Key Limitations
Roth IRAs still come with limitations. As we always say, just because everyone else is doing it doesn’t mean it’s the best path for you.
Think of it like farming: would you rather pay taxes on the seed or on the harvest? By paying taxes upfront on the seed, you eliminate the risk of facing higher taxes later on the harvest—when tax rates are likely to be higher.
Great Tax Advantages, Yet Two Key Limitations
Protect Your Money from Market Volatility
Much of the money in a Roth IRA is still exposed to the stock market. Having your principal at risk is a mistake millions of Americans make with their retirement savings. A sudden event—like a terrorist attack or economic shock—could cause fund values to drop sharply, turning your retirement dreams into a financial nightmare due to insufficient funds.
Government-sponsored investments, like Roth IRAs, come with built-in limitations. For instance, Roth IRAs restrict how much you can contribute each year—$6,000 for most individuals, or $7,000 if you’re 50 or older (as of 2022). Those who are highly focused on retirement savings or have a higher net worth often find these caps frustrating.
The Limits You Need to Know
Government-sponsored investments like Roth IRAs come with strings attached. For example, contributions are capped—$6,000 per year, or $7,000 if you’re 50 or older (as of 2022). For those focused on maximizing retirement savings or with higher net worth, these limits can be frustrating.
Expand Your Opportunities
Wouldn’t you prefer safety of principal while having the ability to contribute as much as you want toward retirement? A properly structured, maximum-funded Indexed Universal Life (IUL) policy—what we call an IUL Legacy by Design Fund—protects your principal from stock market risk, while still allowing you to benefit from market gains.
Because these policies are issued by secure, time-tested insurance companies rather than the government, they bypass contribution limits. They can be structured to hold as much money as the policy allows, giving you far greater flexibility and control over your retirement savings.
Disclaimer: Life insurance policies are not investments and should not be purchased for investment purposes.
Your Goals, t Our Commitmen
We’ve helped countless successful individuals grow and protect their wealth with strategies designed for safety and predictability. With historical annual average returns of 5–10%—tax-free, our clients enjoy the confidence of knowing their money is working for them.
What does this mean in real life?
For every $1 million accumulated, you could generate $70,000–$100,000 in annual, tax-free retirement income—without ever touching your principal. That’s what true financial freedom looks like.
