IRA Rescue Using CVL
One of the hottest sales pitches going on in the industry today is IRA Rescue using cash value life.
This strategy is about as bogus as it gets, and we predict massive litigation against agents selling it and IMOs pushing it.
We could make a lot of money having agents pitch this piece of garbage plan; but. instead. we are warning advisors to stay away from it.
Actually, we’ll go one better and let industry watchdog/crusader, Roccy DeFrancesco, JD, tell you about it. Roccy created a consumer website warning people to stay away from agents selling this concept. To go to that website, simply go to www.stopirarescue.com.
IRA Rescue is a “tax-saving” concept that:
1) Removes money from an IRA (at which time taxes and potential penalties are paid).
2) Uses the money withdrawn from the IRA to fund a Cash Value Life Insurance policy (typically an Equity Indexed Universal Life (EIUL) policy).
What’s the sales pitch?
1) IRAs are tax-hostile tools, and you need to remove your money from it NOW and put that money into a “tax-free” retirement tool (Cash Value Life).
2) Cash Value Life allows money to grow tax free and come out tax free in retirement.
What’s the problem? The math is absolutely bogus. It does NOT work.
As is often the case in the insurance world, insurance agents do not do the required research to determine what really works and what is being sold on bogus assumptions with smoke and mirrors. They are so blinded by the huge commissions that come with IRA Rescue that they don’t care about doing their due diligence. They just want to sell, sell, sell (to their client’s detriment).
If you have been pitched IRA Rescue by an IMO or insurance company or if you have clients or friends who have been sold one of these plans, please contact Roccy DeFrancesco at firstname.lastname@example.org or 269-216-9978. He would be happy to explain further why these plans do not work; and; if you have a client or friend who’s been sold one, he can help them get their money back (and the taxes they paid prematurely).