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| I would recommend a traditional IRA over Roth as a younger farmer. Bound to be a time to convert tax free to Roth. You are not going to be profitable each and every year. Win/win sort of deal. A VUL would be the last type of cash value form of life insurance I’d want to own. When young, buying term and investing the difference will get you on a clear cut path to self insure, as there will be a point where eventually the investment account will be greater than the face amount of the life insurance. And most agents ain’t bright enough to show you the option of increasing death benefit, which pays the cash value in addition to the face value, so an earlier than expected demise would favor the term/invest-the-difference, as the beneficiary will recieve both as a death benefit. Also by utilizing a traditional Ira as the investment account, the investment contributions are deductible, vs non deductible for the VUL. There is a way to own cash value life insurance inside a qualified retirement plan known as a Keough or HR10, and deduct all but what is called the ps 58 cost, which is the term portion of the premium contributed. It’s a more complicated strategy than I’m going to explain here, but a viable option for business owners.
Edited by Boone & Crockett 1/15/2025 03:50
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Variable Universal Life Insurance the new Roth IRA
