2012 1011 – ThinkAdvisor – What’s a L.I.R.P.?, By David C. McKnight

2012 1011 - ThinkAdvisor.com - What's a L.I.R.P.?, By David C. McKnight --- [BonkNote] --- [link]

However, unless the L.I.R.P. is structured correctly, the expenses can overwhelm the growth inside the accumulation account.
In order to maximize the impact of the L.I.R.P. strategy, a client must purchase the minimum insurance required while contributing the maximum amount allowed under IRS guidelines.
⇒ If properly structured, the expenses within the plan can cost as little as 1% of the annual account balance over the life of the program.⁴That’s less than the average annual expenses in the typical 401(k).⁵
- ⁴ - An equity indexed-based L.I.R.P., at preferred rates, using a minimum non-MEC face amount of $173,161, an increasing death benefit option, a $10,000 annual premium for 15 years, and an 8% rate of growth, has an internal rate of return in year 25 of 6.99%, or average annual fees of 1.01%.
- ⁵ - 2012 0131 - ThinkAdvisor.com - How to Take Advantage of New 401(k) Fee Disclosures (U.S. News & World Report), By Staff Writer - [link]
  - lifehealthpro.com/2012/01/31/how-to-take-advantage-of-new-401k-fee-disclosures - Bad Link
  - 2012 0130 - U.S. News & World Report - How to Take Advantage of New 401(k) Fee Disclosures: Workers can use this fee information to build a bigger nest egg and maybe even retire sooner, By Emily Brandon - [link]