Frequently Asked Questions
Common questions answered
Why is the Indexing Strategy getting so much attention now?
The indexing Strategy is getting attention because of the 4 benefits.
1. You participate in the market if it goes up, and lock in your gains that year, which helps your savings stay ahead of inflation.
2. If the market goes down, you just get a 0% return that year, which means you never lost a dollar of your hard earned savings’ principle.
3. If the market went down in previous year, your principle is now ready to go back up with the market recovery, with out having to make up for the losses.
4. The Indexing Strategy doesn’t have the volatility of the market, never a loss, only
potential gains.
How long has Indexing Strategy been around?
The Indexing Strategy has been around for over 20 plus years.
Why do they call IUL’s the rich man’s Roth?
Because unlike regular Roth IRA’s, IUL’s are not prohibited because of high income.
If I have very high credit score, can I save money on my Auto, Home, and Umbrella Insurance?
Yes, we offer a little known insurance company that offers the lowest cost insurance for most people in Minnesota who have a very high credit score.
How come I have never heard about the Indexing Strategy before?
Most CPA’s, Financial Planners, and Investment Brokers either never learned how to maximize the Indexing Strategy, or they would rather have 1-2% management fee from their clients.
Aren’t you just investing in the S&P 500 Index?
No, you are NEVER in the market, that’s why you never suffer a loss if the market goes down, but you can participate in the gains when it goes up.
Indexing Strategy can be linked to many different Indexes like S&P 500 and EUROSTOXX50, but also Global indexes, blends, and others depending on the product and the company.
What are the 4 Benefits that a Roth doesn’t offer, that IUL can?
IUL’s not prohibited because of high income
There is no penalty to have access to tax deferred growth before age 59 ½
There is no 5 year waiting period before you can have access to your funds tax free.
IUL’s can transfer more than the account balance upon death, tax free and probate free
Should I convert my IRA/401K to a Roth or IUL right now? or wait?
When it comes to a Roth individual retirement account (IRA), or Indexed Universal Life (IUL), the answer could be yes.
There are several factors to consider. You need to talk to a financial expert from 1st Choice Insurance Agency. Roth IRA's have 2 main benefits, while IUL's have 6. Both Roth IRA's and IUL's are funded with after-tax dollars, and qualified withdrawals are entirely tax-free.
Additionally, Roth IRAs and IUL's aren't subject to required minimum distributions (RMDs), which gives you greater control over your taxable income in retirement.
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Frequently Asked Questions
Common questions answered.
Why is the Indexing Strategy getting so much attention now?
The indexing Strategy is getting attention because of the 4 benefits.
1. You participate in the market if it goes up, and lock in your gains that year, which helps your savings stay ahead of inflation.
2. If the market goes down, you just get a 0% return that year, which means you never lost a dollar of your hard earned savings’ principle.
3. If the market went down in previous year, your principle is now ready to go back up with the market recovery, with out having to make up for the losses.
4. The Indexing Strategy doesn’t have the volatility of the market, never a loss, only
potential gains.
How long has Indexing Strategy been around?
The Indexing Strategy has been around for over 20 plus years.
Why do they call IUL’s the rich man’s Roth?
Because unlike regular Roth IRA’s, IUL’s are not prohibited because of high income.
If I have very high credit score, can I save money on my Auto, Home, and Umbrella Insurance?
Yes, we offer a little known insurance company that offers the lowest cost insurance for most people in Minnesota who have a very high credit score.
How come I have never heard about the Indexing Strategy before?
Most CPA’s, Financial Planners, and Investment Brokers either never learned how to maximize the Indexing Strategy, or they would rather have 1-2% management fee from their clients.
Aren’t you just investing in the S&P 500 Index?
No, you are NEVER in the market, that’s why you never suffer a loss if the market goes down, but you can participate in the gains when it goes up.
Indexing Strategy can be linked to many different Indexes like S&P 500 and EUROSTOXX50, but also Global indexes, blends, and others depending on the product and the company.
What are the 4 Benefits that a Roth doesn’t offer, that IUL can?
IUL’s not prohibited because of high income.
There is no penalty to have access to tax deferred growth before age 59 ½.
There is no 5 year waiting period before you can have access to your funds tax free.
IUL’s can transfer more than the account balance upon death, tax free and probate free.
Should I convert my IRA/401K to a Roth or IUL right now? or wait?
When it comes to a Roth individual retirement account (IRA), or Indexed Universal Life (IUL), the answer could be yes.
There are several factors to consider. You need to talk to a financial expert from 1st Choice Insurance Agency. Roth IRA's have 2 main benefits, while IUL's have 6. Both Roth IRA's and IUL's are funded with after-tax dollars, and qualified withdrawals are entirely tax-free.
Additionally, Roth IRAs and IUL's aren't subject to required minimum distributions (RMDs), which gives you greater control over your taxable income in retirement.
