Universal Life As A Tax Shelter
 

Anyone out there have any experience using Universal Life Insurance as a tax shelter in retirement? There seems to be a lot of conflicting information on this subject.

Depends.

To me insurance is for catastrophic occurrences only.

Talk to your financial advisor, a lot will depend on your specific situation and WHO is saving the taxes.

Do not know your needs. For me the last place I would look for a tax shelter would be an insurance company product. Look at a ROTH

I agree. Life insurance is not an investment or a tax shelter. If you have assets in a traditional IRA, you can convert it to a Roth, pay the taxes, and your heirs can inherit the money tax free and they will avoid the hassles of dealing with taxes on an inherited IRA.

Life Insurance at our age.......................No, No, No.

David McKnight wrote a book that you'd probably be interested in. I skimmed it and knew the life insurance route was not for me.

https://www.amazon.com/Look-Before-You-LIRP-Retirement/dp/153294358X

His more well known book "The power of zero" is pretty good but again touches on the life insurance product which I just skimmed.

I think the product I most like from him is his documentary movie "The Tax Train is coming". Here is a link: https://vimeo.com/484182601

No way no how. Anything beyond term insurance is a fraud.

By no means is permanent insurance a fraud. It's a reasonable alternative and or addition to traditional investments IF personalized to your situation AND if you can pass underwriting criteria for insurability. Don't rule it out, simply speak to several advisors.

Unfortunately, many of the "advisors" who convince people to buy permanent insurance are actually insurance salespeople who make a large commission for selling the insurance. It's fine to speak to an advisor, as long as the advisor is not also an insurance salesperson. Most non-biased advisors will not recommend permanent insurance. The primary purpose for life insurance is to replace lost income for someone who needs financial support when you die. A "term" life insurance policy is the most economical product to accomplish that goal, not permanent insurance.

Insurance (and annuities) make money for the seller! Not an investment.

Take time to read Paul Merriman’s 3 FREE ebooks.
1. First-Time Investor
2. 101 Investment Decisions
3. Get Smart or Get Screwed (read this first!)

Found at paulmerriman.com

He also has free suggests on investment strategies for taxable portfolios using Vanguard funds.

Only when you really need the insurance for your partner or family. As above most of the whole life insurance is expensive because it goes towards commissions. If you check current rates for most people in our age bracket turn life can be 2,000 a month for 100,000 in value really ridiculous. I'd really suggest talking to an accountant versus the salesperson at an insurance company or a brokerage

Well said

Roth is only is you have earned income. Transferring from an IRA you need to pay the taxes