By Elliot Raphaelson
From Tribune Content Agency
Although Ed Slott (IRAhelp.com) is an expert in IRAs and other retirement plans, he consistently points out that permanent life insurance has significant advantages for long-term retirement planning. The ramifications of the SECURE Act of 2019 only magnify these advantages in contrast to investing through taxable retirement accounts.
Below I’ll discuss some aspects of permanent life insurance. Life insurance protects against uncertain future tax rates The proceeds of permanent life insurance are not taxed. Unless you convert your retirement accounts to Roth accounts, you will eventually pay income taxes on the distributions, and it is likely that future tax rates will be higher than current ones. Depending on the size of your retirement account distributions, you could also face increased taxes on Social Security benefits and even trigger other taxes such as an increased 3.8 percent tax on net investment income….