“Tax Me Now”

  • Mutual Funds
  • CD/MMAs
  • Real Estate

“Tax Me Later”

  • Traditional 401 (k)
  • Traditional IRA/SEP/Simple
  • Annuities
  • 403 (b)
  • 457 (b)

“Don’t Tax Me Again”

  • Municipal Bonds & Bond Funds
  • Life Insurance
  • Roth IRA/401 (k)
NON QUALIFIED

Invest with after-tax dollars;
potential to enjoy capital gains rate on some investments.

QUALIFIED

Invest with pre-tax dollars to enjoy tax-deferred growth. Fully taxed as ordinary income when taken.

TAX-EXEMPT

Invest with after-tax dollars to enjoy income tax-free growth potential.

“Don’t Tax Me Again”

  • Municipal Bonds & Bond Funds
  • Life Insurance
  • Roth IRA/401 (k)
TAX-EXEMPT

Invest with after-tax dollars to enjoy income tax-free growth potential.

Achieve your goals in a tax-efficient way

Taking advantage of tax-exempt strategies, including life insurance, can go a long way in helping you:

  • Control how you’re taxed in retirement.
  • Protect you from the uncertainties of what taxes will be in the future.
  • Keep more of the money you’ve worked hard to accumulate.
Life Insurance can give you what you need and want

Life insurance that builds cash value can help reduce overall exposure to taxes and round out a diversified tax strategy as part of a retirement portfolio. The prinary purpose of life insurance is to provide death benefit protecdtion; this strategic approach assumes death benefit protection is a priority for you. Life Insurance can also help tyo diversify not just your tax strategy but your assets, too.

“Tax Me Later”

  • Traditional 401 (k)
  • Traditional IRA/SEP/Simple
  • Annuities
  • 403 (b)
  • 457 (b)
QUALIFIED

Invest with pre-tax dollars to enjoy tax-deferred growth. Fully taxed as ordinary income when taken.

Taxes could erode your income in retirement

With no immediate taxes due, these assets can allow more of your money to stay invested to help compound growth.
Relying too heavily on these assets in the future and/or in retirement means you may:

  • Increase your overall tax-burden, especially if taxes increase in the future
  • Potentially expose yourself to higher-tax brackets and trigger additional taxes
  • Reduce the amount of money you’re able to spend in retirement
A diversified strategy means more
NON-DIVERSIFIED
DIVERSIFIED

401 (k)

Withdrawal

$100,000

=

401 (k)

Withdrawal

$33,000

Mutual Fund

Withdrawal

$33,000

Life Insurance

Withdrawal

$34,000

Ordinary Income Tax

($32,000)

>

Ordinary Income Tax

($10,560)

Ordinary Income Tax

($4,950)

Ordinary Income Tax

($0)

 

Net Income

$22,440

Net Income

$28,050

Net Income

$34,000

Total Net Income

$68,000

<

Total Net Income

$84,490

Hypothetical Scenario

$100,000 withdrawal during a retirement year. 401 (k): 32% Ordinary Income Tax, Mutual Fund – Assumes no cost basis and 15% Capital Gains Tax. Actual results will depend on your personal financial situation.

“Tax Me Now”

  • Mutual Funds
  • CD/MMAs
  • Real Estate
NON QUALIFIED

Invest with after-tax dollars;
potential to enjoy capital gains rate on some investments.

Taxes can impact investment performance on non-qualified assets.

Be aware that certain tax events can take a substantial bite out of the investment return on these assets.

  • Portfolio Turnover: A measure of a fund’s holdings that have been sold or replaced during the prior year.
  • TaxDrag: Can have a significant impact on investment performance over time since any annual taxes due on investments can lower returns.
  • Rebalancing a Portfolio: When this happens, it often results in selling the over-performing investments and buying the under-performing investments. This can create a significant tax liability.
Taxes could increase the time needed to reach your goals.

7%
Growth
Rate

Years it takes to double your investment
Tax-Deferred Account - 10 Years to Double
Taxable Account - 14 Years to Double (24% Annual Tax)
Taxable Account - 16 Years to Double (36% Annual Tax)

It is important to know that the Years to Double example above does not guarantee investment results or function as a predictor of how your investment will perform. It is simply an approximation of the impact a targeted rate or return would have. Investments are subject to fluctuating returns and there can never be a guarantee that any investment will double in value.