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We create strategies that make sense for the self-employed and small business. We know that 90% are underfunded or not funded at all for Retirement. WE CAN HELP! Call us today and let's secure your future!
877-396-0004
Who We Are
SERFCO, the Self-Employed Retirement Funding Company, is a company that is dedicated to working with the self-employed and small business owners because SERFCO knows that small business owners are very special and very unique, and they're behind corporate America when it comes to retirement planning.
What We Do
We show small business owners how to protect their retirement contributions and gains with GUARANTEED VEHICLES where they CANNOT lose any principle or any locked in gains, and we show them strategies that will create a TAX-FREE INCOME STREAM THAT THEY CAN NEVER OUTLIVE!
Why We're Different
We're different because we're the only company in America that works with this niche market cliental almost exclusively, and we show small business owners how to have a very high level of Safety on their investment contributions along with a High Growth with what is called an Index Strategy. Premiums are linked to the S&P 500 Index, but the money is not invested in the market. So when the market goes up you get the gains with a cap, but when the market goes down, unlike in a 401k or mutual fund, you CANNOT lose your principal or any of your previous gains.
There isn't another financial product out there that can give the business owner ALL or even most of the following:
- Grows and Compounds TAX FREE
- TAX FREE Income during Distribution Phase
- NO Stock Market Risk! (Indexed Strategy)
- NO 10% Federal Penalty for withdrawals before age 59 ½
- NO Contribution limits, unlike most Qualified Plans and IRA's
- NO Complicated Administration
- NO Administration Cost
- A Once a Year Statement
- May Replace or Supplement a Qualified Plan
- Death Benefit Included (transfers Tax Free)
Contact us today to see what we can do for you!
Smart money management for the self-employed is vital if there is a desire to retire with security. One option that is now available to this small sector of the population is using index strategies to secure their retirement.
How would you like to protect your retirement contributions and gains with guaranteed vehicles, where you CANNOT lose any principle and lock in gain. We can provide you with index strategies that will create a TAX FREE INCOME STREAM YOU CAN NEVER OUTLIVE!!!
In the world of investing and retirement savings there is no worse tax mistake than buying capital assets such as stocks and growth mutual funds inside an IRA, 401(k) or other retirement plan. I call these mistakes Tax Tragedies.
What is a Tax Tragedy?
- A Tax Tragedy is a situation where you pay more taxes than required to pay by law.
- A Tax Tragedy is something you do that causes you to lose tax deductions.
- A Tax Tragedy is something you do that results in paying much higher tax rates than you need to pay.
Tax Tragedy #1:Â Capital Gains inside a Retirement Plan
Why? The reason is simple: When you have a capital gain inside a retirement plan it is "washed out." You get no benefit from very low tax rates on capital gains. All distributions of earnings are taxed as ordinary income.
Let me say that again: all distributions of earnings from your IRA or 401(k) are taxed at ordinary income rates which can be as high as 35%. Long term capital gain tax rates are no higher than 15%. Sometimes the capital gain tax rate is 5% (or even 0%) in situations that could apply to many retirees.
Example: So let's say you have invested $100,000 in your 401(k) and it has grown to $120,000 after a few years. You then sell the investments, realizing $20,000 in capital gains. If you take a distribution of the $20,000 it is added to your other income, and you could lose up to 35% of it in additional income taxes. If the capital gains had been realized outside a retirement plan, you would have paid no more than 15% on the $20,000 gain. The different is 20% of your gain or $4,000 in this example.
Tax Tragedy #2:Â Capital Losses inside a Retirement Plan
It gets worse. We all know that the trade-off for investing in stocks and growth mutual funds is that sometimes they lose money. When we sell these turkeys we have what's called a "realized capital loss." The tax benefit is to offset capital losses against capital gains, and then to deduct up to $3,000 per year of your capital losses against ordinary income. (Excess loss amounts can be carried over and used in the future.) When you're in a high tax bracket, the tax benefits from capital losses are substantial.
Example: So again let's say you have invested $100,000 in stocks in your 401(k) and you sell them when their value has declined to $80,000. You have a $20,000 "realized capital loss." This amount cannot be deducted on your tax return and it can't be used to reduce taxes on other capital gains you might have. If the capital loss had occurred outside of a retirement plan you could use it to reduce your other taxable income.
So remember, you get no tax deduction, or even an offset, for capital losses realized inside an IRA, 401(k) or other plan.
Tax Tragedy #3: Salt in the Wounds
Millions of people have their IRAs and 401(k)s in mutual funds. These funds charge about six different kinds of fees—many of them hidden. These fees are in the range of 1% to 3% per year. And it doesn't matter how much money you lose in the stock market either—the fund companies still take their fees. If you're with a bank or brokerage firm it gets even worse. And of course these fees and expenses are not deductible against other taxable income.
The best reason to do an IRA is for the tax benefits. If you qualify for a current IRA tax deduction, go for it. If you qualify for a Roth IRA, go for that also. But don't subject yourself to capital losses. And don't commit the cardinal sin of tax planning: i.e., do not convert LOW tax-rate income (capital gains) to HIGH tax-rate (ordinary) income. Do NOT put your long term capital investments inside either an IRA or a 401(k). Especially when they can lose money.
A Possible Solution
There is one solution I like, and I've studied retirement plan investments for over 15 years. I like IRA and 401(k) investments that have the following features:
- They never go down in value (no losses),
- They don't have fees or sales charges (or even commissions) taken out,
- They can be converted to a private pension (income for life), and
- Growth
The only place I've ever seen all of these features is in Indexed Life or a tax-deferred FIXED annuity sold by major life insurance companies. If you go with an A-rated company your money is safer than anyplace else in the world you can put it.
NOTE: Fixed annuities from life insurance companies are much different from "variable" annuities sold by stock brokers. Variable annuities have high fees and can lose you money. I'm not a fan of variable annuities for these reasons.
BONUS: There are NO contribution limits on after-tax contributions to tax-deferred fixed annuity contracts or indexed life. This makes it easy to place your CD or money market money inside a tax-deferred investment vehicle, rather than earning taxable interest income that you don't need.
Living Benefits versus Death Benefit
Due to competition for investment dollars, decreased mortality rates, new products, and the evolution of computers, the insurance industry is moving in the direction of allowing clients to put investment money in New and Exciting LIVING BENEFIT Life Insurance Policies.
We have found that 90% or more of our niche market clients, Self Employed and Small Business Owners are either NOT FUNDED at all for retirement, or grossly UNDER FUNDED not to mention, UNDER INSURED!
Although Death Benefit is very important, there is a tremendous opportunity to offer the new Living Benefit Policies that allows the majority of premium to be allocated to cash accumulation, and much lesser portion to be paid towards the Death Benefit. The end result is after the "Contribution and the Accumulation Phase money can be taken from the policy in the form of a LOAN when the "Retirement Distribution Phase begins. This is allowed by section 162 of the IRS Code, and this is all handled by the Insurance Company through the use of very sophisticated computer software. The predictability of Cash Back from the policy using a reasonable (7-9%) assumed rate of return, and the length of the Contribution Phase, makes this a very attractive retirement tool for our clients who qualify.
Please also visit these sites:
RetirementMoneySolutions.com
EducationalFinancialNetwork.com
401kRollover411.org
CollegeMoneySolution.com
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