Toms River, NJ (PRWEB) November 19, 2012
In Part I of this three-part series, several facts important to the welfare of average Americans were explained:
Cash value life policies, on the other hand, have no such restrictions. When properly structured, which means following the guidelines established by the IRS (IRC 7702) and three Acts of Congress (TEFRA-1982, DEFRA-1984, and TAMRA-1988), cash value life policies can provide a significant tax shelter with the following flexibility:
There are many applications for using cash value policies, such as for college planning, a future business loan, or a down payment on a home. When it comes to retirement planning, it is a more flexible instrument than Roth IRAs while still maintaining a similar tax-free treatment, if one follows the guidelines above. Of course, these policies always have a tax-free death benefit attached to them, which can be a huge benefit to beneficiaries in the event of premature death or for legacy planning purposes. With so many benefits and so much flexibility it’s no wonder these policies are sometimes called a “Roth on Steroids."
These policies are not the perfect solution for every individual, and anyone considering this strategy should meet with a qualified insurance professional to discuss the pros and cons for their unique situation. It’s not as familiar to most Americans as their 401(k) plan, and lack of education has kept many from considering it as a tax shelter that, if properly structured, could potentially provide years of tax-free income for retirees.
Part three of this 3-part series will explain how an average working family might use this strategy to build themselves a tax-minimized retirement.
Brian Solik, CRPC is President and Founder of Wealth Preservations Strategies of NJ. He is a former Wall Street broker who now focuses on educating investors on how to maximize their financial security and minimize taxes. If you would like to receive the remainder of this article contact Brian at 732-415-7717, bsolik(at)brokersifs(dot)com or visit his website http://www.wpsnj.com.
Securities and investment advisory services offered through Brokers International Financial Services, LLC, Panora, Iowa. Member FINRA/SIPC. Brokers International Financial Services, LLC and Wealth Preservation Strategies of NJ are not affiliated companies. The opinions expressed are those of Brian Solik and not necessarily those of Brokers International Financial Services, LLC.