Image result for retired couple imagesRetirement News                                                                                                          


Tax-Free Paycheck For Life

Do you have a 401K that is losing money are you age 591/2 or over?  An Indexed Universal Life Insurance policy can help you plan for a tax-free retirement  without any risks off loss to your principal and you will never outlive your income.  By taking action and following our advice you can save hundreds of thousands in taxes over the course of your retirement.

Under 591/2, there is still risk-free alternative to the 401K, it is a Fixed Indexed Annuity.  The FIA also allows for upside growth without any downside market risk.  It  can also be structured so that you never outlive your income.  The major differences are there is no life insurance policy with this plan, however you can assign a beneficiary for the remaining distributions depending on your initial elections when you set up your account.  Secondly, distributions are taxable. The Insurer uses what is called the exclusion ratio to determine that amount. The exclusion ratio is the portion of an investment’s return that is not taxed. It’s a percentage of the total investment payout equal to the amount of money you originally invested. This initial principal comes back to you tax-free, after which you pay taxes on the remainder, which make up the profits earned from your investment. 


Business Owners

Attract and Retain Key Employees by offering a Tax-Free Pension Plan with Little or No Out of Pocket Costs To The Business. Fund Buy/Sell Agreements and many other benefits by utilizing life insurance as part of a sound business plan.





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College Planning - 529 Plan vs. Indexed Universal Life

The 529 plan is a  savings plan that is funded with after tax dollars, the gains grow tax-deferred, withdrawals for qualified higher education expenses are free from federal tax and must be used for educational purposes only.  Indexed Universal Life is also funded with after-tax dollars, gains grow tax-deferred, distributions are tax-free through policy loans, however the money can be used for any purpose, however you see fit.  For example, if a child gets a full ride scholarship then the 529 plan if not used for education will be taxed at a higher rate and also incur penalties.  Another point to make is that the 529 plans funds can only be used in  U.S accredited schools.  So if your child wants to study abroad then you are unable to use those funds toward their education.  Life insurance cash values has no restrictions.  Lastly, the 529 plan funds are included as income when your child is applying for federal student aid.  Life insurance cash values are not considered.


 Mortgage  Payment Protection

Would your spouse and children be able to afford to live in their current home without your income? With proper life insurance planning, you can help ensure that your family is able to remain in their home, surrounded by the support of family and friends. Watch the short video for more details on mortgage payment protection.















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