Bonds are generally regarded as tax-inefficient because the interest payments are always taxed as ordinary income – the highest rates in the code. Unless of course, you buy tax-free municipal bonds. But it turns out those aren’t so tax-free either.
More and more savers are discovering that insurance products uniquely fit the bill – particularly indexed life insurance and indexed annuities. In fact, much of the money that has fled the market in the last several months is finding its way to insurance companies because of their feature set.
We are advocates of a plan that is also funded with after-tax dollars, and like the 529 plan, is accessible tax-free. It doesn’t generate a state tax credit, but it also eliminates any FAFSA penalty, and those tend to cancel each other out.
Where our plans really shine is that they are not exposed to market risk, and they can be used for any purpose – college, starting a business, travelling the world, or starting a killer long-term tax-free retirement account.
The S&P 500 is down 8% this year already — including another 2.2% Friday — in what’s been the worst start to a year ever. Since the market peak on May 21, 2015, the market has declined 11.7%.”
Then, think about the really big things that can happen to you. For example, what if I… 1) Die too soon, 2) Live too long, or 3) get sick?
… find a qualified, interested prospect and make a deal happen. The problem is, most realtorslive in a Field of Dreams – believing that “if we list it, they will come.”
