Retirement Needs
What if you could:
• Provide an income tax-free death benefit for the people who depend on you,
• Defer taxes as your accumulated cash value grows, and
• Potentially access that cash value using income tax-free policy loans and withdrawals, to use for retirement income or other needs
Strategies to Save For Retirement
After Tax Strategy – when you set aside a portion of your after tax income into an account earmarked for retirement. Taxes are paid annually on any earnings. An example of this type of savings is a
Certificate of Deposit.
Tax-Deferred Strategy – when you set aside a portion of your after tax income for retirement, earnings on the account grow tax-deferred. When retirement income is taken, taxes are due on the tax-deferred gain.
A Non-Deductible IRA or an annuity is an example of this type of savings.
Pre-Tax Strategy – might include an Employer sponsored qualified plan, like a 401(k) plan. You don’t pay current taxes on contributions made to the plan and earnings grow tax-deferred. Later when you take
retirement income the benefits are income taxable.
Tax-Free Strategy – is similar to the Tax-Deferred Strategy: you set aside a portion of your after tax income, and earnings grow tax-deferred. Retirement income is received income tax-free. A Roth IRA is an example
of this type of savings. Another type of financial vehicle is permanent life insurance.
It’s not just about how much you can accumulate for retirement…