A Different Kind of Retirement Strategy

Can You Retire with Tax-Free* Income?

Here's What to Consider

Can You Retire Tax-Free*?

Yes, it is really possible.

If you choose the right financial tool, tax-free* income in retirement is an option worth exploring. An indexed universal life insurance policy (IUL), for example, allows policyholders to access the cash value of their account without paying taxes on that money. Of course, everyone’s situation is different. Reach out to us to find out which options are available for you.

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Think About Your Future
Think About Your Future

What Could Tax-Free* Income Mean for You?

Why Tax-Free* Income Matters

Why Tax-Free* Income Matters

While no one has a crystal ball, you probably have beliefs about taxes. If you believe taxes will be higher in the future, you may want to start preparing now. Consider how rising taxes might impact your retirement income, your overall strategy, and even the tax burden left to your beneficiaries. Whatever your beliefs, having a plan to manage taxes in retirement is critical to reaching your goals.

It is also important to think about which of your assets are taxable versus non-taxable. Cash value in an IUL can be accessed without a tax burden, while certain retirement account funds require you to pay taxes on withdrawals. Additionally, money in an IUL is protected from market loss — unlike investment accounts that are subject to market risk. Beyond tax-free* income, IULs can offer additional benefits as well.

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Questions To Ask Yourself

Can You Retire Tax-Free* With an IUL?

To help you determine if an IUL may be a viable option, ask yourself these questions. If any of them make you think more deeply about your current strategy, consider reaching out to our team at Cornerstone Wealth & Tax Advisory.

  • Do I believe that taxes will be higher in the future?
  • If so, should I start preparing now?
  • In my retirement strategy, do I have a way to offset higher taxes in retirement?
  • What will the tax burden be for my beneficiaries? Is there a way to minimize it?
  • How much, if any, tax-free* money do I have set aside?
  • Given the choice, would I rather pay taxes on some of my money today or at possibly higher rates in the future?

The bottom line: finding ways to earn income tax-free* can greatly impact your retirement. No one knows what tax laws will look like in the future, but making a strategy for that possibility can help. An IUL can provide you and your family with a tax-free* option in retirement, a reasonable rate of return over time, and a death benefit. By looking into an IUL as part of your retirement strategy, you may be able to increase your income over the long term by reducing your tax burden.

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