Tax Me Now, and Never Again (Part 3 of 3)

Tax Me Now, and Never Again (Part 3 of 3)

By Marnina Delahanty

In Part 1 of our 3-Part series, we explore the ballooning US budget deficit, and the origins of what's grown to a $23 TRILLION burden on generations to come.  The budget gap’s seismic growth expanded 26% from fiscal year ending September, 2018 to that of 2019!  In Part 2, we look at the ramifications of the federal government’s debt on traditionally structured retirement.  Here in Part 3, we identify personal solutions leading to tax-free retirement.

The Secure Solution

What if we could mitigate the Roth IRA’s risk and virtually remove both income restrictions and contribution caps?   Imagine a vehicle with loss floors that eliminate risk not only of your principal, but also for previous years’ profits!  In a down year, instead of crashing with the stock market, this product has a loss floor protecting not only all principal, but also profits from previous years!  As with Roth IRAs, funding originates in post-tax dollars.  Let's now consider how risk is eliminated.  Here, both overall principal and annual profits are locked in at year’s end. So, when the market is down, the worst case scenario is a zero gain instead of loss of any kind. Conversely, when the market is up, gains are capped to pay for risk elimination.  Asset allocation? You can choose it, diversifying and reorganizing your portfolio as you see fit.   

Too Good to be True?

Too good to be true?  It’s real, and it’s known as life insurance retirement funding.  Its many advantages are not limited to the tax-free retirement income we've discussed thus far.  Additionally, it serves the traditional life insurance function of taking care of your loved ones' financial needs should you pass away earlier than expected. If such a vehicle appeals to you, then we need to talk.  Life insurance-funded retirement plans aren’t for everyone.  Eligible candidates must be healthy, and have the right combination of time and financial resources to structure the plan to reach their goals. With higher taxes on the horizon, pension plans going defunct or being altogether dismantled, and retirement planning being left to individuals to sort out on their own, it pays to educate ourselves about heretofore untapped options.  Diversifying our portfolios can include life-insurance retirement plans.  We at Asurea are industry experts. Contact us today to partner with a broker who’ll help you reach your retirement goals.   We invite you to review Part 1, and Part 2 of our 3-Part Series, "Tax Me Now, and Never Again."

Share this Post: