84 • MARTIN H. RUBY
Tax Burden in a Tax-Deferred Account
Paul is planning to defer $75,000 in taxes over his working years, and he felt great about it! He loved not paying those taxes today, while he was saving. As we now know, this doesn’t work out so well for Paul. Why? Because in retirement, Paul owes $375,000 in taxes! Properly structured IUL can help you avoid being like Paul. You’re going to have to pay taxes one way or another on the money you put into your savings account. The government isn’t going to let you have it for free. I’m betting paying $75,000 sounds a lot better to you than pay- ing $375,000. IUL can deliver this. There are additional tax advantages with IUL, too. These were pretty important to my daughter Rebecca, as well. In all life insurance, the death benefit is paid to heirs completely income-tax-free. That means if Rebecca were to die prematurely,
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