Life Invest: Using Life Insurance as a Tax‑Advantaged Asset in Your Wealth Plan

Key Takeaways

• Only permanent life insurance policies build cash value—whole life, universal life, indexed universal life (IUL), and variable universal life (VUL) can function as investment-like assets, while term insurance provides pure protection with no accumulation. Over the course of your financial planning, selecting a policy with a cash value component (such as whole life or universal life) is essential for using life insurance as an investment tool.

• Life insurance offers unique tax advantagesincluding tax-deferred growth, tax-free access through basis withdrawals and policy loans (when structured correctly), and income-tax-free death benefit to beneficiaries under current U.S. law.

• Different accumulation strategies serve different goals: whole life provides stability and guarantees, IUL offers balanced growth with downside protection, and VUL (like Penn Mutual’s product with Vanguard index options) provides market-like returns for growth-focused investors. Whole life insurance provides guaranteed protection for your whole life and allows for consistent cash value accumulation.

• Revolutionary Wealth integrates life insurance design with retirement planning, tax strategy, and estate planningto ensure policies work in coordination with your entire financial picture rather than in isolation.

• A well-designed “life invest” strategy can improve after-tax retirement incomeby creating a tax-free income bucket that helps manage RMDs, Medicare surcharges, and overall tax brackets in your later years.

What Does It Mean to “Life Invest”?

Most people view life insurance as a necessary expense—something you pay for but hope never to use. That’s the old way of thinking. The modern view treats permanent life insurance as a flexible, tax-efficient asset that can support retirement income, legacy planning, and liquidity needs throughout your lifetime.

Life investing means intentionally using permanent life insurance as one of the core asset classes in your financial plan. It sits alongside IRAs, 401(k)s, brokerage accounts, and real estate as a distinct category with its own strengths and purposes.

Permanent life insurance plays a dual role that no other financial product replicates:

• Permanent death benefit: Provides security for heirs, business partners, or charitable causes regardless of when you pass away

• Living cash value: Accumulates funds you can access during your lifetime for retirement income, tax bills, college expenses, or business opportunities. You can also borrow against the cash value of your permanent life insurance policy, allowing you to access funds for various needs during your lifetime.

• Tax-advantaged growth: Builds wealth without annual taxation on gains, dividends, or interest

• Tax-free distributions: Allows access to money through policy loans without triggering taxable events when managed properly

For many clients in their late 50s and early 60s, adding a well-designed permanent policy can improve after-tax retirement income efficiency. Relying only on taxable brokerage accounts or tax-deferred retirement plans means every dollar you withdraw faces taxation. A properly structured life policy creates a tax-free bucket that offers flexibility in managing your income and tax brackets.

Revolutionary Wealth evaluates life insurance the same way we evaluate any other asset: internal costs, expected long-term returns, tax impact, and coordination with the rest of your balance sheet. This approach ensures your policy serves your broader financial goals rather than existing as an isolated purchase.

Term vs. Permanent Life Insurance: Why Only Some Policies Are “Assets”

Not all life insurance can be used as an investment-like vehicle. Understanding the fundamental difference between term and permanent policies is essential before pursuing a life invest strategy.

Term life insuranceprovides:

• Pure death protection for a fixed period (10, 20, or 30 years)

• Low premiums—often around $500 annually for $500,000 of coverage on a healthy 40-year-old

• No cash value accumulation whatsoever

• Coverage that expires worthless if you outlive the term

• Excellent protection for temporary needs like income replacement or mortgage coverage

Permanent life insuranceprovides:

• Coverage designed to last for life (often to age 100 or 121)

• A built-in cash value component that grows over time

• Access to accumulated funds during your lifetime

• A guaranteed death benefit for your beneficiaries

• Multiple policy types (whole life, universal life insurance, indexed universal life, variable universal life) with different risk and return profiles

Only permanent policies can be meaningfully used in a life invest strategy because they accumulate cash and create long-term tax benefits. Term insurance protects your family if you die during the coverage period, but it builds nothing.

Policy design matters enormously.Funding level, fees, and company strength determine whether a permanent policy becomes a powerful asset or an underperforming disappointment. A poorly structured permanent policy—with excessive costs, inadequate funding, or issued by a weak company—can underperform significantly. A well-structured one, properly integrated into your plan, can serve as a cornerstone of tax-efficient wealth.

Types of Permanent Life Insurance for Life Investing

Several permanent policy types exist, each with different risk, return, and flexibility profiles. Choosing the right one depends on your goals, risk tolerance, and time horizon.

