3 Sources of Tax-Free Income

Nate Crosby |
Categories
dynamic growth
podcast
bonds
Roth IRA
Life Insurance

Whenever we meet with clients that are in their retirement, we always ask, "what would you do differently?" The answer is quite similar every time, "I wish I had paid more attention to how my money was going to be taxed in retirement." 

In this podcast, Nate discusses three (3) sources of tax-free income, including reasons why you may or may not want to consider these options for your individual wealth plan.

The three sources are:

  1. Municipal bonds – the interest is federally tax-free and when purchased in state are also state tax-free.
  2. Roth IRA – these are contributed to with after-tax money. Once the account has been open for five (5) years and the owner is over the age of 59 and a half, then the entire balance can be withdrawn tax-free.
  3. Cash Value Life Insurance – Most of the premium goes towards the cash value vs the death benefit. Nate likes the IUL (index universal life), which is typically indexed to the S&P 500.

Having different buckets of taxable income in retirement gives you control. Want to learn more? Give us a call and we’ll take you through these strategies.

 

Please note: This content is not a direct recommendation for investment. Investing involves risk including the potential loss of principal. Not all investments are suitable for all people. Crosby Advisory Group, LLC is a registered investment advisor in Ohio, Florida, Texas, and Wisconsin.