The Importance of Tax-Free Retirement Income

For those who have worked hard to accumulate wealth, having enough income for retirement is of the utmost importance. However, with tax laws changing, stock markets experiencing highs and lows, and other economic factors at work, knowing which decisions will be best can be difficult. To help with this, executives and retirees rely on the financial experts at Wealth House LLC. By doing so, not only can they learn about various tax breaks, but also how making the best selections regarding investments, life insurance, and other areas can lead to a tax free retirement income utilizing Indexed Universal Life Insurance (IUL). If you are an executive, retiree, or other individual in Naperville IL, here are some ways Wealth House LLC can help with your financial planning. 

An Experienced Team 

When clients put their trust in Wealth House LLC, they know they will be working with a knowledgeable team of financial professionals. Insurance experts, along with estate planning attorneys, tax professionals, and investment advisers, work together to create a plan that guarantees the best possible tax free retirement income IUL. By providing various life insurance programs aimed at wealth transfers, clients can know the solutions presented to them will result in maximum wealth growth for decades to come. 

Tax and Wealth Management 

To achieve a retirement income that is maximized as much as possible, it takes a combination of tax and wealth management services implemented by experienced professionals. At Wealth House LLC, one of the ways this is achieved for clients is by taking a very proactive approach to tax planning. By examining the various strategies that can apply to each client’s unique financial situation, decisions can be made regarding which investments will best suit their needs. Whether for business owners or retirees, having strategies in place that will allow for reduced dividend incomes that result in lower tax brackets can result in substantial long-term savings. This, coupled with other strategies focused on defined benefit plans, tax preparation, and other aspects, can result in a personalized and very successful wealth management program. 

In-Depth Consultation 

For clients to be able to achieve their retirement income goals, they must work with financial professionals who listen to their concerns. At Wealth House LLC, we do just that. By taking into account a client’s lifestyle, financial goals, family situations, and future plans, we can customize a plan that is based on careful evaluations of these and other areas. And best of all, our team of professionals schedule regular meetings with clients, allowing for constant updates regarding the latest tax breaks and other factors that can improve their financial future. 

Rather than sit back and simply hope for the best in retirement, work with the team at Wealth House LLC. By doing so, not only will you learn about the many ways to achieve a tax free retirement income IUL, but other wealth-building strategies as well. To learn more about us, visit our headquarters at 564 South Washington St. in Naperville IL, call us at 630-780-1030, or email us at [email protected].

Benefits of Fixed Index Annuities (FIA)

For investors nearing or already in retirement, asset protection strategies are a major consideration in financial and investment planning. Investors seeking to protect and safely grow their investment savings should consider a fixed index annuity or FIA. An FIA provides principal protection along with a steady stream of retirement income and the opportunity to participate in equity gains during rising stock market environments. Below is a discussion of the key elements of FIA contracts.

What are the tax advantages?

A fixed index annuity is a tax-advantaged long-term investment vehicle issued by an insurance company. Investment returns are based upon the movement of an underlying stock index such as the S&P 500 Index. Floors and Caps specified in the annuity contract indicate the minimum and maximum returns provided under the contract. Your return will vary within this range, never falling below the specified minimum return and thus guaranteeing the safety of the principal amount invested in the annuity contract.

Funds used to purchase the FIA are never invested directly into the underlying stock index and thus investors are insulated from declines in the stock market. At the same time, investors are able to realize increased returns (up to the specified cap amounts) as the value of the underlying stock market index rises

Interest credited to the FIA contract is tax deferred until the investor begins taking withdrawals under the contract. The tax deferral feature makes the FIA an attractive investment option for taxable brokerage accounts.

The FIA can provide a guaranteed stream of retirement income for a fixed number of years or for a lifetime with the purchase of available riders. This makes the FIA a solid investment choice for the investor concerned about outliving his or her retirement portfolio.

What are the potential costs?

As with most annuity contracts, withdrawal or surrender charges may apply. Some contracts may impose fees on withdrawals during the guaranteed periods offered under the policy. Withdrawals from an FIA are subject to ordinary income tax and withdrawals prior to age 591⁄2 may be subject to a 10% penalty.

Protection of principal, a steady income stream for life, the ability to participate in equity gains during a rising stock market and the advantages of tax deferral are some of the benefits of a fixed index annuity or FIA. To determine if an FIA is right for you, contact Wealth House LLC. Our advisors can help you evaluate and determine if a fixed index annuity is appropriate for your investment portfolio and can discuss other asset protection strategies that may be available.

Contact Wealth House:

Headquartered in Naperville Illinois, Wealth House LLC provides integrated solutions for wealth, tax and insurance management. Contact us at [email protected], or by phone at (630) 790-1030. If you are in the Naperville area, visit our headquarters at 564 South Washington Street.

Contact us today to see how we can help you live your financial dreams!

Facts About Required Minimum Distributions

For years, Americans have been afforded the opportunity to save for retirement on a tax-deferred basis in accordance with Internal Revenue Service guidelines. But those same guidelines mandate a point in time when you must begin taking withdrawals from your tax-deferred individual retirement accounts and 401K retirement plans. Required Minimum Distributions, or RMDs, represent amounts you must withdraw from your retirement accounts beginning when you reach the age of 70 ½. This article discusses key facts about required minimum distributions and how they can affect your retirement and tax planning.

The rules apply to the following types of retirement plans:

• Traditional and Rollover IRAs
• SEP IRAs
• SIMPLE IRAs
• 401(k) and 403(b) Plans

The amount of the required distribution is calculated as a percentage of your retirement account balance. Distribution rates start at about 3.6% and increase annually. Distributions must be taken by December 31 of each year. However, your initial distribution can be delayed until April 1 of the year after you turn 70½. Note that such a delay will result in you having to take two RMDs in one tax year.

A calculation is made for each of your individual retirement accounts, but the amount of the distribution can be withdrawn from a single retirement account or a combination of retirement accounts. If you own a 401K or similar account, the distribution must be calculated separately for that account and the required distribution must come from the investments in that account.

Because you will be withdrawing from a tax-deferred account, the amount of the distribution will be taxable as ordinary income. Failure to take the full amount of the required distribution may result in tax penalties of up to 50% of the amount of the required distribution.

The annual distribution can potentially move you into a higher tax bracket or affect the taxability of your Social Security payments. As a result, you may want to consult with your tax or financial advisor in order to fine tune your financial planning.

You may find that you do not have an immediate need for funds from an annual RMD. In this case, the amount of the distribution can be moved to suitable investments in a taxable investment account.

Learn More…

About Wealth House:

Headquartered in Naperville Illinois, Wealth House LLC provides integrated solutions for wealth, tax and insurance management. If you are retired, talk to one of our financial advisors to find out how we can help you plan for and manage the required minimum distribution process. We can explain options available to potentially lessen the tax impact of the distributions.

Contact us at info.wealthhousellc.com, or by phone at 630-780-1030. If you are in the Naperville area, visit our headquarters at 564 South Washington Street, Naperville IL.

Contact us today to see how we can help you live your financial dreams!