Reduce Taxes

Reduce Taxes

While selecting tax-efficient investments and making the most of tax-deferred accounts may help reduce your tax bill, it won’t eliminate taxes altogether. There are a few options available that do have the potential to generate income or earnings that you generally won’t have to pay federal income taxes on—including many municipal bonds, Roth IRAs, and college savings accounts.

Tax Strategies For Retaining Wealth

Tax Strategies For Retaining Wealth

You may know your federal income tax bracket. But that’s not really what you pay. In fact, the middle 20% of Americans by income pay about 13% of income in federal income taxes. But that average hides a great deal of variation: Some Americans pay nothing, and others pay more than 30%. What determines the percentage you will pay? A lot of it is based on how much you make. But you can affect your tax bill by knowing the rules, managing how you generate income, choosing what accounts you invest in, and taking advantage of potential deductions. In general, there are three strategies to consider to try to manage your federal income taxes.

Life Insurance Retirement Plan (LIRP)

Life Insurance Retirement Plan (LIRP)

A LIRP is a life insurance strategy that functions in many ways similar of the tax-free characteristics of the Roth IRA. It
works by purchasing a cash value life insurance policy that the owner then “overfunds” for a period
of at least 10 years. The assets also grow tax-deferred in the life insurance policy and any residual benefit pays directly to a listed beneficiary tax-free.