Retirement Strategy Comparison

401(k) / 403(b) vs. Indexed Universal Life & Fixed Indexed Annuity

"If you had to choose which bucket to leave for your spouse and children—the one where the IRS takes 30% or the one where your family keeps 100%—which one makes more sense for your future?"

What Your Family Actually Receives

If you pass away with $200,000 in your retirement account today, here's what your family actually takes to the bank:

❌ 401(k) / 403(b) Inheritance

Account Balance: $200,000
Tax Bill (at 24%): -$48,000
Net to Family: $152,000

Plus: Your children must withdraw it within 10 years during their peak earning years, increasing their tax burden.

✓ IUL (F&G) Inheritance

Cash Value: $200,000
Death Benefit: $500,000
Tax Bill: $0
Net to Family: $500,000

Bonus: Tax-free, paid in weeks, no probate, no 10-year rule.

Your family receives $348,000 MORE with the IUL strategy!

What Happens If You Get Sick?

Scenario	401(k) / 403(b)	IUL (F&G)
You Get Cancer	Withdraw $200k, pay taxes + 10% penalty (if under 59.5). Money is GONE from your retirement.	F&G pays you up to $500k tax-free from your death benefit while you're still alive.
You Need Long-Term Care	Drain your account to $0, then rely on family or Medicaid.	Chronic Illness Rider pays you monthly to cover care costs.
Emergency $100k Needed	IRS caps loans at $50k. Taking $100k as withdrawal costs ~$40k in taxes/penalties.	Borrow $100k tax-free. Your money stays in the index earning returns.

Accessing Your Money: The $50,000 Loan Scenario

What happens if you need to borrow $50,000 and can't pay it back?

❌ 401(k) Loan Default (Age 50, 24% Tax Bracket)

Expense Type	Calculation	Total Cost
Federal Income Tax	$50,000 x 24%	$12,000
Early Withdrawal Penalty	$50,000 x 10%	$5,000
State Income Tax (NY)	$50,000 x ~6%	$3,000
Total Immediate Cost		$20,000

Plus: That $50,000 would have grown to $137,950 over 15 years at 7% return. Total loss: over $100,000!

✓ IUL (F&G) Participating Loan

Expense Type	How it Works	Net Cost/Gain
Loan Interest Charged	F&G charges (e.g., 5.5% capped)	-$2,750/yr
Index Credit Earned	Your $50k stays in index (e.g., 7% return)	+$3,500/yr
Net Result		+$750 Gain

Tax/Penalty: $0 - No taxes or penalties
No job required - Loan can remain outstanding indefinitely
Money stays invested - Continues earning while you use it

                IUL saves you $20,000 in immediate costs PLUS you actually EARN $750/year on borrowed money!
            

Three Powerful Advantages

1. The 0% Floor: When the market crashes, you lose nothing. Your principal is protected while still participating in market gains.

2. Tax-Free Retirement: Lock in a 0% tax rate on distributions instead of giving the IRS a blank check on your future.

3. Living Benefits: Access your money tax-free if you get sick, injured, or need long-term care—not just when you're old or dead.

Want to Learn More?

Discover how to maximize your retirement strategy and protect your family's financial future.

Schedule a complimentary consultation to see if this strategy is right for you:

Email Marc Email Marylene

We'll provide a personalized analysis comparing your current retirement plan to alternative strategies designed to:

Eliminate market risk in retirement
Provide tax-free income
Protect against critical illness
Maximize what your family receives