Using a Leveraged “Roth Conversion” to Transfer Tax-free Wealth to Loved Ones

(don’t forget to checkout the video of this blog too)

A Roth Conversion allows you to pay taxes today to eliminate the liability of future taxes.

This can be a great strategy for your own retirement in many cases.

But what if you’ve secured your own retirement income and have more money than you can spend⁉️

Well then it becomes a game of how to effectively transfer wealth to your loved ones! ❤️🤍💙

And ideally, it’s done as a tax-free wealth transfer!

But how do you do that⁉️

One strategy that is often overlooked is converting your taxable retirement dollars into tax-free dollars.

This is the same in principal as a Roth conversion but it’s done a bit differently.

It’s done by paying the taxes today and contributing that money into an insurance vehicle.

I know, I know… maybe you have an aversion to the word “insurance” but hear me out…

Life insurance is one of the most overlooked loopholes in the IRS tax code!

If you pay the taxes on some of your retirement money now you can do it in your chosen tax bracket…

Once that money is inside of a life insurance contract there will be NO TAXES whatsoever when it is transferred to your loved ones.

Plus, if it’s structure properly, you can amass a lot of accumulation within that vehicle as well.

And remember, all of the growth that occurs inside of a life insurance contract will transfer 100% tax-free to your loved ones as well (just like a Roth IRA).

So, if you do something like this in your early 60’s you can take about $35k per year out of your taxable retirement accounts (ideally in lower tax brackets)…

And reposition that money into an vehicle contractually guaranteed to leave approximately $3M tax-free transfer to your loved ones.

There is also a way to do this even more efficiently using an income annuity to fund the transfer (which gives you about 30–50% of premium leverage).

Which means you can transfer $3M tax-free for about $600k (or less)‼️

Let’s Chat 💬😎