Tax Free Matching Resource Page

As Fiduciaries, our goal is to stress-test strategies, find out what is wrong with them and make sure all the estimates are conservatives. New videos are added often. If there is a certain analysis you would like to see, please send me an email.

If you are new to the Tax Free Matching program watch the 3 minute overview on this page first.  Use the links below to jump to the videos on this page:

Using Tax Brackets To Save Six Figures or More in Taxes

3 Minute Overview of the Tax Free Matching Program

How The Money Grows: A Deeper Dive Into Performance

Expense Analysis

Insurance Costs: Can you have a low cost tax free asset?

How To Quickly Evaluate Your Return On Capital

3 to 1 Matching Case Study with Costs

The Top Six Reasons People Use the Tax Free Matching Program

Using Tax Buckets To Create $750,000 In Additional Wealth

How To Allocate Assets With Tax Free Matching

How To Double Your Tax Free Income

How Using Loans As Income Creates an Extra $1 Million

How The Tax Free Matching Program Secures Your Future Income

Full 3 to 1 Mathching Webinar Replay

How To Use The Online Demo To Estimate Income

How To Use Tax Brackets To Save Six Figures or More in Taxes

You can use tax brackets to save a fortune in taxes. If you are a high income earner, you can combine taxable and tax free sources of income to save six figures or more. This is the most underutilized tax planning strategy for high income earners.

3 Minute Overview of the Tax Free Matching Program

Highlights:
 

• Up to 3 to 1 matching on contribution
• 60% – 100% more retirement income vs. saving on your own
• Save six figures or more in taxes during retirement

How The Money Grows: A Deeper Dive Into Performance

With the Tax Free Matching Program, the funds go to an A+ rated insurance company who then uses “Options” to grow the funds. Estimates typically show 60%-100% more retirement income vs. saving on your own. Are the numbers they give us realistic?  This video looks at stress testing, back-testing and actual performance.

Performance Highlights:

• When calculating income estimates, the online demo uses 6% interest. Actual performance over the last decade has been over 7%.  Roughly 20% better than estimates. 
• Historical back-testing shows a 100% probability of a 6% or greater rate of return over 10 and 15 year rolling periods.
• Plans pass stress testing through 1980’s High Interest Rates and The Great Depression.

Option Highlights:

• Upside growth potential based on the performance of market indexes with a 0% floor to protect from market losses. 
• Any interest earned locks in every 12 months and cannot be lost in future years due to market downturns.
• New advanced “Uncapped” options strategies are available with the ability to “Lock” index gains during the year.

Expense Analysis

The cost of indexed life insurance is a big topic. Advisors are either scaring people away from indexed life insurance or scaring people away from the market to buy and indexed life policy. What do the actual numbers say and what is the cost of an indexed life policy compared to a 1% management fee on assets?

Insurance Costs: Can you have a low cost tax free asset?

Search the internet and you will see people either love or hate life insurance as a wealth accumulation vehicle. But, the tax free benefits are unmatched in the tax code and not in dispute.  Still are the plans too expensive even with the tax savings? Most articles offer criticisms of cost, but few offer solutions. What we really want is a low cost, tax free asset.

Due to strict requirements by the bank to offer the 3 to 1 match, the insurance strategies used in these plans are designed to minimize costs.  These plans are different than the “off the shelf” versions you would see when buying a regular indexed life or whole life. Both of which can be poor investments when structured improperly.  

Cost Structure:

• Insurance cost are reduced by using a blend of term insurance and permanent insurance
• Plans are structured to buy the least amount of insurance required by the IRS
• Agent compensation is reduced
• Cumulative cost total much less than 1% over time, not including the tax savings

Other highlights:

• Costs are higher in the first 1-3 years because the IRS won’t let you put all the money in at once
• It generally takes 3-5 years for the plan to go cash flow positive
• The average plan can generate six figures or more in tax savings during retirement

How To Quickly Evaluate Your Return On Capital

Highlights:

• ROIC or Return on Invest Capital helps you know you are using money in the most efficient way
• In simple terms ROIC is how much you get out for what you put in 
• 8x – 12x is a good range to target for low risk strategies

3 to1 Matching Case Study with Costs

Highlights:

• Quick overview of a client case study
• Tools we use to evaluate costs
• IRS rules required

The Top Six Reasons People Use the Tax Free Matching Program

Highlights:

•  Tax Protection: Yearly tax savings of 10k to 20k or more during retirement
• ROIC:  14x-20x return on invested capital with distribution and legacy benefits
• Catch Up or Get Head: Secures your future income while protecting your current lifestyle
• Massive backdoor “ROTH”:  Can double your tax free income down the road
• Recapture Time: Using the bank matching is like you started saving 10 years earlier
• The Dynasty Path: A foundational piece to help your wealth continue to grow  for generations vs. decline during retirement

Using Tax Buckets To Create $750,000 In Additional Wealth

Highlights:

•  How we helped a client create $750,000 in additional wealth
• How to use tax buckets
• The basics of offensive and defensive assets

How To Allocate Assets With Tax Free Matching

Highlights:

• Try to secure your future income with the least amount of capital
• 15%-30% should be a good target
• Always include the tax savings

How Using Loans As Income Creates An Additional $1 Million

Highlights:

• Why the wealthy use loans as income
• Keep your wealth growing while taking out income
• The simple math of how banks get rich

How To Double Your Tax Free Income

In the normal tax free matching strategy, you contribute 50/50 for 5 years with the bank matching. Then the bank fund 100% year 6-10. Bank is paid off by the growth in the insurance policy in year 15 and you can take a tax free income stream anytime after that.

However, if you use outside funds to pay off the bank from other capital – a real estate or business sale, etc you have now converted those funds to tax free because all the fund in the insurance policy are now free and clear and tax free forever.

This functions basically like a “no limit” back door ROTH.  Note: You would still need to pay capital gains tax on the funds from a real estate or business sale.

• The potential to double the tax free income
• It’s “Provisional” only use it if you have the extra capital
• You could do partial payoffs
• Allows you to start income as soon as year 11

How The Tax Free Matching Program Secures Your Future Income

Highlights:
 

• Up to 3 to 1 matching on contribution
• 60% – 100% more retirement income vs. saving on your own
• Save six figures or more in taxes during retirement
• How the Bank Matching is structured
• Pros and Cons

Full 3 to 1 Matching Webinar Replay

Highlights:
 

• Good overview of plan details
• Client Q & A
• Deeper dive into certain elements of the strategy

How To Use The Online Demo

Highlights:

• How to calculate your projected income
• Navigating all the resources
• Comparisons to other investment options

• Gains “Lock In” every 12 months and cannot be lost in future years due to market downturns.

• Fees average 1% or less over time