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As a first-year teacher in North Carolina earning $45,100 annually, after tax deductions, the take-home pay is around $3,758 monthly. Allocating for typical expenses like a $1,500 mortgage, $400 car payment, $300 in utilities, and $400 for groceries, there’s about $758 left for savings and investments. A good starting point would be contributing $200/month to the FIT Secure Growth Annuity. This plan offers tax-deferred growth and principal protection, so the investment grows steadily without market risk.

As the teacher’s salary increases, contributions can rise proportionally. On average, salaries for North Carolina teachers increase by 3-5% annually due to experience, local supplements, and state adjustments. By gradually increasing contributions by the same percentage, the teacher can grow their investment alongside their income.

For example, after 30 years of steady contributions and salary growth, with a 3% annual increase in salary and contributions, the estimated final payout from the annuity could be around $255,000. This figure takes into account the power of compounded growth and regular contribution increases, providing a substantial sum for retirement. The tax-deferred nature of the annuity further maximizes these gains by allowing the money to grow without immediate taxation, providing financial security in retirement.

Annuity Contributions and Total Value Over 30 Years

Here are two graphs illustrating the teacher’s financial journey over 30 years:

1. Salary Growth: The first graph shows how the annual salary increases over time, with a 3% annual raise. This reflects typical salary growth for a teacher in North Carolina.
2. Annuity Contributions and Value: The second graph compares the annual contributions to the FIT Secure Growth Annuity with the total annuity value. As contributions increase alongside salary, the annuity grows steadily, boosted by the 4% average annual return.

This visualizes how, by starting with a modest $200 monthly contribution and increasing it proportionally with salary, the teacher’s annuity could grow significantly, providing a substantial payout by the time of retirement. ​

As a first-year teacher in North Carolina earning around $45,100 (including the 10% local supplement), leveraging an Indexed Universal Life Insurance (IUL) can provide both life insurance protection and the ability to build a cash value. After accounting for typical expenses like a $1,500 mortgage, $400 car payment, $300 utilities, and $400 for groceries, you’ll have about $758 left each month. Contributing around $150-$200 per month into an IUL policy is a manageable amount while keeping enough flexibility for other financial goals.

Why an IUL Works for a Teacher

• Tax-Free Growth: The cash value in an IUL grows based on a stock market index, and this growth is tax-deferred, meaning it won’t be taxed until you withdraw it. You can also borrow against the cash value tax-free later, which makes it a good long-term investment.
• Flexible Premiums: If your salary increases by around 3% each year (a typical annual raise for a teacher), you can adjust your premiums accordingly to boost the policy’s value.

Estimated Long-Term Benefits

Assuming you contribute $200/month, increasing the contributions by 3% annually to match salary growth, after 30 years, you could accumulate a cash value of around $90,000 to $120,000 in your IUL policy (depending on the index performance and policy terms). This cash value can be accessed tax-free for retirement, emergencies, or even supplementing your pension.

On top of this, you maintain the death benefit protection, ensuring your family is financially secure in case something happens to you. The IUL provides both peace of mind and financial flexibility, making it a smart choice for long-term financial planning.

It’s been a tough week for me as an educator. Last week, I got sprayed with pepper spray while trying to break up a fight, and this week, I got bit. I understand these are just some of the risks that come with the job. As an assistant principal in North Carolina, it’s not exactly a glamorous position. Teachers, no doubt, have it rough in many ways, but being an AP is supposed to be temporary—3 to 5 years, and then ideally, you either become a principal or leave education entirely for something safer, like base jumping with gear you bought off Temu. If you stay too long, though, you end up forgotten.

Assistant principals carry all the responsibility but none of the authority that principals have. In NC, our salaries are tied to the teacher salary schedule, plus 19%. This means a teacher with a master’s degree and National Board certification can make more than an AP with a master’s, and only 1% less than an AP with a Ph.D. Imagine supervising people who make more than you do! To make things worse, my district recently introduced raises for nearly every position—except assistant principals. Why? Apparently, they just don’t like us that much.

