Capture Savings Opportunities in Plain Sight
Whether you’re a business entity, a business owner or an employee, you can save taxes on income by creating a tax deduction.
The most common form of tax deduction is starting or contributing to a retirement plan. However you’ll lose anywhere from 15% to 39% of your retirement income during retirement depending on your tax bracket.
Certainly, you save taxes on ordinary income when you get tax deductions attributable to your retirement plan contributions. But what about the taxes attributable to retirement income?
To discount the taxes imposed on retirement plan withdrawals, we often use an insurance indexing strategy. This strategy is beneficial because of:
- The tax-free cash value growth tied to an index such as the S&P 500 Index.
- The tax-advantaged way money is withdrawn from life insurance.
- Policy guarantees that guarantee never losing money based on negative market performance (although policy fees are deducted whether the market is up or down).
- The fact that insurance fees are usually much lower than the taxes we pay.