Whole Life Insurance

Whole life delivers:

• Guaranteed cash value growth at a minimum crediting rate (often 2-4%)

• Fixed premiums that never change

• Participating dividends from mutual insurance companies

• Conservative returns, historically averaging 4-6% net

• Maximum stability and predictable accumulation

A $250,000 whole life policy might accumulate $100,000 in cash value after 20 years, accessible via loans at around 5% interest. This approach suits investors who prioritize principal protection and guaranteed growth over market-level returns.

Universal Life Insurance

Universal life offers:

• Flexible premiums and adjustable death benefit

• Interest credited at a rate set by the insurer (often tied to bond yields)

• Less guarantee than whole life but greater flexibility

• Moderate risk profile

• Ability to overfund for greater cash accumulation

This type works for clients who want some flexibility in premium payments while accepting modest return expectations.

Indexed Universal Life (IUL)

Indexed universal life provides:

• Cash value credited based on a market index (e.g., S&P 500)

• A floor protecting against losses (typically 0%)

• A cap limiting upside (usually 10-12% annually)

• Average credited rates of 5-7% over 20-year periods according to carrier data

• A middle ground between stability and growth potential

IUL serves as a balanced accumulation strategy—capturing some equity market upside while protecting against the worst downturns. Learn more about ourpersonalized financial planning approach.

Variable Universal Life (VUL)

Variable universal life offers:

• Cash value invested in subaccounts similar to mutual funds

• Full market-like growth potential (historically 8-10% long-term averages)

• Full market risk—values can decline in downturns

• Uncapped upside with no participation rate limitations

• Ideal for clients comfortable with volatility seeking higher long-term returns

VUL places investment management responsibilities on the policyholder but rewards that involvement with potentially superior accumulation.

Revolutionary Wealth helps clients match the policy type to their risk tolerance, time horizon, and tax objectives. We don’t push a one-size-fits-all solution.Different situations call for different tools.

How Life Insurance Creates Unique Tax Advantages

Life insurance can be treated as an asset in a tax-focused plan precisely because of its distinctive tax treatment. However, it is important to note that certain aspects of life insurance policies, such as premiums and credited interest rates, may be subject to change and should be reviewed regularly. For high earners and pre-retirees facing large RMDs and elevated tax brackets in retirement, these advantages become particularly valuable. While financial assets are often liquid and can be easily converted to cash, life investments such as permanent life insurance are often less liquid and require careful planning for access.

Tax-Deferred Growth

Cash value inside permanent policies grows without annual taxation. Unlike a taxable brokerage account where you pay taxes each year on dividends, interest, and capital gains, the growth inside your policy compounds untouched by the IRS. This mirrors the deferral you get in an IRA but without contribution limits.

Tax-Efficient Access

When you need money from your policy:

• Withdrawals up to your basis (the premiums you paid) are typically tax-free

• Policy loans against remaining cash value can be structured to avoid taxation if the policy stays in force

• The key is avoiding Modified Endowment Contract (MEC) status through proper design

This structure allows you to access potentially hundreds of thousands of dollars without triggering a single taxable event—something you cannot do with traditional IRAs or 401(k)s.

Tax-Free Death Benefit

Death benefits pass to beneficiaries income-tax-free under current law (IRC §101). This creates a wealth transfer mechanism that preserves more value across generations compared to taxable brokerage accounts or even Roth IRAs with their withdrawal restrictions.

RMD Management Strategy

Some clients intentionally reposition a portion of pre-tax assets into a policy to create a tax-free income bucket later in retirement. When Required Minimum Distributions force you to withdraw from IRAs starting at age 73, having a tax-free alternative through policy loans can help manage your overall tax bracket.

A word of caution: Poor design creates problems. Overfunding without attention to MEC limits, surrendering early, or heavy borrowing without monitoring can trigger unexpected taxes. This is why working with a specialized investment advisor like Revolutionary Wealth matters—we understand the technical requirements that keep your policy tax-advantaged.

Key Considerations When Using Life Insurance as an Asset

When using life insurance as a core part of your financial strategy, it’s important to look beyond just the premiums and focus on how the policy fits into your broader wealth plan. Permanent life insurance—such as whole life and universal life insurance—offers the unique ability to accumulate cash value over time, which can be accessed for a variety of needs, from supplementing retirement income to funding major expenses.

