Three calculators that show what traditional financial planning is actually costing you — and what the alternative looks like.
Same money, two different vehicles. One gets taxed on the way out. The other doesn't — and it can never go below zero in a down market.†
CPA fees, advisor AUM fees, fund expense ratios — they seem small. But compounded over decades, they quietly eat your retirement.
| Year | Portfolio (No Fees) | Portfolio (After Fees) | Cumulative Fees | Lost Growth |
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Most families are either uninsured or dangerously underinsured. This calculator shows the gap between what you have and what your family would need if something happened tomorrow.
* For educational purposes only. These calculators provide simplified, hypothetical projections and are not intended as financial, tax, or legal advice. Actual results will vary based on individual circumstances, market conditions, specific product selection, and other factors not represented in these models. Always consult a licensed financial professional before making any financial decisions.
† IUL Floor Rate. The 0% floor means the index-linked interest credited to the cash value will not be less than 0% in a given crediting period. This does not mean the overall cash value cannot decline — policy charges including cost of insurance (COI), administrative fees, and premium loads are deducted regardless of index performance and can reduce cash value. The floor applies only to the indexed interest crediting, not to the total policy value.
‡ Cap, Participation Rates & Carrier Data. Rates displayed reflect current declared rates from Allianz Life Insurance Company of North America (Allianz Life Accumulator®) and Fidelity & Guaranty Life Insurance Company (F&G Pathsetter®) as of their most recent published rate sheets. These include: Allianz S&P 500® Annual PtP (12.25% cap, 100% participation), Allianz S&P 500® Futures ER Classic (75% participation, no cap, 1% guaranteed bonus), Allianz Bloomberg US Dynamic Balance III Select (175% participation, 40% multiplier bonus, 1% asset charge); F&G S&P 500® One-Year Annual PtP (11.50% cap, 100% participation), F&G Blackrock Market Advantage™ (150% participation, 1% bonus yr 2+), F&G Morgan Stanley US Equity Allocator (100% participation, no cap). All rates are current and non-guaranteed — they are set by the insurance carrier and may change at any time at the carrier's discretion. Historical lookback averages shown are based on carrier-published backtested data and do not represent actual policy performance. Past performance does not guarantee future results.
§ Tax-Free Income via Policy Loans. Distributions from a life insurance policy through policy loans are generally income tax-free under IRC §7702, provided the policy is not classified as a Modified Endowment Contract (MEC) and remains in force. Policy loans accrue interest, reduce the death benefit, and reduce cash surrender value. If a policy lapses or is surrendered with an outstanding loan balance, the loan amount may be subject to ordinary income tax. This calculator does not account for loan interest charges. Consult a tax professional regarding your specific situation.
‖‖ Death Benefit. IUL policies include a tax-free death benefit payable to named beneficiaries under IRC §101(a). The estimated death benefit shown is a simplified projection and will vary based on the specific policy design, face amount, policy charges, and whether the policy is structured for maximum accumulation or maximum death benefit. Policy loans and withdrawals reduce the death benefit. The death benefit is paid by the issuing insurance company and is subject to the financial strength and claims-paying ability of that company. For an accurate death benefit projection, request a formal policy illustration from a licensed agent.
‖ Estimated Policy Costs. Cost of Insurance (COI) charges shown are simplified estimates based on generalized mortality assumptions and do not represent any specific carrier or product. Actual COI charges vary significantly based on age, health classification, gender, policy face amount, and carrier. Policy fees including administrative charges, premium loads, surrender charges, and rider costs are also simplified. For accurate policy cost projections, request a formal illustration from a licensed agent.
** Federal Taxes at Withdrawal. All 401(k) withdrawals are taxed as ordinary income at your federal income tax rate in the year of withdrawal. The tax bracket shown is an estimate — actual bracket depends on total taxable income in retirement, including Social Security benefits, pensions, and other income sources. Tax rates and brackets are subject to change by Congress.
†† State Income Taxes. As of 2026, 14 states tax retirement income including 401(k) withdrawals: California, Connecticut, Hawaii, Idaho, Illinois, Iowa, Kansas, Minnesota, Montana, Nebraska, North Carolina, Oregon, Vermont, and West Virginia. State tax rates vary. This calculator applies an estimated 5% average state tax rate for illustration. Some states offer partial exemptions. IUL policy loan income is not subject to state income tax. Consult a tax professional for your state's specific treatment.
‡‡ Early Withdrawal Penalty. Withdrawals from a 401(k) before age 59½ are generally subject to a 10% federal early withdrawal penalty in addition to ordinary income taxes, with limited exceptions. The full withdrawal amount is added to your taxable income for the year, which can push you into a higher tax bracket — meaning you may owe significantly more in taxes than your current marginal rate suggests. IUL policy loans have no age restrictions and no early access penalties.
§§ Required Minimum Distributions (RMDs). Under the SECURE 2.0 Act, Required Minimum Distributions from 401(k) plans, traditional IRAs, and annuities must begin at age 73 (increasing to 75 in 2033). RMDs are calculated based on your account balance and IRS life expectancy tables. Failure to take RMDs results in a 25% excise tax on the amount not distributed. RMDs are taxed as ordinary income and cannot be deferred. IUL policies have no required minimum distributions at any age — you maintain full control over when and how much you access.
401(k) Assumptions. The 401(k) projection uses a simulated sequence of annual returns based on historical market patterns. Actual market returns are unpredictable and past performance does not guarantee future results. This model does not account for employer matching, catch-up contributions, or changes in tax law. The 4% withdrawal rule is a general guideline and not a guarantee of income sustainability.
Fee Calculator Assumptions. Advisor fees are modeled as a percentage of assets under management (AUM), deducted annually. CPA fees are modeled as a flat annual cost with no inflation adjustment. Fund expense ratios are deducted from gross returns. "Lost growth" represents the hypothetical future value of fee dollars if they had remained invested at the stated return rate. Actual fees, services, and value provided vary by provider.
General. Power Financial is an independent insurance agency. Insurance products are offered through licensed agents under the Experior Financial Group network. Products and services are not available in all states. Insurance products are not deposits, are not FDIC insured, are not insured by any federal government agency, are not guaranteed by a bank or any bank affiliate, and may lose value. All guarantees are based on the financial strength and claims-paying ability of the issuing insurance company.
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