•401k’s will be taxed on your gains.
•IRA’s will be taxed on your gains.
•Mutual funds will be taxed on your gains.
•Individual stocks will be taxed on your gains.
•Bonds will be taxed on your gains
When?
At the worst possible time in your life!
•At retirement: when you need them most!
•At retirement: when you have very few deductions (home, school, business, etc.)
•At retirement: when the money is worth more than you put it in.
Contributions to qualified plans are “Phantom Deductions.” It must be paid back at some point in time at a future income. You will have to pay it all back later. Every penny of principle is added on top of the interest – and must be repaid a combined state and federal tax rates that currently exceed 40%. But there is an alternative.
Then where should I put my money?
First Prioritize: Stability, Predictability & Security of money is most important; get off the Stock Market Roller Coaster, Obtain “Peace of Mind.”
Your Concern: Taxes on the growth, distribution, and the impact of increasing tax rates with fewer deductions.
Normal Guidelines/Demands
•I don’t want to lose money (downside potential)
•I don’t want to pay taxes again (double taxation)
•I want a good rate of return (upside potential)
Well, there is one option:
And only ONE
It is called an indexed universal life policy, or IUL.
Financial people hate it because they don’t sell it, and the fees are typically a quarter of what the financial guys charge you to so-call “manage” your account.
It is an investment vehicle that allows you to get money at retirement- TAX-FREE.
It is the ONLY investment vehicle that lets you grow your money TAX-FREE and not have to pay capital gains.
It also has a living benefit, much like critical care and recovery, or intensive care policy, only on steroids.
It can also be passed from generation to generation, building growth the whole way, TAX-FREE.
* Tax-Free Distribution or Income are based on the use of partial surrenders and zero or low-cost loans and policy structured within the MEC guidelines with the policy remaining in force! Kelm Financial Services Inc. does not provide legal advice nor tax calculations, preparation, or advice. Consult with a licensed professional in that field for additional information.