Call Us at 1-877-95-IRAMD [1-877-954-7263]

Tax Free Retirement

General topics

Saturday, November 20, 2010 | Posted in General

Tax Free Retirement

Tax-Free Retirement Strategy

If you found that the way you had been acquiring or building wealth up to this point in your life was not the best or most efficient way, how soon in your life process would you want to know and change that? If we could show you a way to build (or continue to build) a Roth benefit without market risk or contribution limits, would you want that?

Who would benefit most from this strategy? Let’s explore tax-free retirement opportunities for:

            1) Business owners

            2) Physicians

            3) High-income earners (and everyone else)

            4) Children and grandchildren

Our Tax-Free Retirement strategy will help you structure, prioritize, and access your SMART $$ LIST.  Maximize your results through…

            1) Free Money

            2) Tax-Free Money

            3) Tax-Deferred Money

            4) Taxable Money

For instance, if you’re a business owner or physician, here is a question for you….

            If we could show you a way to put away money for the future (i.e. retirement), that would grow tax-free in a principal protected market linked environment, that you could access tax-free… and oh, by the way, has no contribution requirement for your employees, would you want that?

Why equity-indexed life insurance may be the perfect retirement solution for business owners:

            Reason #1 – Business owners need life insurance to cover their business debt and to provide for their families if they were to die. Therefore, owning a life insurance policy is not an extra, but rather something that should be a standard part of all business owners’ portfolios.

            Reason #2 – The business itself usually provides plenty of deductions during the accumulation phase of business owner’s lives, so the desire for additional tax deductions such as a tax-qualified plan is often minimized. Conversely, once retired, business owners often find themselves with little or no tax write-offs since the business has been sold – maximizing the desperate need for tax advantaged income in retirement.

            Reason #3 – Since life insurance is not considered a tax-qualified plan according to the IRS, there is no requirement for the business owner to fund a similar plan for his or her employees.           

            Reason #4 – There is no limit as to how much can be contributed in any given year (or saved within) a life insurance contract – other than what the contract itself specifies. Since business income can change dramatically over the years, this flexibility can be a huge advantage.

            Reason #5 – It’s simple and easy. There are no separate record keeping or tax forms required. As a matter of fact, Uncle Sam doesn’t even know when an individual policy exists. There is no reporting requirement.

            Reason #6 – It provides instant liquidity (for pennies on the dollar) to the owner’s heirs or estate if the owner decides to keep the business until his or her death.

            Reason #7 – Did we mention principal protected, market linked, TAX-FREE income that never even appears on your tax return in retirement?

Why equity-indexed life insurance may be the perfect retirement solution for physicians:

            Reason #1 – Many doctors make more than $160,000 per year, which is the phase-out limit for being able to contribute to a Roth IRA. Therefore, physicians have no tax-free retirement option available other than life insurance. And even for those who make less than the phase-out limit, a Roth only allows a few thousand dollars per year for the contribution amount.

            Reason #2 – Doctors are specialists. They have given their lives to be the best at what they do – and they are. However, this level of specialty often leaves little time for less urgent activities such as retirement planning.

            Reason #3 – Doctors are sometimes taken advantage of by sales people in the financial realm hocking half-baked, poorly formed investment strategies promising outlandish returns.

            Reason #4 – Doctors generally need a lot of life insurance for three reasons. One, they need to protect a large income for their families. Two, they may carry high debt, due to large medical school bills and low wages during residency and internship years. Three, doctors as a group have one of the lowest life expectancies of any profession.

Why equity-indexed life insurance may be the perfect retirement solution for everyone else:

            Question #1 – Are you someone who wants to receive tax-free income during retirement?

            Question #2 – Are you someone who wants/needs to save more per year than what a Roth IRA allows?

            Question #3 – Are you someone who is currently investing in a tax-qualified plan above the company matched contribution?

            Question #4 – Are you someone who is contributing to a deferred compensation plan?

            Question #5 – Are you someone who has a need for life insurance protection?

            Question #6 – Are you someone who makes more than $160,000 per year?

            Question #7 – Are you someone who has a desire to multiply your assets for the benefit of your family, or a cause you believe in?

If you found yourself answering yes to two or three of the above questions, then it is likely that this is a retirement/income planning strategy that will serve you very well.

To say it bluntly, a properly structured equity-indexed life insurance policy may provide the most tax-advantaged, cash accumulation, living benefits, low maintenance, fully liquid, principal protected saving strategy on the planet.

If you think income tax rates will be higher in the future, or you have concerns about market volatility, call us. We may have a solution that will help you keep the government out of your pocket in retirement, and eliminate your concerns about market instability.

Call me for your complimentary retirement checkup!

