In one way or another, we’ll all exit the workforce eventually and the steady stream of income we once enjoyed will be greatly reduced. This is one of the primary reasons why 401(k), Roth IRA or other pension plans exist – it gives those who are proactive enough to take this route a much better shot at an enjoyable retirement.
To Jonathan Moulton of Edison Risk, one of the routes he consistently recommends to wealth management professionals is a life insurance retirement plan (LIRP). As a professional in the financial services arena since 1999, Mr. Moulton has seen time and again high net-worth clients profit through an LIRP. In general, this approach gives the plan’s holder the opportunity to overfund the insurance policy as a way of building supplemental income for retirement. Finance professionals such as Edison Risk’s Jonathan Moulton will tell you that since there’s no LIRP income, distribution or contribution limit, high-income clients are uniquely positioned to profit through this plan. “Withdrawals of your basis in an LIRP — or loans against the accumulated value in a LIRP — is always tax-free under current law,” Jonathan Moulton, president of Edison Risk since 2012, said recently. Another plan that Mr. Moulton has seen pay off are fixed index annuities (FIA), which is an investment that can grow in tandem with the stock market — but won’t fall below your principal. As Mr. Moulton puts it, “Any sound financial plan should incorporate some guaranteed income to cover basic expenses” and an FIA is one way to go given the fact that his firm’s motto is “Ideas for Life.”
Since Mr. Moulton routinely works with certified public accountants, insurance advisors, agents and other people entrusted with making wise decisions for their clients, it’s his job to stay up-to-speed on financial regulations that could impact the plans he suggests. Fortunately, he also has a team of five sales managers at Edison Risk who manage more than 400 advisor relationships. Further, the firm’s underwriter is capable of reviewing a client’s personal information as it pertains to insurance. Those in search of preferable pricing on medical coverage, for example, would do well to trust Edison Risk, as their underwriter can review client health history then work with insurance carriers to get the best possible rating. Two additional case managers are assigned to agent contracting and business processing at Edison Risk while Jonathan Moulton personally designs solutions to complex cases that advisors often come to him for advice on. His knowledge on these complicated topics can be traced back to his reputation as a top life insurance producer prior to starting Edison Risk. This designation, he says, allowed him to “gain industry knowledge first-hand by helping my clients with their life insurance needs.”