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Doug Andrew: Consider Rolling Your IRA into an IUL (Good idea?)
About this Episode
David McKnight addresses Doug Andrew's recommendation of turning your IRA into an IUL.
David agrees with some of Andrew's views, including his objection to rolling a 401(k) into an IRA, and then leaving it there until you die.
Given the exploding national debt, most experts predict that taxes 10 years from now will have to rise dramatically to keep the U.S. solvent…
Doug Andrew lists Indexed Universal Life as his "favorite financial vehicle because of liquidity, safety, predictable rates of return, and tax-free growth".
David is skeptical of advice that denigrates every tax-free alternative within the IRS tax code in an attempt to glorify the IUL – which happens to be the product Andrew sells.
While David recognizes some admirable qualities that are unique to IUL (and that no other financial tool has), he doesn't recommend having an IUL as the only prong in your tax-free strategy.
David's preference is for you to opt for an approach that takes advantage of every tax-free nook and cranny within the IRS tax code.
Many gurus are "married" to and recommend only one strategy. David, on the other hand, prefers "multiple streams of tax-free income, none of which show up on the IRS' radar, that contribute to you being in the 0% tax bracket."
David lists the unique qualities of financial tools such as Roth IRAs, Roth 401(k)s, Roth Conversions, and IULs.
If you're someone who's looking for advice, David recommends being careful whenever someone recommends you liquidate a retirement account you've been saving into your entire life and move it wholesale into an IUL!
Your ideal goal should be to have multiple tax-free income streams that will land you in or near the 0% tax bracket in retirement.
Why is that so important? Because even if tax rates were to double, two times zero is still ZERO.
Mentioned in this episode:
David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track
PowerOfZero.com (free video series)
@mcknightandco on Twitter
@davidcmcknight on Instagram
David McKnight on YouTube
Get David's Tax-free Tool Kit at taxfreetoolkit.com
Hosts & Guests
No transcript available for this episode.
