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Tax-Free Retirement

Tax-Free Retirement

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Published by Nelson Yong

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Published by: Nelson Yong on Mar 01, 2012
Copyright:Attribution Non-commercial


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Beyond the
roducts issued by
National Life Insurance Company Life Insurance Comny of the Southwest 
ational Life Group is a trade name of National Life Insurance Company,ontpelier, VT, Life Insurance Company of the Southwest, Addison, TXand their affiliates. Each company of National Life Group is solelyresponsible for its own financial condition and contractual obligations.ife Insurance Company of the Southwest is not an authorized insurer inew York and does not conduct insurance business in New York.
4335 MK3528(0911) TC64000(0911)
          
Tax-Free Retirement Strategy
With Permanent Life Insurance
 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,
• Potentially access that cash value usingincome tax-free policy loans and
ithdrawals, to use for retirementincome or other needs
1 Internal Revenue Code § 101(a)(1). There are some exceptions to this rule.lease consult a qualified tax professional for advice concerning yourindividual situation.2 The use of cash value life insurance to provide a tax-free resource for
retirement assumes that there is first a need for the death benefit
protection. Policy loans and withdrawals reduce the policy’s cash valuend death benefit and may result in a taxable event. Withdrawals up to
he basis paid into the contract and loans thereafter will not create an
immediate taxable event, but substantial tax ramifications could result
upon contract lapse or surrender. Surrender charges may reduce the
policy’s cash value in early years.
WouldYou BeInterested?Did you know
that permanent lifeinsurance not only helpsto protect your beneficiaries,it also allows you to build
cash value that can
potentially be used in
a tax-advantaged
Strategies to Save For Retirement
After Tax
• Private Savingsi.e. CD
• Traditional IRA• Qualified Plan/ 401(k)
*Examples shown (other than CD): No bank guarantee; Not a deposit;ot FDIC/NCUA insured; May lose value; Not insured by any federal orstate government agency.
After Tax Strategy
- when you set aside a portion of your after taxincome into an account earmarked for retirement. Taxes are paidannually on any earnings. An example of this type of savings is aCertificate of Deposit.
Tax-Deferred Strategy
- when you set aside a portion of your aftertax 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 qualifiedplan, like a 401(k) plan. You don’t pay current taxes on contributionsmade to the plan and earnings grow tax-deferred. Later when you takeretirement income the benefits are income taxable.
Tax-Free Strategy
- is similar to the Tax-Deferred Strategy: you setaside a portion of your 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.
It’s not just about howmuch you can accumulatefor rtirement……you need toconsider taxeson retirementincome.
• Roth IRA• Permanent
ife Insurance

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