IUL vs Roth IRA (What Makes the Most Sense for You?)

[@lilliankerr-z7c]

Investing in Roth IRA can be a good choice since they are funded with after tax dollars, your contributions can grow tax-free over time. When you withdraw money from your Roth IRA in retirement, you won’t have to pay tax on it, which will help you keep more of your hard-earned money.

[@LeylahCollins]

If you’re new too investing or have a more complex financial situation, It can be helpful to work with a financial advisor who can provide personalized guidance and help you make informed investment decisions.

[@Ben_Jacques]

On the contrary, even if you’re not skilled, it is still possible to hire one. I am a project manager and my personal port-folio of approximately $750k took a big hit in April due to the crash. I quickly got in touch with a financial-planner that devised a defensive strategy to protect and profit from my port-folio this red season. I’ve made over $150k since then

[@LindamartIin]

Due to the market falls, I need advice on how to rebuild my portfolio and develop more successful tactics. Where can I find this financial planner?

[@Ben_Jacques]

‘Grace Adams Cook’ is the licensed advisor I use. Just research the name, you’d find necessary details to work with a correspondence to set up an appointment.

[@LindamartIin]

Thank you for sharing, I must say, She appears to be quite knowledgeable. After coming across her web page, I went through her resume and it was quite impressive.

[@noahzimmerman-yg6qt]

I am 53 years old and consider myself to be a high earner. My job provides me the option to contribute the employer contributions to my Roth 401k. Should I do that or should I continue to direct that to my Traditional 401k ahead of retirement?

[@ralfbrown-kl1gp]

You're doing well for yourself but it is better to seek help from a professional. I am sure that an expert with experience provides more edge than a KZbinr.

[@marcellasilva4015]

As a high income earner can you easily afford to contribute max of $22,500 to your traditional 401(k) and towards retirement? What is your Federal Tax Bracket and percentage of company match? I f you don't know all this then its best you consult with an advisor.

[@DavidMcKnight]

You saying I don’t have experience? 😉

[@oliverdavis-tw2xl]

Market behavior can be complex and unpredictable. Mind if I ask you to recommend this particular coach to whom you have used their services?

[@marcellasilva4015]

Myself and a few other employees work with Sharon Ann Meny . She helps me max out on the Roth 401k in the month of November each year. My company matches 6% and I think my tax bracket is 22%.

[@bluecollarbullionballer4269]

Yes both is the correct.I love managing my Roth I investin divden companies so no expenses.I use IUL for holding cash to buy investments then pay it back.I use a large amount of my IUL to buy silver at 17 a ounce.Will be selling my silver next couple of weeks.Take principle and capitol gains back into my IUL.Then wait for my next opportumity.Happy investing/stacking.

[@mariatortolero3920]

I loved it !!

[@mrfreshest4608]

Yeah IUL are definitely the way to go

[@Riggsnic_co]

With Roth IRA, the money you are contributing has already been taxed. At any time for any reason, you can withdraw your contributions tax-free and penalty-free. Additionally, any earnings on investments can also be withdrawn tax-free and penalty-free, Not sure how much to contribute, I'm still at a crossroads deciding if to liquidate my $338k stock portfolio.

[@martingiavarini]

For the average person, the strategies are fairly demanding. In actuality, most professionals who have the necessary abilities and knowledge to complete such occupations do so successfully.

[@TheJackCain-84]

This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000

[@bob.weaver72]

Mind if I ask you to recommend this particular coach you using their service?

[@TheJackCain-84]

'Carol Vivian Constable, a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.

[@bob.weaver72]

She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.

[@kf589]

Depends on the individual. High fees low return IUL. Low fees high return Roth. Generally speaking, salesmen gravitate to a product (the IUL) for the commissions so people who don’t want to do their own research will probably lean towards the IUL because of the pitch.

[@DavidMcKnight]

The secret is to do both

[@oxtail1000]

I am confused. Isn’t it that people who are managing the RoTh too are also paid? I’m a beginner at finance hence this question.

[@kf589]

@oxtail1000 a small miniscule amount to the fund and admin unless you just like giving people money, then you can pay an advisor. If you take that route, it would probably match the IUL fees if you compared them after 80 years of holding. However, your question may have been rhetorical.

