Advanced Insurance Strategies for Guaranteed Income

Tax Free Retirement Specialists focus on strategies that offer guaranteed income utilizing Fixed Indexed Annuities (FIAs).

These FIAs are guaranteed not to lose principal in the stock market since the premium is invested in bonds rather than equities. The interest from the bonds can be taken as a credit or invested into an index. This can be done by the insurance company and is referred to as buying calls in an index. When the index goes up, your account is credited up to the cap.

You can choose from different indexes. The caps in indexes limit how much you can earn and a floor of zero. Some FIAs have multipliers, which means the yield they create is multiplied by the multiplier and the multipliers can go up to 175%.

FIAs have an accumulation period and then an income period for life, which can start any time. However, the longer the deferral, the larger your income. You can receive this income jointly with your spouse.

FIAs can have a level income or increasing income. If you select increasing income FIAs, you can multiply your premium many times.

FIAs can also accumulate and increase over the years. After a period of 10 years, you can withdraw the total amount and walk. However, most people don’t do so as they want the gains to continue.

If you suspect the stock market may do worse in the future, you can pick an FIA that provides a 10% bonus on the income account when you start the annuity. Moreover, each year in deferral brings an additional 10% credit to the income account. That means, if you keep $100,000 in it over 10 years, it can grow up to $210,000.

The annuities can be IRAs. Some annuities are user-friendly to converting IRAs and 401(k)s to Roth IRAs. The Roth IRAs will give you tax-free income in 5 years. Such a strategy can help you keep taxes at a minimum.

FIAs offer accumulation and income bonuses up to 30% and you can withdraw up to10% every year penalty-free.

To convert, you can spread the tax payments over the 5 years. You can do this by having after-tax money in a savings account or disposable income. Alternatively, you can take 10% distributions of money from the annuity to pay the taxes for some years. But only a few annuities allow you to do this.

If you are looking for more tax free retirement income planning in LA, Orange County, Riverside County, CA, consult one of the leading tax-free retirement specialists, John Hradesky at Tax Free Retirement Specialists or call 442-400-3522. Tax Free Retirement Specialists help you reduce your taxes during retirement, and create tax-free retirement income with IRS-compliant strategies to achieve your retirement goals and dreams.