What do you get when you cross liquidity, reduced tax liability in your retirement years, and a name that sounds like a toad enjoying a milkshake? A LIRP (life insurance retirement plan). Although the name lacks a certain flair, a LIRP is an investment and tax strategy that allows you to use the cash value in your life insurance policy to not only be your own bank but also provide a place to direct cash for future tax free withdrawals of cost basis or liquid access through policy loans.
This week, we talk more about what a LIRP is, who should consider one, and how this option compares to and can work alongside other retirement/investment options such as 401ks, ROTH IRAs, and brokerage accounts.
As always, our discussion is for education only and should not be construed as advice. Definitely get a hold of your personal tax and/or investment advisors for additional information to see if a life insurance retirement plan is right for you.