Retirement Savings Strategy



What you didn’t know about retirement planning—Life insurance can be used as a strategy for retirement savings

Did you know that there is a legally blind man in the United States, who has a permit to carry a concealed weapon in five of those states?  He was able to hit a human sized target 10 times out of 10, from a distance of 6.4m, just by having someone point him in the right direction!

Often, people are don’t know just how much money they will need to live in retirement.  But, by having a Certified Financial Planner point you in the right direction, you too, will be able to “hit” all your financial goals.

A lot of my clients are building their own businesses.  Of course, all their “extra” money is being funneled back into their business, in the hopes of enormous success.  Once people begin to think about retirement, and realize (and panic), that they just haven’t made the time or had the money to plan for it, they come to me for help.

Purchasing a whole life insurance product, with the intention of it funding your retirement, is a legitimate strategy.  And, it is possible to borrow the money from a bank to pay your insurance premiums, so the cash-flow impact today is minimal!

Each dollar of premium paid, covers two things:

  • The charge of the insurance itself, and
  • A deposit into an accumulating account within the policy (cash value)

If you were to die before you got to enjoy your retirement, the total of your initial policy and any built up cash value, would be paid to your beneficiary (ies), tax-free, as normal. 

Starting at age 65, you would start using this strategy.  First, you would go to a bank and borrow your (amount of money needed for retirement) per month.  You will use the insurance policy as collateral.  Banks will typically lend up to 90% of the cash value.  As loans proceeds are tax-free, you will not be charged income tax on this.  There is an annual interest charge for the loan, but it will be added to the loan balance over the years.

Once you do pass away, the insurance money will be used to pay off the loan to the bank, with the rest of the cash going to the estate/ heirs.

This is just one of many different strategies you can use to fund your retirement.  And there are different strategies depending on your situation.  To get the best solution for your retirement plan OR if you want to get more information, you can set up a complimentary, 30- minute phone consultation at OR email me at