Page 55 - Ready Set Retire

Ready. Set. Retire!

have paid for the joint and survivor benefit to purchase a life
insurance policy on your life? What would that look like?

Well, it just so happens I have access to a policy from a
premiere carrier that would provide a guaranteed lifetime
benefit of $360,000 for a 65 year old male in excellent health.
That $360,000 could be converted to a lifetime annuity that
pays out just over $29,000 a year. Tax free. That’s pretty much
equivalent to that $32,000 taxable benefit from the pension.

But that’s not all. In addition to providing nearly the exact same
benefit as the joint and survivor benefit from the pension, it
also provides other benefits. For example, if you both die, the
money can go to your kids or other heirs, unlike the pension.
Or, if your spouse dies first, you could kill the policy and stop
paying the premiums, just like that pop up feature mentioned
earlier. Or, you can continue to pay it and leave the benefit to
your beneficiaries.

The point is, you now control the money. And the change is
permanent. Assume you live out your life and you both die in
your late 80s, you would have gotten just the same amount
from your pension PLUS the $360,000! We call this the “have
your cake and eat it too” plan.

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