To maximize the benefits, start by evaluating the policy’s death benefit and how it supports your loved ones’ security and long-term protection. Assess the cash value component, understanding how it grows based on the policy’s interest rate and how you can use it as a source of liquidity. Consider how the policy’s features align with your investment strategies and financial goals, whether you’re looking to build cash for future opportunities or create a legacy for your beneficiaries.

It’s also essential to be aware of the tax implications of accessing your policy’s cash value. While permanent life insurance offers tax advantages, improper withdrawals or loans can have unintended tax consequences. Additionally, review any fees or surrender charges that may apply if you need to exit the policy early. By carefully considering these factors and how they interact with your overall financial plan, you can use life insurance as a powerful asset to provide protection, maximize your wealth, and ensure lasting benefit for your loved ones.

Accumulation Strategies: Whole, Indexed, and Variable Approaches

Life investing isn’t just about buying a policy. It’s about choosing a specific accumulation strategy that fits your market outlook, risk comfort, and time horizon.

Revolutionary Wealth does not make any 'magic returns' promises; instead, we focus on transparent, well-structured strategies designed for stable, long-term growth.

Ultimately, investing in oneself is considered the single best investment due to its high compounding return on investment, underscoring the importance of sound financial planning.

Conservative Accumulation (Whole Life or Traditional UL)

• Focus on predictable, steady growth

• Strong guarantees protect principal

• Dividend enhancements (in participating whole life) can boost returns

• Ideal for risk-averse clients prioritizing stability

• Expected returns in the 4-5% range historically

Balanced Accumulation (Indexed Universal Life)

• Capture some equity market upside with downside protection

• Typical structure: 0% floor, 10-12% cap, 70-80% participation rate

• A $100,000 single premium IUL might grow to $250,000 in 15 years at 6% net

• Smooths volatility while maintaining growth potential

• Suits clients who want market participation without full market risk

Growth-Focused Accumulation (Variable Universal Life)

• Allocate cash value to equities and fixed income subaccounts

• Accept short-term volatility in exchange for higher long-term returns

• Create a portfolio similar to 60/40 or 70/30 equity/bond allocation

• Potential for 7-9% projected returns over 20 years with diversified allocations

• Best for clients comfortable with markets and seeking maximum accumulation

Funding Strategy Matters

Many life invest designs use maximum allowable premiums in the early years (staying within non-MEC limits) to:

• Minimize long-term cost per dollar of cash value

• Maximize the tax-advantaged growth engine

• Build substantial liquidity more quickly

• Create flexibility for future premium reductions if needed

Revolutionary Wealth buildsprojectionscomparing these approaches side by side—illustrating 4%, 6%, and 8% return scenarios—so clients can see how each accumulation style might support retirement income and legacy goals over 20-30 years.

Common Mistakes to Avoid in Life Insurance Investing

Investing in life insurance can be a smart move, but there are several common mistakes that can undermine your strategy and reduce the value of your policy. One frequent error is not fully understanding the terms of your policy—such as how the cash value accumulates, the structure of the death benefit, and the impact of the interest rate on your returns. Overlooking these details can lead to missed opportunities or unexpected costs.

Another pitfall is failing to diversify your overall investment portfolio. Relying too heavily on life insurance as your primary investment can expose you to unnecessary risk, especially if market conditions change or your needs evolve. Over-borrowing from your policy is another risk; while accessing cash value can be beneficial, excessive loans can erode both the cash value and the death benefit, potentially jeopardizing the policy’s ability to provide security for your beneficiaries.

Finally, surrendering a policy without exploring alternatives can result in significant penalties and lost benefits. Before making any major changes, it’s wise to consult with a financial professional to review your options. By staying informed and avoiding these common mistakes, you can develop a life insurance investing strategy that delivers long-term financial security and peace of mind for you and your loved ones.

Penn Mutual Variable Universal Life: A Concrete Life Invest Example

Penn Mutual’s Variable Universal Life products demonstrate what efficient life invest design looks like in practice: a permanent death benefit combined with institutional-quality investments and competitive internal costs. Penn Mutual offers a range of services designed to meet diverse client needs, ensuring comprehensive financial and wealth management support. Wealth management firms typically employ experienced professionals to provide tailored financial solutions to clients, reinforcing the value of working with a firm like Revolutionary Wealth.

