Tax Free Savings Strategy

When it comes to saving for retirement, it’s not just about how much money you can accumulate, but you also need to consider the amount of taxes you will have on your retirement income. Most of your income ends up being subject to federal, state, Social Security, Medicare, and, in some cases, local or city taxation. That’s why it’s so important to know all of your available options when it comes to saving for your retirement.

Taxes at historically low rates
It might seem difficult to comprehend given the political atmosphere that we are in — but did you know that we are currently at historical low tax rates as compared to the last 95 years? And with the current status of the national debt, the question you must ask yourself is: Do you think taxes are going to go up in the future or down? If you answered “up”, then now is a good time for us to help position your assets in the most tax-advantageous ways.

A financial vehicle with three tax benefits
A universal life insurance policy offers you the peace of mind of a death benefit protection, but also offers you a combination of three tax benefits that other financial vehicles do not:

          1. Tax-free death benefit
          2. Tax-deferred cash value accumulation potential
          3. Tax-free distributions

Given today’s economic realities and the awareness in knowing that taxes are likely to increase, this financial vehicle is more beneficial than ever before.

1. Tax-free death benefit
The death benefit is the main reason you should purchase life insurance. It ensures that the ones who depend
on you will be able to maintain their standard of living if something should happen to you. It can provide for a
variety of ways:
          • Income replacement for the primary wage earners
          • Mortgage and other debts
          • Supplemental college funding
          • Business succession planning
          • Estate tax coverage
          And much more!

2. Tax-deferred accumulation
A universal life insurance policy can also build cash value which has the potential to grow income tax-deferred.
When you don’t have to pay taxes on your policy’s accumulation, you have the potential to build more value
faster.

3. Tax-free distributions
You also have easy access to take withdrawals and loans out from your cash value income tax-free1. And this
amount can be used for anything you choose — supplemental retirement funding, financial emergencies, college
tuition, weddings, vacations, and much more.