Tax Free Retirement Services in Salisbury, MD
TAX FREE RETIREMENT
"PLAN FOR THE FUTURE"
Today, it is possible for you to retire and never pay any federal or state income taxes and to pass on a portion of your estate to your heirs tax-free. The best investment vehicle that allows you to do this is an Indexed Universal Life (IUL) insurance policy. IUL’s have been around for a number of years, but most people have never heard of them.
Over the years people been encouraged by financial advisors to prepare for retirement by investing in IRA’s, 401k’s, and other types of pension plan investments. As an incentive to invest in these vehicles, the federal government allows various different tax deductions, knowing that they will be able to tax the distributions from these plans in the future.
But once money is invested in one of these retirement vehicles the problem arises as to where the money can be re-invested to earn a positive return. Historically, most people have invested the money in mutual funds and managed accounts. In doing so investors have subjected their principal to market risk, and during various market cycles they have lost both their principal and their previous investment returns.
Also, as people have retired, in many cases they have found out that they no longer have the tax deductions that they once had from home mortgage payments and other sources and that they are in a higher tax bracket. Accordingly, the taxable money they are taking out from their retirement plans results in greater tax liability and less spendable money.
A solution to this dilemma is an IUL policy. In an IUL policy the client has life insurance protection and an investment account. The investment account grows over the years by offering a minimum guaranteed rate of return and the potential to receive a much higher actual rate of return in favorable markets.
Today, it is possible for you to retire and never pay any federal or state income taxes and to pass on a portion of your estate to your heirs tax-free. The best investment vehicle that allows you to do this is an Indexed Universal Life (IUL) insurance policy. IUL’s have been around for a number of years, but most people have never heard of them.
Over the years people been encouraged by financial advisors to prepare for retirement by investing in IRA’s, 401k’s, and other types of pension plan investments. As an incentive to invest in these vehicles, the federal government allows various different tax deductions, knowing that they will be able to tax the distributions from these plans in the future.
But once money is invested in one of these retirement vehicles the problem arises as to where the money can be re-invested to earn a positive return. Historically, most people have invested the money in mutual funds and managed accounts. In doing so investors have subjected their principal to market risk, and during various market cycles they have lost both their principal and their previous investment returns.
Also, as people have retired, in many cases they have found out that they no longer have the tax deductions that they once had from home mortgage payments and other sources and that they are in a higher tax bracket. Accordingly, the taxable money they are taking out from their retirement plans results in greater tax liability and less spendable money.
A solution to this dilemma is an IUL policy. In an IUL policy the client has life insurance protection and an investment account. The investment account grows over the years by offering a minimum guaranteed rate of return and the potential to receive a much higher actual rate of return in favorable markets.
MAKE FRANKLIN INSURANCE GROUP AN
INTEGRAL PART OF YOUR RETIREMENT
"There are so many other interesting ways to spend your time.
I feel like early retirement is a gift, but it's such an incredible gift. It's a gift I need to use."
Martha Felt-Bardon
Historically, the S&P 500 has averaged approximately 8.2% for the past 29 years. Imagine how much better off you be if you had only made money in the stock market and never lost any. You can accomplish this by investing in an IUL.
The way that this works is the insurance company takes most of the premiums charged and invests them in very safe instruments that generate income. They then invest the remainder in stocks options to participate in the upside of the market in good years. The options are exercised in good years and left to expire in bad years.
Accordingly, in an IUL, the principal in the investment account is never decreases, a minimum return is given and the potential exists for a much higher rate of return.
As the investment account grows, the owner has an absolute right to take out policy loans from the policy regardless of their credit standing at whatever rate of interest is being charged by the company. The policy loans do not decrease the investment account and can be paid off at any time. The investment account continues to grow!
Albert Einstein once said: “ Compound interest is the most powerful force in the universe! “. Money in the investment account of an IUL grows tax-free and is subject to the power of compound interest. Over time, this can result in a substantial sum of money in the investment account of an IUL because of compounding and tax-free growth.
