Tax Free Retirement

Retire Tax Free

The ultimate retirement plan…receive your income for life tax free. Think about it. Fifty, eighty, one hundred, one hundred and fifty thousand dollars a year or more…and not have to pay the government one penny in tax!!! And it’s all legal, stated right in the tax code.

How is that possible? Well you could put all your money in municipal bonds. They will pay out tax free. But you won’t receive that much income from them. The percentage payout is low. There’s another important consideration. So many cities, especially the big cities that sell a ton of these, are in trouble. Do you really want to trust your future to the claims paying ability of these cities? Not me.

The best way to receive tax free retirement income is to place your money into a very specifically designed cash value life insurance policy. That’s right…high cash value life insurance. It’s called the L.I.R.P. The Life Insurance Retirement Plan. You’ve probably never heard of such a plan. Well Jim Harbaugh, University of Michigan football coach, in 2016 put a two million dollar a year annual pay raise into cash value life insurance as part of his contract. Read about it HERE. He’s no fool folks. He knew exactly what he was doing. Jim Hackett, the university athletic director said “it is a more commonplace form of deferred compensation in the corporate world”.

Just in case you think this is rare. Nick Saban and Dabo Swinney also have high cash value insurance as part of their contracts. Let’s see. The three highest paid coaches in college football: Saban, Swinney, and Harbaugh….all three of them have elected to channel millions of dollars of their compensation into high cash value life insurance. Why? It’s a smart business decision for their future. Think seven figures in tax free income some day!!!

You see, corporations and big banks buy billions of dollars of cash value life insurance because it’s a valuable income strategy, and it just makes sense. And now so do football coaches. What do they know that you don’t. That’s what you’ll learn here.

Why Life Insurance for Tax Free Retirement?

Life insurance goes back to before Christ and was invented by the Romans. But it wasn’t until 1762 that the first mutual life insurance company was started. A mutual life insurance company is owned by it’s policy holders. These policies build cash value. By contrast, the first stock market exchange started in London in 1773, and then in Philadelphia in 1790. So cash value life insurance pre-dates the stock market.

Investing in the stock market has always been risky. Not so with life insurance. So today 260 years later, cash value life insurance is still viewed as a safer and smarter way to accumulate wealth, safely and predictably, by the people in the know. So when you hear the talking heads out there bad mouth cash value life insurance, just ignore them. They don’t know what they’re talking about.

Here’s the great advantage of cash value life insurance. It has favored status with the IRS. Now remember folks, The IRS spells Theirs. Your income belongs to the government and they tell you what you can keep. But the IRS lets you put money in life insurance for however many years you want, and won’t tax you ever on it as long as you follow the rules. AND…you can even take a life long income TAX FREE.

Do you think people with money and influence, as well as major corporations and banks, have some say so regarding tax laws? Do you think they have access to politicians and bureaucrats that you don’t? Sure they do. The tax code will always favor those who write the tax laws and know how to use them. Why do you think so many wealthy people take advantage of the tax favored status of life insurance? It’s a sacred cow.

Here’s the good news! You too can enjoy the benefits of saving money in a properly structured cash value life insurance policy, this wonderful sacred cow. And you don’t have to be rich to do it….just well informed. Again, it’s called the L.I.R.P. The Life Insurance Retirement Plan. 

This video explains more (update…as of 09/2022 the National Debt is over 31 trillion dollars!)

How Can I begin a Life Insurance Retirement Plan

There are several things to consider when planning for a life insurance retirement plan. It starts with a conversation and financial review so we can determine how to best implement this into your future. If you are committed to faithfully and consistently contributing for your future, then this plan can work well for you.

The strategy is very flexible. You can fund the plan over a certain number of years, like four to ten years, and then stop. Then your money continues growing for however many years you want until retirement. This works well for those who have larger sums of money ready to move into the strategy as quickly as possible. Or you may want a slower more steady approach like contributing over a 20 to 30 year period until you’re ready to retire.

Or you may want to contribute a larger amount up front, and then a smaller amount annually over the next several years. Example: fund the plan first year with fifty thousand dollars, and then twenty five thousand dollar a year for the next 20 years.

Unlike any other retirement plan, you can contribute any amount of money into this strategy. You’ll have access to your money throughout your life any time for any reason.

Again…it’s very flexible. And these plans can be done for family members as well…spouses and children for example. Even grandchildren. It can be a great legacy builder this way. You may want to contribute, say five thousand dollars a year, into your child’s plan from the time that child is 10 years old for the next 30 years and then stop. At age 65, no telling how much money will have accumulated, and what kind of lifetime tax free retirement income your child will enjoy. Now that’s a great legacy. I can show you this plan in an illustration.

Lastly, your cash value can grow nicely, even double digits, in any give year. Stock market type returns without being in the market. No market risk, no market losses…ever! Remember, no tax now and no tax in retirement. It’s a beautiful thing.

How a LIRP Can Work for Your Business

It can be difficult at times to obtain funding for your business endeavors. With cash value life insurance, you’re able to borrow from the cash value any time you want for any purpose. You as the owner of the policy can lend money to your business. You borrow from the insurance company using your cash value as collateral. You then lend that money to your business and charge your business whatever interest rate you want. Your business pays back the loan to you. You repay the loan to the insurance company. Any extra interest income your business pays to you can go into the policy to increase the cash value at work for your retirement, or you keep the excess interest. Your business can deduct the loan payments like it would for any other loan.

Remember this. The cash value in your policy, your LIRP, is collateral only for the loan. It stays in the policy earning all the interest it can earn uninterrupted. So you continue to earn money in the policy and you earn income from lending to your business. And your business has a steady lending source. This is called leveraging your cash value. Now…think for a little while how else you can leverage your Life Insurance Retirement Plan.

Don’t forget how valuable this strategy can be to retain key high value employees. That’s what these colleges are doing with their coaches.

Last important consideration…this has to be a life insurance policy to enjoy all these wonderful benefits. So in the unlikely event you die prematurely, your family receives a sizable tax free death benefit well beyond the cash value in the policy. Conventional retirement plans can’t do this.

Watch me design a tax free plan

Your Next Step

Go to and schedule a phone consultation to learn more.

The main question to ask yourself: Do I want ALL my income in retirement to be fully taxable at whatever the state and federal tax rates are in the future, or do I want to have a sizable portion of my income paid to me TAX FREE. And leave a tax free legacy to my heirs when I pass on. Seems like an easy choice. Make it today!