Good evening Beautiful Women Supporting Women,
I hope you had an amazing weekend and day! I spent mine with three Ladies, disseminating Financial information to fellow Queens. We’ve created a group called The Fearless Foxes. Our mission is to empower, inspire and share information about Finances and Mental Health Awareness. COVID has allowed a lot of people to follow passions they never saw possible. I’ve learned to find the blessing in this pandemic. Hopefully, you have too.
This is the last week for Life Insurance Awareness Month so I would like to focus on how Life Insurance can play a role in Retirement! Yes, believe it or not, Retirement.
I want you to think all of your categories of Money and separate them into 3 Tax Buckets. Then think about the percentages you’re earning. Are you earning less than 1% but paying an enormous amount of taxes at the end of the year? If so, let’s look at what the 3 Buckets of Money represent and how you may be able to eliminate or minimize your tax obligation in the future:
Bucket 1 is your Taxable Bucket (Savings/CDs, Investments, Real Estate, Business, Our Income)
Bucket 2 is your Tax Deferred Bucket (401K, 403B, 457, Traditional IRA, Annuity, Other Deferred Compensation Plans)
Bucket 3 is your Tax Free Bucket (Roth IRAs, 529 College Plans within restrictions, Municipal Bonds, Cash Value Life Insurance)
In Retirement, our goal should be to allocate as much of our money into Tax Free Buckets as possible. With Cash Value Life Insurance policies, you can take money from the policy without paying taxes on it (some limitations may apply). This allows for you to have more money in your pocket during Retirement. Your money will be depleted due to taxes in the future, so why not lessen the amount we give back to the government?
Your Retirement may seem far away, but it’s a lot closer than you think. When you fail to plan, you plan to fail! Start where you are to preserve your future wealth.
I leave you with this question: Do you want to spend now and save later OR Save now and spend later? It’s all about mindset. Which will you choose?
If you have any questions, please feel free to post here or email me at: firstname.lastname@example.org.
As always, thank you for reading!
Have a beautiful and blessed week,
Changing the lives in our community….one family at a time