[@DavidMcKnight]

@@oxtail1000 yes you’re paying either an advisor and/or an institution.

[@DavidMcKnight]

@@kf589 structured properly an IUL will get down to about two-tenths of one percent after about 40 years, depending on the company.

[@Beatricegove733]

Several of the biggest market experts have been voicing their opinions on exactly how awful they think the next downturn would be, and how far equities may have to go, as recession draws closer and inflation continues.. well above the Fed's 2% objective. I'm trying to build a portfolio of at least $850k by the time I'm 60. I need suggestions on what investments to make..

[@foden700]

I'll suggest you find a mentor or someone with experience guide you especially in this recession. especially for your 401K, IRA and portfolio diversification.

[@KaurKhangura]

I agree, that's the more reason I prefer my day to day invt decisions being guided by a init-coach, seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using a init-coach for over 2years+ and I've netted over 2.8million.

[@carssimplified2195]

I just started few months back, my grandson helps me but I'm going for long term, I'm still trying to figure it out honestly.. Which advisor do you work with?

[@KaurKhangura]

There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Aileen Gertrude Tippy’’ for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.

[@carssimplified2195]

Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.

[@BransonGomezOfficial]

Happy to see your channel start to catch traction! You do very well educating everyday people and financial professionals!

[@DavidMcKnight]

Thank you!

[@WillyKnightt]

Cringe

[@jeffblosil749]

IUL, liquidity, tax free income, generational wealth, no capital gains tax, leverage potential.

[@DavidMcKnight]

All good!

[@lorrainebrack2643]

A 1 Q!

[@asesoriacontableaudicontac5197]

What do you recommend me because I am trying to buy

[@sfsfuzzy3597]

All misleading and lies ! The reason why you have no tax is you don’t have the money’ it’s not your money unless cancel the policy so yes then you do pay taxes any growth and not at lower capital gains tax rates but at income tax rates of no less than 28% according to irs

[@sfsfuzzy3597]

@@asesoriacontableaudicontac5197you need to stop listing tinidiitvlijebthis bastard

[@RetirementPlanningEducation]

It's also not fair to call it a draw with regards to fees. You're assuming fees of around 1% per year for Roth IRA investments. There are plenty of mutual funds and ETFs that have annual expense ratios well under 0.10% per year. And if people want to do their own individual stock picking, there are no explicit fees to buy individual stocks (since all of the major brokerages got rid of stock trading commission a couple years ago). For these reasons, Roth IRA wins when it comes to fees.

[@jeff_woodard]

But the truth is, very few people do that. Most have mutual funds, and many use Advisors who charge at least 1%

[@RetirementPlanningEducation]

@@jeff_woodard Mr Woodard?! Great to hear from you again. As I mentioned, many mutual funds have annual expense ratios well under 0.10% per year. And for those that use an advisor, that 1% per year now commonly comes with broader financial planning along with the investment management. As such, it wouldn’t be accurate to attribute all of that 1% to just picking and rebalancing investments, which is what McKnight’s comparison is inherently doing. But as a side note, I think you and I are in agreement that charging advisory fees as a % of assets is dumb. And many times it does indeed overcharge clients for the services they’re actually getting.

[@DavidMcKnight]

There are also no commission life insurance policies designed for fee only advisors. I’m trying to talk about what industry averages the typical investor is likely to see. Focusing on the extremes on either end isn’t always useful to mainstream investors.

[@RetirementPlanningEducation]

@@DavidMcKnight Thanks for the reply. I’m a fee-only advisor on a few different providers’ fee-only life and annuity platforms. But thus far, I haven’t been able to find any platforms who provide fee-only IULs properly structured for LIRP purposes. Are you aware of any? I’m the guy who messaged you on LinkedIn asking if someone without insurance licenses could become a Power of Zero advisor (thereby having to outsource the consummation of the product sale).

[@DavidMcKnight]

@@RetirementPlanningEducation Have you tried an IUL that allows you to utilize a term rider?

