What if you could guarantee a portion of your retirement savings at some point in the future?

Here is a case study using John Smith, age 45. John’s mother, Mary, has recently turned 70 and is in average health (she takes a few medications to control her blood pressure and cholesterol).

John is currently capped out in his 401k and other retirement vehicles and is looking for a place to park assets for retirement. One option discussed with him is the Inheritance Retirement Plan. If John purchased life insurance on Mary with a premium of $10,000 per year to age 65 – a 20-year funding schedule – he would be able to purchase a GUARANTEED $307,042.

A Female, age 70, in average health has an average life expectancy to age 87.

At Mary’s age 87 (John’s age 62) that would represent a TAX-FREE rate of return to John at 5.38% – in a 35% tax bracket – the equivalent yield would be 8.09%

If Mary needed some care along the way and John wanted to help her out, he could opt to have a TAX-FREE bucket of money that he could draw off to care for his ailing mother.

If you would like to learn more on how structure the Inheritance Retirement Plan with your clients, contact your Brookfield Partners Brokerage Manager.