Life Insurance Retirement Plans (LIRP)

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Tricho536
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Joined: Wed Oct 20, 2021 11:31 pm

Life Insurance Retirement Plans (LIRP)

Post by Tricho536 »

Please help!! Is Life insurance Retirement Plan a good tool for retirement??
SnowBog
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Re: Life Insurance Retirement Plans (LIRP)

Post by SnowBog »

Admittedly, I've never heard of a LIRP...

But as a general rule trying to mix "insurance" with "investments" (or "retirement") is not going to have good results (expect for the insurance salesperson).

That's true for "whole life" policies, almost all annuities, and pretty much everything else.

So I'm fairly confidant saying it applies to a LIRP as well. I'd run away as quick as I could...
bradinsky
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Re: Life Insurance Retirement Plans (LIRP)

Post by bradinsky »

I would bet that it is a wonderful idea for, and significantly helps the insurance agent’s retirement plan.
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Stinky
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Re: Life Insurance Retirement Plans (LIRP)

Post by Stinky »

Tricho536 wrote: Wed Oct 20, 2021 11:35 pm Please help!! Is Life insurance Retirement Plan a good tool for retirement??
Welcome to the Forum.

“Good tool for retirement?” NO!!

A LIRP involves buying a permanent life insurance policy (whole life or universal life), over-funding it, and then withdrawing from the policy in retirement. Here’s a pretty good website that describes the scheme:

https://www.policygenius.com/life-insur ... ent-plans/

If you’ve spent any time on this Forum, you’ll know that Bogleheads think that permanent life insurance is NOT the right tool to use for 99+% of people. So, unless you’re part of the less than 1%, I’d run away from the financial advisor salesman who suggested this to you.

Please post back with questions.
Retired life insurance company financial executive who sincerely believes that ”It’s a GREAT day to be alive!”
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JoeRetire
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Re: Life Insurance Retirement Plans (LIRP)

Post by JoeRetire »

Don’t cross the streams. It would be bad. Try to imagine all life as you know it stopping instantaneously and every molecule in your body exploding at the speed of light.

- Egon Spengler
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Nate79
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Re: Life Insurance Retirement Plans (LIRP)

Post by Nate79 »

Horrible JUNK.

Run!
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Brianmcg321
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Re: Life Insurance Retirement Plans (LIRP)

Post by Brianmcg321 »

Never use life insurance for retirement investing. It's pure garbage. Never talk to the person who suggested this again.
Rules to investing: | 1. Don't lose money. | 2. Don't forget rule number 1.
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arcticpineapplecorp.
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Re: Life Insurance Retirement Plans (LIRP)

Post by arcticpineapplecorp. »

are you a high earner? Because what I see is they "might" be for high income individuals who want to provide for loved ones (but why not just get term life for that since it's cheaper??)

have you maxed out all retirement accounts already? If not, this is not for you.

Do you have cheap term life insurance for your family? If not, buy that instead of this universal life insurance.

Are you aware of the cons? if not read here:

Image

what do you think?
It's hard to accept the truth when the lies were exactly what you wanted to hear. Investing is simple, but not easy. Buy, hold & rebalance low cost index funds & manage taxable events. Asking Portfolio Questions | Wiki
Doctor Rhythm
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Re: Life Insurance Retirement Plans (LIRP)

Post by Doctor Rhythm »

Tricho536 wrote: Wed Oct 20, 2021 11:35 pm Please help!! Is Life insurance Retirement Plan a good tool for retirement??
Hello Trichi536

I see this is your first (and only) post and that you joined the forum 5 minutes prior to it. Since there have been socket puppets advocating permanent insurance products here, I’m wondering if you might provide some more background about your interest in LIRP and why it is being considered.
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Stinky
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Re: Life Insurance Retirement Plans (LIRP)

Post by Stinky »

Doctor Rhythm wrote: Fri Oct 22, 2021 9:32 pm
Tricho536 wrote: Wed Oct 20, 2021 11:35 pm Please help!! Is Life insurance Retirement Plan a good tool for retirement??
Hello Trichi536

I see this is your first (and only) post and that you joined the forum 5 minutes prior to it. Since there have been socket puppets advocating permanent insurance products here, I’m wondering if you might provide some more background about your interest in LIRP and why it is being considered.
Good observation! Tricho536 signed up for the BH site, posted his/her messsge, and signed out, all in the space of 5 minutes. And hadn’t signed in since then.

I don’t think that any of the responses so far would encourage Tricho536 (or anyone else) to think of a LIRP as a “good tool for retirement”.

Tricho536, if you want to further understand the thinking of Boglehead Nation on this product, please respond.
Retired life insurance company financial executive who sincerely believes that ”It’s a GREAT day to be alive!”
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