[@RetirementPlanningEducation]

How is liquidity of an IUL better? If I pay $1k/month of premiums into a new IUL policy, I will have paid in $12k by the end of the first year. If I want or need to withdraw or take a loan from the policy, the amount I can take out after that first year will be much smaller than $12k, no? And even in years 2, 3, etc...I won't be able to take out or borrow as much as my cumulative premium payments until years down the road when the cash value has eventually grown enough to have exceeded my cumulative premium payments into the policy, correct?

[@jeff_woodard]

If one is 39 years old, he has to wait 20 years to have access to the capital in the IRA., without a penalty and tax consequences. Almost everyone will need capital at some point - either for an emergency or for an opportunity. IRAs are egregiously lacking in this regard. Access to capital (tax-free) is quite possibly the biggest living benefit of a properly funded PLI policy.

[@RetirementPlanningEducation]

@@jeff_woodard The video was about Roth IRAs (not traditional IRAs) vs IULs. As McKnight said, contributions to a Roth IRA can be taken out anytime with no tax or penalty. With regards to a traditional IRA, the withdrawal restrictions are because the money contributed gets a tax deferral on the way in. Which isn’t the case with life insurance; premiums paid are after-tax (unless bought through a 401(k)), hence no tax to take out up to the amount paid in.

[@jeff_woodard]

@@RetirementPlanningEducation yeah no kidding. The point regarding liquidity remains

[@RetirementPlanningEducation]

@@jeff_woodard Yes, it's definitely a nice feature to be able to incur debt using the cash value as collateral. It's a flexible way to get cash flow for those who need it.

[@DavidMcKnight]

I tend not to focus on what one can or can’t do in the first year alone. That’s been Dave Ramsey’s shtick vis a vis permanent life insurance for years. I’m talking about the general qualities one can experience over the life of the program.

[@RetirementPlanningEducation]

Can't you get the same general features and benefits of an IUL but with using whole life? There won't be as much potential for growth in cash value, but there is more guarantee and certainty to how cash value will grow with whole life. Just like it's not fair or safe to assume future returns of traditional investment products will be like those of the past, it's also not fair or safe to assume interest crediting of IUL cash value will be like that of the past. With higher interest rates, lower expected stock returns and potentially higher stock volatility going forward, that combination of market factors doesn't bode well for how most equity-based IUL indices will credit interest going forward. The last decade was kind of the optimal set of market conditions for IULs to have performed well. The next decade and beyond??? Who knows.

[@DavidMcKnight]

The Achilles heel of the Whole Life policy are its loan provisions. To see why, catch my video coming out tomorrow.

[@RetirementPlanningEducation]

@@DavidMcKnight I’m looking forward to seeing it. And hopefully you address infinite banking (and other agent-specific marketing names for it) in it!

[@tadrod2323]

how's IUL doing the past decade?

[@colinoverweg]

What about growth? Where can I give my money the best opportunity to grow?

[@davidmcknight8201]

Stock market!

[@colinoverweg]

@@davidmcknight8201 it feels like that would be a worth while attribute to compare?

[@DavidMcKnight]

Make the IUL your safe money and then you can be even more aggressive with your stock portfolio.

[@tommymodec]

@@DavidMcKnight I agree with Colin. If there were ANY attribute to compare, wouldn’t it be growth potential? The attributes you chose to cover seem inherently skewed in favor of IUL over Roth IRA.

[@DavidMcKnight]

@@tommymodec The Roth IRA will generally be a stock/bond mix whereas the IUL is more of a bond alternative so it’s hard to compare them in that way.

[@vchap01]

IUL has growth limits on index funds typically around 6-7%. That can be a huge problem in years where the market goes up 15+%. The losses are also capped to 0% but historically an IRA/brokerage account is going to come out significantly ahead if you keep the investments for 10+ years. Every IUL I have seen also adds low growth, high cost funds into the mix lowering the gains. It is also top heavy meaning the first couple of years are going to the insurance salesmen instead of the cash value. Today ETFs like VOO, VTI and VT have an expense ratio of 0.04-0.06% which is way lower than the screenshot from some 401k in the video. Fidelity even has 0% ETFs. And there are no other premiums that can grow every year unlike insurance policies. Long term care coverage in an IUL typically requires an additional rider. And good luck getting any significant amount of money out of it when you need it. IUL has 2 purposes - a hedge against market drops (but so are bonds, fixed income, treasuries, etc) and a way to pass money without taxes to children for the ultra wealthy who maxed out trust limits. But it is not something that makes sense in a money growth phase of life.

