J retirement plan pdf plans dividend paying whole life. Protect your retirement from these investment scams. Individual retirement arrangements iras retirement plans for selfemployed people. Review retirement plans, including 401k plans, the savings incentive match plans for employees simple ira plans and simple employee pension plans sep.
A 702j plan is actually a permanent life insurance policy. The 702j retirement plan demystified top benefits you. Plan provision sfers miscellaneous plan charter section a8. A 702 j account is frequently marketed as a retirement plan, but its actually a life insurance policy. Download it once and read it on your kindle device, pc, phones or tablets. How likely would you be to use a feature in a 401k or similar plan where your. Its research emphasizes employersponsored retirement plans. Thats right, a 702j is not a retirement plan, even though that is how it is marketed. For most folks, saving for retirement, buying a less expensive term life policy, and investing the remainder in a 401 k or ira is a smart move. A 702 j is not actually a retirement savings plan at all. Code, which lays out the rules for life insurance contracts. See all formats and editions hide other formats and editions. The name comes from section 7702 in the internal revenue code, which regulates life insurance contracts.
To prospectus dated october 10, 2006, prospectus supplement dated november, 2006, underlying supplement 17 dated august 11, 2008. The 702 j retirement plan hoax is used to create mystery and interest in a subscription based newsletter. J retirement plan pdf plans the 702j tom dyson amazon com books. What are 702 j retirement plans what is a 702 j retirement plan. Sometimes referred to as a 702 or 7022 account, this type of plan is named after a section.
What are the best types of 702 j retirement plans for retirement and learn how you can avoid the most common mistakes that individuals have made when looking to purchase a. These plans may be set up by employers, insurance companies, trade unions, the government, or other institutions. And, in fact, a 702 retirement plan it also may be called a 7702 or 702j plan is a life insurance policy. A 702j retirement plan is a marketing term for a permanent life insurance policy governed by section 7702 of the u. But the idea of using it to supplement retirement income isnt. You get taxdeferred savings today and taxdeferred growth for decades to come. Its an insurance policy specifically a permanent life insurance policy as defined under section 7702 of the united states code. I want to know if this reagan secret 702j retirement income plan is a scam. You pay extra premiums each month which increases the. What is a 702j retirement planeverything you need to know. A 702j plan is not a retirement savings plan like a 401k plan. Heres why the 702j isnt all its cracked up to be 702j plans stink.
But a 702 j plan is not a retirement savings plan like a 401k plan. This inherently misleading title is due to claims that its the perfect way for you to invest and save your money for retirement. In light of the current situation, we deeply care for our. We assume that, during retirement, youll want to maintain the standard of living you had just before you retired, which means consuming the same amount adjusted for your new zip code. Need for improved governance and management, gao09702t, may 20, 2009. First, a 702j plan is not a retirement plan at all its a life insurance contract. President reagans secret 702j retirement plan what it. A 702j is not actually a retirement savings plan at all. Naming a life insurance policy this way makes it sound like the 401k even though they are nothing alike. It can be difficult to predict exact expenses in retirement. Effective 123196, the fund began offering advisor class shares. A 702j account is frequently marketed as a retirement plan, but its actually a life insurance policy. I have just heard about reagans 702 j retirement plan. The 702 j retirement plan tom dyson paperback january 1, 2015 by tom dyson author 4.
Tom dyson at the palm beach letter has generally been a relatively lowrisk, incomefocused guy he used to run the 12% letter for stansberry, before starting palm beach letter with mark ford a couple years ago, and for a newsletter guy he does relatively little of the swing for the fences stuff. And, in fact, a 702 retirement plan it also may be called a 7702 or 702 j plan is a life insurance policy. A 702j retirement plan is a retirement strategy that uses a life insurance contract to fund retirement. What is a 702j retirement planeverything you need to. A 702 is not the holy grail retirement plan its being advertised as. There is a reference in secondhalf planning article which mentions that 702j refers to section 7702j of the tax law which is li purchased by a church for its employees. Check out more from robert and alison southwick in the motley. The 702 j retirement plan is not an investment and not technically a retirement plan. Ed and ruthann wolfe just wanted a safe place for their retirement savings. Use features like bookmarks, note taking and highlighting while reading the truth about retirement plans and iras. You may have heard or seen the pitch for president reagans secret 702j retirement plan or something called the 770 account, presidents secret account, invisible account or income for life. Linking life insurance policies subversively to 401 ks makes them easier to sell. First and foremost, a 702 j plan is not a retirement plan at all.
