Life Insurance Retirement Policy (LIRP) Opinions

Do you have traditional IRAs which would trigger pro rata? If not, just do backdoor Roth IRAs.

Taxable brokerage accounts can actually be pretty favorable tax wise. Sure you pay tax on the income now. But you dont pay additional tax on the basis and long term capital gains rates can be as low as zero. If you hold and wait until low income early years of retirement you may fall in the zero LTCG bracket and pay little or no tax on even large withdrawals that are a mix of basis and long term gains. Plus, you have flexibility to use it as you like anytime penalty free. You can even borrow against while still in high earning years and wait to sell until low taxable income years. Perhaps best of all your beneficiaries get a stepped up basis upon your death and pay no capital gains on all the growth.

Can y’all post a trigger warning when y’all use the r word? Millenials may be reading this and we’re never gonna be able to r*tire