What’s a LIRP and how could it help you pay less taxes in retirement? On this episode of The Vault with The Wealth Guardians, Doug Ray and Brice Payne break down the benefits.
_____________________
The information provided is for educational purposes only and are not intended as investment advice for any individual or entity. All information contained herein is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. The views presented today are those of Wealth Guardians and do not necessarily represent the views of the Alphastar Capital Management. The opinions expressed are subject to change without notice and do not constitute financial, legal or tax advice. Any comments regarding safe and secure investments and guaranteed income refer only to fixed insurance products offered by Wealth Guardians. They do not refer in any way to securities or investment advisory products. Please consult your financial professional before executing any financial strategy. Investment Advisory Services offered through Alphastar Capital Management, a registered investment adviser. Alphastar and Wealth Guardians are independent entities.

The Wealth Guardians

704-248-8549
336-391-3409…(read more)

LEARN MORE ABOUT: Qualified Retirement Plans

REVEALED: How To Invest During Inflation

HOW TO INVEST IN GOLD: Gold IRA Investing

HOW TO INVEST IN SILVER: Silver IRA Investing

Retirement is the time when one wants to relax and enjoy the fruits of their labor. However, paying taxes can be a significant financial burden during these years. Luckily, there is a solution to minimize the tax burden in retirement – a LIRP (Life Insurance Retirement Plan).

A LIRP is a combination of a life insurance policy and a retirement plan. It offers tax-free growth and income, making it an attractive option for those looking to reduce their tax liability in retirement. Let’s find out how a LIRP can help you pay fewer taxes in retirement.

Tax-Free Income

One of the most significant benefits of a LIRP is the tax-free income it offers. When you take money out of a LIRP, you don’t have to pay any taxes on it. This means you can enjoy your hard-earned money without worrying about losing a portion of it to taxes.

Tax-Free Growth

Another advantage of a LIRP is the tax-free growth. The money in a LIRP grows tax-free, meaning any gains you make on your investments remain untouched by the taxman. This is particularly advantageous if you’re in a high tax bracket or if the tax rates go up during your retirement years.

No Contribution Limits

Unlike traditional retirement accounts like IRAs and 401(k)s that have contribution limits, a LIRP has no such limits. This means you can contribute as much as you want without worrying about exceeding the contribution limits. The more you contribute, the more tax-free income and growth you will receive in retirement.

No Required Minimum Distributions

Traditional retirement accounts like IRAs and 401(k)s mandate that you take required minimum distributions (RMDs) once you turn 72. Failure to do so will result in a penalty. However, LIRPs do not have any such requirements, giving you more flexibility in planning your retirement income.

Estate Planning Benefits

Lastly, a LIRP can also offer estate planning benefits. The death benefit of a LIRP is tax-free, meaning your beneficiaries will not have to pay any taxes on the money they receive. Plus, it provides a way to transfer wealth tax-free to your heirs.

In conclusion, a LIRP is an excellent way to reduce your tax liability in retirement. It offers tax-free growth, tax-free income, no contribution limits, no RMDs, and estate planning benefits. However, it’s crucial to work with a financial advisor to determine if a LIRP is the right option for your retirement.