It is common for individuals to seek financial advice when in doubt. Of course, there is nothing wrong with doing that since you can never risk making mistakes with your finances. One of the most confusing products when looking forward to safeguarding your financial future is the 7702 plans.
Even though it is a life insurance, it can still serve as a saving accounts or retirement plan provided you understand what is expected. For starters, you are better off opting for a 401 (k) or 403 (b) plans for retirement saving. However, you can never know what is set to come your way unless you give it a try.
Having said that, here are some of the things you need to know about 7702 plans before you use them for retirement saving.
Guaranteed Growth
Saving for retirement with whole life insurance has more to offer, especially when it comes to proving a more sustainable retirement income when compared to a typical financial planning that rely solely on tax-deferred plans. Whereas a typical investment portfolio cannot guarantee growth, this is something you never have to worry about when you turn to 7702 plans. After all, the guaranteed growth brings about confidence and financial peace of mind.
Nevertheless, you need to remember that 7702 is not a retirement plan, but rather a life insurance policy. Either way, it is not all about safeguarding the future of your loved ones in the event of your untimely death. Instead, it goes a long way in making sure you grow your wealth while you’re alive. For this reason, it is certainly going to provide retirement income for your golden years.
The Bottom Line
If you have already made up your mind to invest in 7702 plans for your retirement, then you need to clear any doubts you may have. You want to build a better future for yourself and your family and this cannot happen if you make a decision blindly. So, take your time and do your research before you finally turn to 7702 plans for your retirement.