The Problem:
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Your income remains steady, but the market downturn devastated your 401(k) plan and personal portfolio
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You have discretionary income available, but the limits on pension and profit sharing plan contributions won't allow you to make up for losses quickly enough.
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You're having trouble finding a plan that offers both flexibility and stability.
The Solution:
Select 79 operates under an Internal Revenue Code Section that permits you to utilize permanent cash value life insurance with either an existing or new group term insurance plan to help you rebuild, enhance and supplement your retirement savings program. Select 79 is applicable to C corps and some LLC's.
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Contributions are 100% deductible to your business or practice and you report only a portion as taxable income. There are no limitations on amount of annual contribution.
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Voluntary - only those who want to participate can. If you are one of several partners and only you want to be in the plan - fine. There are no onerous participation rules to deal with.
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Flexibility - if you need to reduce your contribution in a subsequent year, no problem - annual contributions are extremely flexible.
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Plans are designed based on a 5 year period to coincide with most business plans.
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Cash accumulation is tax-deferred.
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Upside potential only - through indexing. There are no market losses - ever!
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Distributions from the plan/insurance contract are income tax-free (see Tax-Free Income).
Heath & Associates' top priority is the safety of your money as it is accumulating and generating income! We can create a high value benefit program for you. High risk is not necessary for high reward. When you consider market volatility, how appropriate are stock market investments for retirement savings and retirement income planning? When the market is up, have you ever been advised to realize mutual fund, variable annuity or stock gains for your strategic plans or are you just part of your advisor's asset management income plan?
Did you know that five out of six retirement-minded individuals do not have a plan to protect their retirement savings from the next market downturn? Nor have they done any retirement income planning. There have been 15 Bear Markets since 1929 (approximately one every five years). Its average duration is 1.5 years, yet the average time to break even is 5.2 years. Therefore, it takes 6.7 years to recover from an average market decline. Did you know that the average bear market decline is 38%? The gain required to break even is 61%. The last bear market decline was 57%, that means the gain required to break even is 135%. Does that work for you?
Would you like to participate in market gains, yet avoid all market losses? When you think about it, how else would you build a retirement "nest egg" and live off it for the rest of your life?