David starts the conversation by describing why he’s not a huge fan of Doug Andrew’s retirement philosophy.
According to Doug, you risk jeopardizing your retirement if you have money in an IRA or a 401K. There’s the danger of losing a sizable portion of your portfolio if the markets were to crash like they did in 2008.
To protect your retirement, Doug believes it would be best to move all your money in the stock market into a Laser Fund/Indexed Universal Life Insurance.
David interprets this to mean that Doug dislikes stock market investing.
For David, the stock market is the single greatest engine of wealth creation the world has ever seen.
What about risks and volatility? David explains that the longer you invest in the stock market, the more likely you won’t lose money and grow your assets over time.
David prefers a retirement strategy that views the IUL as one component of a balanced, comprehensive approach to tax-free retirement.
David reveals why the Roth 401K is an extremely useful tool for funding tax-free retirement.
David shares what his preferred tax-free investment strategy would look like – and why the zero percent tax bracket is so powerful.
David goes through the 3 things that make IULs a unique tax-free investment route:
- A death benefit that doubles as long-term care.
- Serves as a great volatility shield in retirement.
- Safe and productive returns. Also functions extremely well as a bond alternative.
If you believe tax rates will be higher in the future than they are today, you should adopt a strategy that takes advantage of all the benefits in the IRS tax code.
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