Supercharge your retirement using an IUL

1. Supercharge your Retirement using an IUL

2. Indexed Universal Life Insurance Is a permanent life insurance product that earns cash value in addition to its death benefit. Part of your paid premium goes toward a death benefit the other part goes toward your cash value. Cash value earns a return and can be accessed for use in retirement, emergencies, and investments. What is an IUL?

3. Your money can grow tax-deferred Your money grows with the stock market while being protected from Market loss Tax free access to the cash value No age requirements or mandatory distributions Contribution limit rolls over every year Protection against Lawsuits Why is the IUL a good retirement vehicle

4. Interest is earned on the cash value and no taxes are paid. Cash value accumulates faster than in a taxed account Gains would only be taxable upon closure or cancelation of the account. Note: Access of the cash without closing the account is not taxable(will be discussed later). Tax Deferred Growth

5. Gains are matched to a stock market index Whatever percentage the market gains, your account gains. 0 percent floor on the cash value If the stock market loses money, your account is credited 0% instead of a negative percentage, meaning your account never loses money. The next two slides will show a fictional example of how a IUL would respond to market volatility vs. a mutual fund. Stock market growth with loss protection

6. YEAR ANNUAL RETURN (stock market) VALUE OF $1,000 (Mutual Funds) ANNUAL IUL RETURN VALUE OF $1,000 (IUL cash value) 2013 10% $1,100.00 10% $1,100.00 2014 -10% $990.00 0% $1,100.00 2015 10% $1,089.00 10% $1,210.00 2016 -10% $980.10 0% $1,210.00 2017 10% $1,078.11 10% $1,331.00 2018 -10% $970.20 0% $1,331.00 2019 10% $1,067.30 10% $1,464.10 2020 -10% $960.50 0% $1,464.10 2021 10% $1,056.60 10% $1,610.51 2022 -10% $950.90 0% $1,610.51 2023 10% $1,046.00 10% $1,771.56 2024 -10% $941.40 0% $1,771.56 2025 10% $1,035.60 10% $1,948.72 2026 -10% $932.00 0% $1,948.72 2027 10% $1,025.20 10% $2,143.59 2028 -10% $922.70 0% $2,143.59 2029 10% $1,015.00 10% $2,357.95 2030 -10% $913.50 0% $2,357.95

7. $0.00 $500.00 $1,000.00 $1,500.00 $2,000.00 $2,500.00 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 AccountValue Year Account Growth: IUL vs Mutual Funds VALUE OF $1,000 (Mutual Funds) VALUE OF $1,000 (IUL cash value)

8. Money can be accessed tax & penalty free through Policy loans. This allows you access to grow your savings in ways that other retirement accounts do not. You can use the money for emergencies, low interest car loans or other investments such a real estate or a small business. Upon retirement the money can also be accessed for retirement income. Tax free access

9. Some retirement vehicles have age requirements For example in a 401(k) You must be 59 before you can gain access your money penalty free You must start taking distributions by age 70 and pay taxes. The IUL has none of the above restrictions. You can choose whether or not to access the cash value at anytime. No age requirements or mandatory distributions.

10. Most retirement plans have a yearly contributions limit. For example: the contribution limit on a 401k is $17,500 and the contribution limit on an IRA is $5,500. The IUL also has a contribution limit based on how large the death benefit is. Unlike the IRA or 401k, if you do not contribute to the contribution limit, the excess is rolled over to the next year. This will happen every year to create a bucket for later larger contributions. This bucket could be useful should you come into a large inheritance or a big capital gain and would like to invest the money in a tax-deferred vehicle. Contribution limit rolls over into a cash bucket

11. In many states it is common that the cash value inside a life insurance policy is protected from creditors. This may include, bankruptcy, lawsuits, and other forms of judgments. This may be beneficial to individuals in high income professions. For example: A doctor who might be subject to a malpractice suit or a small business owner who is sued by a customer. Note: Make sure to check the laws in your state Protection against Lawsuits

12. For more information please contact us www.heritagefundrealty.com 510-463-1804 [email protected]

Supercharge your retirement using an IUL

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