Secure your retirement

NAVIGATING FINANCIAL PERILS

In recent times, inflation has surged to its highest rate of growth since the early 80s, raising concerns among Americans, particularly regarding retirement planning. Addressing the impact of taxes, inflation and market volatility becomes critical in planning for retirement and extending the runway of your assets.

The 3 Biggest Dangers in Your Financial Journey

1. Taxes:

The always-changing tax rate poses a considerable risk to your financial well-being. Income tax, capital gains tax, and estate tax considerations demand a proactive approach. Withdrawals from traditional tax-deferred accounts like IRAs and 401(k)s incur taxes, potentially eroding 25% to 33% of the withdrawn amount over a lifetime.

2. Inflation:

Often likened to a hidden tax, the cost of living tends to double every seven to 10 years, necessitating significantly more funds in later years to maintain current lifestyles. Inflation silently erodes the purchasing power of your money, posing a threat to your retirement lifestyle.

3. Market Volatility:

Investments in traditional portfolio accounts like IRAs and 401(k)s are vulnerable to economic downturns, exposing individuals to substantial losses during market fluctuations. Market turbulence can have a profound impact on your investments.

So, what should you be doing to prepare for and succeed in the wake of rising taxes, inflation and market volatility?

3 Resolutions to Safeguard Your Financial Future

1. Tax-Free Vehicle:

Incorporate tax-efficient financial vehicles into your strategy to combat the tax danger. The WealthX (Indexed universal life insurance | IUL) policy from The Policy Shop stands out as a prime example. All of funds you contribute to your WealthX (Indexed universal life insurance | IUL) Policy earn interest for you tax free and compounds tax free.

3. Indexing for Growth:

To counter the reduced spending power caused by inflation, it’s imperative to grow your assets in vehicles designed to outpace inflation. The Policy Shop’s WealthX (Indexed universal life insurance | IUL) Policy uses the power of indexing to solve for this challenge. You can select the indexes of your choice as a crediting method to earn compounded interest that is based on the performance of specific market indexes, without actually investing in the index.

2. Locked-in Gains:

Protect your wealth from market volatility by using indexing. The WealthX (Indexed universal life insurance | IUL) policy from The Policy Shop provides downside protection, meaning you are not at risk of losing principal or accumulated gains based on the negative performance of a market index. By using an indexing strategy, although you are credited for the positive gains of the market index, you are not directly invested in the index and therefore your principal and accumulated interest is protected from negative returns.

Embracing WealthX, (Indexed universal life insurance | IUL) a tax-efficient financial vehicle that grows and protects your assets utilizing indexing strategies form a robust foundation for a sound financial plan to not outlive your retirement.

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