How much would you put into a ROTH IRA, if there were no limits?
What if you could become your own bank, funding life’s needs from tax free money? Do you think tax rates will go up, down or stay the same in the future? How will taxes affect your retirement savings or college savings? What if you could use tax free money from another source on years that your retirement accounts have negative returns? How could this boost your retirement savings?
John Girouard at Forbes.com had the following to say.
"Cash value whole life insurance can be helpful in enhancing your income in retirement when your greatest worry is running out of money or not leaving enough for your dependents. For example, suppose you have $500,000 in an IRA and your tax bracket is 35 percent. That means you really only have $325,000 to work with. If you wanted to live on the interest income, assuming for the sake of this illustration a 5% return, you will only receive $25,000 a year pre-tax, or $16,250 in spendable dollars."
"If, instead, you had a $350,000 life insurance policy that you use as your bank account, you could spend down your IRA over your lifetime and still have assets for long-term care or inheritance or for living."