When the Tax Man Cometh – Are You Going To Be Holding the Bag?

Written By — David Shafer

Frankly, most of the talking guru’s you find on television aren’t worth the time to watch. One exception is Ed Slott. He bills himself as the IRA expert and really knows what he is talking about. He is a CPA and isn’t one of those CPAs who sells insurance and investment advice. He is simply about taxes. He is a big believer in using life insurance as a way to avoid having to pay taxes. In fact, he calls it one of the golden nuggets of financial planning.

It shouldn’t surprise anyone that I point him out. The biggest hurdle I have to overcome in selling the structured EIULs, is to get people to understand that taxes are the biggest drain on your wealth. Mr. Slott and I agree that IRAs [Roth or standard] are designed for the government’s needs, not for your needs. Real estate investing provides all sorts of tax advantages. EIULs take the tax out of your retirement.

If you have worked hard to create wealth for your family, then you owe it to yourself and your family to keep that wealth for your use, not the government’s! The flexibility of life insurance allows policies to be structured in a myriad of ways, allowing me to create the most tax efficient protection you can have. But, as always, a little planning before the event is required. If you are in your 40s or 50s you really should look at the way a life insurance policy can help you have a tax free retirement. And if you are earlier in life, then a life insurance policy can put you way ahead of your peers. My last two clients [age 42 and age 35] spent much time worrying about the expenses inside the policy even though we got it down to less than 1.2%. Finally, I asked them what the tax percentage would be when they retire? They didn’t know. Then I asked them who were going to pay for the current wars, the bailout, the oil gushing into the gulf, and the folk’s retirement that haven’t saved money. Before they answered, I told them I had planned to not be the one holding the bag on those expenses. Are you going to be holding the bag and paying for those and future government expenses?

BawldGuy Here: Couldn’t help myself — Dave’s weekly post will skip next week as he executes his own Purposeful Plan to Get Outa Dodge. He’s moving his operation and family outa the Florida (Tampa) market. He’s not waitin’ ’till it’s too late. Thought you’d like to know.

Related posts:

1. Purposeful Planning Part Last — When’s Holding Period Over? What Now?
2. How Real Estate Investors Get It Done – Holding Periods
3. Buying And Holding — Real Estate Strategy Leading To Unintended Consequences
4. The Flexibility of the EIUL Is Impressive – There When You Need It
5. Real Estate Investors – EIUL As Tool For Estate Planning