Are you aware of the unique strategy called “indexing,” which can help you add a higher degree of safety and growth potential on the same dollar at the same time? Through innovative financial and insurance tools, you can add peace of mind knowing your nest egg is safe from market volatility. As a matter of fact, we have never lost a dime of our clients’ money due to market fluctuations. The secret is to not place it where it can experience a market loss. As you look ahead at the likelihood of increasing volatility in the market, it is important that you preserve your nest egg—the engine that drives your retirement future—from negative volatility.


Despite our current economy and gloomy predictions, periods of tremendous opportunity in the market are still likely. What if it were possible to preserve your assets from market downturns without having to make an emotional decision to buy, sell, or hold any one stock? We believe in indexing the market without putting your principal there. By “indexing” to the market instead of “owning” the market, you can link to indices without taking on market risk and lock in any gains without creating a taxable event.

How Can I Receive Income Tax-Free?

Do you need extra cash to supplement your retirement income? How about to help pay for college expenses? Wouldn’t it be nice if these extra income sources were available to you on a tax-free basis? Life insurance, in addition to traditional coverage, offers a means to do this by allowing you to deposit significant amounts of money in addition to the minimum required premium to pay for the life insurance.

There are two main ways that the policy holder can take money out of their policy. They can make a withdrawal from the cash value at any time, which is subject to ordinary income taxes. However, most insurance policies offer the ability to take a loan from the policy because, according to the IRS, as long as conditions are adhered to, loans are not taxed and so these loans from the policy come out tax-free so long as all the funds are not withdrawn from the policy. The death benefit acts as a sort of collateral until the loan is repaid and, in case the loan is never repaid, the difference is simply subtracted from the death benefit and the difference goes to your beneficiaries tax-free!

Policy loans and withdrawals reduce the policy’s cash value and death benefit and may result in a taxable event. Withdrawals up to the basis paid into the contract and loans thereafter will not create an immediate taxable event, but substantial tax ramifications could result upon contract lapse or surrender. Surrender charges may reduce the policy’s cash value in early years.

Overfunding a permanent life insurance policy creates the risk that the policy will become what is known as a modified endowment contract (MEC). For MECs, contract loans and withdrawals are considered taxable income.

Learn More About Annuities & Your Retirement

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