401k transfer to Permanent Life Insurance
Ed mentions in his videos that it is best to move your 401k, 403b, and other taxable retirement accounts to CVLI, but he also says that one of the five silent retirement killers is not maximizing your retirement contribution, so my question is:
How far away or close to retirement should these funds be moved from one account to the other?
And if one moves funds from their 401k should they close that account all together or just transfer their current balance but continue to contribute to get the matching employer contribution?
Permalink Submitted by Alan - IRA critic on Wed, 2015-08-26 22:42
No reason to stop contributing to applicable retirement accounts. As for the life insurance purchase, remember that the retirement plans must be distributed and taxes paid to fund the premium. And the person needs to qualify for the life policy typically without surcharges for medical issues. This strategy is not for everyone and the tax rate the plan owner will pay vs that of his beneficiaries should be considered along with how much funding the person will need for his retirement tenure.