Can You

Retire with Tax-free* income?

Is this a real thing?

Retire Tax-Free
Can You Retire Tax-Free?

Certainly, It's a big question.

It is really possible? Firstly, if you choose the right type of financial tool, a tax-free* income is possible. For example, an indexed universal life insurance policy (IUL) is a great tax-free* income option for retirees. With an IUL, policyholders can have access to the cash value of their account, without paying taxes on that money. Secondly, it is important to note that everyone’s situation is different. Therefore, be sure to reach out to us to review which options are available for you.

can you retire tax-free Louisiana

Why Tax-Free* Income Matters

While no one has a crystal ball, you probably have beliefs about taxes. For example, if you believe that taxes will be higher in the future, you may want to start preparing now. Let’s say that taxes do, indeed, increase in the future. Have you thought about how that might impact your retirement income? Additionally, if taxes do go up in the future, some aspects of your retirement strategy may be affected as well. For instance, the tax burden left to your beneficiaries may change. Or, in lower-interest bearing accounts, you may find yourself losing more in taxes than you’re gaining in interest. Whatever your beliefs are about taxes, having a plan on how to manage taxes in retirement is critical to reaching your goals.

Also, it is important to think about which of your assets and income are taxable versus non-taxable. Cash value in an IUL, for example, can be accessed without a tax burden. However, certain retirement account funds require you to pay taxes on the withdrawals. What’s worse, your money may be at risk in the stock market with your investment accounts. On the other hand, money in an IUL is protected from loss because it is not invested in the market. Although there are differences among insurance companies and details of policies, IULs can offer additional benefits beyond the tax-free* income as well.

Learn how a tax-free* income can help you in retirement.
Contact us today to find out more.

Can You Retire

Tax-Free With An IUL?

To help you determine if an IUL may be a viable option for you, we’ve put together some questions to ask yourself. If any of these questions make you think about your current strategy more deeply, consider reaching out to us. Our team at Messina’s Wealth Management is here to help you learn more about tax-free* retirement options. In addition, we can look at your current situation and help you understand if an IUL may be part of your retirement strategy.

  • Do I believe that taxes will be higher in the future?
  • If so, do I think I should start preparing now?
  • In my retirement strategy, do I have a way to offset higher taxes in retirement?
  • What will the tax burden be for my beneficiaries? Is there a way to minimize it?
  • How much, if any, tax-free* money do you have set aside?
  • Given the choice, would you rather pay taxes on some of your money today or pay taxes at possibly higher rates in the future?

The bottom line is this: finding ways to earn income tax-free* can greatly impact your retirement. No one knows for sure what the tax laws will be in the future or how those will affect your money. However, we do know that making a strategy for that possibility can help. By using an IUL, you can provide yourself and your family with a tax-free* option in retirement. In addition, you can take advantage of some upside and actually get a reasonable rate of return over time along with a death benefit. Finally, by looking into an IUL as part of your retirement strategy, you may be able to increase your income over the long term, by reducing your tax burden.

Looking to learn more about retiring tax-free*?

Attend one of our sessions or schedule an appointment. Let’s find out if annuity income is right for you.

*Proceeds from an insurance policy are generally income-tax-free, and if properly structured, may also be free from estate tax. Income-tax-free distributions are achieved by withdrawing to the cost basis (premiums paid), then using policy loans. Loans and withdrawals may generate an income tax liability, reduce available cash value, and reduce the death benefit, or cause the policy to lapse. This assumes the policy qualifies as life insurance and is not a modified endowment contract. The Host and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction. This content is not intended to serve as the basis for any investment or purchasing decisions, nor does it recommend or involve the purchase, holding, or sale of a security.  All figures herein are hypothetical and for illustrative purposes only to explain general concepts.  No figure is to be relied upon as being accurate nor a guarantee or projection and is meant only as a partial overview of some relevant features and benefits of general insurance products that may be in the marketplace, and whose availability will be dependent on the State of residence of the consumer, and their individual suitability for the product they are wanting to purchase. Where insurance products are mentioned, any and all guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company.

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