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The U.S. Tax Code Has Changed. Have You? At the end of this article you will given the option to have a free CD mailed to your home to further explain how to structure a tax free retirement. Remember how you used to be able to use the interest you paid on credit cards, auto loans and the like, as an income tax deduction on your tax return? Those days are loooooooong gone. For most Americans their largest tax deduction is mortgage interest. So why the race to pay off the mortgage? We have to live within the rules of todays tax code, and use these codes to maximize the benefits given to us in order to maximize our retirement. Baby boomers, retirees and others able to pay off their mortgage early will be in for a big surprise when tax time arrives. Without having any the mortgage interest tax deduction, you will owe big dollars to Uncle Sam for as as long as you don't carry a mortgage. In fact many retirees today must pay quarterly taxes. Why? Because they don't have enough tax deductions to offset what they are making in income. By taking out a mortgage, or separating some equity, and using those funds to invest in a tax favored product, not the stock market, you are able to get back that tax deduction. Now that doesn't mean going out and getting a $200,000 loan necessarily. The payment must be comfortable and affordable to make on a monthly basis. The investment can grow tax free, to an amount that can pay off the mortgage many times over, and at the same time guarantee you a 1% rate of return, even in the worst economic times. Your principal is protected and you get a writeoff at the same time. There are many people who are undermortgaged as well. They make a good income but have paid 15 years on a loan that has a balance of $150,000. If these people aren't self employed or have rental properties, as many Americans do, they can owe Uncle Sam $10,000 - $20,000 or more per year in taxes! That is, because again, they don't have enough tax deductions to offset their income. When you are past the 15th year paying on a mortgage, you are paying more princinpal on your loan than interest. If these people were to do a new real estate loan, pull out or separate some equity, and put it into a tax favored product with principal protection, their monthly payments on the mortgage may only go up 20-30%, since they've been paying on their loan so long. Yes they go back to paying for 30 years, but in 15 years (the time they had left on the prior loan), their investment will have grown enough to payoff the mortgage plus quite a bit left over, and having saved themselves tens of thousands by now having a tax deduction via mortgage interest, and access to a tax-favored investment without any strings attached (ie..age limitations, income taxes, purpose for pulling out the monies etc....
What Kind Of Tax Favored Plan Are We Talking About? The answer has been around for decades. It's life insurance. Not just any life insurance though. It's a specific type of plan that only highly specialized life insurance licensed individuals can provide. It takes a highly trained person in this area. Financial planners and stock brokers can't sell you this product they aren't properly licensed. I will provide a company name below that has the properly trained personnel and licenses who can provide this product and its features. Investment Grade Life Insurance is a baby boomer retirement plan. It's also a plan for those who are undermortgaged as well anyone who is looking for a tax free retirement income plan. Investment Grade Life Insurance is where a portion of funds can be postioned or repositioned into a plan that provides tax free funds that remain accessible when you need it without penalty, which provides liquidity. The funds are principally protected in a bear market, which provides safety, and can earn a 30 year average of 9.38% that allows you to create a good rate of return. Additionally, this private retirement vehicle allows tax advantaged contributions, tax free accumulation, tax free withdrawal and tax free transfer to your heirs that would grow to an amount that could pay off your mortgage, many times over, maximize your tax deductions and fund your retirement without fear of outliving your income, while offering you all the emotional benefits of having a home paid off. The most unique feature of permanent investment grade life insurance is that under Section 71 (e) and 7702 of the IRS tax code, the accumulation of cash inside the insurance contract is tax advantaged. Not only can cash value accumulate tax free, but the cash can also be accessed tax free. It is a unique product that allows tax free account value accumulation, allows you to access your money tax free, and when you die, blossoms in value and transfers income tax free. There is no other product that can do this and create a tax free retirement plan. Using home equity turbo charges the plan and your income tax deductions. Instead of paying monthly on the plan, you contribute large chunks of cash, taken from the equity in your home. There are rules and laws that dictate how large of a contribution you can put in each year and stay within the tax free retirement plan. The affluent have used these plans for years as tax shelters. The middle class didn't have the disposable income to maximize the plan, so they paid on their plans monthly, and gave up on the plan too early and cancelled their policies. Paying monthly is o.k., but using large chunks of cash will get the interest compounding much quicker, which blossoms your investment. Which compounds interest faster? $500 per month over five years-$30,000, or plopping down $30,000 upfront and letting it compound over 5 years without making any additional monthly contributions? Using a rate of return of 7%, you make more than 25% more ($7900.00) by putting the lump sum of equity/cash into the plan. That's only the first five years. After 15 years and additional compounding interest, you make more than 40% more with the lump sum. And who can keep paying $500 per month for 15 years? Dropping in large chunks of cash in this case from home equity, over a 5 year period doesn't require you to keep making monthly payments on the plan. Set it, and forget it and reap the benefits of tax deductions and at the same time growing a tax free retirement plan. Ogan Financial Group Inc. in Simi Valley, California, serves the entire United States and is a firm that specializes in offering these types of tax advantaged types of plans. They have been personally trained by Douglas Andrew, the author of Missed Fortune, who writes about these stratagies in his book series, Missed Fortune. Again, there are specific licenses that need to be obtained to offer this plan. Financial planners and brokers and even financial advisors may not be familiar with these plans or how to properly structure them. Click here for your Free CD and type in your name and address and Mike Voogd, an experienced Ogan Financial Group representative, will mail one to you. The CD will further explain the Missed Fortune and tax free retirement strategies. There are also several 5-7 minute videos for viewing on the Ogan Financial Group Inc. site that are very useful and have an abundance of information on how to structure a tax free retirement.
 Catalyst Lending Inc. - 226 Sandberg St - Thousand Oaks, CA 91360 Office Phone: (805) 276-1942 Fax: 800-506-0632 Cell Phone: 805-276-1942 Catalyst Lending Inc.
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