Apr 10
2
Tax Free Income In Retirement
The most powerful tool in the tax code providing for tax-free income is not your 401k or a Roth IRA. The most powerful tool in the tax code for Tax-Free income and tax-free inheritance is Life Insurance (see video). Yes life insurance, Life insurance provides for tax-free income in the form of loans you make yourself that you never have to pay back, as well as leaving a legacy behind that is received tax-free by your heirs.
This may as a shock to some of you so let me clarify this is not the term life insurance you have purchased through employee benefits package at work or possibly to cover your mortgage. This is Universal Life Insurance, and when structured correctly it produce a tax-free income at retirement that you cannot out live. Many life insurance companies have restructured there universal life insurance policies to provide very completive alternatives for retirement savings programs. They can provide separate accounts with variable investments similar to mutual funds, called variable universal life insurance, (VUL) or fixed accounts where your money grows at a fixed rate. Now many companies are offering indexed universal life insurance policy that gives you the protection of a fixed account and allows you to take advantage of market performance tied to an index like the S&P 500. Please feel free to Contact Us if you have any questions or comments concerning this or any other topic on this site.
Your Life Advisors
Dean Barwick / Manager (714) 244-0672