[@edmondinc1]

just about everything you said about an IUL is incorrect. When the market goes up 15%+ you actually believe the IUL stays around 6-7%? So wrong. Unfortunately, there are several different ways to structure an IUL and you picked the wrong one. Typically, an IRA/brokerage account will NOT "come out significantly ahead if you keep the investments for 10+ years." Every chart in the books will prove your statement false. When the market goes down so does your portfolio. You are correct in stating the IUL is capped at 0%. The fees of the IUL over those 10+years are around 1% compared to the fees of IRA/brokerage is 1% every year in addition to Uncle's cut (30% and rising) IUL is tax free. You don't pay Uncle anything. And wow, I can only shake my head when you downplay the significance of long term care rider. You are Totally, TOTALLY incorrect. I guess you don't like IULs and you are entitled to your opinion.

[@vchap01]

@@edmondinc1 Every IUL I have seen had a cap on the funds no higher than 7% to offset the no-loss policy. Here is what Investopedia says about it. "With an indexed universal life policy, there is a cap on the amount of gains, which can limit your account’s growth. These caps have annual upper limits on account credits. So if an index like the S&P 500 increases 12%, your gain could be a fraction of that amount." I dislike IULs when you are still in your money growth phase. They can make sense at retirement age for tax planning or pass your wealth to children without paying taxes.

[@edsvids]

What has me scratching my head Mr. McKnight is you say if the IUL is structured properly it benefits the client. Why would it ever not be structured. That should be a given.

[@DavidMcKnight]

Because the funding can be manipulated to benefit the person selling it which happens all too often, unfortunately.

[@edsvids]

@@DavidMcKnight then that’s a problem. Thats why I say what I say.

[@DavidMcKnight]

​​⁠sure but these types of ethical issue are hardly unique to the life insurance industry alone. It can happen in virtually any industry . Not sure why you’re singling my video out. After all, I’ve been one of the loudest voices for acting in the best interest of the client. Your agitating might be better spent elsewhere.

[@edsvids]

@@DavidMcKnight Maybe you're rightabout me going elsewhere but everytime I hear a life agent describe an IUL cash value policy they all say the same thing" If the product is structured properly" . Again I ask why would it be structured improperly? I know you answered it. To me that's a red flag 100% of the time. Fianlly I cannot locate you when id FINRA Broker Check . Are you securities licensed?

[@DavidMcKnight]

@@edsvids I am Series 65 licensed but not registered with FINRA through a Broker Dealer, though you'll find me on their Brokers Check if you look hard enough.

[@fredgrau1209]

Here's a simple solution: Instead of IULs, after max-funding your Roth IRA and Roth 401K, invest additional after-tax $$$ on Growth Indexed ETFs such as VUG. Long-term performance of IULs match bonds, not stocks. Compound the improved performnce of VUG over any IUL over 20 and 30 years and you will be MUCH better off with VUG. FYI, the expense ratio of VUG is .04% with a .56% yield. The 10-year return of VUG is 13.9% - find ONE IUL that can come close to that! If you want to treat an IUL as a bond to reduce volaitility, that's ok. However, don't claim that an IUL will match or beat the stock market.

[@DavidMcKnight]

I’m actually one of the only voices in the industry that calls out those who compare IULs to the stock market. It is strictly a bond alternative.

[@fredgrau1209]

@@DavidMcKnight - thank you for pointing that out!

[@kirkampofo1951]

Dave, I appreciate you so much. I am 33 and considering beginning to invest into an IUL account. But I was hesitant about how long it takes to build cash value. Your videos have helped me know what questions to ask, and how to structure mine for maximum gains. Thanks so much*

[@DavidMcKnight]

Happy to help!

[@Kentuckybrothershooting]

Buy the least amount of insurance without it becoming taxable my friend. But it will lower your max guideline premium

[@AboveAvgMan]

Kirk don't worry. You will be 58 before you know it.

[@garthmorris6740]

Can I take out IUL for my kids have everyone death benefits to the trust? Can they borrow against iul for college if they want to do that?

