairman of
Mullin Barens Sanford Financial

Realizing the opportunity to provide his clients with a tax free retirement savings vehicle, Peter Mullen approached Pacific Life with a concept that is known today as "over-funded life insurance."
Peter solved the income tax problem of the "buy term and invest the difference." Over-funded life insurance would allow clients use a similar concept without the liability of income tax on the growth and distribution. These policies were primarily sold as fixed UL and variable UL products through the 1980's and 1990's with average returns of 11-12%. With billions of dollars being deposited every year, the financial industry continued to adapt the products around the changes in the market and in legislation in order to maintain the benefits to their clients.

In the early 2000's when the market suffered the longest downturn in history, the industry began looking for a way to add more guarantees to the concept. The industry turned to new product called Indexed Universal Life. The IUL offered the security of an indexed account that had a minimum guaranteed return (such as 1%). This  product allowed investors the ability to continue using "over-funded life insurance" concept without the risk of suffering losses in a down market. Although the contract limited earnings with a cap (such as 12%), it solved the volatility problem that eventually saved investors from the stock market crash of 2008.

Cutting the government out of your retirement savings is not as simple as buying a life insurance policy from an insurance agent. This is a concept that needs to be properly designed and managed by someone who specializes in designing life insurance policies for the purpose of accumulating cash for retirement on a tax free basis.

Find a life insurance agent that understands how to properly design and manage these investments. You will be shocked to see how much money you  can save for you and your family.

Learn how to cut the government out of your retirement savings and substantially increase your returns