Tax Free* Income

What is it?

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Is it actually possible to generate tax free* income? Indeed, it is. Of course, you can reduce your  overall tax liability by seeking proper tax advice from a qualified professional. However, there are many options for retirees to consider. For example, you may be able to withdraw your Roth IRA or certain Roth 401(k) funds tax free.* Also, depending on how you’ve planned your estate, there may be additional tax strategies available, too. In fact, even max cash value life insurance may offer a way to generate tax free income.*

You may be wondering...

Income From Life Insurance? How Does That Work?

The basic premise of life insurance is well-known. Essentially, you buy life insurance so your loved ones will have and income when you pass on. In this way, you can feel peace of mind in knowing that your beneficiaries are taken care of. However, there is another way to use life insurance for your benefit. Instead of simply paying a death benefit, you may be able to use max value life insurance to give you an income in retirement.

First, you can use life insurance as part of your overall savings strategy. In fact, you may be able to make these funds available for emergencies. Or, you may be able to access the money for college expenses or major purchases. If you use your life insurance balance instead of your retirement savings, it may give you flexibility in your strategy. By learning all your insurance options, you may find that life insurance plays a role in your retirement.

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How To Get Tax Free* Income

Because each situation is unique, not all retirees will decide to use life insurance as a vehicle for income. However, there are many cases where this option may work well. Life insurance may be a good tax free* income option for you if any of these situations apply to you:

  • Your retirement plan, such as 401(k), IRA or others have the maximum contributions in them
  • You have interest in tax deferral strategies for your retirement
  • You like the idea of having money available “just in case” a need arises
  • Protecting your source of income is important to you
  • A special needs child or family member needs the income when you pass away
  • Peace of mind in knowing funds are there if you need them
  • Looking for a secure income in case the market drops
  • The “cost basis” of your life insurance cash value is more than the income you need

Yes! Schedule my "Tax Free* Income" discussion today.

Can Your Heirs Receive Tax Free* Income Too?

Life insurance gives you the freedom to leave a legacy. The money is in an insurance policy, so the laws related to taxes differ from laws related to other types of accounts. For example, with life insurance, your beneficiaries get the money without taxes. Your savings has been hard-earned so you could protect your family. With the right type of life insurance policy, you can make sure that happens.

Find Out If Tax Free* Income Is Right For You

Choules Financial is sincere about making sure our clients know what’s possible for them in retirement. Life insurance may be an important aspect of this for you. Call us today for a complimentary review of your policy and your retirement accounts. We can go over your options, and make suggestions. Protect your legacy and your family. We believe you’ve worked hard to earn your money and now is the time to protect it.

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