For those members with a diems date of september 8, 1980 through july 31, 1986, they are under the high3 retirement plan. Affordable life insurance retirement secrets of the rich. But the idea of using it to supplement retirement income isnt new. I think 702j li is a flim flam scam for individuals who set up their own church under irc 501c3 and become a minister of the church or an employee which allows the. Robert gives several reasons to be suspicious of a 7702 plan, and reiterates the strengths of a more traditional retirement plan. A retirement plan is a financial arrangement designed to replace employment income upon retirement. Making contributions every month allows you to harness the power of time and use compound interest to really see your investment grow substantially. Xxxx email answered by a verified social security expert. A smartvestor pro can work with you to create a retirement plan for your specific situation and help you understand your investment options.
Is reagans secret 702j retirement income plan a scam. Seen together, its obvious these two terms were taken from the 7702 plan discussed above. For those members with a diems date of august 1, 1986 or later, they were initially under the redux retirement plan. Small business retirement plan availability and worker. Its a specialized type of high cash value dividendpaying whole life insurance that enjoys tax advantages spelled out in irs section 7702 of the us tax code. Like many retirement plans, 702j draws its name from the section in the tax code it references. A pension may be a defined benefit plan, where a fixed sum is paid regularly to a person, or a defined contribution plan, under.
For more than a decade, hogan has served at ramsey solutions. Its an insurance policy specifically a permanent life insurance policy as defined. That is section 7702, which has nothing to do with retirement plans at all. Named after a section of the irs code, its designed to sound like a retirement plan, but it should not replace contributions to an ira or 401k. The following is a summary plan description for the ameren retirement plan applicable to employees who are represented by a collective bargaining agreement with ameren illinois company formerly amerencips and ibew local unions 702e illini, 702s shawnee, or 702w great rivers and were hired prior to october 15, 2012. What is a 702j retirement plan and how could it benefit. You may have heard or seen the pitch for president reagans secret 702 j retirement plan or something called the 770 account, presidents secret account, invisible account or income for life. Its a life insurance contract governed by section 7702 of the u. What is a 702j retirement plan, and should you get one.
The short answer is that the 770 account and the 702j account are both marketing ploys. The truth about retirement plans and iras kindle edition by edelman, ric. Types of retirement plans internal revenue service. A 702 plan is simply a cash value life insurance policy that is being marketed as a vehicle for retirement savings. A 702 j plan is actually a permanent life insurance policy. As your trusted life insurance partner pnb metlife is with you amidst the current covid19 outbreak. Congress has expressed a desire to encourage responsible retirement planning by granting favorable tax treatment to a wide variety of plans. In chapter 6, they discuss how a knowledgeable agent will add a paidup additions rider to your policy to increase the growth of your cash value, while cutting the advisors fees by up to 70%. J retirement plan pdf plans 702j income dividend paying whole. Section 7702 of the united states internal revenue code defines what the federal government considers to be life insurance contracts and how. How to fund your own worryfree, 100% taxfree retirement. The truth about secret 770 accounts are they legit.
How much you would like to spend during your retirement is the most important driver of your retirement plan, but it is often the hardest part to predict. These are also sometimes referred to as life insurance retirement plans lirp or modified endowment contracts. There are several reasons why using cash value life insurance to fund your retirement is not a good idea the following is a great article which highlights the issues around 702 retirement plans. Unlike a term life policy that runs for a specific period such as 10 or 20 years, whole life provides a death benefit for the insureds full lifespan.
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