As your Safe Money financial planning firm, The Retirement Advantage MI never places your money at risk directly in the market, yet we give you the upside of the market when it is doing well and none of the downside, so your principal and earned interest is always protected.
This is accomplished by use of index strategies, available in the tax deferred and tax free vehicles we utilize. With index strategies, you earn reasonable interest that is much higher than other safe investments like bank CDs, but you do not lose even one penny when the stock market goes down!
We all know there is no free lunch and this is no exception. When the markets are going up you get most but not all of the increases, in exchange for no losses when the market is going down. You also are limited to taking out no more than 10% of your annuity account value each year after the first year. With indexed universal life insurance (IUL) you are not limited to a 10% withdrawal per year, instead you may take a tax free loan of up to 90% or more of your cash value and the loan does not need to be paid back.
The index strategy is available in Fixed Index Annuities and in certain Indexed Universal Life Policies.
You may have been told that annuities have high fees and are risky and when you die the insurance company keeps your money. Rest assured we are not talking about those kinds of annuities. Variable annuities and immediate annuities do have some of those features, but your Safe Money financial planning firm only offers Fixed Index Annuities which have no fees (optional income benefit riders do have fees for the riders only) and never risk your money and when you die, your family keeps the account value, not the insurance company.
Indexed Universal LIfe (IUL) Insurance is used by many people who are concerned about the insanity in Washington and the expected future tax rate increases. Your Safe Money financial planning firm uses specific IUL products designed to minimize the life insurance cost and maximize the investment growth on a tax deferred basis. Upon retirement you can take a retirement income in the form of tax free loans which you do not need to pay back, for the rest of your life, guaranteed.
For an individual that retires with $250,000 in a 401k or IRA and lives another 30 years, that person will pay $250,000 to $500,000 in taxes on that original $250,000! That is why Uncle Sam allows you to deduct your contributions on your seed, because he knows he will get his tax revenue bonanza on your harvest over your retirement years. With an IUL, you pay tax now on the seed to get your harvest tax free.