How 5 Year Retirement Plans Protect Your Lifestyle

because At 30 you have years to save for retirement.  When you’re in your 40s and realize how little you’ve saved in your retirement accounts you might get concerned.  By your 50s you need a different plan. The caps on your traditional 401(k) or IRA won’t allow you to put enough money away for looming retirement. With a late start, 5 year retirement plans can be a better way to fund retirement and protect your lifestyle.

5 yr retirement plans protect lifestyle
5 yr retirement plans protect lifestyle

Getting a Late Start

Maybe you were busy growing your business or law firm.  Alternatively, maybe you just didn’t earn enough in the early years or had family expenses that had to come first.  The good news is that you may still have choices and options in how to save enough money to keep your current lifestyle into retirement. We have a particular strategy we feel has lots of benefits over traditional retirement savings in later years.

A Plan With a Low Expense Ratio

When we talk about something that sounds too good to be true, most of us look for the catch.  But in this case, while you do have to qualify, the level of qualification is amazingly reasonable.  The expense ratio is low because it uses a whole new approach to funding your retirement.  Today, we have a solution that can help you super charge your retirement savings – and it only requires you to pay 5 annual premiums.

Less Tax Risk Than Traditional Retirement Plans

You may be thinking, sure but what kind of tax risk will I be facing?  Here’s the good news.  Per the IRS, since this is an insurance policy instead of investments, its benefit proceeds are not taxed.  Keep in mind, however, that interest on the benefit is taxable and should be reported as received interest.

Lower Market Risk than Traditional Retirement Plans

Financial advisors constantly analyze the risk vs return on a variety of stocks and bonds to make sure your investment portfolio is balanced and not full of risk.  In fact, the riskiest investments such as art, coins and crypto are usually kept to a minimum, as opposed to more moderate investments such as a 401(k) account, equities, emerging markets, bonds and homes. Insurance, on the other hand, is part of protection based planning, without the volatility of stocks. It is one way retirement plans lower market risk, tax risk and capital risk compared to traditional retirement accounts.

Reduced Capital Risk

When started late, traditional retirement plans risk having too little capital for the contributions required to achieve your retirement goals. We have a five year plan that reduces the number of contributions you must pay.  After you contribute the first 5 annual contributions, the next ten are covered by your insurance lender.  Our plan allows you to keep your current lifestyle in retirement without large tax implications or capital risk.

A 5 Year Retirement Strategy

We have a 5 year retirement strategy that uses a fresh approach. It has a 97% persistency rate because it is that much better.  Many business owners, doctors and lawyers who built up their practices and business but are a little late to build their retirement plan find it to be the perfect solution.

Foss Financial Services helps clients with retirement planning, succession planning, exit strategies and wealth protection. We emphasize the education of our clients, even as we analyze their current plans and terms with their goal in mind.  This is because we understand every situation is different and every person has unique goals they want to achieve.  Our goal includes ensuring you learn how to achieve those goals through stronger financial literacy.  We’d love to discuss your 5 year retirement plan and other ways you can achieve the future you envision.

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