Ask Terry Questions A New Retirement Strategy working toward zero taxes at retirement and not just Roth’s

A New Retirement Strategy working toward zero taxes at retirement and not just Roth’s

By Terry Savage on February 27, 2023 | Wild Card

Recently, my husband and I were sent an “educational” flyer to sign up for a class called “The Changing World of Retirement Planning.” The FREE 6-hour course (over 2 days) was held on a reputable college campus and marketed by SOFA Society for Financial Awareness. We registered and it was an interesting. As part of the course, all registrants were offered a Free 1 on 1 meeting with the Speaker. The crux of the course is to take your financial nest egg and put it into 100% Tax Free options. We were handed a book by David McKnight “ The Power of Zero” and given the name of a “movie” “ The Baby Boomer Dilemma.” ( A very dry watch)

Much of what is touted in the course, the book and the movie is this, because of the National Debt, Medicare, Medicaid, and Social Security, we need to protect our assets within the next 7 years so that we are protected from the inevitable and potentially HUGE tax increase coming down the pike. Also, they are using “math” to showcase the tax increase.

The “solutions” offered seem to fall into the insurance category, LIRP’s, Annuities, as well as Roth’s.

My question is, have you heard of this and is it valid?

P. S. Not sure that this is relevant, but the speaker came from a start up under 1 year in business. Previously, they have been job jumpers and worked as Jr. Brokers.
P.S.S I have a Financial Adviser, and they were not aware of this concept, which of course, the speaker said they wouldn’t.


Terry Says

I have not heard of it and my immediate take is that you are being sold a bunch of BS. I have no idea what “options” they are offering. But it sounds like they are selling life insurance to accumulate tax-free cash. Of course they make huge commissions on these policies. They get rich — not you!
Yes, you can “borrow” out of your life insurance policy — but along the way you are paying huge mortality costs, which give the salespeople “trailing commissions.”
Why not just open up a Roth IRA?? Yes, I know you can’t contribute “enough” to a Roth to get lifetime tax-free income. But these scare tactics that your money will be taxed away is making you lose sense of reality. Inflation is the real tax on your money. And these strategies don’t solve for that.
Remember: There is no free lunch. AND no free seminar!!



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