To top it off, there was a huge error in the salary implementation, which I, with the help of ChatGPT, identified and reported. I was thanked for catching the mistake, but then informed that not only had I not received a raise, but I had also been overpaid and now owe money. The irony is real.

I share all this to say that sometimes we need a push to get out of our comfort zones. This was mine. I was comfortable in my role as an AP—maybe even a “super AP.” I’ve saved lives and helped turn around schools, yet I’ve never been recognized for it because of my position. Honestly, I don’t need the recognition, but I do want to be paid like I matter.

I don’t blame my district or the state for this. I’m just in a role where people don’t fully understand the value of what I do, and I’ve never made it my mission to show them. But now, as I prepare to move on, I’m ready to support the unsung heroes—teachers, APs, and everyone else who gets overlooked in North Carolina’s educational system. My goal is to help them find financial stability while continuing to do what they love, even if the system doesn’t support us.

That’s why I chose to start selling insurance. It’s not just about finding a new career; it’s about helping people like me, who work hard but feel like they’re constantly being overlooked. With products like Indexed Universal Life (IUL) policies, term policies with living benefits, and annuities, educators can change the game for themselves. These tools provide not just death benefits, but living benefits, flexibility, and long-term financial security. IULs grow your wealth while giving you flexibility. Term life with living benefits offers protection if you face unexpected health issues, and annuities ensure that when it’s time to retire, you don’t have to rely on a system that doesn’t always have your back.

As educators, we dedicate our lives to others—now it’s time we look after ourselves too.”

Life insurance is a vital financial tool that helps provide security and peace of mind to your loved ones in the event of your passing. It ensures that they will be financially protected, covering everything from final expenses to income replacement or even funding long-term goals like education. There are various types of life insurance available, each designed to meet different needs. Understanding these options can help you choose the best policy for your situation.

Types of Life Insurance

Here’s an overview of the most common types of life insurance:

1. Term Life Insurance

Term life insurance is one of the simplest and most affordable types of life insurance. It provides coverage for a specified period, such as 10, 20, or 30 years. If you pass away during the term, your beneficiaries receive a death benefit. However, if you outlive the policy, no benefit is paid, and the coverage ends unless you renew the policy.

• Pros: Low cost, straightforward, temporary coverage for specific needs.
• Cons: No cash value or payout if the term expires; premiums can increase if you renew after the term.

2. Whole Life Insurance

Whole life insurance is a form of permanent life insurance, meaning it covers you for your entire life as long as premiums are paid. It also builds cash value over time, which grows at a guaranteed rate. This cash value can be borrowed against or withdrawn, making whole life insurance a combination of insurance and savings.

• Pros: Lifetime coverage, cash value growth, fixed premiums.
• Cons: Higher premiums compared to term life, returns on the cash value may be lower than other investments.

3. Universal Life Insurance

Universal life insurance is another type of permanent life insurance, but it offers more flexibility than whole life. It allows you to adjust the premium payments and the death benefit over time, as long as you maintain the policy’s minimum requirements. The policy also builds cash value based on interest rates or other financial factors.

• Pros: Flexible premiums and death benefits, lifetime coverage, cash value accumulation.
• Cons: Cash value is tied to interest rates, which can fluctuate; managing premiums and benefits can be complex.

4. Variable Life Insurance

Variable life insurance is a permanent life insurance policy that allows you to invest the cash value in various subaccounts, similar to mutual funds. This gives you the opportunity for higher returns, but it also comes with higher risk since the value of your policy depends on the performance of the investments.

• Pros: Potential for higher returns, lifetime coverage, investment control.
• Cons: Risk of losing cash value, more expensive, complex to manage.

5. Indexed Universal Life Insurance (IUL)

Indexed universal life insurance is a variation of universal life that ties the growth of the cash value to the performance of a stock market index, such as the S&P 500. While your cash value isn’t directly invested in the market, its growth is based on the index’s performance, with a cap on the maximum returns.

• Pros: Potential for higher growth, flexible premiums, lifetime coverage.
• Cons: Cap on earnings, complex product with varying fees.

