Each January we are faced with the opportunity to reflect on the decisions and choices we made in the prior year. It’s a great time to reflect on what went well, and what changes we need to make for the current year to be even better. When it comes to tax planning, the 1099’s we receive each January are also a pause for reflection on our financial gains, losses, and the tax impact of our financial decisions from the prior year.

So how do we maximize the growth of our assets, minimize the downside, and mitigate the impact of taxes? One strategy to consider is tax diversification.  It’s critical that we understand how our assets are taxed when we contribute, when those assets appreciate, and most importantly when we take income or a distribution.

Life insurance is an asset with tremendous tax advantages. Contributions grow tax deferred, and can be withdrawn tax free if structured properly. Also, there are no maximum contribution limits, which often constrain contributions to 401(k) or other types of qualified plans.


Download a copy of this concept:

The Power of Tax Diversification – Flyer
The Power of Tax Diversification – Powerpoint