Susan, age 40, is a civil engineer

Her firm has no 401(k) plan or other qualified plan
Highly compensated so:
No, tax-deductible IRA or a Roth IRA
Yes, non-deductible IRA
Yes, mutual funds

Using only nondeductible IRA and Mutual Funds​

IRA at 65 > $296,813
Mutual Funds at 65 >$1,525,633

Annual cash flow after taxes​ $150,913

Using nondeductible IRA Mutual Funds and Life Insurance​

IRA at 65 > $296,813
Mutual Fundsa at 65 > $762,816
Insurance cash at 65 > $958,530

Annual cash flow after taxes​ $514,713

Here are the results for Susan

Taxes Net Cash Flow
Nondeductible IRA and Taxable ONLY $10,419 $116,822
Nondeductible IRA, Taxable and Life Insurance $6,144 $150,913

Death Benefit → $122,919*

Added Cash Flow → $34,091​

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​

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