Mike Habib, EA at 1-877-95-IRAMD [1-877-954-7263]

Also online at                                                                       

CA License #0G78926

  • Share/Bookmark

Friday, August 13, 2010 | Posted in General

Stretch IRA

Stretch IRA

The stretch IRA is one of the best kept secrets of individual retirement account. The main objective of this IRA is to maximize the time of tax deferral. It is possible to defer taxes to the next generation with the help of stretch IRA.

The beneficiaries of the survivors of the IRA owner can further defer taxes as the assets of the IRA can be distributed as per the wish of the actual deceased owner. The benefit of the deferral period helps the beneficiaries to arrange for the payment of applicable taxes.

Stretch IRA is a popular way to handle estate related issues that may arise after the death of an individual. It reduces the possible legal problems. Creating a stretch IRA is simple and its benefits are many. Like any other individual retirement account, you can easily create a stretch IRA.

However, in the stretch IRA, the owner would need to specify who would inherit the assets of the stretch IRA. When there are several beneficiaries available for the stretch IRA, the owner can decide the percentage of the funds that each beneficiary would receive.

Benefits of Stretch IRA

If you use the stretch IRA option, you can get several benefits.

  1. As the owner of the stretch IRA account, you can be sure that all the assets (cash) will be distributed according to your wish among the beneficiaries.
  2. You can let the money in the stretch IRA account be distributed over a period of time. So, you can structure the stretch IRA in such a way that your beneficiaries (children, family, and friends) receive the money annually for a period of time. This ensures financial security for your children or beneficiaries.

When you structure a stretch IRA, it is good to inform each beneficiary, who were supposed to get the money from your IRA account, about the structure of your stretch IRA account. Let them know about the IRA account well in advance. This is necessary because it will help them to prepare for their own finances to accommodate the taxes that will come due when the period of deferral is completed.

The Stretch IRA Strategy

Creating a stretch IRA account can be a very good strategy for extending the tax-deferred IRA assets across multiple generations.

When Should You use a “Stretch” IRA?

If you have enough money to cover your expenses after retirement and you would not need all the assets in your IRA for such expenses, then you can go for the stretch IRA strategy. You get tax deferral for a certain period, during which the assets in the IRA account will grow tax-deferred.

You can use stretch IRA as an important estate-planning tool.

How Do You Stretch a Traditional IRA?

It is possible to stretch a traditional IRA.

If you want to stretch your traditional IRA, it is possible to do so. If your spouse is the beneficiary of your traditional IRA, it is possible for her/him to roll the balance into his or her own traditional IRA after your death and then he/she can name a younger beneficiary.

After that, your spouse may take required minimum distributions (RMDs) after deciding the life expectancy. Your spouse can delay RMDs until he or she reaches 70½, if he/she is under age 70½ when you die. After the death of your spouse, it is possible for the second generation beneficiary to transfer the assets to an inherited IRA. After that, the beneficiary can take RMDs over his or her own life expectancy.

It is possible for you to name a younger non-spouse beneficiary directly. The beneficiary then can decide to transfer the assets to an inherited IRA and take RMDs.

Call us for your free personal case analysis at 1-877-95-IRAMD.

Stretch IRA, Ed Slott, Ed Slott Stretch IRA, Roth IRA, IRA Rollover, Multi Generational IRA LOS ANGELES COUNTY:

Acton - Agoura Hills - Alhambra - Altadena - Arcadia - Artesia - Avalon - Azusa - Baldwin Park - Bell - Bellflower - Beverly Hills - Burbank - Calabasas - Canoga Park - Canyon Country - Carson - Castaic - Cerritos - Chatsworth – City of Industry -Claremont - Compton - Covina - Culver City - Diamond Bar - Downey - Duarte - El Monte – South, - El Segundo - Encino - Gardena - Glendale - Granada Hills - Hacienda Heights – Harbor City - Hawaiian Gardens - Hawthorne - Hermosa Beach - Huntington Park - Inglewood - LA Los Angeles - La Canada Flintridge - La Crescenta - La Habra Heights - La Mirada - La Puente – La Verne - Lawndale – Long Beach – Lynwood - Malibu - Manhattan Beach - Marina del Rey - Maywood - Mission Hills - Monrovia - Montebello – Monterey Park - Montrose - Newhall - North Hills - North Hollywood - Northridge - Norwalk - Pacific Palisades – Pacoima - Palmdale - Palos Verdes - Panorama City - Paramount - Pasadena - Pearblossom - Pico Rivera - Playa del Rey – Playa Vista - Pomona - Rancho P.V. - Redondo Beach - Reseda - Rosemead - Rowland Heights - San Dimas - San Fernando – San Gabriel - San Marino - San Pedro - Santa Clarita - Santa Fe Springs - Santa Monica - Sherman Oaks - Sierra Madre – Signal Hill - South Gate - South Pasadena - Stevenson Ranch - Studio City - Sun Valley - Sunland - Sylmar - Tarzana – Temple City - Topanga - Torrance - Valencia - Valley Village - Van Nuys - Venice - Walnut - West Covina - West Hills – West Hollywood/LA Los Angeles - Westlake Village - Whittier - Wilmington - Winnetka - Woodland Hills .

