3 Sources of Tax-Free Income

Nate Crosby |

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account has been open for five (5) years and the owner is over the age of 59 and a half, then the entire balance can be withdrawn tax-free.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.