[@snewcomer6831]

Hello, is a IUL the same as FIUL? Aside from the type of index rate? I’ve invested in one about 3 years ago am extremely unclear on and based on what I’ve heard and pretty nervous if it’s going to be a waste of my savings.

[@snewcomer6831]

Also you said if you’re single and make more than 144 you can’t invest in Roth? I have one but what if one day you make more than that?

[@DavidMcKnight]

Same thing.

[@DavidMcKnight]

@@snewcomer6831as long as you were below the threshold in the year you contributed.

[@snewcomer6831]

@@DavidMcKnight so what happens when I one day make more than 144k a year?(if so) I was always told just open a Roth I feel like lots of people make more than that? This is the first I’ve heard of that

[@kingdele01]

This is simply a sales promotion for an IUL.

[@DavidMcKnight]

And Roth IRAs.

[@kingdele01]

@@DavidMcKnight I don't think IULs make sense for an average person, since they will most likely save more money by buying a Term-Life and putting the difference into their Roth IRA or 401k.

[@FlippingMastery]

Like this one!

[@DavidMcKnight]

Thanks Jerry!

[@rickaylabrown9638]

I know I’m late to the party but I have been going back and forth between an IUL for 1&4 yr old vs custodial Roth IRA. Even though that’s not what the video was about, but it can kind of works due to it transitioning to the child when they reach mature age becoming a Roth IRA. I am not sure which is better for my children. Any help ? I know IUL is great for them having build cash value when they are a certain age but what if they have expenses or emergencies which would be tax free yet low interest when borrowing in the event they don’t/can’t pay it back ? We’re not high earning but if I start now I can get SOMEWHERE.

[@DavidMcKnight]

Do your children have earned income? If not they won’t be able to do the Roth.

[@rickaylabrown9638]

@@DavidMcKnight no earned income. So the iul would be the best option ?

[@DavidMcKnight]

@@rickaylabrown9638maybe!

[@bigdragon8me]

awesome video!

[@DavidMcKnight]

Thanks!!

[@deserethomestead1889]

David did you sell for SL Williams 30 years ago in CA?

[@DavidMcKnight]

Not me!

[@rhonda205]

at 57 years old, which one is better to start? wont my premiums be very high for an IUL? healthy 57 yr old male

[@DavidMcKnight]

If your goal is to grow cash value then you’re always buying as little death benefit as the IRS requires of you so most of your cash goes to your growth account over time. Go to davidmcknight.com and click on Work with David and we’re happy to take a look at it for you.

[@rhonda205]

Hi David, can an LLC, thats inside an irrovocable trust, own a IUL?

[@DavidMcKnight]

Not sure on that.

[@debbiejordan3850]

Roth Ira. I don't believe in saving money inside of a life insurance policy. Why would I borrow my own money? Why does a insurance company determine how much money goes into my savings?

[@DavidMcKnight]

It’s not a religion. It’s a math play. If the math works for you, great! If not, great! But people don’t use these tools out of taste or preference. They use them because they can, in the right circumstances, accomplish things that no other tool can.

[@josebpc415]

You can get the same protection for less money. IUL is not for everybody. First maximized your ROTH IRA and buy a term life policy

[@DavidMcKnight]

Don’t disagree.

[@jdubb1987]

What do you mean by saying a “Roth Conversion” account?

[@DavidMcKnight]

Not sure, I’d have to check. Could be I was referring to the rule differences between a Roth IRA and a Roth Conversion.

[@BW-kv9wj]

If someone makes too much money, can you do a back door Roth?

[@DavidMcKnight]

Sure can.

[@DavidMcKnight]

Sure can.

[@BW-kv9wj]

@@DavidMcKnight Thanks

[@Redtopper02]

You could have dividend paying stocks or growth stocks in your Roth IRA. Expenses are ZERO then. What about death benefit? In a Roth account your beneficiaries will get the balance and have ten years to deplete the account. IUL acct depends on the death rider, and you pay for that. In fact it is confusing to what actual the death benefit for an IUL is. Why do both when the IUL makes sense for only very few high income people. The Roth acct is simple to understand, the IUls are complex and may or not make sense, depends on your income and life insurance needs.

