Terry Bork CLU ChFC, President   |   Aurum Insurance Services   |   D: 440-605-7230   |   C: 440-666-6032   |   tbork@auruminsurance.com   |   www.auruminsurance.com

The Insurance Based Retirement Plan

More Safe Secure Spendable Income in Retirement

For most people retirement funding is their biggest financial concern. The ultimate goal is financial independence, the peace of mind knowing there will be sufficient assets and cash flow, insulated from risk, to fund lifestyle objectives for life. No matter the level of financial resources, everyone’s biggest fear is running out of money.

Funding Alternatives

There are 3 asset category alternatives for funding your retirement goals:

  • Traditional Investment Portfolio
  • 401k and other Employer Sponsored Retirement Plans
  • Accumulation Designed Life Insurance (ADLI)

The Question: Which alternative can provide the greatest safe secure spendable income in retirement?

Goals Based Asset Allocation

Utilizing a goals based approach to asset allocation matches a funding asset to the financial goal and measures its effectiveness by how well it addresses the risks over the asset’s time horizon. In the case of retirement the time horizon is life.

While there are pros and cons of placing retirement assets in each category and diversification is important, ADLI, the funding asset for The Insurance Based Retirement Plan, is uniquely suited to address the risks: market risk, excessive fees. Income taxes, creditor risk and longevity risk.

One Important Additional Risk to Consider

Retirement funding has one more important risk to consider, Sequence of Returns Risk. It has to do with the order in which the investment returns occur. If a high proportion of negative returns occur at or in the beginning years of retirement, it will have a lasting negative effect. Withdrawals may be reduced, and/or assets may be depleted.

The traditional approach for addressing Sequence of Returns risk is to reduce market exposure with a more conservative asset allocation, which also limits return potential.

ADLI utilizes Equity Indexing, which provides a guaranteed floor to help prevent market-based losses, allowing for ongoing participation in market gains with no allocation change, increasing long term return potential.

Make Your Retirement Better

ADLI has a unique combination of advantages that are not available with any other financial instrument, or cash accumulation strategy:

  • Capture stock market returns without the risk of market losses for life
  • Eliminate income taxes on cash value growth and income distributions for life
  • Minimal fees after the first 10 years for life
  • Potential for guaranteed income for life
  • Cash value protected from the claims of creditors in most states for life

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