Stretch IRA, Ed Slott, Ed Slott Stretch IRA, Roth IRA, IRA Rollover, Multi Generational IRA ORANGE COUNTY:

Aliso Viejo – Anaheim – Anaheim Hills – Balboa Island – Brea – Buena Park - Capistrano Beach – Corona del Mar – Costa Mesa – Cypress – Dana Point – Foothill Ranch - Fountain Valley – Fullerton – Garden Grove – Huntington Beach – Irvine – La Habra – La Palma - Ladera Ranch – Laguna Beach – Laguna Hills – Laguna Niguel – Laguna Woods – Lake Forest - Los Alamitos – Midway City – Mission Viejo – Newport Beach – Newport Coast – Orange – Placentia – Rancho St. Margarita – San Clemente – San Juan Capistrano – Santa Ana – Seal Beach – Silverado – Stanton – Sunset Beach – Surfside – Trabuco Canyon – Tustin – Villa Park – Westminster – Yorba Linda .

Stretch IRA, Ed Slott, Ed Slott Stretch IRA, Roth IRA, IRA Rollover, Multi Generational IRA RIVERSIDE COUNTY :

Aguanga – Anza – Banning – Beaumont – Blythe – Cabazon – Calimesa – Canyon Lake – Cathedral City – Coachella – Corona – Desert Center – Desert Hot Springs – Hemet – Homeland – Idyllwild, Indian Wells – Indio – La Quinta – Lake Elsinore – Mecca – Menifee – Mira Loma – Moreno Valley, Mountain Center – Murrieta – Norco – North Palm Springs – Nuevo, Palm Desert – Palm Springs, Perris – Rancho Mirage – Riverside – San Jacinto – Sun City – Temecula – Thermal - Thousand Palms – White Water – Wildomar – Winchester .

Stretch IRA, Ed Slott, Ed Slott Stretch IRA, Roth IRA, IRA Rollover, Multi Generational IRA SAN BERNARDINO COUNTY :

Adelanto – Angeles Oaks – Apple Valley – Barstow – Big Bear City – Big Bear Lake – Bloomington, Blue Jay – Cedar Glen – Cedarpines Park – Chino – Chino Hills – Colton – Crest Park – Crestline, Daggett – Fawnskin – Fontana – Forest Falls – Grand Terrace – Green Valley Lake – Helendale – Hesperia – Highlands – Hinkley – Joshua Tree – Lake Arrowhead – Landers – Loma Linda - Lucerne Valley – Lytle Creek – Mentone – Montclair – Morongo Valley – Needles - Newberry Springs – Ontario – Oro Grande – Phelan – Pinon Hills – Pioneertown - Rancho Cucamonga – Redlands – Redlands – Rialto – Rim Forest – Running Springs - San Bernardino – Sky Forest – Sugarloaf – Trona – Twentynine Palms – Twin Peaks – Upland, Victorville – Wrightwood – Yermo – Yucaipa – Yucca Valley .

Stretch IRA, Ed Slott, Ed Slott Stretch IRA, Roth IRA, IRA Rollover, Multi Generational IRA SAN DIEGO COUNTY :

Alpine – Bay Park – Bonita – Bonsall – Borrego Springs – Boulevard – Campo – Carlsbad - Chula Vista – Clairemont – College Grove – Coronado - Del Mar – Descanso – Downtown – Dulzura, East San Diego – El Cajon – Encanto – Encinitas – Escondido – Fallbrook – Grantville – Hillcrest, Imperial Beach – Jacumba – Jamul – Julian – La Jolla – La Mesa – Lakeside – Lemon Grove - Linda Vista – Logan Heights – Mission Village – National City – Normal Heights – North City West, North Park – Ocean Beach – Oceanside – Pacific Beach – Palomar Mtn – Paradise Hills - Pauma Valley – Pine Valley – Point Loma – Potrero – Poway – Ramona – Ranchita - Rancho Bernardo – Rancho Penasquitos – Rancho Santa Fe - San Carlos – San Diego - San Marcos – San Ysidro – Santa Ysabel – Santee – Scripps Ranch – Solana Beach - South San Diego – Spring Valley - Spring Valley – Tierrasanta – University City – Valley Center, Vista – Warner Springs .

Stretch IRA, Ed Slott, Ed Slott Stretch IRA, Roth IRA, IRA Rollover, Multi Generational IRA VENTURA COUNTY :

Bell Canyon – Camarillo – Fillmore – Moorpark – Newbury Park – Oak Park – Oak View – Ojai Oxnard – Piru – Port Hueneme – Santa Paula – Simi Valley – Somis – Thousand Oaks – Ventura Westlake Village .

  • Share/Bookmark

Copyright © IRA MD. All rights reserved.