Planning for Retirement with Louisiana Farm Bureau Insurance

Most Americans aren’t saving enough for retirement. Many experts recommend that we plan to have a million dollars in savings before retiring.

Planning for retirement has many components. An employer plan, such as a 401-K or IRA with contribution matches, is a great option. But often you can’t save as much as you need through an employer plan, even putting in the max contribution.

Many Americans don’t have the option of employer-provided plans. A 2018 poll found that one in five employees work as an independent contractor. Certain life insurance products can help fill in the retirement savings gap.

Get a Guaranteed Minimum Payback With a Fixed-Annuity Plan

Fixed-Annuity Plans allow you to save for retirement at a minimum guaranteed interest rate, regardless of what’s happening in the stocks and bonds market. When interest rates are extremely low, your savings continue to gain interest at no less than the minimum rate you were locked in at—even if that rate is significantly higher than current market value.

Your savings will grow at market rate if the fixed rate is much lower than the current market rate. The fixed-rate doesn’t limit how fast your savings will grow. It just guarantees that it will grow no slower than a specific rate dictates.

You pay no taxes on the money you invest in your Fixed-Annuity account or on the interest that money accumulates, until you withdraw from the account. Then you may be required to pay taxes on whatever amount you withdraw, depending on the particulars of your policy. Sometimes you are only taxed if you withdraw before age 60.

You can’t outlive your funds with a Lifetime Fixed-Annuity Plan. Your annuity will continue to pay you in regular installments until your death. It is essentially a do-it-yourself pension. A Fixed-Annuity Plan with Farm Bureau Life Insurance of Louisiana can help you save for retirement at a higher rate than a savings account, but without the extreme risk of the stock market.

Whole Life Insurance Plans Offer Cash Withdrawals

Life Insurance Plans typically pay out in the event of your death. But a Louisiana Farm Bureau Whole Life Insurance plan can be converted to cash before your death.

Whole Life Insurance policies start building cash value as soon as you pay your first premium. You can withdraw or borrow against this type of insurance while you are still living. Of course, taking withdrawals from your policy while you are still living means your beneficiaries receive less upon your death.

However, the longer you live, the less likely your dependents will need to count on your financial contributions for a significant length of time. By the time your children are adults with careers of their own, it may no longer seem as important that you leave them a large life insurance payout. This may also be the time that you are approaching retirement age. You may wish to supplement your retirement income by regularly “paying” yourself some of your life insurance monies.

The Younger You Start Planning, The More You Can Save for Retirement

Planning for retirement via life insurance products works better the younger you are when you start—so the time to speak to an agent about your options is now! The younger you are when you take out these policies, the lower your premiums will be and the longer your investment will have to compound and accumulate value before you are ready to retire.

Our agents know all about using insurance to plan for retirement, and they are eager to help educate you, our valued client. Get in touch today!