Hey, did I get your attention, now???... I made this document below only to compare the tax consequences of a 401(k) to an IUL and suddenly it's like the mental light bulb is clicking "on" for people that call me. The illustration of this concept with my very basic info-graphic has been successful. I know MOST of you have already opened a 401(k) and I'm trying help bring you to the light.
Don't forget to read the additional points below the image too.
Okay not a lot of images in my info-graphic above, but I think it's effective, nonetheless. This is what happens in reality... [my numbers above are oversimplified]... In actuality, people contribute $100,000 to a retirement plan over 20-30 years, in hopes that the the account grows to $1,000,000 over the life of their career. Now if you contributed that into an IUL account, the owner walks away with $1mil, but the 401k owner is taxed and nets $650,000- $750,000... paying $250,000+ in taxes!! WHY DO YOU NEED TO DO THAT?!?!... You don't....ahhhhhhhhh.... that's why you've got me around!! Now you see my real purpose in your life!
Here are some other things to know when comparing a 401(k) to an IUL.
When you contribute to a 401k your money is held hostage until legal IRS retirement age of 59.5 years old. If you want to access the money before 59.5 years old, you will be taxed as ordinary income AND if you are younger than 59.5 you will 99.9% of the time pay a 10% tax penalty (with very limited exceptions). Uncle Sam wants his cut... And he demands that you start paying him by the age of 72, from a 401(k). So if you are not taking your required minimum distributions (RMD) he will penalize you some more!... Without getting into the weeds about this, it is a hefty penalty for waiting too long to give Uncle Sam his cut. And he will grow impatient. His impatience is as certain, as "death."
You can lose your principal (and your employer's contribution), in a 401K, that is invested directly in the market. But you can never lose your money in the market with an IUL. In an IUL your principal and interest are secure from market volatility.
401k's are available only once you join the workforce, but one only has to be 15 days old to have an IUL account... Think of the head start a child can get in growing tax-free compound interest practically from birth!
I tell you, make no mistake about it...an IUL account slaughters a 401k any day of the week! Hit me up and let me hook you up!
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