“Dr. LTA, are you only focusing on Cash Value Life Insurance for high and ultra-high-net-worth clients?”

I get that question a lot.

No, my folks — I do not just do Cash Value Life Insurance. Even though my main job is to spread awareness of this incredible tool for long-term financial planning, my true mission is to teach people how to save and invest smartly —using all the tools in the shed.

So let’s speak a common financial language today —something most Americans have heard of at least once in their life:

Employer-Sponsored Plans.

Yes… the retirement alphabet soup: 401(k), 403(b), TSP, and IRAs.

Different letters. Same boss: Uncle Sam.

The Uncle everyone wants to dodge, but can’t — unless they want to go to jail. 😅

The Basics:

These are retirement accounts designed to help you put money away and (hopefully) land a comfortable retirement.

(Bear market, please stay away… for the next 60 years… Yeah, that’s wishful thinking!)

• 401(k) → Corporate world

• 403(b) → Teachers, hospitals, and nonprofits

• TSP → Federal employees and military

• IRA → The do-it-yourself version of the above three

  
  

Contribution Limits (as of 2025)

• 401(k), 403(b), TSP:

  
  

  💰 $23,500 per year (for those under 50)

  
  

  ➕ Catch-up at age 50: +$7,500

  
  

  ⚡️ Special 2025 Supercharge (ages 60–63): up to $11,250 extra per year

  
  

  (Thanks, Trump — not political, just factual.)

  
  

  👔 Employer match doesn’t count toward your limit.

• Traditional & Roth IRA:

  
  

  💰 $7,000 per year (under 50)

  
  

  ➕ Catch-up at age 50: +$1,000

  
  

Translation: Uncle Sam basically said,

Important Age Rules

This is where most people get shook when I bring it up in conversation:

• 59½ Rule:

  
  

  Withdraw before this age → pay income tax plus a 10% penalty.

  
  

  (Exceptions: Rule of 55, qualified education/medical expenses, first-time home purchase, etc.)

  
  

• 73 Rule (RMD):

  
  

  At age 73, you must start your Required Minimum Distributions (RMDs).

  
  

  If you don’t? You’ll owe up to a 25% penalty on the amount you should have withdrawn —

  
  

  plus income tax.

Uncle Sam’s patient, but not that patient. He’s been waiting for his share all these years.

Keep him waiting too long… and he’ll come collect with interest.

The Wild Child: Roth IRA

Ah yes — the black sheep of the family. My personal favorite. 😏

The Roth IRA plays by its own rules:

• Still subject to the 59½ rule, but you can withdraw your contributions anytime, tax- and penalty-free.

• No RMDs.

• No tax on withdrawals — ever.

• Grows tax-free.

That’s why I love it — it’s the rebel that still wins. Literally me, just in financial form. 💅

“So am I set if I just invest in a Roth IRA?”

Sure…if you think the market will never tank, and your Roth will never lose money. 😉

In all seriousness, the Roth is an excellent tool. But let’s be real — $7,000 (or even $8,000) a year limits your long-term potential.

The Real Power Comes From the Combo:

✅ Employer-sponsored plan → up to the match

✅ Roth IRA → for tax-free growth

✅ Cash Value Life Insurance → for bear-market protection and tax mitigation

Now that’s a plan worth bragging about.Balanced, flexible, and built to weather any market cycle.

If you want to see what your long-term retirement strategy could look like when done right, let’s talk.

📅 Book a 1:1 with me — and let’s build your plan for growth, protection, and peace of mind.

—Dr. Linh Trinh An

Financial Risk Advisor | Money Umbrella LLC

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✳️ Educational Purpose Only

This content is for educational purposes and general financial literacy. It is not individualized tax, legal, or investment advice.

Always consult a licensed professional for guidance specific to your circumstances.