What do you imagine when you think of your retirement? Perhaps you picture retirement like a long vacation: you’ll play golf, travel, or enjoy leisurely days by the pool. With good health, such a picture is entirely possible – as long as you take action to turn those pleasant dreams into reality! In this guide, you’ll discover ways to protect your assets from the tax man and set up an income plan that ensures you’ll never run out of money – no matter how long you live.

1. CreateTax-Advantaged
Retirement Income
You Can’t Outlive
Protect your assets from the tax man and
set up an income plan that ensures you’ll
never run out of money – no matter how
long you live.

2. Insurance Companies Don’t
Just Sell Insurance
• Enjoy the higher yields of a variety of stock market
investments along with tax-free or tax-deferred gains.
• These perks can all be found within venues that carry
the added security of guaranteed death benefits or
income for life – benefits that are lacking in traditional
retirement plans.

3. Life Insurance Investing
Let’s take a look at the various types
of permanent life insurance policies for
different investment goals→

4. Which InsuranceType is Right for
You? It Depends onYour
Investment Goals
WholeLife
A portion pays for
life insurance.
The rest builds cash
value.
Each month, the
company pays you a
fixed interest rate.
The premium stays
the same over the
life of the policy.
UniversalLife
The interest rate
paid is based on
changing market
rates.
Riskier than whole
life.
Flexible—you can
change the amount
you pay monthly.
VariableLife
Similar to combining
a brokerage account
with your life
insurance.
Buy stocks, bonds,
and other
investments within
the policy.
Riskiest option.

5. Guarantees
All of these policies have a death
benefit, which is guaranteed to a point.

6. Whole Life Guarantees
Since both the death benefit and the cash value are guaranteed, you’ll
know from the quote what the contract will provide.
The insurance company can tell you, “If you put X dollars in monthly, you’ll
have $300,000 at age 65.”
There is a set, guaranteed death benefit.
The rate of return is also guaranteed so you’ll know what you’ll get
when you retire.

7. Universal Life Guarantees
The insurance company will estimate a range of dollars you could
have by a certain age.
Your actual amount could be more or less than the company’s
estimate.
The interest rate will change over time.
This fluctuation is due to the market.
Universal Life Guarantees

8. Variable Life Guarantees
The company will make an estimate based on market trends.
How much you accumulate depends on how well you invest your
money.
Typically, there are no guarantees to variable life insurance.
Investing in variable life insurance is like investing in the stock
market.
Variable Life Guarantees

9. Tax Strategy—
How to GetTax-Free Gains
• Avoid CancellingYour Policy:
• The money in your life insurance
account grows tax-deferred.As long as
you leave money in the account, you
don’t owe taxes on it.
• If you decide to cancel your life
insurance policy and cash out
investment gains, you’ll owe taxes on
those gains. So avoid cancelling your
policy!
• Follow this process instead:
• Get a policy loan. Luckily, the
government doesn’t tax loans.
• Let the death benefit pay off your loan.
The government doesn’t tax life
insurance death benefits.

10. If you use a life insurance policy as
a tax-free investment, consider
the downsides:
• You’ll have to be healthy
enough to qualify for life
insurance. It might not be
an option if you have
serious health issues.
There’s a required medical
exam.
• Your investment gains will
be lower than if you had
just invested in a stock
account, because each
month a little bit of your
money goes towards
paying for your life
insurance.

11. How Can Life Insurance
Investing Be Beneficial?
It’s especially advantageous if you can’t qualify for
a regular retirement plan:
– For example, if you’re making too much money, you’re not
allowed to use an IRA, so you could use life insurance.
– If you don’t have a 401(k) at work, life insurance would be a
great tax-free investment for you.
– Life insurance doesn’t have any income restrictions, so anyone
can set up a plan like this as long as they’re fairly healthy.

12. More Benefits of
Investing in Life Insurance
• If you want life insurance to protect your family, it’s
an added benefit to be able to save for tax-free
income later on all within the same contract.
• If you struggle to invest regularly, permanent life
insurance offers automatic, forced savings, ensuring
that you provide for your future, even when you’re
not thinking about it.

