Usually when speaking of Qualified Plans, one is referring to a retirement plan that “qualifies” for some kind of tax deduction or savings up front when contributing to such plan. Examples might include a 401(K), Traditional IRA, 403(b) and all manner of state or federal plans (such as 457 plans and the TSP). Careful consideration must be given when choosing to contribute to these plans.

When investing in a Non-Qualified Retirement Plan, an investor forfeits the right to receive upfront tax deductions on their contribution in exchange for tax-free gains and tax-free income during the retirement years. Examples might include a Roth IRA, Roth 401(K) and Investment Grade Life Insurance.

Simply stated, life insurance is perhaps one of the most misunderstood and improperly criticized investment options. Most insurance agents and so-called financial planners do not know how to properly use, much less structure, life insurance to perform as a superior investment. When done correctly, this option can be incredibly powerful and flexible due to its highly liquid nature, large contribution limits and potential for tax-free income.*

Please check back with us to learn about common retirement myths.