One Of The Coolest Retirement Strategies You've Never Heard Of

In this episode, Troy Sharpe, CFP®, talks about one of the coolest retirement strategies you've probably never heard of: an Indexed Universal Life insurance retirement product. Life insurance as a tool in your estate plan or your retirement plan may have many distinct advantages, depending on your circumstances. Along with annuities and bonds, we believe life insurance to be one of the most misunderstood tools in the financial world.
In our view, life insurance in retirement should be thought of as an asset, not an expense. When structured properly and used as part of a plan, it can become a conservative growth tool with unique tax advantages that provide living benefits and death benefits.
The tax code specifically carves out special advantages and tax benefits for life insurance. When used appropriately in retirement, or as part of an estate plan, it may be possible to use life insurance to help protect your retirement, and your estate.
The benefits of life insurance must be weighed against the costs and your objectives. We believe that no financial tool is inherently good or bad, but they do have different purposes, benefits, pros and cons. Understanding the purpose, benefits, pros and cons of life insurance as applied to your personal situation is the first step in determining if life insurance can be an appropriate tool for you.
Troy Sharpe, CFP® is the founder and CEO of Oak Harvest Financial Group, a Houston financial services and investment management firm.
Troy leads a team of experienced professionals, analysts, and support staff to help clients create customized financial strategies that align with their unique retirement goals.
Troy holds a Series 65 license as well as a Texas life insurance license. He also earned a finance degree from Florida State University and completed his Certified Financial Planning certification at the Susanne M. Glasscock School of Continuing Studies at Rice University. Additionally, Troy is a Registered Financial Consultant with the International Association of Registered Financial Consultants.
You can hear Troy at 12 p.m. Sundays on KTRH 740AM when he hosts “The Retirement Income Show.”
Do you have a retirement plan that goes beyond allocating funds to truly fit your needs? We can help you create a retirement life plan customized for your retirement vision and legacy. Call us at [phone]
If you have $500K or more and would like a partnership with a firm to help you manage your investments and financial plan as in these videos, click on this link to connect with our advisors: click2retire.com/coolretirement
#retirement #retirementplanning #retirementincome #financialplanning

[@johnjeanette4317]

Definitely sounds like a Universal Variable Life Insurance product utilizing either a target date fund or the S&P Index … OR … possibly a Variable Deferred Annuity with a Guaranteed Income rider attached. I haven’t been involved in the retirement industry in 15 years but those would be my best guesses. They key to any of these is knowing & understanding their M&E fees (mortality & expense) as these fees (which are essential to the insurance companies) can vary by company. Two different products both utilizing a S&P index fund will have different returns based on the underlying fees as these fees are baked into your return (meaning you don’t see the charges, either monthly or yearly). Lastly, remember that insurance & annuity type products are like cars … the more you customize them by adding features (riders, guarantees, etc.) the more expensive it will be. Also, these products are not FDIC insured & are backed only by the financial strength of the underlying company so do your research & pick your company wisely (the cheapest product will do you no good if the company has a poor financial strength rating & ends up bankrupt).

[@michaelcurtis106]

Interesting. This looks like it could replace the cash portion of the portfolio. I do have some questions: 1. How much needs to be invested? 2. How much can be withdrawn in a given year? Also, do you have to wait a certain period of time before making withdrawals? 3. What are the costs associated with this product (not counting the initial investment)? 4. How is this product taxed, if at all? (I think you may have covered this in the video but I didn't really understand it) 5. At what ages can this product be purchased and utilized? 6. What percentage of long-term care costs does this product cover? Is is limited to certain amounts and/or levels of care? I will probably have some additional questions but these are the only ones I can think of at the moment.

[@Retired-jr3qs]

As a retiree this one of my favorite youtube channels

[@georgewashington938]

sounds fishy. Whenever there are multiple moving parts and clauses, there are places for companies to sneak in fees or drain away returns. What is the name of this super secret financial tool?

[@terrygoldman572]

You nailed it. When something sounds too good to be true, it almost always is. They are pitching some kind of indexed annuity with downside protection and an upside cap which also includes LTC and life insurance. Whenever someone is selling annuities or insurance and claims they have no/low fees and minimal limitations, hold on to your wallet. All annuities include life insurance where they hide the cost. Every annuity I am familiar with includes surrender charges for many years which limits your ability to get out without a high cost Take a simple model. The compounded average return of an all stock portfolio is 10%/yr. This product is limiting your variance and limiting your upside to 8%/yr. They are also charging you a 1% portfolio wrap fee. In a simple analysis they are charging 30% of your projected 10%/yr return. You get up to 7% and they get 3%. That pays for a lot of fancy videos.

[@EricDaMAJ]

Yes, it is fishy sounding. And the fact they haven't answered you even more so.

[@andyh3173]

It's a whole life policy and they are junk

[@johncali9]

Thank you so much INSTRUCTOR

[@timmurphy8920]

Need Long Term Care Insurance? Forget paying an insurance company who will lock you out as you age with higher premiums! Go with an Irrevocable Income Medicaid Trust (for nursing home planning) which offers many benefits. Look into it!

[@JL30014]

Love the videos! Can you make a video discussing covered call ETFs like QYLD that pay high monthly dividends for retirement? Seems too good to be true.

[@OakHarvestFinancialGroup]

Glad you are enjoying them. Keep coming back for more. Thanks for the idea.

[@craigf7165]

What happens if the insurance company becomes insolvent?

[@jpsmusicandmore5457]

I am actually talking to one of your reps to decide if I want to work with your company. So far I am impressed with him and y'all. What is this tool called? I want to discuss it with him in our second meeting. Thank you.

[@urbanart7325]

What do you call the vehicle? It's not an annuity so what is it?

[@TheGregWallace]

So if you need the long term care how is it paid?

[@amerlin388]

Many of the features described for this kind of financial instrument are typically add-ons called riders, which can be costly, say 0.75% each year. The available riders may include... Guaranteed Withdrawal Benefit. ... Lifetime Income Benefit Rider. ... Death Benefit Rider. ... Long-Term Care Rider. ... Cost of Living (COLA) Riders. ... Refund or Return of Premium Riders. Adding several riders can reduce that 8% to little more than the rate of inflation.

[@boat6868]

Is the change in value taxable each year?

[@marylennon1524]

For $10,000 a month, why wouldn’t I just stay in a nice spa and hire private nurses? Our health care system is broken.

[@williamvaliant337]

What if you do not need a Long term care instrument i.e. already got it handled?

[@FrankTruslow]

What is the financial tool called? Apparently, it's a unique product from one company.

[@FrankTruslow]

Indexed Universal Life?

[@kathleenmcintyre9376]

Can you do a video on special needs trusts or investment for a disabled adult child?

[@KINGOTHL]

So what is an IUL? What does it stand for?

[@alrocky]

"Indexed Universal Life insurance retirement product" from information box at top

[@andyh3173]

Whole life insurance is JUNK

[@EricDaMAJ]

It sounds intriguing, but yes, having it parceled in a "life insurance chassis" sets off alarms. Especially when so little information is given and the video orientation seems focused on fears such as death benefits and long term care. Life insurance scams are rife in the financial industry and people are right to be wary of them. Apparently the customer needs to drop $250k on this. Which is doable for some customers seeking a safe supplemental investment who are already well off. I can totally see why they would. However, $250k is not a barrier to entry for suckers, so the marketing demographic also raises alarms. There doesn't seem to be an entry program for financially modest customers.