MONTHLY MEMBER MEETING ARCHIVE

RELATED CONTENT

2019 http://www.costcoconnection.com/connection/201901?pg=20#pg20

2017 https://money.usnews.com/investing/articles/2017-06-19/how-ordinary-investors-can-use-lirps

2017 https://www.forbes.com/sites/forbesfinancecouncil/2017/05/11/how-to-use-life-insurance-in-your-retirement-planning/#414bfc6969cf

2013 https://www.huffingtonpost.com/ike-ikokwu/whats-a-lirp-and-why-you-_b_3084702.html

SPEAKER

Jay Sweeney—(is an Agent's Agent - Mary Gruenberg's resource) will educate you on the topic of: 

What is a LIRP and why should you resolve to get one? 

SPONSOR 

Kourtnie Huddleston, MBA | Community Liaison

Oak Trace| A Lifespace Community

250 Village Drive| Downers Grove, Il 60516

630-769-6200 Office |  630-669-7752 Mobile

Kourtnie.Huddleston@lifespacecommunities.com

www.lifespacecommunities.com

Vitality. Purpose. Freedom.

MEETING MINUTES RELATED TO ABOVE

Speaker: Jay Sweeney, AWMA, Saybrus Partners Topic: LIRPs

• Highest Tax Bracket Currently 37% History of U.S. 1945=94%

• Taxes likely to increase as the national indebtedness/unfunded liability per individual taxpayer is over $940K [feel like you don’t pay enough in taxes? feel free to ante up your $1mm]

• Diversify your Allocation of Savings into 3 Buckets

• • Tax Deferred: Pension, Profit Share, 401(k), annuity, IRA/SEP
    [distributed as ord.inc. with RMD at age 59.5/70—taxed at tbd now <40%]

  • • Accountants like 401(k) because it’s a deduction

    • 2019 contribution to 401(k) limited to <=$19K

  • Taxable: Real Estate, Stocks/Bonds/Mutual Funds, Money Market, CD
    [distributions are realized gains/dividends, capital gains or ordinary income and taxed in the 20-40% range]

  • • Best practice have 6-months living expenses liquid before you direct any $ here

  • Tax Free: Tax Exempt Bond, Educational Savings Account (ie. 529), ROTH IRA distributions [accumulation with tax free distribution]

  • • 2019 contrib. to ROTH limited to <=$6K [over 50 can add $1K more]

    • Make >$203K Household Adj.Gross Income disqualifies you for ROTH

• Life Insurance Retirement Plan [LIRP] is a mid-to-long term tool

• Life Insurance Analogy

• • Term=RENT—use it for a set time and then it is gone (inexpensive)

  • Permanent=OWN HOME–builds equity, grows tax free, distributes tax free

• Strategy

• • Protection Design: minimize premiums & maximize death benefit

  • LIRP Design: maximize(*) premium contribution, maximize cash value, minimize death benefit
    (*) Government sets maximum based on age and amount of death benefit

  • • No Required Minimum Distribution (RMD) in fact you don’t have to touch it at all if you want to simply leave a legacy

    • Cash Value can be drawn from as desired (tax free) and reduces the death benefit

    • No set contribution, lean years, put in less, boom years put in more (and then some to make up for lean years)

    • Business Owners can expense cost, tax implications

    • Universal Life, there are different types of plans so one can opt for a Variable Universal Life (more risk) or Indexed (S&P 500 for example) with downside protection (aka 0 floor) and upside cap (even when market does better, your cap is the best you get)

    • Riders for Long Term Care (such as 2 of 6 daily activities) can accelerate death benefit

Sponsor Oak Trace Lifespace Community (CCRC)

• Non-profit with corporate in DesMoines Iowa

• • Any profits are invested back into the community, or distributed to residents and staff

  • Residents qualify and move into independent living and are guaranteed at the move-in rate for the duration of their tenure even as they shift into other levels of care

  • Should they deplete their assets, there is a benevolence fund

• 5-year renovation/rebuild project is nearly half complete

• • Invitations to open house in April will be forthcoming

  • Once they open assisted living, dementia care, short-term rehab and skilled nursing, will tear down current facility and build 200 independent apartments

• Construction theme pens and information was placed on each table, and Kourtnie was available before/after meeting at the sponsor table to answer questions