Traditional vs BOTAX Free Retirement Plan: Which Would You Choose?

Traditional Retirement Plan vs Business Owners’ Tax (”BOTAX’) Free Retirement Plan – Which Would You Choose?

Meet Barry Goldwater

Barry Goldwater, Founder & Principal of the Goldwater Financial Group, signed as a Producer in a new documentary short film from DNA Films® titled “Maximum Achievement: The Brian Tracy Story.” Four-time Emmy Award winning Director, Producer and Filmmaker Nick Nanton is gearing up to direct this upcoming documentary on the extraordinary and transformative life and career of Brian Tracy, a world renowned entrepreneur, professional speaker and Best-Selling author.

Here’s Brian Tracy speaking with Barry Goldwater about his own entrepreneurial experience.


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Can a Policy Review Save You Money? We Say Yes…

Policy Review: Lower Premium;  Increased Life Insurance, Tax-Free Income

Whenever we make a major purchase, we always look for the best return on our investment: whether it’s a car, a home, or an insurance policy.
When it comes to our tangible assets, it’s easy to see when they need updating or maintenance. Unfortunately, less tangible assets like insurance policies often get filed away and forgotten, but it’s just as important to review and revisit these on a regular basis. Here’s why you should always consider a policy review.


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Leverage Your Insurance – Get More for Less

Leverage Your Insurance – Get More for Less

Whenever we make a major purchase, we always look for the best return on our investment: whether it’s a computer, a car, a home, or an insurance policy. When it comes to our tangible assets, it’s easy to see when they need updating or maintenance. Unfortunately, less tangible assets like insurance policies and investments often get filed away and forgotten but it’s just as important to review and revisit these on a regular basis.  Here’s why.

A recent case came about from a  simple insurance review that uncovered an expensive contract that did not match the goals of the insured: too high a premium, not enough in the form of benefits.
As we talked with our client about his individual needs needs and goals, we were able to offer a solution that:
  • Lowered their insurance premium by $21,000 per year;
  • Added tax free income beginning at age 66 for a period of 20 years
  • Maintained a life insurance benefit

Leverage Options 5 - More for Less

Whether you’re looking at minimizing your tax bill, maximizing your retirement income, or options for long term care, we know we can find a solution that meets your specific needs. Give us a call at (617) 527-9736 or send us an email



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Picture8Remember the “good old days”  when after-dinner  discussion on Sunday revolved around sports, food, family, and finances? Food was all about the just-eaten meal, sports covered Mickey Mantle vs. Willie Mays, family was about that one annoying relative, and I distinctly remember finances being about smart men putting their money in Municipal Bonds.  As an adult I realize why. Because Municipal Bonds were safe and they were tax free, and setting up an option for tax free income was a smart thing to do in those days.

Somehow, that philosophy of establishing tax free income  became less popular as declining bond values were replaced with the lure of  unlimited upside growth  from the stock market. Slowly and for a variety of reasons, no one really talks about Municipal Bonds Picture9anymore and that moved the conversation away   from talking about tax free income and safety.

However, in an environment of high personal income and capital gains taxes, the importance of tax free income can never be overstated. The more tax free income you can derive, the lower you can drive your tax bracket, and  although wealth managers  convince people that they will be in a lower tax bracket when they retire, the
reality is  that we really will not be in a different tax bracket if we are expecting $150,000 or more of  retirement income. So the question I ask when working with a new  client is “How much money do you have in the tax free zone?”

The tax free zone is where assets grow and are distributed tax free. Municipal Bonds are in that zone, so are Roth IRAs as well as Life Insurance.  As a planner, I use life insurance almost exclusively when planning tax free growth and income. It is a far more flexible asset because it does not have the limits of a Roth IRA nor the low interest rate callability of a municipal bond.

Picture10What if we could target the cash value build up (as best as one can target when determining future values) so that the cash withdrawals from the tax free insurance can be withdrawn to pay future taxes on retirement income, which are usually high? What impact would that have?

Furthermore, if we believe that the stock market will keep growing, would it not be a  good idea to hedge our stock market investment from negative growth?

