Today’s episode is from David’s conversation with CFP Adam Olson.
They discuss why mega-CPA firm Ernst & Young is saying that if you want to maximize your income in retirement, you should put 30% of your retirement savings into a cash value life insurance.
David reveals what percentage of your savings you should put into a life insurance retirement plan.
David shares the benefits of accumulating three years worth of living expenses in your cash value life insurance–this is to pay for your living expenses in the year following a downturn in your stock market portfolio.
According to David, the benefit of doing so is it gives your stock market portfolio a chance to recover before taking further distributions.
If you’re 50 years or younger, put 30% of your retirement savings towards cash value life insurance. This move alone will double your sustainable withdrawal rate in retirement.
So, if you’re saving 25% of your income for retirement, David recommends putting around 8% into a cash value accumulation product.
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
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