Why Penn Mutual VUL Stands Out

Penn Mutual VUL allows policyholders to invest cash value in Vanguard index subaccounts, including:

• Vanguard S&P 500 Index (with expense ratios as low as 0.035%)

• Vanguard Total Bond

• Global equities options

• 50+ investment choices for customized diversification

This structure provides low-cost, transparent market exposure inside the policy—the same caliber of investments you’d access in a high-quality 401(k) or brokerage account.

The Vanguard + VUL Combination

The benefit of combining Vanguard-style indexing with VUL:

A Concrete Scenario

Consider a 60-year-old business owner who:

1. Funds a Penn Mutual VUL aggressively for 7-10 years

2. Allocates primarily to Vanguard index subaccounts (e.g., 70% equities, 30% fixed income)

3. Accumulates substantial cash value by age 70

4. Uses policy loans to supplement retirement income in their 70s

5. Keeps the death benefit in force for legacy purposes

Based on carrier illustrations, similar policies funded at $15,000 annually have grown to $450,000+ in cash value by age 65 at 7% net returns, supporting $30,000+ yearly in tax-free loans through life expectancy.

Penn Mutual is an established mutual company with a strong track record in life insurance. Revolutionary Wealth evaluates their VUL primarily for clients who are comfortable with market risk and want institution-grade investment options inside their policy.

An important clarification: Revolutionary Wealth is independent. We use Penn Mutual’s VUL as one powerful tool among several, not as a blanket recommendation. Suitability, health underwriting, and policy charges are always analyzed in detail before implementation.

Working with an Investment Advisor

Navigating the complexities of life insurance investing is much easier—and more effective—when you have an experienced investment advisor by your side. A knowledgeable advisor can help you craft a personalized investment strategy that takes into account your unique financial goals, risk tolerance, and preferred asset classes. They’ll guide you in selecting the right type of policy, whether it’s whole life or universal life insurance, and help you optimize the cash value and death benefit to fit your needs.

An investment advisor also brings expertise in tax planning, ensuring you take full advantage of the tax benefits associated with permanent life insurance while minimizing your tax liability. They can assist with ongoing management, from monitoring policy performance to making adjustments as your life circumstances change. By working with a trusted advisor, you gain access to professional insights on wealth protection, investment management, and long-term financial planning—helping you maximize the value of your insurance, protect your future, and achieve your financial objectives with confidence.

Using Life Insurance in Retirement, Tax, and Estate Planning

When treated as an asset, life insurance plays multiple roles across retirement income planning, tax strategy, and legacy planning for families and business owners. It is essential to consult with a legal expert or advisor specializing in estate, tax, and financial law to ensure your plan is properly structured and compliant with all regulations. As part of a holistic wealth plan, LifeInvest provides comprehensive support for managing international real estate investments, including management, reporting, taxation, and exit strategies.

Creating a Tax-Free Income Bucket

Structured policy loans can:

• Fill income gaps in high-tax years

• Help retirees manage tax brackets strategically

• Avoid Medicare surcharges triggered by excess income

• Provide flexibility that taxable and tax-deferred accounts cannot

This approach lets you control when and how much taxable income you realize each year—something impossible when RMDs force distributions from IRAs.

Business Owner Applications

For business owners, permanent life insurance can serve as:

• Buy-sell funding: Ensures business partners can purchase a deceased owner’s share without liquidating assets

• Key person coverage: Protects the company if a critical employee dies

• Estate liquidity: Creates cash at death to pay estate taxes or equalize inheritances among children (particularly important when some children work in the business and others don’t)

• Collateral for loans: Provides security for business financing without pledging business assets

Estate and Legacy Planning

Policies owned by an irrevocable life insurance trust (ILIT) can:

• Keep death benefits outside the taxable estate

• Provide tax-free liquidity to heirs

• Fund charitable causes without impacting other assets

• Create immediate capital for beneficiaries at a point when they need it most

Proper accounting is essential in estate and legacy planning to ensure compliance and accurate wealth transfer, helping to avoid costly errors and streamline the process for beneficiaries.

Interaction with RMDs and Annuities

Some clients use withdrawals from IRAs or non-qualified annuities in their 60s to fund a life insurance policy. This effectively trades taxable future distributions for:

• A larger, tax-free death benefit

• Flexible cash value access

• Better overall tax efficiency across the lifetime

Revolutionary Wealth specializes in integrating life insurance design with comprehensive plans—tax projections, Social Security timing, Roth conversion strategies, and business exit strategies—rather than treating the policy in isolation.

