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Retirement and Estate Planning

When you spend years focusing on your business and your employees, it’s easy to forget to take care of yourself.


Have you maxed out contributions to your qualified plans? If you have, deferring income through an insurance-based retirement plan (IBRP) may offer you and your employees a tax advantage. What is an IBRP, you ask? It’s a variable universal life insurance policy that can supplement your retirement benefits and provides death benefits to your survivors.


If you have ample retirement funds, a wealth transfer strategy can make sure your money goes where you want it to in a tax-efficient manner. Please keep in mind that neither the company nor its representatives give legal or tax advice. Please consult your attorney or tax advisor for answers to specific questions.


Important points to consider

As your personal situation changes (i.e., marriage, birth of a child or job promotion), so will your life insurance needs. Take care to ensure that these strategies and products are suitable for your long-term life insurance needs. You should weigh your objectives, time horizon and risk tolerance as well as any associated costs before investing.


Be aware that market volatility may lead to additional premium in your policy. When investing, keep in mind that market risk associated with the variable product could cause the policy to lapse if you aren’t able to pay additional premium payments. Also, keep in mind that loans, withdrawals, and partial or whole surrenders can adversely affect the death benefit, may have adverse tax consequences, and could result in the policy lapsing.


With variable life insurance you’ll pay fees and charges that include costs of insurance. These charges vary with factors such as your gender, health and age. There are also underlying fund charges and expenses and additional charges for riders that customize a policy to fit your individual needs.




Save for Retirement With an Insurance-Based Retirement Plan

You’ve planned, saved, worked and invested, but you’re still not sure you’ll have enough money for the retirement you’ve envisioned. So what do you do? You may just find the answer you’re looking for with life insurance. With an insurance-based retirement plan (IBRP) from Johnson Insurance, you may be able to protect your family’s future through a death benefit while you save for retirement.


Benefits of an insurance-based retirement plan 

Your family can rest assured they are protected through your working years by the limited death benefit guarantee of the IBRP. And a tax-preferred cash flow can be received from the policy by withdrawals and loans (assuming a non-modified endowment contract remains in force) to help provide a retirement income to supplement other sources. 


Using variable universal life insurance as a supplemental retirement plan

An insurance-based retirement plan using variable life insurance offers the potential for safety, flexibility and control. Consider these facts:


Potential for safety

The death benefit guarantees provide basic insurance protection for you and your family

The income tax-free death benefit transfers wealth to your beneficiaries, and if properly      structured, estate-tax free, too


Flexibility and control

One premium covers both your life insurance protection and supplemental retirement      accumulation needs

There are no contribution limits, unlike qualified retirement plans, and no impact on      existing qualified plans

The policy’s cash value grows tax deferred avoiding the burden of additional taxes during      the working years

You can choose how much premium is paid by you and how often – within certain limits

You can choose when to make retirement withdrawals and how much they will be



Wealth Transfer Strategy: Protecting Your Assets Through Fixed Life Insurance

A potentially tax-efficient way to leave your legacy to your beneficiaries


Design an inheritance strategy for the future

If you are over age 59½, in good health (or have a spouse who is in good health) and have ample retirement income and emergency funds, you can use wealth transfer strategy to reduce or even eliminate your remaining assets from the taxable estate at death – and potentially leave a greater amount to your beneficiaries.


With wealth transfer strategy, you can create a stream of income from the unneeded asset by annuitization or through a systematic withdrawal plan, both subject to income taxation. Then, you can leverage the income stream by using it to purchase life insurance.


Why consider wealth transfer strategy?

If you have money that you won’t need for your retirement, consider these benefits:

Wealth transfer strategy gives you the opportunity to potentially increase the amount of      wealth transferred to your beneficiaries

It is an income tax-free death benefit

It offers the potential to avoid probate

It offers the potential to avoid federal estate tax


Several methods are available to fund your account, including systematic withdrawals or lump-sum deposits from an existing asset, annuitization payments from a current deferred annuity contract or the required minimum distributions from IRAs or qualified retirement plans. You can even use money from savings accounts or CDs.  Before using a CD it should be understood that Certificates of Deposit are insured by the FDIC, offer a fixed rate of return and, if held to maturity, provide a guaranteed return of principal. 

Work with your legal or tax advisor to find the best system for you.


A few other things to consider

Johnson Insurance does not give legal or tax advice, so talk with your legal or tax      advisor for answers to your specific questions.

If you’re looking for opportunities to increase the value you pass to the people and      organizations that matter most to you, then talk to your insurance or investment      professional today. Nationwide’s strategy for transferring wealth may be just what you      need to create the legacy you’ve envisioned!



(p) (828) 258-8030 ∙ (f) (828) 258-8030