6. Final Expense Insurance

Final expense insurance, also known as burial or funeral insurance, is a small whole life insurance policy designed to cover end-of-life expenses such as funeral costs, medical bills, and debts. It’s a popular choice for older individuals who want to ensure their final expenses are covered without burdening their family.

• Pros: Affordable, easy to qualify for, helps cover funeral and medical expenses.
• Cons: Lower death benefit, not intended for income replacement or larger financial goals.

Key Considerations When Choosing Life Insurance

• Length of Coverage: If you only need coverage for a specific period (like until your children are grown), term life may be the best option. For lifelong protection, whole or universal life is a better fit.
• Cost: Term life insurance is more affordable than permanent policies, but it doesn’t build cash value. Whole and universal life policies cost more but offer investment or savings opportunities.
• Flexibility: If you want the ability to adjust your premiums or death benefits over time, universal life or indexed universal life might be a good fit.
• Investment Potential: For those comfortable with risk and looking to grow their policy’s cash value through market investments, variable or indexed universal life insurance offers more growth potential.

Conclusion

Choosing the right life insurance policy depends on your specific needs, financial situation, and long-term goals. Term life is a cost-effective option for temporary coverage, while permanent policies like whole life, universal life, and variable life offer lifelong protection and investment opportunities. Understanding the pros and cons of each type will help you make an informed decision, ensuring that your loved ones are financially secure no matter what the future holds.

Annuities are financial products designed to provide a steady income stream, often used as part of retirement planning. They are typically issued by insurance companies and offer tax-deferred growth, making them an attractive option for those looking to secure income in their later years. Annuities can be customized to meet different financial goals, and there are several types available to suit varying needs and risk tolerances.

What Are Annuities?

At their core, annuities work like a contract between you and an insurance company. You make a lump-sum payment or a series of payments, and in return, the insurer promises to provide you with regular payments either immediately or at some point in the future. The main appeal of annuities is their ability to provide a stable, reliable income during retirement.

Types of Annuities

Here’s a breakdown of the different types of annuities available:

1. Fixed Annuities

A fixed annuity offers guaranteed payments at a fixed interest rate. This is the most straightforward type, providing a stable and predictable income. The insurer guarantees both the return on your initial investment and the interest rate, making it a low-risk option. Fixed annuities are ideal for conservative investors looking for a predictable, steady income stream.

• Pros: Predictable income, low risk.
• Cons: Limited growth potential, especially in low-interest environments.

2. Variable Annuities

A variable annuity allows you to invest your premium in a selection of mutual funds or subaccounts. The returns you earn are based on the performance of these investments. While there is potential for higher returns, variable annuities also carry more risk, as your payments could fluctuate depending on market conditions.

• Pros: Potential for higher growth.
• Cons: Risk of losing money if investments perform poorly; fees can be higher.

3. Indexed Annuities

Indexed annuities combine elements of both fixed and variable annuities. The returns are tied to the performance of a market index, such as the S&P 500. While your principal is protected, the growth potential is capped, meaning you won’t fully benefit from market gains but are shielded from market losses.

• Pros: Growth potential linked to market performance without risking your principal.
• Cons: Returns are subject to caps and may not fully capture market gains.

4. Immediate Annuities

With an immediate annuity, you start receiving payments almost immediately after making a lump-sum payment. These are often used by people who are ready to retire and want to begin receiving income right away. Payments can be set for a specific period (such as 10 or 20 years) or for the rest of your life.

• Pros: Immediate, predictable income.
• Cons: Requires a large initial investment; less flexibility once the payments start.

5. Deferred Annuities

A deferred annuity delays your income payments until a future date, allowing your money to grow tax-deferred in the meantime. You can choose between fixed, variable, or indexed options for the growth phase. Deferred annuities are popular for people still in the accumulation phase of retirement planning.

• Pros: Tax-deferred growth; flexibility in choosing when to start receiving payments.
• Cons: Potential penalties for early withdrawals; long-term commitment.