We found three extraordinary outcomes when we started putting people in the tax free zone:

 First, a well planned out insurance contract can end up paying the income tax on retirement income at a huge discount and withdrawal streams can last longer because of their tax free nature. When you do not pay taxes on income, you do not have to withdraw as much money from retirement accounts.

Second, by creating tax free income, we were able to keep incomes high and tax brackets lower. This was an extraordinary reality; taking the tax money you did not pay the government in the form of a tax deduction, start your tax free account creating future tax free income while lowering your tax bracket.

Third, we were able to hedge against loss.

Based on these results, Goldwater Financial created ” Planning in the Tax Free Zone” which takes a deep look at how our clients grow their money and what the tax outcome will be. We are creating tax deductions through pension contributions and using the tax savings to start alternative insurance programs that will create tax free income in the future. All of these tax reduction ideas are folded into the Tax Free Zone style of planning.  If this type of planning intrigues you, then contact us at  617-527-9736 to learn more.



Long Term Care (and more) For C-Corps

If you own a C-Corp and wonder how you can offer Long Term Care benefits (and then some), then check out this 2 minute video!  We show you how a family C-Corp can deliver LTC for family members and their spouses, tax deductions, life time coverage, premium coverage and extraordinary company benefits for family owners.  Here’s how….


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Have you ever wondered if it’s possible to limit withdrawals from your investment accounts and stay in the lowest tax bracket possible while still reaching a specific retirement income goal?  Well it is…. and this quick video shows you how!


Barry Goldwater – founder of the Goldwater Financial Group – is thrilled to be named Producer in the upcoming documentary short by DNA  Films called “Maximum Achievement: The Brian Tracy Story.”

Click below for more information!

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Untitled-10I wonder how many people truly understand an Indexing Strategy in  an insurance based environment?

We’ve all been educated about Indexing Strategies in mutual funds, ETF’s and so on. But as a rule,   people have very little knowledge when it comes   to insurance indexing strategies—yet they do exist.  What’s more, the money in these assets grows tax free—like a 401 (k) – and can be accessed through policy loans, thus avoiding income taxes and allowing constant liquidity throughout the life of the assets.

So what exactly is an Indexing Strategy in an insurance based environment?  This kind of strategy has two key components:  a CAP or limit as to how much you can earn when the market is good and a protective floor of ZERO when the market is not good.  How is this different to the S&P Index?  The S&P Index spreads the investments evenly between 500 different stock companies. There’s no cap, so it lets you keep all the gains when the market is good, but  when the market is bad, you suffer the loss.

Now look at the chart below. This illustrates how a total of $100,000 would have performed  during the period 1998-2015 based on these two strategies. The top line of the graph represents the Insurance Indexing Strategy: you can see that in the years where the market loses money, you’re protected from losses due to the floor which protects principle.  The same doesn’t apply if you’re invested in the market—where you’re subject to the lows as well as the highs of the S&P 500 Index.  You can see that over time your assets in the Indexed Strategy are protected from loss  and have the potential for substantial growth. Over the 17 year period 1998-2015, the total yield of the Indexing Strategy was 114.9% with an effective yield of 6.75% compared to the total yield of the S&P 500 Index which ended at 83% (effective yield 4.88%).

As a point of note a Nominal yield is what one makes on an annual basis (Bank paying 1 % annually on a CD is a nominal yield).  An  Effective yield:  what one earns over a period of time greater than one year (for example, earnings of 5% in Year 1, 7%  in Year 2 and 12% in Year 3 gives an effective yield of 24% over 3 years).Updated Annuity Graph - May 2016

Over the 17 year period 1998-2015, the effective yield of the Indexing Strategy was 6.75%  while the effective yield of the S&P 500 Index was 4.88%

For more information on how an Indexing Strategy works and how you can incorporate into your portfolio, call Barry Goldwater at 617-527-9736 or email at

DISCLAIMER:  This graph is based on actual credited rates shown on the Index-5 product which is no longer available for sale.  Past performance is no guarantee of future performance and  should not be relied upon as such.