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Create An Income & Inheritance

Do you want to spend your entire estate in retirement and give $1 million of it to your family? You might be thinking it’s impossible to do that, but at BNJA, we can show you how to do it.

Let’s say you have an estate valued at $2 million to retire on, but you want to make sure you leave $1 million to your kids when you’re gone. This means you will only be able to draw an income from $1 million, leaving you an income of $50,000 to $60,000 per year for retirement. This also does not avoid estate taxes on your qualified assets (IRA, 401K, Pension, etc). This means that your estate will end up paying about $500,000 in taxes. This is a bad deal for you and your family. You retire on half the income you should and your kids inherit $500,000 instead of the $1 million.

There is a better way for everyone. All it takes is a little planning. Instead of retiring on $2 million and saving $1 million for your kids, retire off the whole $2 million. This will give you an income of $100,000 to $120,000 per year for retirement. Let’s say you only spend $100,000 per year in retirement. Take the additional income of $20,000 per year and purchase a life insurance policy on you and your spouse for $1 million.

Now, you get to retire off twice as much income per year and your family will receive the $1 million from the life insurance policy tax-free when you’re gone.

There is another way to add to your inheritance. A Life Insurance policy can be purchased on one or both of your parents. Although we don’t want to see the demise of our parents, it is a way to know exactly what you will receive after their passing. The policy must be structured so as to avoid as little taxes as possible.

If these planning options interests you, contact BNJA for a FREE consultation.