The US National Debt now exceeds $25,483, 500,000,000. We at Asurea recognize that taxes will have to rise in order to pay this huge deficit down.
Deferred Taxation BACKFIRES as Taxes Increase
With taxes on the rise, the long touted retirement strategy of deferring tax hits until distribution risks actually paying MORE than if monies had been taxed at the earnings stage rather than the withdrawal stage. In this, as in so many other respects these days, we must now question assumptions we always took for granted.
ROTH IRA Limitations
With taxes on the rise, the ROTH IRA format gains appeal, as taxes are paid up front, and neither the principal nor any gains are taxed on distribution. But in 2020 Roth IRAs are limited to $6,000 annual contributions. Further, eligibility is open only to contributors whose incomes are below certain thresholds. And, of course, any portion in the stock market is subject to risk.
So, What’s the Secure Solution?
It’s time to question our assumptions and consider a new approach to retirement funding. 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, such a product would have a loss floor protecting not only all principal, but also profits from previous years! Here, both overall principal and annual profits are locked in at year’s end. So, when the market is down, 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?
You’re likely thinking this is too good to be true. Well, 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.
We Need to Talk...
If such a vehicle appeals to you, then you need to schedule a talk with an Asurea Broker. 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 your goals.
Educate Yourself, and Take Action!
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 untapped options. Diversifying our portfolios can include life-insurance retirement plans.
At Asurea, we're industry experts. Contact us today to partner with an Asurea Broker who’ll run a thorough assessment, and tailor a strategy to help you reach your retirement goals.
Asurea; protecting your wealth for generations to come.