Millenials and Retirement

...The Pluses of Using an IBC Plan...

For members of Generation Y (Millenials), people born between 1983 and 2000 retirement is but a gigantic far-off dream and knowledge of how to retire using an IBC plan OR using the cash value of a participating whole life insurance policy as supplemental income may be even more foreign and probably a bit, if not a lot, very old fashioned.  Yet, for this generation there are no gold watches as symbols of long-held employment over a significant time period. There may be no huge lump sum pensions to grab and for all practical purposes (as far as we know) possibly no Social Security funds to access. Indeed Millennials will probably hold 10 or more jobs by the time they are forty (Chicago Tribune, July 8, 2013), and they know that wealth accumulation will probably come about only by maintaining an "entrepreneurial" attitude about where to tuck money for they days of retirement.  A real "do-it-yourself" nature will be the vanguard of this generation for retirement savings/planning.

While most companies will offer some kind of 401(k) alternative as employee benefit, there are plenty of strings attached to tax qualified monies (even though it sounds cool that employers will match contributed dollars).  The glitch on this among several is the job changing.  A trail of 401(k) plans makes it hard to keep track of funds accumulated in some cases.  Job switches, start ups, second careers, promotions and bonuses, underemployment, all add to the idea of retirement funding being hard to track or maintain funding not to mention that funds are not really in your full control.  

However, with an IBC plan, funds are in full control of the contributor, NOT subject to minimum distributions, penalties for early withdrawal, or other restrictions typically associated with formal retirement accounts. An IBC plan is essentially life insurance with a participating whole-life insurance company. It is designed to demonstrate that our need for financing, cash flow, and retirement funding is greater than our need for death benefit which we'll only need once, and, it is implemented so that Gen Y can place funds in a steadily growing financial vehicle that allows for accumulated wealth using non-tax qualified money for funding.

One final thought - using an IBC plan can account for debt reduction for Gen Y WHILE simultaneously allowing for a ever growing retirement plan. If you are someone born between '83 and 2000 and concerned about retirement funding, please contact me.