Key Features to Consider

• Payout Options: Annuities offer various payout options, such as lifetime payments, payments over a set period, or payments to a beneficiary after your death.
• Tax Deferral: Earnings on your investment grow tax-deferred until you start withdrawing funds, potentially lowering your tax burden in retirement.
• Riders: Many annuities offer optional riders, such as guaranteed income for life or long-term care provisions, for an additional fee.

Conclusion

Annuities can be an excellent tool for retirement planning, providing a reliable income stream, tax benefits, and peace of mind. However, the type of annuity you choose should depend on your financial goals, risk tolerance, and retirement timeline. Fixed annuities offer security, while variable and indexed annuities present growth opportunities with varying degrees of risk. Immediate and deferred annuities cater to different stages of retirement, allowing you to tailor your income needs accordingly. Be sure to evaluate all options and consult a financial advisor to determine which annuity is right for you.

To learn me more e-mail me at [email protected]

Indexed Universal Life Insurance (IUL) is gaining popularity as a versatile financial tool for both life insurance protection and wealth-building opportunities. Whether you’re planning for retirement, seeking tax-advantaged growth, or ensuring financial security for your loved ones, an IUL could be the key to achieving your goals. Here’s what you need to know about IULs and why they might be the right choice for you.

What is an Indexed Universal Life Insurance Policy?

An Indexed Universal Life Insurance policy is a form of permanent life insurance that offers a death benefit while allowing you to build cash value over time. The unique feature of an IUL is that the cash value growth is linked to the performance of a stock market index, like the S&P 500, without being directly invested in the market. This means you can benefit from market gains without the risk of losses due to market downturns.

How Does an IUL Work?

With an IUL, a portion of your premium goes toward the insurance cost, while the rest is allocated to the policy’s cash value. The cash value grows based on the performance of the chosen index, with a floor and a cap. The floor ensures you won’t lose money if the market performs poorly, while the cap limits how much you can earn during strong market years. This balance makes IULs an attractive option for those seeking growth potential with lower risk.

Key Benefits of IULs

1. Tax-Advantaged Growth: One of the biggest benefits of IULs is that the cash value grows tax-deferred, which means you won’t pay taxes on the growth until you withdraw it. If structured properly, you can even access the cash value tax-free through policy loans.
2. Flexible Premium Payments: Unlike other permanent life insurance policies, IULs offer flexibility in premium payments. You can adjust your payments based on your financial situation, making it easier to keep the policy in force while managing cash flow.
3. Potential for Higher Returns: Since IULs are tied to market indexes, there is potential for higher returns compared to traditional whole life insurance policies. The cap on returns means that you may not capture the full upside of the market, but the protection of the floor can provide peace of mind.
4. Protection for Your Loved Ones: At its core, an IUL is still life insurance, providing a death benefit to your beneficiaries. This ensures your family is financially protected should anything happen to you.

Why Choose an IUL for Retirement Planning?

For those looking to supplement their retirement income, an IUL can be a powerful tool. The tax-deferred growth, flexible access to cash value, and protection from market volatility make it a great addition to a diversified retirement strategy. Unlike traditional retirement accounts like IRAs or 401(k)s, the distributions from an IUL are not subject to required minimum distributions (RMDs), giving you more control over your retirement income.

Things to Consider

While IULs offer numerous advantages, it’s essential to understand the potential downsides. The policy can be complex, and the cap on returns may limit your earnings in strong market years. Additionally, withdrawing too much from the cash value can reduce the death benefit and potentially cause the policy to lapse.

To maximize the benefits of an IUL, it’s crucial to work with a knowledgeable financial advisor who can tailor the policy to fit your needs and goals.

Final Thoughts

Indexed Universal Life Insurance is an excellent option for individuals seeking both life insurance protection and a tax-advantaged way to grow wealth. Its flexible structure, potential for higher returns, and protection from market downturns make it a smart choice for those looking to diversify their financial portfolio. However, as with any financial product, it’s important to fully understand the policy’s features and work with a trusted advisor to ensure it aligns with your long-term goals.

If you’re considering an IUL for your financial strategy, contact Irving Life Solutions today to learn more about how we can help you build a secure financial future.

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