Tax free* Retirement
So, is tax-free* retirement possible? Not entirely. But you may be able to receive an income from certain life insurance IUL policies. In that case, the income isn’t subject to income tax. Other potentially tax-free* income strategies include also taking out money from a Roth IRA or certain Roth 401(k) plans. Depending on your retirement plan, you may have additional tactics in terms of taxes. For instance, a max cash value life insurance policy may create an option for income that’s tax-free.*
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How Life Insurance May Provide Income
The basics of life insurance are fairly simple. Basically, life insurance protects your family once you’re no longer around to provide for them. Many people, of course, choose life insurance to have peace of mind. There’s another consideration, however. A life insurance benefit might also be an income source in retirement. Although it’s not for everyone, some retirees may benefit from this.
Some people choose an IUL policy as a savings strategy. For example, IUL money is available for emergencies or can be liquid. You might also choose to use your money in an IUL for major purchases or even college costs for your grandchildren. You may have more flexibility with how your move your money around by using this money instead of other savings accounts. Learning about all your insurance options will give you the knowledge you need to reach your retirement goals.
How to Have A
Not all retirees will use life insurance as a source of income. Each situation is unique. But sometimes an IUL might work quite well. You might be able to earn tax-free* income with a product like an IUL. You may consider this product as part of your retirement strategy if the following things are important to you:
- There’s a CAP on how much money you can put into your 401(k)
- You want to learn about how to defer taxes
- Having savings in case of an emergency is important to you
- Protection from the risks of the market
- You want family members to get income after you pass away
- The money will be there when you need it
- If the market drops, you’ll know your money is okay
- Your income needs to align with the cost basis of your life insurance cash value
Your Loved Ones
Leaving behind a legacy may be important to some retirees. And life insurance may be able to help you do that. The laws and taxes will differ from stock market investments. For example, beneficiaries can get their money without taxes. You’ve been a good saver in order to protect your family, and the right type of life insurance strategy could help you make sure that happens.
Life Insurance Options
Here at Turney Financial Group, LLC, we care about our clients. And we want you to know all the information that you need to help you reach your retirement goals. Retirement may be a time to re-examine your life insurance needs. Reach out to us today for a review of your current policies. We can discuss your current status and help you look at different options. Your family and legacy deserve protection, so let us help you.