A recent Fox Business online article talks about how having all of your funds in tax-deferred accounts can be very detrimental to retirement.
One additional instrument that can be added to a person’s retirement portfolio is cash value life insurance. Because of the unique tax status of life insurance, a person can take out income tax free loans against the policy. Thus, with proper planning, a person with both tax deferred and tax free accounts can draw money out of the tax free accounts when taxes are high, and tax deferred accounts when taxes are low.
Contact Imeriti today to find out how you can take advantage of using tax free life insurance in a person’s retirement portfolio: 800.921.3100.