[@DavidMcKnight]

70% of my clients get the IUL because of the death benefit that doubles as long-term care. It’s the most heartburn free way to mitigate the risk. Die peacefully in your sleep never having needed long-term care and your kids or grandkids still get a death benefit.

[@Roman49837]

It’s amazing how many people confuse the terms principle with principal. It says a lot about the lack of vocabulary or people being so lazy to look up the right words.

[@DavidMcKnight]

Are you saying there’s a mis-spelling in my video?

[@philiptran617]

IUL = capped return, high fees, complicated products whereas Roth 401(k) or Roth IRA's returns in the long run can easily outperform IUL. If you have 20 - 30 years to retirement, you should invest in a low cost index fund that tracks S&P 500 and some bonds (as you get closer to retirement) in a Roth account. It will be even better if it's a roth 401(k) since you will get a match. Your return will be far more superior than that of the IUL. Why choose a complicated product like IUL and have much lower return with all the high fees and big commissions to the insurance companies and the salesmen?

[@DavidMcKnight]

Not a stock alternative. It’s a bond alternative. This comment draws a false either/or dichotomy.

[@mikeniemczyk3170]

Well done Dave! Great comparison

[@DavidMcKnight]

Thanks Mike!

[@levstowe]

Unless someone is placing an IUL on a child or newborn it doesn’t make sense to own one because the cost of insurance is too high. In a smashing economy when the S&P 500 is soaring your IUL will likely outperform the R-IRA, but in todays economy you’d be happy if your rate of return is 0%, and who knows how long that could last. I’d only open an IUL against a child if I was comfortably maxing out my annual R-IRA contributions. My 2 cents

[@DavidMcKnight]

You know there are ways to structure it so the IUL’s cost isn’t prohibitively high, right?

[@tyrecarmon20]

I got both 🤷‍♂️. Who says you cant have both??

[@DavidMcKnight]

That’s exactly what I concluded in this video.

[@tyrecarmon20]

@DavidMcKnight both are powerful tools, thats how I view them

[@rockford717]

everybody says "if structured correctly...." sounds to me the WL is so easy to be structured wrong and how can I know if someone can do it correctly? I will just stick with good old SPY or VOO and become 1 millionaire in 30 years...

[@DavidMcKnight]

You wouldn’t use IUL as a stock market alternative. It has very specific applications none of which are outpacing the stock market.

[@jasondurant6581]

Both have their place/benefits according to you and several others in the finance space the IUL is not the be all to end all. Only 30% of your income should be in your LIRP!

[@DavidMcKnight]

Correct.

[@JohnJohn-nt9mf]

i have both started at age 29...

[@DavidMcKnight]

Well done!

[@joshl6345]

Roth IRA Sales Commission - 1% IUL Sales Commission - 110% Any Questions about why he makes the IUL sound so good can be answered by understanding the compensation he makes selling them.

[@DavidMcKnight]

How does the cumulative compensation work over one’s lifetime though? When you realize that AUM makes the advisor more, will you modify your comment?

[@joshl6345]

No I won't modify my comment because it is accurate and because advisors rarely hold accounts for the majority of a clients life which would be necessary for your scenario to play out. Why not mention advisor compensation when posting a video comparing the two? You want your clients to have the full picture, but not when they might find out you made 6 figures when you sold those $200K annual premium UL's?

[@davidmcknight8201]

@@joshl6345 Because compensation is a red herring. It's only an issue in the absence of value. Furthermore, if I were to underscore the difference in compensation between the two, it would cut against your argument as cumulative AUM fees over the course of a client's life far out-strip what a life insurance policy pays.

[@JoelPastor]

Thanks David for the nuggets, see you in August!

[@DavidMcKnight]

See you soon!

[@FrozonNinja]

Great video

[@DavidMcKnight]

Thanks!

[@srinivaskilambi2993]

Looks like you are an IUL Agent This is too biases I pay 0 for ROTH

[@DavidMcKnight]

I am not an IUL agent. I am a comprehensive financial advisor and author who consistently advocates for all tax-free alternatives to include Roth IRAs, Roth 401(k)s, Roth Conversions and yes, IULs.

