The Tax-Free Retirement Engine…An American Story

Nearly a hundred and eighty years ago an American engine was built to make special financial benefits available to all citizens. It was perfect.  It worked.  It was risk and maintenance free. It had inherent social and tax benefits that remain sacred today.

But times change and new “variable” financial engines, seemingly more exciting, were built.  The original perfect engine, perhaps now a bit boring, had to be improved to keep pace. But alas, as things continued to change (technology, expectations, and the economy) the “new” ones ran into problems.  Our original engine remained perfect, but still boring.

As people stopped embracing the new ones, even newer, more exciting, and riskier engines are built. The original is again forced to adjust with some updated and risk-free features of its own if it wants to retain the description of “still perfect.”

After a few more repetitions of this cycle, and more challenging issues to be dealt with such as changing tax laws, de-regulation, new regulations, and an economic meltdown that ultimately brings the risk-reward “benefits” of the newer more exotic engines into question, the enlightened begin to go back and examine the original (and still perfect) Tax-Free Retirement Engine which has retained all its benefits with no negative impact from the new regulatory rules, tax laws, and benefit distribution changes. 

1. With all the issues that caused problems for other financial engines, and their consumer passengers, the original Tax-Free Engine didn’t breakdown.  It didn’t go “backwards.” It didn’t care which elected chief engineer or officials were in charge.  There will be no impact on our engine if income taxes go up, or estate tax laws change. The NEW Tax-Free Engine is not influenced by negative change or risky decisions. It is impervious to recessions.  You will never loose money no matter what the market does, not ever!  You participate in the gain if the market goes up, but you will never loose the, even in down market years.  The money will grow tax-deferred and can be withdrawn tax-free.  You are always in control.

The Tax-Free Engine was called permanent cash value life insurance. It was great back then, but with the NEW  no risk “indexed” engine and “living benefit” feature in the event of critical, chronic or terminal illness, it is even better now.  It is still the perfect tax-free retirement engine…only more so!

Written by Richard Drazien for the exclusive use of FCA Insurance Services Inc.

April 2012