By Debra Sephton
Q: Can I reduce taxes on my retirement earnings?
A: Taxes are a significant concern during retirement but they don't have to be. We've shown clients how to grow their retirement tax-deferred and when properly structured, withdraw these funds as a non-taxable source of lifetime income. Income which may last for generations when structured and funded properly.
Most retirement plans have multiple sources of retirement income. By implementing a non-taxable retirement source, total taxation of all retirement income accounts may be reduced as a result.
When retirement begins, your tax deductions usually retire too. Business deductions are eliminated, mortgage and college debt is paid off, what is left to deduct? Retirement income for most retirees today is 100% taxable, an unpredictable future expense and mostly overlooked.
Q: Is it possible to protect myself from future tax increases?
A: Yes, there are specially designed contracts that when properly funded may protect you from future taxes which may eat away at your years of savings. Most of our clients are pleasantly surprised and unaware of the power of life insurance and the impact it has not only on their family's financial protection when death occurs, but also how it may provide non-taxable income in the form of policy loans to supplement their existing retirement income. Some life contracts also offer Terminal and Critical Illness Riders to assist with medical care when necessary.
By owning a Fixed Indexed Universal Life (FIUL) Insurance Contract, protects your estate, builds retirement assets and shelters these dollars from excess taxation. Funding a FIUL entails utilizing after tax dollars instead of the customary pre-tax, thus paying tax at todays income tax rates while deductions are still available. It's always a wise move to limit taxes, especially when taxes are likely to rise in the future.
This article is not intended to provide legal or tax advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan or arrangement. Atlantic Benefit Consultants, LLC and Debra L Sephton do not give legal or tax advice. You are encouraged to consult your tax advisor or attorney.
Debra Sephton, General Agent licensed in the State of Florida, is the owner of Atlantic Benefit Consultants, LLC. Originally from Upstate New York, Debra is a former Nurse, Business Banker and Mayor, she has over 17 years of experience in the Insurance and Financial Services Industry and 13 years as a Medical Professional.
Debra's Medical and Financial background has enabled her to teach others the value of "Making the Most of Your Retirement" Life Insurance, Annuities and Long-Term Care by simplifying what people believe to be complex. Debra is known for creatively using strategies to leverage peoples hard earned dollars, making the best possible use of their funds. "The same dollar is able to accomplish more than one benefit when the right plan is applied."
She can be reached at Deb@atlanticbenefitConsultants.com