[@jtkt9269]

IUL for me

[@scottjacob5269]

great job Dave!

[@DavidMcKnight]

Thanks Scott!

[@dmoon9037]

PoZ QoD: this is a trick question / false binary! The correct answer is both: everyone can benefit from a Roth IRA (unless you are very high income), everyone can also benefit from a permanent LI policy (even with no family beneficiaries) as a supplement to the Roth IRA

[@jeff_woodard]

well, isn't that EXACTLY what he said...?? 🤨

[@DavidMcKnight]

You win!!

[@JoeC5050]

IUL is Rich man Roth. IUL is not for everyone. Ignore all the sales pitch and fake illustrations online / youtubers

[@DavidMcKnight]

Well said.

[@jeff_woodard]

PLUS the ability to access the capital using it as collateral is a win for the IUL

[@DavidMcKnight]

Indeed!

[@wilkoschutzendorf6302]

I doubt Bill Gates would be interested in an IUL

[@DavidMcKnight]

I agree.

[@amritpal43]

Dude. Roth expenses are zero. Just buy fidelity zero cost index fund. IUL expenses that you cited don’t include investment costs

[@DavidMcKnight]

Thanks for chiming in. The expenses I cited are an all-in average per year over the life of the program. VULs have additional investment costs since the sub accounts are actually managed accounts but IULs don’t. I appreciate your feedback.

[@5metoo]

If you're lucky enough to have a 401k-Roth available with your employer, they have no contribution income limits and you can contribute some 5x more money (and still contribute to Roth-IRA if you're under income limit). Yee ha!

[@DavidMcKnight]

Which is one of the reasons I love the Roth 401(k). About 70% of employers have it.

[@rekarenips]

So many fake scam profiles here. One sets up a scenario, another gives advice and ultimately recommends an advisor while stating performance lies. I hate to think of those who may not see theough these bogus scammers. They are on neqrly every financial video. Report them.

[@DavidMcKnight]

I agree. It’s egregiously bad.

[@blakeouthavong9714]

I have both for over 10 years now.

[@DavidMcKnight]

Outstanding.

[@SYZ]

Great comparison 👏

[@DavidMcKnight]

Thank you!

[@robinhubbard3347]

IUL

[@davidmcknight8201]

Why not both? 😀

[@jeff_woodard]

Roth has only two benefits compared to IUL or LIRP.... Both: after-tax funding, and money accumulates tax-free, and you can access it tax-free. But the Roth gains restricted to 59 1/2, and a 5-year rule. Limits: I can design an IUL to accommodate the dollar amount you wish. Not with Roth. If you don't use a Roth in a given year, you lose it. With an IUL, you can make that up later if you wish. Money in Roth has strings attached (5-year rule). No IRS penalty on IUL. Access to capital - one the major benefits. Money not at risk in the market. Indexing keeps your money safe in a multibillion account, wherein you can link your cash value to indices, and diversify how you wish. By rebalancing you can improve your potential returns. You do not lose when the market goes down. Blossoms when you die. If I die with $1M in a Roth, I'll leave $1M. In IUL, I will leave about double, tax-free. Why mess around with a Roth?

[@DavidMcKnight]

Because you get instant liquidity on contributions and no possibility of getting a massive 1099 from the IRS if your account goes to zero.

[@DavidMcKnight]

Plus you have another tax free account to pull from when your IUL is flat (down when you include fees).

[@CesarFinanzas777]

When this guy said he has clients contributing to an Indel Universal Life Insurance 2000,000/year I just stop watching the video. That comment is a hugh nonsensical sales talking point for an individual that maybe has a Life Insurance license to sell life insurance products, but is not a license financial advisor..

[@DavidMcKnight]

Read any of my five books and you’ll see that I’m licensed to sell everything including investments. Life insurance is just one tool in the tool belt.

[@CesarFinanzas777]

Just do the math and watch your own video. An IUL will NEVER be and investment. It is just a life insurance policy that pays great commissions to the life insurance agents and the life insurance company. That is why I only talk to licensed securities advisors. Most of them are life insurance licensed, so they are not biased on only one product. Real investments perform better that any universal life policy.

