Ok, I'm 50, have $450K in a 415c and contribute $60k (includes catchup) annually to it and another $6500 on a Roth.
I am looking for some kind of catchup and this Universal thing sounded like a nice supplement for long term income.
Any other recommendations for good places for supplemental investing?
Todd
Any investment account invested tax-efficiently is perfect for supplemental investing. We have a joint brokerage account which we buy tax-efficient investments in. There are many advantages to such a so-called taxable account:
1. No limits on contributions. No penalties for early withdrawal. No limits on withdrawals.
2. Return of capital is tax-free.
3. Long-term capital gains are taxed at a favorable low rate. For us, that rate is 0%. Yep, LTCG are not taxed for us.
4. One can sell losers and get a tax break from the IRS. Yep, losses are shared by other taxpayers. Yep, that means YOU and other taxpayers have reduced my taxes for me with no choice on your part.
5. One can die and heirs get a stepped up basis and not pay taxes on one's gains.
6. One can give shares away to charity and not pay taxes. Those shares must have been held long-term.
7. Qualified dividends paid by such investments are also taxed at a favorable rate. For us that rate is 0%. Yep, for us qualified dividend income is not taxed.
8. And one more: Unrealized capital gains are not taxed either. One could go years and years without realizing capital gains and thus pay no taxes on those gains during that time.
All the above make such an account ideal for just about any investing. Of course, Roth IRAs and tax-deferred accounts have slightly better features, but a taxable account invested tax-efficiently comes pretty close. A taxable account invested tax inefficiently is terrible, so be sure to understand how to make your taxable account invested tax efficiently. A life insurance sales rep is not going to help you do that because it will cost them commissions and fees which they need to make a living.