How can you make some of your retirement income tax free?
Submitted by Brookhaven Wealth Management on July 8th, 2019
Do you know all of your tax advantaged retirement strategy options? There's more than you think. Part of a solid financial plan is having different buckets of assets that provide potential income flexibility. In addition to having different liquidity provisions, each may be taxed differently, such as tax deferred accounts like 401k's and IRA's which are taxed as income upon withdrawal, after tax investment accounts that are taxed at capital gains tax rates, and tax free accounts like Roth IRAs and Municipal securities.
There is also another popular tax advantaged option that is well suited for higher income individuals who make too much to qualify for a Roth IRA, are generally under age 55 and are in good health. Life insurance, often overlooked, can be that option, particularly if the investor is fully funding the other buckets/strategies mentioned previously. It should be evaluated as part of an overall financial plan but may be the missing piece you've been looking for. If you'd like to discuss this strategy with us don't hesitate to use our online calendar below to schedule a time to talk or meet to determine if it may be right for your situation.