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What is IUL? While whole life insurance policies have a fixed rate of about three to four percent, IUL policies can come with higher rates at about seven percent with no cap, depending on the stock market. Their ability to produce compounded interest is what makes them an investment contender worth considering during times of volatility and high inflation, especially when we have so much uncertainty on the economic horizon.
Consider this: Have you implemented strategies to help ensure your portfolio is more likely to outpace inflation over time? And, how soon do you need any savings that may have been lost thus far. While a 401(k) may take up to a decade to reap your returns back, alternate vehicles such as an IUL policy can help you recoup losses more quickly, and carry tax benefits.
Bottom line: While I don’t personally subscribe to IUL being the new 401(k), I do believe it is a valuable diversifier for your overall retirement strategy.