Check This Out!!! 401k vs. Cash Value Life Insurance

You really thought 401k’s were the best way to save for retirement? Check out this skit with Tax Free Mike

#401k #401ktrap #taxtrap #cashflow #cashvaluelifeinsurance #IUL #infinitebanking #smartmoney #money #wealth #lifeinsurance #becomeyourownbank #retirementplanning

[justincoffman]

I absolutely love it! And I think you’re about right on the 10% withdrawal rate! Plus, you get to use the cash value throughout your life also! 👏👏

[ejbarraza]

What is the probability of earning exactly 6% in an IUL (because you aren't selling whole life like this) every single month for 35 years? Close to 0% chance. If that assumption is not justified, then there is no way you can get $130, 000 a year. This is what gives the industry a bad name...

[hpd_hero]

My probablem with this calculation though is that the 401K money isn’t taxed on the front end. So for you to be able to do 10k a year into 401k, it would be something like 7-8k in the insurance. However the insurance isn’t taxed when you get it out (if you have a trust) But just want to make it clear for people

[DallinBunnell]

I think the 10% loan distribution rate is way too high. Idk if an illustration software will even allow that. It shouldn't if it's reliable.

[nikkoBcool]

I don't get it, if you withdraw 10% from 1.3 mil and get your 130k, doesn't that mean the policy is now at 1.17 million with 6% appreciation you are at 1.24 the next year

Please explain

[WellnessHCAdvabtage]

Why are taking a distrust of 10% when it grew at 6% for 35 years ? Thx

[CJP]

You do need to factor in that the 401k is still earning a return. So, if my 401k continues to average 10% per your example, then I’d be collecting $230, 000 per year and never deplete the principle. But, I might not average 10%, but even at 5%, I’d be collecting $115, 000 per year and not deplete my principle. Then when I die, my kids would have a nice inheritance, whereas there would be little to nothing left with the life insurance.