The S&P 500 is down 8% this year already — including another 2.2% Friday — in what’s been the worst start to a year ever. Since the market peak on May 21, 2015, the market has declined 11.7%.”
We know – by the rule of 72 – that money growing at 7.2% will double in 10 years. So $100 pre-tax dollars grows to $200 in 10 years; and $75 after-tax dollars grows to $150 in 10 years. That’s their proof.
However, when that $200 is taxed at the same 25% rate, the qualified account ends up with – surprise – $150. There is no mathematical advantage to tax deferral.
If you didn’t know something as seemingly old and boring as life insurance could do all those things, perhaps it’s time to visit with your agent. Especially those of you in your 20s, 30s, and 40s should take a look into Indexed Universal Life – unless of course, you want to be sitting in an audience someday lamenting the fact that nothing good financially – happens to older people.