The Retirement Question: That you should want to answer now
For most people, the two most compelling reasons that cause a roadblock to a safe and secure retirement income are the continual volatility of the stock market and the future probability of an unknown higher income tax rate that awaits you. But wait, there’s more; There are two more hidden roadblocks just as sinister waiting for you in your ‘qualified plan’.
1) Longevity Risk: Will you outlive your income?
2) ‘Sequence of Returns’ Risk: When will the next stock market correction happen? Sooner or later? Just before you retire or just after you do?
So, “The retirement question is”: To defer or not to defer your present income taxes is a question that CPA’s, Financial Planners, Life Insurance Agents, and Economist will continue to debate ad infinitum, because the financial winds of volatility and uncertainty blow in ways to continue this mystique for all of time. Please note: Income tax deferral will just partner you up with the IRS rules to share your future income with them at an unknown income tax rate at that time; Or you may pay those taxes now when income taxes are at the lowest in years and most likely will never be this low again, and then you can look forward to a tax-free retirement income that you can never outlive.
Could your answer come from a published author, PBS contributor and educator Ed Slott, CPA?
Ed suggests: “Life Insurance is the biggest benefit in the IRS tax code because the money comes out tax-free and there is no limit to this tax break. Life Insurance is the best way to leverage money and too, the single best way to leverage the tax code to build real wealth that is free and clear of taxes. Tax-Free money, wow! !” Ed Slott, CPA
And the answer is: A meaningful tax-free retirement income that can be yours’ and awaits you and how all of the many inherent benefits relate to your future financial security…