RETIRE WITH $1,000,000.00 +
Do you know the worst place is to have your money in when you die?
Having your money in a Tax-Qualified account.
Because a good part of it will not go to your family, but to the government in the form of taxes.
Here is where it gets interesting. If there is a spouse and is still living, the money can simply be transferred over with no issues and no problems at all. That's a good thing, and pretty much the only good thing.
Everybody has parents that pass away. Its Nature and its just a fact of life.
In past generations, people were tought to save for their retirement- and lets face it, it was easier to save and have money as compared to today. This is the first generation that is worse off than their parents. The point is, living off of the interest from money that has been saved over the years is what keeps seniors in retirement going, without having to worrying about spending down there assets and have nothing to live off of other than social security.
Here is where it can get ugly. All that money your Mother or Father or Grandparents thought they were leaving their child(ren) or grandchild(ren), will get absolutely hammered in taxes when it comes time to transfer their wealth. (except if passing it to a spouse)
The entire account will be treated as taxable income that will have to be paid the same year it is transferred over to the child(ren) or grandchild(ren).
Do you know what that means?
Our Federal tax rate goes up to 35% in today's world. It has been as high as 39.6%. What will it be in 10, 20 or 30 years. Could it go to 50%, 55%, or 60%? Do you really want to find out?
Let's put some numbers to it
It is very common today to see accounts with $1,000,000, $2,000,000 or even $3,000,000 or more left in tax-qualified plans, (401k, SEPS, IRA's etc...) upon a persons death. Remember that most people will try and live off of their interest because they don't want to run out of money before they do.
At today's top tax rate, that $1,000,000 dollar account will get hit with Federal Taxes of $350,000 dollars plus another $90,000 dollars in State income tax (if you live in a State with a 9% income tax). Add it up, and you have $440,000 dollars in Legacy money your family will NEVER see.
Did I mention estate taxes?
Do you want your money to be shared with Uncle Sam?
Tax code IRC 7702
Inside of our Tax code,you can save your money 100% Tax-Free.
One of its components refers to the cash value inside of a life insurance policy.
You heard it right..... Life insurance. It’s not just for dying anymore.
Life Insurance has become a vehicle to help you invest your money during your working years, Retire off of the money you have saved and pass your money down to your heirs 100% Tax-Free
No Penalties No Taxes….. EVER
(if properly structured, and based on policy guidelines)
So… What are the details of IRC 7702?
Find out for FREE!