Customer Reviews

Tax Free Retirement

5 star:		(21)
4 star:		(5)
3 star:		(2)
2 star:		(6)
1 star:		(4)

 

 

I am not an insurance agent or an affluent investor, but was given this book by my financial advisor who wanted me to make up my own mind on utilizing a Univeral Life Insurance policy for more than just the death benefit.

I was very suspicious at first, wondering why he did not just direct me towards a mutual fund or something more 'sophisticated sounding.'

This book was very easy to comprehend and a breath of fresh air.

Kelly doesen't talk over your head, and for once financial advice that makes perfect sense.

Every hardworking person (middle class especially)should read this book.

We are spoon fed our retirement options (401k's and 403b's) and we HOPE that we are doing what's in the best interest of our family and our future.

Kelly asked one question in this book that sent bells off in my head: (paraphrasing) Based on the current and potential future tax implications why is saving all my money in a Tax Deferred account a good thing? Furhter, who's retirement am I saving for, mine or the governments?

Universal Life Insurance is Patrick Kelly's answer to a "Tax-Free Retirement" if you earn over $160,000 and want to save more than $4,000 per year. He says a Roth IRA is better if you save less than $4,000 a year, have no need for life insurance and are close to retirement. Individuals who are close to retirement may not have enough time before the withdrawal phase to properly fund the insurance option.

Kelly says Universal Life Insurance can be structured to work similar to a Roth IRA as the taxes are paid upfront from your paycheck. Both generate interest, allow tax-free withdrawals of earnings after 59½ , don't require minimum withdrawals after age 70½ and the account can be passed on to heirs where they won't owe a penny of tax.

The LIVING benefits of Universal Life Insurance are many. Clients can take out a loan against the cash value with little or no interest and do not need to pay it back during their lifetime as long as they stay under the contribution maximum. This means the first amount of money withdrawn can come out tax-free as a withdrawal up to the total contribution amount. The rest of the money can be taken out as a loan (tax free) from the insurance company for ½ % to 0% interest. (The client is charged 5% interest for the loan and their Life Insurance Policy earns 5% interest.) Since it's a tax-free death benefit it is important that the policy stay in force until the client's death. If the life insurance is used properly there is no need for record keeping or tax forms.

Kelly also shows how to avoid the nine common financial landmines: Planning, procrastination, interest, instant gratification, following the masses, inertia, get rich quick, lack of generosity, acting as if there's no future.

I wish I'd read this book sooner. I'd have chosen a Roth over a traditional IRA.

As a fairly sophisticated investor who has been advising others for over 30 years, I find the concept of utilizing permanent life insurance to fund tax free retirement workable only for high income individuals. For the average, middle class investor, this concept is deeply flawed as it disregards the extremely high commissions that are associated with the financial product the author is pushing. I have a much bigger problem with the manner in which the author summarily dismisses the use of high quality, insured and guaranteed municipal bonds. My experience, and those of countless other financial advisors, has proven that a portfolio of carefully selected and diversified high quality municipal bonds will provide solid, reliable tax free income to investors without the high commissions of permanent life insurance.

The story of Bill really hit home with me. His salary was $150,000 a year and saved for his retirement by overfunding his 401K. Like many of us, he thought he was doing the right thing. Sadly, his 401k imprisoned his money with tax implications. I couldn't believe he was unable to use it to pay for his kids' college tuition, without a hefty tax penalty that is. But, I have to admit I was pretty impressed with the $3 million he saved in his 401k at retirement. However, after reading the entire story to find out his kids only received about $150,000 of his $3 million estate made me think about 401k's totally different. I am thankful I finally know where to put my money to protect it. This book was very educational.

Unfortunately most opinions that put down on Permanente Life Insurance are not from a credible advisor. They really don't know what they are talking about or they got their information from their friend the mechanic. Or maybe they are sold on selling just one investment. Most opinions are worthless for lack of credible investment knowledge with no real proof of what they are saying here.

