Webinar with Attorney Robert Rikard
March 19th at 1:00 PM EST
Click on the following to sign up for this one-of-a-kind webinar:
https://advisorshare.com/ira-rescue
Robert is the #1 attorney in the industry who focuses on suing insurance agents over abusive IUL sales. He’s also the attorney represented Kyle Busch in his IUL suit against Pac Life (which just settled).
Risk On/Risk Off (RORO) February Returns & Early March
If you didn’t see my newsletter from a few weeks ago, it was on a RORO investment strategy that generated an 8.23% gross rate of return in January. FYI, returns for February were 4.92%. The S&P 500 returns were 1.47% and -0.86%, respectively.
The returns for March through Friday the 6th = 1.40% when the SPY = -1.98%
How many of your investment strategies are up more than 14% year to date?
Why has RORO done so well in 2026? It rotated a decent % to gold as well as oil/gas.
For more info on RORO and to watch a recorded webinar, click on the following:
www.advisorstamp.com/roro-webinar
Back to IRA Rescue Using IUL
I’ve been warning about IRA rescue using IUL for over 10 years, and I’ve been an expert in lawsuits in these cases. I also have a consumer protection website where I warn consumers:
What IMO is promoting this? UFC (Universal Financial Consultants)
What’s the IRA rescue sales pitch?
1) IRAs are tax-hostile tools, and you need to remove your money from them NOW and put that money into a “tax-free” retirement tool (Indexed Universal Life (IUL)).
2) IULs allow money to grow tax-free and come out tax-free in retirement.
The question for a potential client is: Would you like me to show you how to “rescue” money from your tax-hostile IRA so it can grow tax-free and be used in a 100% tax-free manner in retirement?
If a consumer didn’t know better, would they listen to such a sales pitch? Most would say YES.
IUL illustration—then the advisor shows a pie in the sky IUL illustration showing tax-free borrowing and, unfortunately, some clients move forward.
Taking this defective plan up a notch…finding the money to pay the tax withdrawals.
In order to relieve the pain of paying taxes on the IRA withdrawals, the client is told to borrow from the policy to pay the tax.
Why this concept is a financial failure:
The client is old—most clients are 59.5 or older (to avoid the 10% withdrawal penalty).
The costs of insurance in the first 10 years are very high vs. a 30-, 40-, or 50-year-old.
Can’t withstand a bad first decade—IUL illustrations assume a level rate of return every year. If clients have a bad first 10 years, they will wish they never heard of IRA rescue using IUL.
It’s always sold in a vacuum—IUL rescue is never compared to NOT using the plan.
The latest UFC flyer for the agent is a 55-year-old. I found this odd. They assume the client has $500,000 in an IRA and converts $50,000 a year every year for 10 years. The client could use a 72t distribution to avoid the 10% penalty, but the 72t amount for a 55-year-old with $500,000 in an IRA isn’t anywhere near $50,000 (so the client will have to pay a 10% penalty on some of the distribution).
Let’s compare this IRA rescue vs. not doing it, using the numbers from the UFC flyer.
Cash flow from the IUL from ages 65 = $30,000 tax-free
What if the client funded a guaranteed income rider FIA?
The apples-to-apples comparison is $368,000 (the present-day value of the IUL premium) where I’ll assume an FIA with income rider is funded. Here are guaranteed annual numbers:
$64,869 for a single life payment (guaranteed for life)
$60,235 for a joint life payment, assuming a 55-year-old spouse (guaranteed for life)
If I assume the client has an effective income tax rate of 18% in retirement (which is WAY HIGHER than the average retiree), the client would still net:
$53,192 (single life)
$49,392 (joint life)
Why would a consumer fund an IUL to rescue money from a tax-hostile IRA if the financial benefit is substantially worse (not to mention there is NO guarantee with the IUL).
The answer is they wouldn’t if the agent sold the concept in a full disclosure manner.The answer is they wouldn’t if the agent sold the concept in a full disclosure manner.
The moral of the story is:
1) This concept is a financial failure and should be avoided.
2) You should avoid working with IMOs that are pitching IRA rescue as a viable tool.
Roccy’s 2-Day Education/Marketing Seminar is Coming Back to Vegas
April 16-17, 2026
To DOWNLOAD the FULL Vegas agenda, click on the following link:
www.uploadedimages.net/content/PDFs/Vegas.Seminar.Full.Agenda.2026.pdf
Shaping Your Vision for the Next 12 Months and Beyond
If you want to help shape your vision for how you can grow what you do, generate more revenue, and give better advice to clients in the process, this is a seminar for you!
