Author Topic: Anyone have a Life Insurance Retirement Plan (LIRP)?  (Read 1839 times)

Gone Fishing

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Anyone have a Life Insurance Retirement Plan (LIRP)?
« on: February 13, 2015, 11:30:59 AM »
Heard a pitch for one of these this morning (not this specific provider):

https://www.edwardjones.com/en_US/products/insurance/life/life_insurance_retirement_plan/index.html

I'm sure the embedded fees are tremendous, and appeared to be pretty well front loaded. I calculated around 15% of the contributions went straight to the insurer based on the example I was given, but if you have a very high income that excludes most of the other tax advantaged accounts and puts you in a high bracket (probably the highest) in retirement, it could make sense given the downside protection.  Probably not for most ER types though.  Interestingly enough, the math pretty much just transfers what would be tax revenue to the insurer.
« Last Edit: February 13, 2015, 11:34:40 AM by So Close »

Gone Fishing

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Re: Anyone have a Life Insurance Retirement Plan (LIRP)?
« Reply #1 on: February 13, 2015, 11:40:22 AM »
A little more reading:

http://money.usnews.com/money/blogs/the-smarter-mutual-fund-investor/2013/06/12/is-life-insurance-a-retirement-investment

The calculation for figuring gains did seem a bit voodooish, it was market linked with a cap of 12% and a floor of 0%.  It would be interesting to see what the calculation returned historically.