Kathleen and Don are both doctors, married, and 30 years old
They are maxing out their 401(k)s
$54,000 excess they would like to save for retirement
How should they invest their money?
Supplementing their 401(k) with taxable investments
401(k) at 65 > $4,230,608
Taxable at 65 >$3,439,184
Annual cash flow after taxes $408,231
Supplementing their 401(k) with taxable investments and Life Insurance
401(k) at 65 > $4,230,608
Taxable at 65 > $1,910,658
Insurance cash at 65 > $2,469,131
Annual cash flow after taxes $514,713
Here are the results for Kathleen and Don
| Taxes | Net Cash Flow | |
|---|---|---|
| 401(k) and Taxable Investments ONLY | $98,461 | $408,231 |
| 401(k), Taxable Investments and Life Insurance | $86,487 | $514,713 |
Death Benefit at age 92 → $364,085*
Added Annual Cash Flow → $106,482
An example is hypothetical and for illustrative purposes.
*Death benefit will decrease over time (e.g. approx. $73,000 at Age 95; $10,000 at Age 100) but invoking the Overloan Protection riders will guarantee the policies will not lapse