[@SKITTLELA]

IUL and whole life or similar should only be utilized for wealth building AFTER you've funded every other avenue, for specific use cases, and applies to maybe 1% of the population. Emergency fund 401k match HSA ESPP Traditional/Roth IRA Traditional/Roth 401k/403b/457b Taxable brokerage Ask yourself what incentives the salesman has to sell you a product. 'It is difficult to get a man to understand something, when his salary depends on his not understanding it.' - Upton Sinclair

[@DavidMcKnight]

In a rising tax rate environment, which we are clearly in, you have this precisely backward. Tax-free accounts should be fully funded and taxable and tax-deferred accounts eschewed.

[@SKITTLELA]

@@DavidMcKnight If we're "clearly" in a rising tax environment, then go 100% Roth over traditional. The fact is no one can predict the future, tax rates have actually been much higher in the past, and if you do the numbers, traditional generally makes sense over Roth unless first starting out when young. Besides, insurance products are not truly tax-free as claimed. Nor are fees anywhere close to reasonable as a three-fund portfolio such as VTI/VXUS/BND. I sure hope you thank your clients for all their hard-earned money you line your pockets with.

[@DavidMcKnight]

@@SKITTLELA Insults and ad hominem don’t strengthen your case. It’s a mathematical inevitability that taxes will rise as interest on the national debt consumes a larger and larger portion of the federal budget. Most experts agree on this. See for yourself: kzbin.info/www/bejne/p53Vap6sd7OjqrM

[@SKITTLELA]

@@DavidMcKnight What is insulting is you trying to turn this back on me, considering it is a fact you charge your clients instead of them investing in low-cost diversified Vanguard/BlackRock/State Street/Fidelity/Schab/etc. index funds; no way to deny that. Again, if you truly believe tax rates will rise substantially, go 100% Roth IRA/401k/403b/457b/solo 401k/etc. Regardless, your last dollar contributed is what is taxed, not the entire pie. Not nearly as simple as insurance salesmen make it out to be, in order to trick clients.

[@DavidMcKnight]

@@SKITTLELA “You’re just a greedy insurance agent!” is not a well-reasoned argument. Had you watched any of my other videos (even one!) you would find that I’m literally the antithesis of an insurance agent. I just don’t have the same knee-jerk reaction to insurance that you do. I find that, like most things in life, a little nuance goes a long way. To wit: What Is the BEST Tax-free Investment? kzbin.info/www/bejne/ZqCvoqOGiN-bhZY

[@johnsmith-ct9fw]

Where better keep money as tax deferred or tax free if i am 58 and want to get out of rat race and move to South East Asia.

[@JoeLangley-zy9nj]

😂😂

[@georgestone0123]

The reason many people venture into Trading/Investing (Financial Market), is so that they can get to have a better life, while working and even after retirement. The wisest thing that should be on every wise individual's list is to invest in different stream of income; I am earning more this year because I have been investing while working at the same time. I invested through *ROCHELLE DUNGCA-SCHREIBER,* same woman that an anchor kept mentioning on CNBC, and made multiple of my start up capital within three months . She lives here in the USA and she is licensed

[@JonBusey]

poorly disguised salespitch for life insurance. No thanks.

[@DavidMcKnight]

You managed to find one of the very few channels on KZbin that advocates equally for Roth IRAs and life insurance in the right context and you reflexively mischaracterize it as some guy just trying to sell life insurance. Nice reductive take. 👍

[@AboveAvgMan]

Why do you hate life insurance ?

[@ShaneOrtega-m1s]

iul works best for me and my wife

[@maxshiraz3447]

Didn't mention that when you die, the insurance company pays the death benefit but keeps your cash value. His client putting $200k/year into the IUL needs to hope he never dies

[@misstaytay9694]

Uhh who told you that? You’re probably talking about a whole life policy. All of the cash value in an IUL goes to the beneficiaries and clients.

[@philw9787]

U have structure your policy keep cash value n policy. Think call class B

[@blackpepe]

scam

[@davidmcknight8201]

lazy comment

[@blackpepe]

@@davidmcknight8201 lazy career choice

[@ericjuli6576]

I go ROTH IRA for stocks and Whole Life to simulate bonds

[@DavidMcKnight]

I like it!