Posted on March 1, 2023.

As you approach retirement, it's important to start thinking about how you can maximize your retirement saving and ultimately your retirement income while minimizing your tax burden. One option to consider is a tax-free retirement plan. This plan is considered an LIRP (Life Insurance Retirement Plan) This plan will also allow you reduce typical 401k and 403b plan fees. Taxes and Fees can devour from 30%-50% of your retirement savings over time. The Tax-Free Retirement Plan allows you to contribute money on an after tax basis, and then withdraw your money tax-free in retirement. Here's what you need to know about the tax-free retirement plan.

Click Here for a short 3-Minute Video on the Tax-Free Plan 

What is a tax-free retirement plan?

A tax-free retirement plan is a type of properly structured life insurance contact that allows you to save for retirement on a tax-free basis and significantly reduce your investment fees, market risk, and taxes. With a tax-free retirement plan, you contribute money on a post-tax basis, meaning you've already paid taxes on the money you're contributing. However, once your money is in the account, it grows tax-free, and you can withdraw it tax-free in retirement.

What are the benefits of a tax-free retirement plan?

There are several benefits to a tax-free retirement plan. First, because you're contributing money on a post-tax basis, you don't have to pay taxes on your withdrawals in retirement. This can be especially beneficial if you expect to be in a higher tax bracket in retirement than you are now. Additionally, because your money grows tax-free, it can compound more quickly over time, helping you to grow your retirement savings faster. All market risk is eliminated so that you never go backwards again in a bear or down market. Remember 2007-2009 when the 401k for most people became the 201k and 40% of their retirement savings disappeared overnight, this can happen again! There are benefits with regards to investment fees also, most people are unaware that taxes and fees in a 401k or 403b plan can “eat up” 40-50% or more of your retirement “nest egg” over time.

What are the eligibility requirements for a tax-free retirement plan?

1.  Age: 18-60
2. Health: Reasonably good health is a requirement since this is Life Insurance
3. Liquidity: ability to put away post-tax dollars of at least $6,000 per year (There is no maximum amount; some of our clients put away $12K - $250K per year)
4.  Taxes: The ability to forego a tax deduction TODAY for Tax Benefits in the FUTURE

How can I get started with a tax-free retirement plan?

If you're interested in a tax-free retirement plan, the first step is to talk to a TEAM MEMBER from Financial Freedom Group, LLC. We can help you understand your eligibility for this tax-free retirement plan that meets your needs.

At Financial Freedom Group, we offer services to help you maximize your retirement income and minimize your tax burden. If you're interested in a tax-free retirement plan, we can help you understand your options and choose the right plan for your needs. Contact us today for a quick 15-minute call to learn more.