Is it Possible to Retire Tax-Free*?
The sought-after goal of retiring tax-free* may seem impossible. However, there are methods of creating a tax-free* income source. For example, using an indexed universal life (IUL) insurance policy. You may be able to retire tax-free* using an IUL. However, whether or not this product is right for you comes down to your individual financial situation. Contact us to review your options and learn more.
Why Retiring Tax-Free* Matters
Some truths are universal. To most people, taxes are one of those truths. What do you believe about taxes? Do you think that, for instance, they will rise in the future? Most people feel that taxes have a tendency to increase. So the question is, how will that affect your retirement income? After all, tax changes do often impact financial retirement strategies. Or, increases in taxes sometimes hit your money the hardest after you pass away. Your loved ones could be the ones who end up with a tax bill. No matter your beliefs about taxes in the future, it’s critical to have a strategy to handle them.
Consider this: Which assets of yours are actually non-taxable, and which are taxable? The answer to this might impact whether or not you could retire tax-free.* Furthermore, some types of retirement accounts have tax codes that make withdrawals taxable. Additionally, if you have money in certain types of accounts, that money may be at risk. For example, stock market volatility impacts many types of retirement accounts. However, accounts like IULs don’t have money in the market. Different IUL policies come with different benefits and can provide more than the ability to retire tax-free*.
Could an IUL insurance policy be a viable option for you?
Several factors play into whether or not this is the case. Take a look at the list of questions below.
- Do you think taxes will be at a higher rate in the future?
- Do you have a way to counter the possibility of higher taxes in retirement?
- What do you feel is better, paying taxes on some money now, or paying those taxes later, possibly at a higher rate?
- Do you know how taxes may impact your beneficiaries?
- Is there a way to minimize taxes on your estate?
- Do you have a strategy in place for tax-free* money?
Take Your Next Steps
You can learn more ways to reduce overall tax implications in retirement. There is, of course, no way to know what tax laws will be like in the future. We also can’t say for sure how those changes will impact your retirement. However, you can make a strategy to be prepared for that. Furthermore, an IUL may allow you to take advantage of some market upside. Additionally, you may also find value in the safety and security that these insurance policies can provide. An IUL could be a valid way to retire tax-free*. Reach out to us to schedule a meeting or reserve a spot at a seminar event to learn more.