Retirement Planning Tool For Tax-Free Income

Retirement planning seems to be such a depressing activity that a recent survey revealed the average person in this country would rather scrub the dirtiest bathroom with a toothbrush rather than engage in it.

I guess no one can blame them. After all, studies do show that Americans have a zero savings rate; and, 52% of today's earners have less than $25,000 in a retirement account.

At first glance, one might easily conclude that a financially secure retirement is only for a privileged few.

However, a closer look at some little-known strategies reveals that it is not all doom and gloom.

In fact, a number of American homeowners have the ability to retire both at an early age and in financial freedom, if only they are shown how. Many have a very powerful tool at their disposal. Yet, few know how to use it.

But I bet you'd be surprised to learn, the retirement planning tool in question that has the ability to jumpstart the early retirement of many, has nothing to do with a 401K or a Roth IRA.

The secret lies in home equity separation which ranks among the top 3 strategies that the financially savvy use to substantially increase their net worth and have the retirement income they need...tax-free.

It is by far superior to any 401K, Roth IRA or any other traditional retirement savings strategy.

Here's the way it works in simple terms. A qualified mortgage planner helps you reposition the equity in your home with a strategic loan program. Then you arrange for a qualified financial advisor to manage the equity proceeds in an investment vehicle that is safe, liquid; and, has tax-favorable treatment.

This strategy (when done correctly) may:

This strategy is so effective that it is also applied in small business retirement planning. Its effectiveness lies in the principles of control and compounding.

For example, let's say your advisor invests your proceeds in a safe vehicle that earns you 8 percent a year, the interest earns more interest when reinvested. In five years, the return on your investment could be 47 percent; and 116 percent after 10 years.

Because these funds are growing in a tax-favored environment, your money is growing alarmingly quicker because there are more funds to generate earnings since little to none of it is being taxed.

Further, and most importantly, there are no restrictions as to how much you can take out nor how old you have to be before you withdraw (if you want to make withdrawals at all). Thus the element of control.

If you can successfully leverage and manage the equity that is idly sitting in your home as described above, you will then enter a different of planning, what we call financial freedom retirement planning which can even propel you into early retirement.

In addition to having the option of leaving the daily grind much sooner, or selling your small business for maximum profit, you will also be positioning yourself to enjoy tax-free retirement income that you may never outlive.

As you can see, the strategy we just discussed covers many topics. It can be applied in so many ways that many entrepreneurs have made it a part of their small business insurance strategy.

I encourage you to print this article and share it with your financial planner or your CPA. To find out if you can benefit from such advanced mortgage planning strategies. Contact Me Today!

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