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Is Universal life insurance a wise tool for retiring early?
We have universal life ins policies. Was listening to a radio prgm that says they are bad “investments”. We want to retire early, so we need to have something other than IRA and 401 K to have money to spend at 55. Our agent says it is the only way to have “tax-free” money until we reach 59 1/2. What do you think.
I have to add that we don’t qualify for a roth IRA – Small business owner.
Insurance is never a wise investment tool. Just because you are a small business owner does not disqualify you for a Roth IRA. Combined AGI over $150k would.
You may want to look into other retirement type accounts. Non Qualified accounts for example can grow tax deferred and don’t always have the same age restrictions.
Since your agent told you that, get a new agent. He either doesn’t understand retirement planning or is running short on cash right now and needs a commission check.