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

Maximize Your Roth Conversions with Cash Value Life Insurance

9 Sept 2024 · 1 min

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Craig Wear, CFP® explains using cash value life insurance as a complement to Roth conversions. He notes insurance is often impractical for many clients due to age or health, is most effective with a long time horizon, and can allow cash values to accumulate tax-deferred or potentially tax-free depending on policy design. The speaker frames life insurance and Roth conversions as part of a coordinated, long-term strategy.

Chapters

Most of the people that we work with on do Roth conversions probably wouldn't. It would be very expensive to do the life insurance because of health, health issues and just age, if nothing else. Right. I will say that cash value life insurance is best used when you have a lot of time and you got time working on your side. But back in the day, when I was still in private practice and did the implementation solutions for people, we did a lot of life insurance alongside a Roth conversion. And that's probably the takeaway that you'll get today from me is if it's of benefit to you at all, it's part of a strategy where you walk along and you do both of those. But when you get into life insurance, I mean, some of the key features are that whatever money you have in there can accumulate tax deferred, tax free in some cases, depending on how it's set up.