Let's talk about LRPs, life insurance retirement plans in this, the 28th episode of the

Retirement Planning Education Podcast.

Welcome to the Retirement Planning Education Podcast, where you can learn all about IRAs

and Roth IRAs, employer retirement plans, taxes, social security, Medicare,

portfolio withdrawal strategies, annuities, estate planning, and much more.

And now here's your host, Andy Panko.

Hello, everybody, and welcome.

Thank you, as always, for listening.

Let's talk about Lurps.

No, a LERP isn't just a noise that a frog makes like one of those bullfrogs in the Budweiser commercials from the 90s, the Budweiser. LERP is an acronym that's L-I-R-P

that stands for Life Insurance Retirement Plan. Sounds fancy. It goes by a lot of different names.

It's, uh, you, you may have seen it or heard of it or read about it under marketing names such as

the Laser Fund, a private reserve account, a section 7702 plan, a TFRA or tax-free retirement account, and probably a whole host of other names I haven't

heard, you know, marketing names I haven't heard. They all ultimately refer to the same thing.

It's functionally nothing more than a cash value life insurance policy, specifically or generally

or always, one that is what's called an indexed universal life insurance policy, which or generally or always, one that is what's called an

indexed universal life insurance policy, which I'll talk more about. But the unique angle to it is

it's pitched and marketed as a retirement savings slash tax-free income for life tool. Sounds delicious.

And it is structured slightly, not slightly,

but it is structured differently than sort of the run of the mill cash value life insurance policy. Namely, it is structured to try to put in as much or build as much cash value as

possible to take advantage of the secondary aspect of cash value life insurance,

which is the ability to accumulate a cash value that can ultimately be borrowed against.

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