Building Tax-Free Retirement Income

When it comes to mainstream thinking, there is no such thing as tax-free retirement income. When I say “retirement accounts”, what comes to mind??

With the exception of a Roth IRA, the traditional accounts that we think of?are?taxable.?

Think about it:

• social security benefits,?
• pensions and employer-sponsored plans,?
• investments including traditional 401(k)s and IRAs,?
• as well as stocks, bonds, and mutual funds (held outside of tax-advantaged accounts)....

…all of these are taxed accounts.

So, how do you pay your taxes without losing chunks of your retirement savings? Is there such a thing as a tax-free retirement income after all??

Tax-Free Retirement Income Options

A quick Google search will show you a handful of tax-free retirement income options.?

From the aforementioned Roth IRA,?Muni ?Bonds, to my favorite -?premium financed life insurance , there are at least one or two options that can work for anyone, at any stage of their wealth-building journey.

From a more holistic standpoint, I’m looking at how to make our taxable accounts work more like tax-free accounts.

Let’s dig deeper.

Tax Efficiencies For Retirement

I recently spoke to a couple in their late 30’s who asked me, “How can I be tax-efficient in retirement?”, and it’s happening more and more.

I talk a lot about how important saving is, but it feels like a win for the industry as a whole when people?that far?from retirement are thinking this way.

I know people under 55 are in for a very different retirement than those nearing, or in retirement now. Preparing decades ahead of time is the right way to do it - and it’s refreshing to hear people asking the important questions.

With that said, here’s the answer:

Enhanced Tax Advantage.

Utilizing leverage to create tax-efficiencies is a long standing option that is so popular, there are laws to limit how much you can do.

More specifically, let’s use a retirement account as an example:

Rather than paying the tax bill out of the nest egg, we finance it. You’re thinking: why would I take out a loan to pay taxes I can afford?

Because the interest earned on your full investment offsets the interest expense on the loan to cover your taxes.?

If your goal is tax efficient (or “tax-free) retirement, then Enhanced Tax Advantage is how you have your cake and eat it too.?

The interest expense is less than the taxes paid, and that difference compounded over time can provide a greater income during retirement.

This approach works for many instances. For example, we model enhanced pensions, enhanced life insurance policies, enhanced 1031 alternatives and essentially every other taxable consequence you can think of.

Conclusion

Whether you’re decades from retirement, or already retired, our company is wholly focused on providing tax and interest rate efficiencies, so you keep more money in your pocket.

For people not yet at retirement age, we can help you build wealth, plan for retirement and protect your family/business assets.?

For people nearing or in retirement, we can help you offset the cost of your tax burdens to keep your money working for you, much more efficiently.

Learn more ?about how EFSLife ensures you earn and retain more value in your investments. Reach out any time:?[email protected] ?or 773-318-9608.