No. of Recommendations: 2
MOYLER: "I have always been a term guy, but when I hit age 65, my term policies got extremely expensive. I decided to switch to whole life, using my IRA's to fund it."

OK. Welcome. Do you still need life insurance. Do you still want life insurance.

"My strategy is - move money from my IRA to pay for Ins. premiums."

Depending upon the cost of the policy, does your choice not accelerate withdrawals thereby incurring taxes sooner?

"This lets me manage future taxes, and moves money to Whole Life where it is tax free as a benefit paid. The cash value is still available to me if needed."


"With this, I have reduced the amount of the mandatory, 10% deduction when I turn 70, which would be a big tax hit."

What mandatory 10% deduction? I am not following your reference.

IRA RMD is calculated as follows:

"The required minimum distribution for any year is the account balance as of the end of the immediately preceding calendar year divided by a distribution period from the IRS’s “Uniform Lifetime Table.” A separate table is used if the sole beneficiary is the owner’s spouse who is ten or more years younger than the owner.",-Employ...

The uniform lifetime table provides that the divisor is 27.4, which would be a 3.65% required withdrawal, not 10%.

"I know I took a hit on commissions, but into my 3rd year now, and it is much less. I feel I am getting the money out of my IRA's at the least tax bite, and it gives me leveraged value in the insurance amount over the 10 years until paid off."

Not sure how you are so confident of the least tax rate, unless you are retired. Your beneficiary(ies) will receive the leverage value when you die, but you really do not. In addition, "vanishing" premiums do not always disappear. What 10-year pay-off are you referencing?

Regards, JAFO
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