Benjamin Franklin once said, “Nothing is certain but death and taxes.” We all know taxes are unavoidable, and nobody enjoys paying them, but–there are some little known ways to legally reduce your tax bill.
While we are not CPAs or accountants here at Legacy Today, we do know about three ways the Bank on Yourself Revolution can help you save a lot of money when it comes to taxes over the course of your lifetime.
Tax Advantage 1: Tax-Free Retirement Savings Withdrawals
There are various ways people save for retirement through tax-deferred accounts like 401(k)s, 403(b)s, IRAs, and more. However, what direction will tax rates go in the long run? It’s hard to know for sure, but if you paid any attention to the most significant stimulus programs our country has ever implemented earlier this year, you’re probably considering what that is going to do to tax rates in both the near and distant future.
If taxes increase, and you’ve been growing your nest-egg in one of these tax-deferred investment accounts, you’re going to pay more taxes on that larger number.
What’s your alternative? The Bank on Yourself Revolution. Your cash value in this type of high cash value, low commission, dividend-paying whole life policy grows in a couple of ways. The first is, you receive a pre-set annual cash value increase even when the market is struggling. The second is the potential for dividends. While dividends aren’t guaranteed, the company’s Bank on Yourself Revolution professionals recommends paying dividends every year for the last 100+ years. That includes the Great Depression, every recession, and pandemic.
Tax Advantage 2: Reduce Taxes on Social Security Benefits
Many people aren’t aware that you may be taxed on social security benefits.
For example, if a couple makes more than $32,000 from retirement account withdrawals and some other specific sources, 50% of their Social Security income gets taxed.
If a couple retires with an income of over $44,000, up to 85% of their Social Security income can be taxed!
However, the income you take in retirement (or at any other time) from a Bank On Yourself policy is NOT included in the income totals the IRS uses to determine whether–or how much–your Social Security benefit is taxed.
Tax Advantage 3: Leave a Larger Financial Legacy
A valuable and often under-appreciated benefit of a Bank on Yourself type of policy is the death benefit. It provides financial stability for your loved ones in the event of premature death. Similar to the cash value, the death benefit of a properly structured policy grows significantly.
The global pandemic this year has made many of us aware of our mortality, regardless of age. By taking action, you can have greater peace of mind that you can keep promises you made to your loved ones and provide financial security in the event of your untimely passing.
The death benefit goes to your loved ones and/or favorite charities, income-tax-free, under current tax law. It also bypasses probate. That just doesn’t happen with traditional retirement plans.
Ready to learn more and take control of your Legacy?
Contact us to talk to an expert.
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