If you own a universal life insurance policy, you may not realize you can pay more than the premium your agent quoted you. In this episode, we break down what overfunded indexed universal life insurance is, how it works, and why it might be worth your attention.

We walk you through how IUL policies are typically designed versus how they should be designed if cash value accumulation is your goal. You'll learn why starting with your budget — not a death benefit amount — is the right approach when building a max funded policy.

We also cover how the indexing component works and what kind of returns you can realistically expect on a risk-adjusted basis. We run through a real numbers example showing how $30,000 per year over 20 years can generate $62,000 in annual tax-free retirement income.

If you already own a policy and haven't been funding it to the maximum, we explain your options. There's more flexibility in universal life insurance than most people realize, including the ability to catch up on missed contributions.

We close out with a discussion on how overfunded IUL can serve as a bridge strategy for early retirees and those navigating Roth conversions while managing Medicare premiums.

Ready to talk through whether an overfunded IUL makes sense for you? Schedule a call with us — we'd love to help.

You've probably heard that pensions are dying, but have you ever wondered why they were so effective in the first place? Research shows that traditional defined benefit pensions deliver the same retirement income at 49% less cost than typical 401(k) plans. Even the most efficient 401(k) plans still require 27% more funding to match pension benefits.

The difference comes down to three main factors: lower investment costs, access to institutional-grade investments, and longevity risk pooling. Large pension funds pay just 25-41 (.25-.41%) basis points for professional management compared to 130+ basis points( 1.30%) in many 401(k) plans. Some 401(k) fees are so high they completely eliminate the tax benefits for younger workers.

Insurance companies operate on the same principles as pension funds, managing trillions in assets with access to private placement bonds that yield 25-45 basis points more than public bonds. You can't buy these investments individually, no matter how much money you have. The insurance industry holds over 90% of all privately issued debt in the United States.

This scale advantage directly impacts products like annuities and whole life insurance. When you buy a lifetime income annuity, you join a risk pool of hundreds of thousands of people. The insurance company only needs to fund the average outcome across the pool, not your individual maximum lifespan.

The numbers are striking: a 65-year-old funding $15,000 per year of income needs $278,000 in Treasury bonds but only $202,000 with an annuity. That's a $76,000 difference from mortality credits alone. We walk through the research showing how institutional investors achieve results that retail investors simply cannot replicate on their own.
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Have questions about how these concepts apply to your retirement planning? Reach out to us—we're here to help you understand your options.

You've probably wondered when the right time is to start taking income from an annuity. Should you wait until you're older to maximize your monthly payout? Does that actually give you more money over your lifetime?

We tackle this common question and explain why the answer is more nuanced than you might think. The reality is there's no mathematically perfect age or timeframe that works for everyone.

We break down the differences between SPIAs (single premium immediate annuities) and annuities with income riders like FIAs and VAs. You'll learn why insurance companies structure payouts the way they do and how they account for adverse selection.

One key insight: waiting for a higher payout isn't always worth it. The income you receive today when you're healthier and more active may be more valuable than slightly higher payments years from now. Insurance companies also don't reward waiting as much as you'd expect because they know who tends to buy annuities at older ages.

We also discuss how annuities can provide flexibility in retirement planning. When markets correct, you can shift to annuity income and let your investments recover without the pressure of forced withdrawals.

The bottom line? Start annuity income when you actually need or want it, not based on some arbitrary optimal age.
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Have questions about annuities or retirement income planning? We'd love to hear from you. Reach out to us and let's discuss how these strategies might work in your specific situation.