Tax-Free IUL, Tax-Free Pension Alternative, Tax-Free Retirement Plans

Tax-Free IUL vs. Boat Purchase

Video

Tax-Free IUL vs. Boat Purchase.

https://youtu.be/y2zpQsJ-hzQ

Examining  a Tax-Free IUL vs. boat purchase

A client asked for my opinion on his borrowing $75,000 to purchase a boat.

Tax-Free IUL vs. Boat Purchase. Opportunity Costs of boat purchase vs. Tax-Free IUL $17,509 a year in tax-free retirement income
Opportunity Costs of boat purchase vs. Tax-Free IUL $17,509 a year in tax-free retirement income, You would need $583,000 in a 401(k) or an annuity to generate the same after tax income

I ran some numbers, and told him if he instead invested the $500 per month payment into a tax-free pension alternative or tax-free IUL, he would have an extra $17,509 in tax-free income every year during retirement, based on the historical rate of return. This would be useful as he took a hit in his 401(k) a few years ago and it had not recovered. I also pointed out that 20 years from now, he would need $583,000 in a 401(k) or an annuity to generate the same after tax income that the tax-free pension alternative or tax-free IUL would generate.

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