Craig Wear, CFP®Craig Wear, CFP® | Expert in Roth Conversions & Tax-Efficient Retirement Strategies for IRA Millionaires

How to Maximize Life Insurance Benefits

2 Sept 2024 · 0 min

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0:29

A short excerpt from a YouTube video by Craig Wear, CFP® offering practical timing advice on using IRA funds and Roth conversions in conjunction with life insurance strategies. Key point: perform life-insurance-from-IRA strategies and Roth conversions after age 59½ to avoid early-withdrawal or conversion penalties. The speaker also signals a transition to discussing cash-value life insurance and common objections to buying life insurance.

What's really important to understand is that if you're going to do the life insurance strategy from your IRA, you probably want to do it after age 59 and a half to avoid the penalties of taking money out of the IRA in that regard. Same way with Roth conversions, they're better after 59 and a half so that you don't have penalties to deal with there. When it gets down to cash value life insurance, I found that many people have been persuaded that you just there's no reason to do life insurance.