Mark Quann: Rich Mans Roth IRA

Mark Quann – Rich Mans Roth IRA

If you are lucky enough to live in the United States, you are among the luckiest people in the world. But dark clouds are on the horizon, and it is time to pay more attention to the coming financial storms that will likely bring higher debt, and higher taxes to pay for the debt. According to the Congressional Budget Office, the United States is on the verge of bankruptcy:
http://blogs.wsj.com/washwire/2016/07/14/in-latest-cbo-data-more-warnings-that-u-s-debt-is-on-an-unsustainable-path/

Not sure you or I can do much about it. We have Hillary and Trump as our choice for our future President. What a disappointment. And I just took my oath to become a US Citizen. Fortunately for me I get to keep my Canadian Citizenship, just in case the Sh** hits the fan.

I read that more Americans are Googling “how to immigrate to Canada” since Trump began his run for Presidency. If he wins, I plan to run for Prime Minister of Canada and I plan to build a wall. Canadians need to keep the illegal Americans from jumping our border. Oh ya, and I  plan to make the US pay for the wall. Okay, that may not be the best campaign strategy. But neither is lying about everything.

Either way: If you are reading this, get ready for higher taxes…much higher taxes, regardless of who gets into office.

If you also agree that taxes are going up, you may want to consider a strategy to reduce your taxes in the future, such as a Roth IRA. Thanks to Senator Roth you can pay taxes on your money when you earn it, to eliminate the taxes on the distribution of your Roth IRA at retirement age.

But you should know about what has been called the “Rich Mans Roth”, or an Indexed Universal Life insurance policy. With this policy, you can invest your after tax money (just like a Roth IRA) and eliminate taxes on the growth and distribution of your money. This strategy is more commonly used by people that earn “too much money” to qualify for a Roth IRA. The policy provides a death benefit (I’m worth 2.8 million if I die), and the death benefit, plus the cash value, is exempt from State and Federal Taxes (and exempt from Probate, aka more taxes). And the money in my IUL increases when the market goes up, and can’t lose money if/when the market crashes. Yes, it will crash again, we just don’t know when.

So my advice to many of my clients? “Use a Roth IRA”, but if you want a bigger bucket to sock away your after-tax money, a properly structured IUL can be a great place to protect you from the next market collapse. It may also help protect you from our ever-expanding government that spends billions it does not have–while simultaneously voting for larger Federal government salaries, and larger pension plans.

If you would like advice in ways to set up Roth IRA for yourself, or how to set up an IUL policy, send me a message and Ill see how I can help.

 

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