The earlier in life that you start investing in an IUL the better. This allows the investment account more time to grow tax-free. Investing in an IUL does not preclude a person from investing in pension plans, but it may make the need to do so irrelevant. Why invest in a pension plan when an IUL offers more features and benefits and a better solution?
The federal government sets the limit as to how much money you can invest in an IUL. The larger the face value of the insurance policy the more that you can invest within the guidelines controlled by the government. Accordingly, how much insurance coverage you buy is really a wants decision rather than a needs decision. If the federal government limits the amount of money that you can invest in an IUL just like other retirement investments it has got to be good!
The way that this works is the insurance company takes most of the premiums charged and invests them in very safe instruments that generate income. They then invest the remainder in stocks options to participate in the upside of the market in good years. The options are exercised in good years and left to expire in bad years.
Accordingly, in an IUL, the principal in the investment account is never decreases, a minimum return is given and the potential exists for a much higher rate of return.
As the investment account grows, the owner has an absolute right to take out policy loans from the policy regardless of their credit standing at whatever rate of interest is being charged by the company. The policy loans do not decrease the investment account and can be paid off at any time. The investment account continues to grow!
Albert Einstein once said: “ Compound interest is the most powerful force in the universe! “. Money in the investment account of an IUL grows tax-free and is subject to the power of compound interest. Over time, this can result in a substantial sum of money in the investment account of an IUL because of compounding and tax-free growth.
The earlier in life that you start investing in an IUL the better. This allows the investment account more time to grow tax-free. Investing in an IUL does not preclude a person from investing in pension plans, but it may make the need to do so irrelevant. Why invest in a pension plan when an IUL offers more features and benefits and a better solution?
The federal government sets the limit as to how much money you can invest in an IUL. The larger the face value of the insurance policy the more that you can invest within the guidelines controlled by the government. Accordingly, how much insurance coverage you buy is really a wants decision rather than a needs decision. If the federal government limits the amount of money that you can invest in an IUL just like other retirement investments it has got to be good!
During the time that you own the IUL you have insurance coverage in the amount that you choose. By buying an IUL you create immediate additional net worth for yourself and your estate that passes to your heirs income tax-free. Also, many policies offer living benefits for the owner including receiving up to the face value of the policy in the event of terminal, critical or chronic illness.
Many people have not purchased life insurance because they think of it as death insurance. In the past this may have been true. But IUL’s with living benefits offer life insurance benefits both during and after life.
The way that tax-free retirement works using an IUL is that when you decide to begin withdrawing money out of the policy, you are allowed to do so in the form of tax-free policy loans. Again, these loans do not decrease the investment account so it can continue to grow. The investment account serves as a form of collateral for the loans.
When an insured passes away, the face value of the policy minus the amount of policy loans passes to their estate state and federal income tax-free. If the policy is a larger insurance policy the proceeds might be subject to estate taxes, but income taxes are avoided.
Taxes are most investor’s greatest enemy! Few people believe that taxes will be lower in the future. Investing in an IUL policy offers a real solution to the problem of paying taxes on money that you will need for retirement in the future and passing on a portion of your estate tax-free.
Many people have not purchased life insurance because they think of it as death insurance. In the past this may have been true. But IUL’s with living benefits offer life insurance benefits both during and after life.
The way that tax-free retirement works using an IUL is that when you decide to begin withdrawing money out of the policy, you are allowed to do so in the form of tax-free policy loans. Again, these loans do not decrease the investment account so it can continue to grow. The investment account serves as a form of collateral for the loans.
When an insured passes away, the face value of the policy minus the amount of policy loans passes to their estate state and federal income tax-free. If the policy is a larger insurance policy the proceeds might be subject to estate taxes, but income taxes are avoided.
Taxes are most investor’s greatest enemy! Few people believe that taxes will be lower in the future. Investing in an IUL policy offers a real solution to the problem of paying taxes on money that you will need for retirement in the future and passing on a portion of your estate tax-free.
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