100% invested – 0% in taxes
You have worked hard, invested wisely and spent modestly and yet every time you earn a little money, you have to give some of it to the I.R.S. Now, with a little known concept, you can get back all of what you invested for retirement and when you start to take it out, pay 0% in taxes.
This concept has been around for 20 years or more, yet only a small percentage of people know about it and even less understand the full potential of it. Today, I am going to teach you this concept and if it makes sense, I can show how it could work for you.
This concept allows you to put in as much or as little to your retirement as you can, with money that has already been taxed. It grows tax deferred so you don’t pay taxes on the gains or growth, and it comes out tax free. This is similar to a Roth, yet it has more advantages and is generally safer than investing in the stock market.
How is it safer?
In the market, you can have gains and losses. Your money can earn 5, 10, even 20% one year and then lose that amount or more the next year (remember 2008?). With our concept, you can earn good money, up to 10% or more. However, you can not lose any if the market crashes because the least you can earn is 0%.
Another benefit is that you don’t have to wait until you are a certain age to start taking your money out. Most retirement plans will penalize you if you take your money out before you are 59 1/2 and also make you take money out at 70 1/2.
With our plan, you can use your money how and when you want to. What if you don’t use all of this money before you die, do you lose it? Absolutely not! It goes to your beneficiary and they don’t have to pay taxes on it either. Talk about growing the family tree!
O.K, O.K, this sounds too gook to be true, right? Well let me tell you that millions of dollars are going into this each year and in my opinion, this is one of the best places to put your hard earned money for your retirement.
So, what is it?
It is none other than a Index Universal Life insurance policy. That’s right, life insurance.
An IUL is a life insurance policy that takes some of your premium and invests it and allows your money to grow tax deferred. Then, when you start to take your money out, it comes out tax free. When you pass away, the insurance company pays the remaining death benefit to your beneficiary. Very simple and allows you to keep more of your money and give less of it to your Uncle Sam.
So the bullet points are:
- Pay with money that has already been taxed
- The gains grow tax deferred.
- Your retirement money comes out tax free
- Your beneficiary gets the remaining death benefit, also tax free
Now for the disclaimers:
This is not a get rich quick scheme. It is a life insurance policy that is intended to be part of a long term retirement plan. If you take your money out too soon, there will be surrender charges which could result in you losing money. Also, if you try to take out too much money during retirement, the policy could run out of cash value and there could be taxes due on your withdrawals. The interest credited to your account is not guaranteed and you could earn more or less than illustrated. These are the rules according to the IRS concerning the taxation of life insurance proceeds as of the date of this writing. The IRS could change these rules which may change the way the proceeds are received and taxed. I am not a tax specialist of any kind and encourage you to speak with your tax advisor before purchasing this policy.
There are other benefits to these policies that I will go into later, so if you wold like to see how this concept could work for you, contact me and we will discuss your particular situation.