Retirement Strategy in Florida and California

Retirement Strategy

Permanent Life Insurance

Did you know that permanent life insurance not only helps to protect your beneficiaries, it also allows you to build cash value that can potentially be used in a tax-advantage manner?

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

Would you be interest?


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 you 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 an 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 you 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.

Let's take a closer look at tax-free retirement strategies.

Roth IRAs: Good choice.....if you qualify. In order to contribute to a Roth IRA you adjusted gross income must be below a certain threshold. In 2014, contributions are limited to $5,500 per person unless you're 50 or older and then you can contribute an extra $1,000 as a catch up provision.

What are your options if you don't qualify for a Roth IRA, or if you want to contribute more?

Permanent Life Insurance: The primary purposes for purchasing permanent life insurance is for the death benefit protection that it provides. However, permanent life insurance offers the ability to build up tax-deferred cash value that can be accessed during your lifetime to generate a stream of retirement income - potentially income tax-free.

  • How Permanent Life Insurance Works?

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Permanent life insurance may be the solution

If you have someone who depends on you financially, then you may need life insurance. In addition to the death benefit protection, permanent insurance cash value can also serve as an accumulation vehicle, with some great tax advantages. Premiums are determined based on the amount of coverage you need and distributions, through tax-free withdrawals and loans, can generally be taken after your first policy anniversary. Your insurance agent can help you determine the best coverage to meet your goals.

Put the power -and tax advantage- of permanent life insurance work for you today

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