There is a place for every investment, and every investment has a place, including Permanente Life insurance. Over funding Permanente life insurance gives the client several options that other investments just don't have. Death benefit protection for the family, liquidity, use and control at all ages, has safely averaged 5% to 8% annual tax deferred and tax free growth, and has tax free distributions. I am an advisor and have sold and bought myself just about every investment there is. And I can tell you with certainty that in the last 11 years nothing has come close (with safety of principal) to the returns of over funded life insurance. In the last 11 years most of our clients that have max funded Indexed Universal Life Insurance as an investment strategy have averaged well over 6% annual returns tax free. There are at least 10 A rated insurance companies that offer a 100% participation of the upside potential of the S&P 500 up to 14%, and a 0% down side risk. What other investment has that kind of returns with safety of principal tax free in the last 11 years? I challenge anyone with credible proof to refute what I just wrote. You must; quote me the investment, the insurance Company, the years of the investment, and the returns on that investment or policy, or as far as I am concerned, and as everyone else should be, you're just not a credible source of information. By the way I'll give you two insurance companies that I used for my credibility: Minnesota Life and Penn Mutual, and they have both done very well. Get in touch with a credible insurance agent/advisor and ask him to run illustrations for the last 11 years. Good luck

This book does a great job of presenting something that isn't widely known. As such many of the concepts are able to illicit feelings that generate a response either way. As someone who started out as an investor, I love the option, but not everything is right for everyone. I recommend speaking with someone who does both, and ask for the percentage. For upper middle and high income individuals, this plan can't be beat, including fees, especially when you take into account the flexibility. (I plan on retiring at 50, and would like to have access to my money!) So far as the sub accounts go, they are all different! Choose the balance of risk versus return that's right for you! Or, again, consult with someone who's an expert on the subject. You may be surprised at some of the names you are able to choose from in the sub account.

Like anything else, check it out! Make an informed decision based on needs and numbers, not feelings, or you'll end up in the same boat as others that believed they were professional investors. They react based upon feelings, use your feelings to create the plan, not to change it in the middle!

As an insurance agent with 41 years of experience, I looked forward to a good presentation of the merits of permanent life insurance. Much of what Patrick Kelly wrote has been said by others. So, there was nothing new in this book. However I have two issues that bother me about this book. 1. He states that all the cash value could be borrowed out without creating a taxable situation. (page 140). 2. He uses unsupportably high projections of growth. (page 158 and others) It is a shame that such a valuable financial product should become sullied by hype and mis-statements.

I work in the back office of a licensing department and recently passed the Life, Accident, and Health insurance exam. My friend, who works in financial services, introduced this book to me. Interested in learning about retirement planning and being nowhere near retirement yet, I thought it wouldn't hurt to read. As soon as I picked up this book, I wanted to finish reading. Patrick Kelly wrote this book for almost anyone, even those without a financial background, to understand. This 162-page book was an enlightening and quick read. I highly recommend it to anyone that contributes to a 401k or Traditional IRA, wants to save beyond the limit of a Roth IRA, or doesn't qualify for the Roth IRA. This is a MUST-read for anyone that wants to understand the role of insurance in retirement planning.

Patrick Kelley really opens up readers eyes to the advantages of a universal life policy. This is an extremely specific book and well worth the read if you have maxed out other tax protected options such as IRA's or 401(k)s. This book is really meant for a very affluent individual, however I think it is an important read and it helps to understand options other than traditional means. It is biased towards life insurance, there is no doubt about it, because that is simply what the book is about.

I guarantee if you read this book your eyes will be opened to an additional tax-free retirement option that is unique and untraditional. Don't expect to get the same old securities approach. Read and be enlightened!

This is an excellent and understandable essay on the value of Life insurance as a retirement income solution. Patrick Kelly is a master at delivering a message that people will relate to and may actually take action on. He exposes the flaw in Qualified plans (401K, IRA, 403B,Etc.), that the government allows you to defer paying taxes on the "Seed" money you invest, in order to collect taxes on the "Harvest" of that "seed" after 20 -40 years. He points out that it is doubtful if taxes will be reduced in the future and so the government reaps a bonanza on taxing your total nest egg and the growth of that nest egg even if you never need it for retirement income. Withdrawals must start at 70.5 because the government wants their money!!

Not only does he expose the flaw in Qualified Plans, but he also proposes a solution that will provide all the benefits of Qualified Plans such as (deferred growth, triple compounding of interest) PLUS the additional benefits of: access to the money any time you want it regardless of age, no restrictions on the amount you can save, protection for your family in case of early loss of life, college tuition if needed, and elimination of the requirement to take money (RMD) even if you do not need it for retirement. HOWEVER, if you do need income, it will be TAX-FREE for life. Yes that's right NO TAX on the income taken and NO UNCLE SAM.

I highly recommend this book as a way to secure your retirement income, and get the government out of your business, especially to people with at least 15 years before retirement.