If there’s one thing almost everyone can agree on, it’s not wanting to pay taxes. After all, who wants to give up their hard-earned money to the government? The retirement savings gap is a multifaceted issue for many working people. With many challenges workers face, it’s easy to forget about taxes when it comes to saving for retirement. If you’re planning for retirement or nearing retirement, minimizing taxes is essential to a successful retirement plan. Here are three ways you can potentially accumulate tax-free income in retirement:
- Permanent life insurance. This is a wonderful tool that offers you the ability to transfer your assets tax-free (both income and estate) to beneficiaries and also build up tax-deferred growth of cash inside the policy.
- Health Savings Account (HSA). They’re unique for their triple-tax advantage: contributions are tax deductible, funds grow tax-free, and withdrawals are also tax-free, if used properly.
- Roth IRA. After age 59 ½ and as long as you’ve had the account for at least five years, earnings grow tax-free and you can withdraw contributions at any time without tax or penalty.
Most Americans will enter their golden years with less money than they need, so it’s wise to find ways to minimize or avoid the tax bite. Through thoughtful planning and a sound strategy, you can keep more of your money. Get the most value from your retirement savings–call us today and discover all of the possibilities.
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This document is for educational purposes only and should not be construed as legal or tax advice. One should consult a legal or tax professional regarding their own personal situation. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products offered by an insurance company. They do not refer in any way to securities or investment advisory products Insurance policy applications are vetted through an underwriting process set forth by the issuing insurance company. Some applications may not be accepted based upon adverse underwriting results. Death benefit payouts are based upon the claims paying ability of the issuing insurance company. The firm providing this document is not affiliated with the Social Security Administration or any other government entity.