June 12, 2021
Brighton Estate Planning Lawyer | The Power of Life Insurance
Contact Brighton, Michigan estate planning attorney and investment advisor representative Christopher J. Berry at 844-885-4200 to help plan for retirement and your legacy. Visit us online at www.castlewealthlegal.com. This video shows some of the advantages of using index universal life as a growth and legacy vehicle in retirement.
Estate Attorney and Advisor Chris Berry of Castle Wealth Group answers questions on retirement and estate planning every Wednesday at 1pm. Register via this link or give our office a call at 844-885-4200.
Castle Wealth Group and Christopher Berry help families with estate planning, elder law, retirement planning, and tax planning from their offices in Brighton, Ann Arbor, Livonia, Bloomfield Hills, and Novi.
Castle Wealth Group helps families with their legal, financial, and tax planning for their retirement and legacy.
With the use of legal structures like revocable living trusts, Castle Trusts (asset protection trusts), Chris Berry and Castle Wealth Group can help your family plan, protect, and preserve what is important through their Retirement and Legacy Blueprint Process.
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Episode Transcript
Tax Diversification
Indexed Universal Life Insurance, more than you might expect. Index Universal Life Insurance or IUL can provide protection and opportunity for growth when you may need it the most. It combines the traditional death benefit protection and tax advantages of life insurance with a potential for cash value growth through interest credits linked to the performance of a stock market index. It’s important to understand the impact taxes can have and tax diversification to help ensure the money you have saved for retirement is really the money you have to use and to leave to your beneficiaries.
Think of it as dividing your assets into three buckets. Bucket one, the taxable bucket represents accounts for which you typically receive a form 1099 each year. Bucket two, the tax-deferred bucket. Bucket three, the income tax free bucket. Most financial professionals recommend diversifying retirement assets. So retirees can make sensible choices to generate retirement income. Make sure the diversification process includes tax diversification and place some retirement assets into each of the three tax buckets. Congress passed the Tax Cuts and Jobs Act in 2017, reducing tax rates but it won’t last forever. The tax breaks are set to expire December 31st, 2025. Unless Congress acts and then tax rates will increase in 2026 and beyond. If you have tax-deferred qualified funds currently not being used for retirement, consider converting a portion of those into an IUL insurance policy. Paying taxes now when tax rates are low, rather than paying taxes later, when tax rates will almost certainly be higher.
IUL Power of Indexing
IUL power of indexing offers the potential for growth through index interest crediting with the benefits of downside protection. IUL combines traditional death benefit protection and tax advantages provided by life insurance. Plus the potential for cash value growth linked to the performance of a stock market index, subject to a cap with a minimum guaranteed interest rate floor. This floor ensures the policy cannot lose value due to poor index performance. So if you’re looking to strengthen your financial strategy, look to IUL. IUL provides financial flexibility and protection when you need it. Set your own expectations with Indexed Universal Life Insurance and embrace life’s potential.