68 • MARTIN H. RUBY
It’s a funny realization. In truth, 401(k)s are just savings vehi- cles that utilize certain portions of our national tax code. Basically, they’re shopping carts. You can load up mutual funds, bonds, and other savings instruments into your 401(k) shopping cart and they’ll receive a particular tax status. Section 401, subsection k, is not the only part of the tax code that delivers tax benefits to a savings approach. In fact, there are many parts of the tax code you can save under for the future. In this book, I want to introduce you to Section 7702.
7702 Plans Meet section 7702 of the Internal Revenue Code.
Section 7702 has been available for saving for years. In fact, it well predates section 401(k). Only recently has its use become more widespread, as people like you have realized the large defi- ciencies in section 401(k). Here’s what a properly structured 7702 plan can deliver: (1) Growth when the market is up (2) Protection when the market drops (3) Tax-free savings growth (4) Low cost (5) Flexibility to contribute and access funds without re- strictions It sounds great, right? But what exactly is a 7702 plan?
Life Insurance. Yes, Life Insurance. Wait, don’t close the book!
I know “life insurance” isn’t what you expected to see as a solu- tion to your retirement savings problems. Frankly, I didn’t expect it either. In fact, I almost wrote it off. But as an actuary who has made his career in the insurance industry, I knew the benefits of life insurance. And I knew certain kinds of life insurance were
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