13. Annuity Investing
• Annuities are investment contracts split into two
stages:
1. Accumulation phase: when you put in your money
monthly and it builds over the years.
2. Payout phase: when you begin to receive the
money.

14. Risks of
Fixed rate of return.
You know exactly what
you’ll receive.
Lower risk, but you’ll earn less
money.
Variable rate of return.
Interest payments depend on
the market
No guarantees of the amount you’ll
accumulate.
Fixed VariableAnnuitiesvs.

15. Top Benefit of an Annuity
that Life Insurance Doesn’t
Offer
An annuity offers guaranteed income for
the rest of your life.

16. Illustration of Annuity Payout
• If you have $300,000 in your annuity and you’re ready to
start the payout phase, you can choose to receive set,
guaranteed payments for the rest of your life, and they’ll
turn it into a lifetime pension for you.
• No matter how long you live, you’ll continue to receive the
payments.The amount of the payments will never go
down, even if your total payments surpass that $300,000.

17. Life Insurance or Annuity:
Which is Right forYou?
Life Insurance
• If you have children or need
a life insurance policy
• If you want to retire early
(you can take out a loan
without restrictions)
Annuity
• If your goal is to reach
retirement with the most
money
• If you don’t qualify for life
insurance
• If you’re single, have no
kids, and don’t need life
insurance

18. 4Tax-Free &Tax-Deferred
Income Strategies
Now that you understand the basics of investing in life
insurance and annuities, let’s review 4 specific strategies
to achieve tax-advantaged income.

19. Strategy #1. Use Life Insurance
CashValue forTax-Free Income
If you only used your life
insurance cash value to
fund your retirement,
all your income in
retirement would be
tax-free.
As long as you keep
your insurance policy in
force, you can borrow
money from it tax-free.
You could borrow
money yearly.
Then, when you
eventually die, the
death benefit from your
policy will pay off your
loans so nobody else
has to pay them.

20. Strategy #2. Use an Annuity to
Guarantee Income for Life
You can ask the company
to turn your annuity into
guaranteed payments for
the rest of your life.
So, no matter how long
you live, you’ll receive the
same amount of money
per month. If you live to
120, you know you’re still
going to be collecting
checks.
Remember, the main
benefit of an annuity
is guaranteed
income.

21. Strategy #3. 1035 Exchange:
Life Insurance CashValue
into an Annuity
With a 1035
exchange, you can
turn your life
insurance into an
annuity.
This transaction is
not a withdrawal, so
you won’t owe taxes.
Then, you can set up
your guaranteed
payments for
retirement.

22. Strategy #4. Use an Annuity
+ Life Insurance
If he dies last, he
continues to receive
those higher payments.
If you’re married, base
the annuity on one
partner to receive
higher payments. For
example, the husband.
Have life insurance on
the same partner. If he
dies first, the wife gets
tax free income from
the life insurance.

23. Younger vs. Older Strategies
30s or 40s: Buy life
insurance now.You’ll
likely be healthy enough
to qualify for an
affordable rate.
60s or 70s:You might not
be able to qualify at all.
You can get the annuity at
any time, but if you get it
when you’re young and
add funds to it on a regular
basis, you have the
advantage of letting your
money work for you for
many years of tax-
deferred growth.

24. ComparingTax Advantages
of the 4 Strategies
• #1 is the only strategy that’s completely tax-free (life
insurance).
• #2, #3, and #4 delay taxes until retirement, which gives
your investment more momentum to grow.
• With #4 (life insurance + annuity), you’ll pay less tax,
because the life insurance death benefit will be tax-free.

25. How CanYou Get Started?
Discuss your
desires for
retirement.
Meet with a life
insurance
agent.
Get at least 3
quotes from
different
agents.
Choose a
company with
A+ ratings
from the A.M.
BestCompany.

26. Setting up an annuity with
guaranteed income is really the
only way for most people to get
income for the rest of their life.
The question isn't at what age I want to retire, it's
at what income.
~George Foreman

27. We hope you enjoyed your Special Report!
Curtis Roese is an experienced professional with extensive experience in
personal finance and small business matters. Curtis writes and
publishes articles, courses, guides and special reports on his personal
finance blog.
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