LIRP in lieu of ROTH...

[Megan Arzt]

I have done some initial research and found this a rather controversial subject but here goes...

I am currently a pass through entity and file as such. This means that all of my income is passive and that I can't contribute to any sort IRA or 401k. It has been recommended to me that I get a life insurance policy (lirp) and over fund it. My understanding is that it is after tax money but that down the road what I take out is tax free. Sort of like a ROTH. Also, I don't need the life insurance...no one relies on me. I'd be using as a way to lower taxes down the road. Once all my mortgages are paid off I'll be in the highest tax bracket for sure.

I guess I'm looking insight into whether this is a good idea or not, and also what pros and cons there are that I may be overlooking. TIA