702 j retirement plan pdf

What is a 702j retirement plan, and should you get one. What is a 702j retirement planeverything you need to. I have just heard about reagans 702 j retirement plan. These are also sometimes referred to as life insurance retirement plans lirp or. Robert gives several reasons to be suspicious of a 7702 plan, and reiterates the strengths of a more traditional retirement plan. Its a life insurance contract governed by section 7702 of the u. A 702j retirement plan is a marketing term for a permanent life insurance policy governed by section 7702 of the u. J retirement plan pdf plans the 702j tom dyson amazon com books. In chapter 6, they discuss how a knowledgeable agent will add a paidup.

First, a 702j plan is not a retirement plan at all its a life insurance contract. J retirement plan pdf plans 702j income dividend paying whole. A 702 j is not actually a retirement savings plan at all. But the idea of using it to supplement retirement income isnt new. Its an insurance policy specifically a permanent life insurance policy as defined under section 7702 of the united. You get taxdeferred savings today and taxdeferred growth for decades to come. To prospectus dated october 10, 2006, prospectus supplement dated november, 2006, underlying supplement 17 dated august 11, 2008. We assume that, during retirement, youll want to maintain the standard of living you had just before you retired, which means consuming the same amount adjusted for your new zip code. For most folks, saving for retirement, buying a less expensive term life policy, and investing the remainder in a 401 k or ira is a smart move. There are several reasons why using cash value life insurance to fund your. Like many retirement plans, 702 j draws its name from the section in the tax code it references. Individual retirement arrangements iras retirement plans for selfemployed people. And, in fact, a 702 retirement plan it also may be called a 7702 or 702j plan is a life. How likely would you be to use a feature in a 401k or similar plan where your.

Check out more from robert and alison southwick in the. How to fund your own worryfree, 100% taxfree retirement. What are 702 j retirement plans what is a 702 j retirement plan. Heres why the 702 j isnt all its cracked up to be 702 j plans stink. Ed and ruthann wolfe just wanted a safe place for their retirement savings. Is reagans secret 702j retirement income plan a scam. What is a 702j retirement plan and how could it benefit. J retirement plan pdf plans dividend paying whole life. Need for improved governance and management, gao09702t, may 20, 2009. Download it once and read it on your kindle device, pc, phones or tablets. The 702 j retirement plan tom dyson paperback january 1, 2015 by tom dyson author 4. A 702j plan is not actually a retirement plan at all. The employee retirement income security act erisa covers two types of retirement plans. Section 7702 of the united states internal revenue code defines what the federal government considers to be life insurance contracts and how theyre taxed.

The truth about secret 770 accounts are they legit. Naming a life insurance policy this way makes it sound like the 401k even though they are nothing alike. President reagans secret 702j retirement plan is yet one more name that the palm beach group has given to the bank on yourself method, which relies on a supercharged variation of. For periods prior to the funds advisor class inception date, a restated figure is used based on the funds oldest share class. And, in fact, a 702 retirement plan it also may be called a 7702 or 702 j plan is a life insurance policy. A smartvestor pro can work with you to create a retirement plan for your specific situation and help you understand your investment options. Review retirement plans, including 401k plans, the savings incentive match plans for employees simple ira plans and simple employee pension plans sep. The short answer is that the 770 account and the 702j account are both marketing ploys. The term 702 j is simply marketing speak, possibly designed to make the 702 j plan seem more like a retirement plan in the vein of a 401k or a 403b. We assume that, during retirement, youll want to maintain the standard. Its an insurance policy specifically a permanent life insurance policy as defined under section 7702 of the united states code. There is a reference in secondhalf planning article which mentions that 702j refers to section 7702j of the tax law which is li purchased by a church for its employees. Effective 123196, the fund began offering advisor class shares. Retirement planning guide esl federal credit union.

What is a 702j retirement planeverything you need to know. Questions and answers pdf provides answers to commonly asked. A 702j is not actually a retirement savings plan at all. For those members with a diems date of september 8, 1980 through july 31, 1986, they are under the high3 retirement plan. Heres why the 702j isnt all its cracked up to be 702j plans stink. The following is a summary plan description for the ameren retirement plan applicable to employees who are represented by a collective bargaining agreement with ameren illinois. What are the best types of 702 j retirement plans for retirement and learn how you can avoid the most common mistakes that individuals have made when looking to purchase a. Its research emphasizes employersponsored retirement plans. A 702j plan is actually a permanent life insurance policy.

A 702j plan is not a retirement savings plan like a 401k plan. Its an insurance policy specifically a permanent life insurance policy as defined. President reagans secret 702j retirement plan what it. It can be difficult to predict exact expenses in retirement. A 702j retirement plan is a retirement strategy that uses a life insurance contract to fund retirement. But the idea of using it to supplement retirement income isnt. Xxxx email answered by a verified social security expert. Making contributions every month allows you to harness the power of time and use compound interest to really see your. I want to know if this reagan secret 702j retirement income plan is a scam. Like many retirement plans, 702j draws its name from the section in the tax code it references. A 702 j plan is actually a permanent life insurance policy. Affordable life insurance retirement secrets of the rich. A 702j account is frequently marketed as a retirement plan, but its actually a life insurance policy.

A retirement plan is a financial arrangement designed to replace employment income upon retirement. That is section 7702, which has nothing to do with retirement plans at all. Protect your retirement from these investment scams. The 702j retirement plan demystified top benefits you. You pay extra premiums each month which increases the. You may have heard or seen the pitch for president reagans secret 702 j retirement plan or something called the 770 account, presidents secret account, invisible account or income for life.

These plans may be set up by employers, insurance companies, trade unions, the. A 702 plan is simply a cash value life insurance policy that is being marketed as a vehicle for retirement savings. Thats right, a 702j is not a retirement plan, even though that is how it is marketed. See all formats and editions hide other formats and editions. A 702 j plan is not actually a retirement plan at all.

Named after a section of the irs code, its designed to sound like a retirement plan, but it should not replace contributions to an ira or. Tom dyson at the palm beach letter has generally been a relatively lowrisk, incomefocused guy he used to run the 12% letter for stansberry, before starting palm beach letter with mark. The truth about retirement plans and iras kindle edition by edelman, ric. Types of retirement plans internal revenue service. Plan provision sfers miscellaneous plan charter section a8. Specifically, a 702 j is a permanent life insurance policy. You may have heard or seen the pitch for president reagans secret 702j retirement plan or something called the 770. Small business retirement plan availability and worker. The following is a summary plan description for the ameren retirement plan applicable to employees who are represented by a collective bargaining agreement with ameren illinois company formerly amerencips and ibew local unions 702e illini, 702s shawnee, or 702w great rivers and were hired prior to october 15, 2012. Named after a section of the irs code, its designed to sound like a retirement plan, but it should not replace contributions to an ira or 401k.