For David, financial gurus seem to hold a deep hatred for permanent life insurance – be it whole life, universal life, index universal life, or variable life.
A key question to ask: with so many financial gurus against life insurance, how can we conclude that it should be integrated into a balanced, comprehensive approach to tax-free retirement?
David believes that such an approach stems from the fact that these gurus address a huge homogenous audience, who’s generally drawing in debt, and that they don’t have the luxury of nuanced explanation. Everything they discuss should either be good or bad.
Ed Slott, who the Wall Street Journal called ‘the best source for IRA advice’, is an expert whose approach differs from the ones mentioned above.
Slott sees life insurance as an investment that’s better than your typical investment accounts for the fact that it’s tax-free.
Slott goes so far as to say, “Roth IRAs and life insurance can single-handedly remove most of the taxes you or your beneficiaries will ever have to pay.”
The difference in approach between Ed Slott and other financial gurus has to do with Slott’s 30 years of experience working with actual clients that has allowed him to observe the impact that cash value life insurance has on the lives of retirees and their beneficiaries.
Ed Slott is not a financial guru using a one-size-fits-all strategy for the masses. He’s an educator who understands the IRS tax code and who clearly knows that tax planning and retirement require nuance, especially if you have substantial assets.
Mentioned in this episode:
David’s books: Power of Zero, Look Before You LIRP, The Volatility Shield, Tax-Free Income for Life and The Infinity Code
PowerOfZero.com (free 3-part video series)
@mcknightandco on Twitter
@davidcmcknight on Instagram
David McKnight on YouTube
Get David’s Tax-free Tool Kit at taxfreetoolkit.com
I’ll Teach You to Be Rich (book)
How to Get Rich (Netflix series)