Are You Receiving Tax Free Income?

Did you know that it’s possible to have a legal tax free income?  No, it isn’t doing something marginally legal or radical like creating off-shore accounts.  Instead, there are very basic, standard, and legal processes available for all of us via insurance company products with a Fixed Index Annuity or Indexed Universal Life Insurance policy.

The most common is converting your Traditional IRA or 401K plan into a Roth IRA.  There are a variety of methods available to execute an IRA conversion, but once you do, any income or gain comes to you income tax free… forever!  It’s an extremely valuable and commonly used tool that your annuity advisor can assist you with.

Another method is purchasing an Indexed Universal Life policy.  It’s quite suitable for people between the ages of 21 and 55.  Indexed Universal Life grows in an index just like a fixed indexed annuity.  They usually have higher cap rates (enhancing potential growth) and they allow tax free tapping into the cash value at any time without consideration or worry of the 72T rule.  An illustration provided by your advisor will demonstrate some pretty incredible tax free payments that are guaranteed to you until you reach age 100.  An additional benefit is that you also receive a generous death benefit.  Even if you elect not to purchase the product, the enormous potential benefits are definitely worth looking at to determine if it should be part of your overall retirement plan.

Posted in Opinion