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Tax Free Retirement

Tax Free Retirement


Tax-free retirement strategies such as Roth IRA’s, Roth Conversions, Roth 401(k)’s and even a properly structured life insurance contract, commonly referred to as a “LIRP,” or Life Insurance Retirement Plan are used in combination to structure a tax free income stream. The key is to have multiple streams of tax-free income, none of which show up on the IRS’s radar as provisional income, but all of which contribute to you being in the zero percent tax bracket in retirement.

Incorporating Indexed Universal life and other tax free income strategies into your retirement plan along with your Qualified retirement plan may help you hedge against higher future tax rates.

Indexed Universal Life 

Building wealth and a tax free supplemental retirement income through life insurance is a very powerful financial tool. Index Universal Life insurance works similar to a Roth IRA in that it uses after tax dollars, grows tax free, and can be distributed tax free through policy loans if funded properly.

The basic function of life insurance is to provide a death benefit to the insured’s family in the event of premature death, but with today’s Index Universal Life we can cover three potential financial needs with one policy. First is the Death Benefit, the second is Supplemental retirement income stream using the loan provision, and the third is a living benefit for chronic illness.

Benefits of a Properly Structured Index Universal Life Policy

  • Death Benefit for the family
  • Tax deferred growth
  • Provide tax free income through policy loan features
  • Can provide living benefits through Chronic illness rider for (permanent Disability or Long Term care)
  • Can put more money away than the current Roth IRA $5500 or $6500 if over age 50.