• BY amfcon
• 17 Dec 2022 INSURANCE

Nowadays, many retirees are living longer and enjoying active lives in their retirement years. The average life expectancy at age 65 continues to rise. This increased longevity poses a risk to retirement security for those who did not begin investing at an early age. They need retirement which never runs out of money and life insurance to give them security benefits, such as heart attack, stroke, cancer, paralysis, and more.

According to some financial advisors, if you use the 4% rule of thumb, you will never run out of money in retirement. This rule refers to how much money you withdraw each year from your retirement account after you retire. Also, they will tell you to try not to use more than 4% of your portfolio in the first year of retirement. However, many financial advisors believe that 3% may be safer and better than the 4% rule because of inflation and other ups and downs in the market.  

From previous examples (Table 1), you want $85,000 each year from your retirement savings account. So you should have at least $1.145 million in your 401(k) or in some other form of retirement account. If you are in the 22% tax bracket, then you lose $18,700 in income tax and are left with $66,300 per year. What happens if you have a stroke or heart attack? How much will health insurance and Medicare cover your heart attack or cancer medical bill?

 With an IUL investment plan (Table 3A & 3B: Illustrations), you won’t have to worry about running out of money and spending on emergency medical expenses, such as heart attacks or strokes.