How Revolutionary Wealth Helps You Design a Life Invest Strategy

Revolutionary Wealth operates as an independent fiduciary-style advisor focused on coordinated wealth, tax, and insurance planning. Our team brings deep knowledge and experience to provide tailored investment solutions that build trust with our clients. We’re not selling products; we’re building solutions that serve your complete financial picture. Investing in life refers to allocating resources toward personal growth, well-being, relationships, and experiences, which is central to our firm’s philosophy.

Our Discovery and Analysis Process

We begin by:

• Gathering full financial data (account balances, tax returns, existing policies, estate documents)

• Understanding your goals (retirement date, legacy amount, business exit timing)

• Assessing risk tolerance and liquidity needs

• Identifying gaps and opportunities in your current plan

Policy Review for Existing Owners

For clients who already own permanent policies, we evaluate:

• Internal costs and fee structures

• Historical and projected performance

• Surrender values and loan provisions

• Whether keeping, restructuring, or exchanging into a more efficient policy makes sense

Design and Modeling

We model different scenarios including:

• Policy types (whole life, IUL, VUL with options like Penn Mutual’s Vanguard subaccounts)

• Funding levels (minimum, target, and maximum premium strategies)

• Distribution approaches (when to take loans, how to maintain the policy)

• Impact on after-tax retirement income and estate outcomes

Implementation and Ongoing Management

Once you select a strategy, Revolutionary Wealth:

• Coordinates underwriting and application

• Monitors policy performance annually

• Adjusts allocations within the policy (e.g., rebalancing Vanguard index subaccounts in VUL)

• Ensures the policy stays on track and avoids MEC status

• Integrates policy reviews with your broader financial plan updates

Take the next step.Whether you’re a business owner planning your exit, a pre-retiree seeking tax-efficient income, or a widowed or divorced woman wanting clarity and confidence in your financial decisions, schedule a consultation to explore how a life invest approach could strengthen your overall plan.

Getting Started with Life Invest

Embarking on your Life Invest journey begins with understanding your options and setting clear financial goals. Start by exploring the different types of permanent life insurance policies, paying close attention to features like cash value accumulation, death benefit amounts, and the interest rate credited to your policy. Assess your own financial situation—consider your investment horizon, risk tolerance, and the level of security you want to provide for your loved ones.

It’s wise to consult with an investment advisor who can help you evaluate your choices and develop a tailored investment strategy. Together, you can create a plan that leverages the strengths of permanent life insurance to build cash value, provide a lasting benefit, and support your long-term financial security. By taking these steps, you’ll be well-positioned to make informed decisions, maximize your policy’s potential, and achieve the peace of mind that comes from a well-structured financial plan.

Frequently Asked Questions (FAQ)

Can I use life insurance as an investment if I am already in my early 60s and close to retirement?

Yes, many clients aged 59-67 successfully use well-funded permanent policies to create supplemental tax-advantaged income and legacy value. The key factors are health status (which affects underwriting and costs), funding capacity (how much premium you can commit), and time horizon (how many years you’ll fund the policy before taking distributions). A 7-10 year funding window can still create meaningful cash value accumulation, but these variables must be evaluated carefully with an advisor who understands the math.

What happens if I can’t keep paying the planned premiums into a permanent policy?

Most modern permanent policies—including Penn Mutual’s VUL—offer flexibility to reduce or pause premiums. However, this affects cash value growth and may reduce or jeopardize your death benefit if the policy becomes underfunded. The solution is conservative funding assumptions from the start, maintaining adequate reserves, and ongoing review with an advisor who monitors policy health annually. A well-managed policy can weather temporary premium reductions; a neglected one cannot.

Is a Penn Mutual VUL with Vanguard index options safer than investing in a regular Vanguard index fund?

No—market risk inside the VUL is similar to owning comparable Vanguard index funds in a brokerage account. If the S&P 500 drops 30%, your VUL subaccount tracking that index will drop similarly. The key difference is tax treatment (tax-deferred growth, tax-free access via loans) and the presence of a permanent death benefit. VUL is not about reducing investment volatility; it’s about accessing market returns within an insurance wrapper that provides unique tax and estate benefits.

How do I know if my current whole life or universal life policy is worth keeping or should be replaced?

This requires a detailed in-force illustration and cost analysis. Revolutionary Wealth can compare your policy’s projected internal rates of return, surrender values, and death benefits against modern alternatives. Sometimes older policies have valuable guarantees worth preserving; other times, a 1035 exchange into a more efficient product makes sense. The decision depends on your specific policy terms, health status, and current goals—never assume keeping or replacing is automatically correct.

