Tax-Free

Strategies

Intentional, creative options to transition assets into a tax-free environment

Keep more of what’s yours.

Significant implications from potentially changing income tax rates will have a major impact on all of us. At Prevail, we believe that diversification not only includes limiting investment exposure to market volatility, but also planning for fluctuations in income tax rates—so that you can ultimately keep more of what’s yours.

Pre-tax. Post-tax. Tax-free.

Since the early 1980s, financial professionals have advised putting as much money as possible into tax-deferred investments. And in the ‘80s, that seemed logical—the top tax rate was 70%, so postponing the tax impact made sense. But what about today? No matter if you believe income taxes are likely to go up or down in the future, we can count on some fundamental truths. For instance, at retirement, your income-tax deductions will largely be gone, leaving your next egg exposed to a greater tax impact. As a result, smart strategies for our present environment should not simply focus on tax deferral. Instead, smart strategies include a combination of pre-tax, post-tax and tax-free vehicles.

Leave tradition in the past.

Many financial Investment Advisors Representative continue to advise clients based largely on traditional thinking—thinking that was applicable to the financial environment of 40-50 years ago. But, at Prevail, we intentionally leave those traditions in the past. Our philosophy is that clients should not only diversify by asset class and type to protect against market volatility, but also diversify to protect against higher future income taxes.

Tactics &
considerations

The power of Prevail.

We develop personalized, wealth-building strategies that allow retirement income to be withdrawn at or nearer to a 0% income tax rate. It’s an approach that puts you in control of your tax bracket and allows you to keep more of your hard-earned money. 

Our investment vehicles also include many other advantages over traditional methods like: 

  • Tax-free growth 
  • No IRS reporting 
  • No age 70 1/2 required minimum distributions 
  • No age 59 1/2 early withdrawal penalty 
  • No provisions on income causing social security to be taxed 
  • No stock market risk 
  • No income or contribution limits 


Prevail’s focus on retaining more of our clients’ accumulated wealth by structuring products that have traditionally received favorable tax treatment from the IRS enables our clients to: build more wealth, keep more wealth, and hold the power over their financial future.

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The power of Prevail.

We develop personalized, wealth-building strategies that allow retirement income to be withdrawn at or nearer to a 0% income tax rate. It’s an approach that puts you in control of your tax bracket and allows you to keep more of your hard-earned money. 

Our investment vehicles also include many other advantages over traditional methods like: 

  • Tax-free growth 
  • No IRS reporting 
  • No age 70 1/2 required minimum distributions 
  • No age 59 1/2 early withdrawal penalty 
  • No provisions on income causing social security to be taxed 
  • No stock market risk 
  • No income or contribution limits 


Prevail’s focus on retaining more of our clients’ accumulated wealth by structuring products that have traditionally received favorable tax treatment from the IRS enables our clients to: build more wealth, keep more wealth, and hold the power over their financial future.

Consider This

When Social Security was created, workers started receiving benefits at age 65. But at the time, life expectancy was only 62 years, and for every 42 people paying into Social Security only 1 person was taking money out. Since then, life expectancy has increased to more than 75 years of age and Americans can now start withdrawing at age 62. Income taxes are one of only a few ways that income is generated to run government programs like Social Security and pay down national debt. And, if you think income taxes can’t possibly go up “too much,” in the 1980s when 401ks were developed as a result of the Revenue Act of 1978, income taxes were approximately double what they were in 2019.

Do You Have Tax Strategy Questions?

We Have Some Answers

This is a common question, and why tax deferred investments have been broadly utilized.  This common belief is why investments in tax-deferred accounts are promoted so widely. However, if tax brackets are higher in the future, those in retirement will likely have more of their money taxed at this higher rate. Plus, deductions are almost always fewer in retirement since children are most likely grown, there is little or no mortgage interest as a deduction, and often, time is given to charities vs. money donated. So, even if income is lower, deductions are gone. Either way, there is more evidence to suggest that tax rates will be higher – or at the very least NOT lower – in retirement.

Life insurance is not an investment in the traditional sense of the word. It can, however, be an extremely valuable asset to protect our clients from the uncertainty of future income tax rates. When existing assets are transferred into a tax-free environment prior to rising tax rates, it provides an improved “tax equivalent” return. Life insurance should not be an investor’s only investment. It is meant to complement and enhance the entire portfolio.

Life Insurance is not intended to produce high, equitystyle, returns because it doesn’t include a high-risk profile. In fact, it’s the opposite. Life Insurance, particularly dividend paying policies, are incredibly predictable and experience consistent, growth year-over-year, even in market down-turns. Plus, the tax equivalent rate of return of both the cash value and the death benefit actually results in very favorable “return” and leverage given the risk profile.

Think of it like your general practice doctor. While they may be an accomplished physician, if you need heart surgery, even your general practitioner would recommend you see a specialist. While any licensed insurance agent can legally sell and provide an insurance product, most have very little experience, if any, with positioning, designing, coordinating and servicing these plans. Most agents and financial Investment Advisors Representative have heard about “overfunding” life insurance, but very few truly understand how to design, implement and service these plans as part of an overall financial strategy.

Want to learn about powerful strategies to achieve 0% taxes at Retirement?

Our Investment Advisors Representative can send you with information and insights.

We Make Financial Planning Stress-Free!

Our Team-Based Approach is Comprehensive & Easy

1

Learn About You

Your Vision
Your Objectives
Your Opportunities
Your Challenges
Your Entire Picture (ie. Business & personal)

2

Develop Custom Strategies

Based on your unique situation
Leverage our team of experts
Establish wealth creating strategies
Determine ideal source of asset transfer

3

Build Wealth

Agree on and implement strategies
Establish tracking tools
Communicate regularly
Support you with a financial BOD

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