The Lunsford Agency 69 West Second Street, Chillicothe, OH 45601

Create Your Own Pension Plan

Back in the day when workers retired they could expect to receive a pension. This in addition to their social security payments would make up their retirement income. Most companies have abandoned pensions and now offer a 401K plan for their employees. These plans are great but rely upon the employee to fund them properly. Always be sure to put in enough to get your employers match.

Another smart move on your part is to start or continue contributing to IRA’s. Traditional IRA’s will allow a tax deduction by meeting certain criteria. A Roth IRA also has some rules that need to be followed in order to receive tax-free income.

Another option would be to open an annuity. This tax-deferred savings program earns a competitive rate of interest with a minimum guarantee.

All of these are excellent options, but there is another plan that is available and has no rules or restrictions. This one is a personal life insurance plan. For example, a male age 35 sets up a plan and pays $200 per month. This plan has the following benefits:

  • $222,000 of life insurance coverage
  • Builds a residual cash or loan account that may be accessed in the future
  • Earns dividends
  • The cash value at age 65 is $100,000
  • Create $1,000 per month of income for 9 and a half years

The secret is to put something away, the amount doesn’t matter. Your age and the amount you deposit each will determine the future value.

So, how much can you comfortably invest each month to create  a death benefit and a cash value account?

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