Could tax laws change and reduce the benefits of using life insurance as an asset?

Tax laws can always change, but life insurance has enjoyed favorable treatment for decades across multiple administrations and tax code revisions. The income-tax-free death benefit and tax-deferred cash value growth have proven remarkably durable. That said, Revolutionary Wealth monitors legislation continuously and designs strategies with flexibility. If rules are modified in the future, well-structured policies typically offer options to adapt rather than forcing you into unfavorable positions.

Glossary of Terms

• Asset classes: Categories of investments, such as stocks, bonds, and real estate, each with distinct risk and return profiles.

• Cash value: The accumulated value within a permanent life insurance policy, which can be accessed through loans or withdrawals to supplement retirement income or meet other financial needs.

• Death benefit: The sum paid to beneficiaries upon the policyholder’s death, providing financial protection and security.

• Fixed income: Investments that offer a set rate of return, such as bonds or certificates of deposit, often used to balance risk in a portfolio.

• Interest rate: The percentage at which interest is credited to the cash value of a life insurance policy or paid on loans and investments.

• Investment advisor: A professional who provides guidance on investment strategies, portfolio management, and financial planning.

• Investment strategies: Approaches to achieving financial goals through investments, including diversification, asset allocation, and risk management.

• Permanent life insurance: A type of life insurance, including whole life and universal life insurance, that provides lifelong coverage and accumulates cash value over time.

• Tax planning: The process of organizing finances to minimize tax liability and maximize after-tax returns.

• Universal life insurance: A flexible form of permanent life insurance that allows for adjustable premiums and death benefits, with a cash value component that grows over time.

• Whole life insurance: A permanent life insurance policy offering guaranteed death benefits, fixed premiums, and steady cash value growth.

• Wealth protection: Strategies designed to preserve and grow wealth, such as investment management, tax planning, and risk mitigation, to ensure long-term financial security for individuals and their beneficiaries.

It's not rocket science, just revolutionary.

A dollar lost in taxes is a dollar gone forever. At Revolutionary Wealth, we believe smart planning today builds lasting wealth tomorrow. If you’d like to see how you can integrate life insurance into your retirement plan, schedule a free strategy session with our team. Request a meeting to start planning forward—not backward.

Disclosures:

This blog contains general information that may not be suitable for everyone. The information contained herein should not be construed as personalized investment advice. There is no guarantee that the views and opinions expressed in this blog will come to pass. Investing in the stock market involves gains and losses and may not be suitable for all investors. Information presented herein is subject to change without notice and should not be considered as a solicitation to buy or sell any security.Revolutionary Wealth LLCdoes not offer legal or tax advice. Please consult the appropriate professional regarding your individual circumstance.Past performance is no guarantee of future results.

Indexed Universal Life Insurance is an insurance contract that, depending on the contract, may offer a guaranteed annual interest rate and some participation growth, if any, of a stock market index. Such contracts have substantial variation in terms, costs of guarantees and features and may cap participation or returns in significant ways. Any guarantees offered are backed by the financial strength of the insurance company, not an outside entity. Investors are cautioned to carefully review an indexed universal life insurance for its features, costs, risks, and how the variables are calculated.

Please consider the investment objectives, risks, charges, expenses, and your need for death-benefit coverage carefully before investing. The prospectus, which contains this and other information about the variable life policy and the underlying investment options, can be obtained from your financial professional. Be sure to read the prospectus carefully before deciding whether to invest.

The investment return and principal value of the variable life policy are not guaranteed. Variable life sub-accounts fluctuate with changes in market conditions. The principal may be worth more or less than the original amount invested when the policy is surrendered. Any guarantees offered are backed by the financial strength of the insurance company.

Not associated with or endorsed by the Social Security Administration, Medicare or any other government agency.

Maximizing your Social Security Benefits assumes foreknowledge of your date of death. If as an example you wait to claim a higher monthly benefit amount but predecease your average life expectancy, it would have been better to claim your benefits at an earlier age with reduced benefits.

Converting an employer plan account or Traditional IRA to a Roth IRA is a taxable event. Increased taxable income from the Roth IRA conversion may have several consequences including but not limited to, a need for additional tax withholding or estimated tax payments, the loss of certain tax deductions and credits, and higher taxes on Social Security benefits and higher Medicare premiums. Be sure to consult with a qualified tax advisor before making any decisions regarding your IRA.