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  • Writer's pictureRetirement and Annuity Advisor Jennifer Lang

Thinking About Early Retirement?

Updated: Oct 22, 2021

Keep More of Your Money and Avoid Costly Mistakes.

Did you know?

Tax-deferred strategies can help you be more prepared for retirement. Find out the options we can offer you!


Retirement is not an age or a date.

It’s a strategy that covers Social Security, taxes

and long-term care costs not covered by Medicare.

Good retirement tax planning starts in your 50s.

Get our FREE 401(k), IRA, 403(b) Rollover Guide to learn more!

Don't Be a Victim To The Market. Plan Your Own Financial Future.

When you think about it..... you’re taught how to make money. But in retirement, you've got to know how to spend it wisely.

Social Security Tax If you’ve built up a large balance in 401(k)s, rollover IRAs and other tax-deferred accounts and have another source of income, such as a pension, RMDs can create a host of tax tribulations. Because the withdrawals are taxed as regular income, RMDs could push you into a higher tax bracket. And the increase in your adjusted gross income could trigger other unpleasant consequences, such as higher taxes on your Social Security benefits, a surtax on your taxable investments and a Medicare high-income surcharge. Here's the bad news: Up to 85% of Social Security benefits are taxable. If your provisional income is $25,000 to $34,000 for single filers (or $32,000 to $44,000 for joint filers), then up to 50% of your benefits are taxable. If your provisional income is more than $34,000 ($44,000 for joint filers), then up to 85% of your benefits are taxable.

The good news: It's possible to manage how much of your Social Security is taxed. Let's compare. What's a better investment? ..... vs ..... What's a better way to protect a lump of cash that will last through retirement? If You Are Committed To Saving, Now Is a Good Time To Protect Profit With a Tax-Advantaged Growth Strategy. Tax-Deferred Solutions Such As Fixed Index Annuities Are Safe From Market Loss. With Protected Growth, Lifetime Income, a Death Benefit for Your Family and Liquidity. Watch the following video to learn how.....

Take control of your tax bracket now.

Qualified Longevity Annuity Contracts (QLACs) are just one possibility for deferring RMD taxes.

You can use the money from your 401(k) or IRA to purchase the annuity, subtracting that amount from your required minimum distribution calculations. The maximum amount you can contribute to a QLAC is $135,000.

You can roll over up to 50% of your IRA, 401(k), 403(b), or lump sum pension payment into an annuity tax-free.

Annuities funded with an IRA or 401(k) rollover are "qualified" plans, enabling an insurance company to create an "IRA annuity", into which you can deposit your retirement funds directly.

Additionally, you can have your employer roll over your 401(k) funds into an annuity without withholding any taxes since no mandatory withholding requirements pertain to funds directly transferred into an annuity by an employer.

Federal employees can request an unlimited number of transfers from the traditional TSP to a traditional IRA.

Although not limited in total number, there is a limit of no more than one such transfer every 30 days, or a limit of 12 such transfers per calendar year for federal employees.

How an IRA Annuity Benefits Your Heirs.

The SECURE Act (“Setting Every Community Up for Retirement Enhancement” Act), which was enacted in December 2019, eliminated the “stretch IRA” – a feature of an inherited IRA account that allowed the beneficiary to stretch out required minimum distributions (RMDs) over his or her lifetime, thereby deferring a significant amount of income taxes on the RMDs.

Now, beneficiaries must withdraw the entire account over the 10-year period following the owner’s death.

Doing so will significantly accelerate the income tax due with respect to the account.

Allowing the money to continue to grow tax-deferred in an annuity gives your heirs more control over their tax-bracket and greater wealth transfer ability.

Investing implies risk.

A volatile investment can make you rich .... or .... devour your savings.

Annuities are for savers.

Staggering annuity purchases over time can boost your guaranteed retirement income and lower risks.

At Jennifer Lang Financial Services, we work with over 25 of the top A and A+ Rated Carriers to find you the best rate.

Let us put our expertise to work and find you the best annuity for your age, time horizon and goals.

Request a personalized quote today.

Do You Have an IRA or 401(k)?

Tax planning is critical to early retirement.

What's your plan for getting the money out?

Beginning at age 72, you’re required to take minimum distributions from those accounts,

which means you won’t be able to defer paying taxes on earnings indefinitely.

That could mean a sizable tax bill, if you’re in a higher tax bracket in retirement.

If you’re wondering how to reduce taxes on RMD payouts, there are some strategies you can use to minimize taxation.

Would you be interested in seeing a plan to get your tax bill down on the distribution of that money?​

Are you under the age of 59 1/2?

An In-Service Rollover can protect your nest egg from market loss and continue growing tax-deferred.

The Retirement Red Zone is defined as the 10 years before and the 10 years after retirement.

It's a critical period when you may have less time to recover from investment mistakes and poor investment performance.

Rolling over a portion of your 401K or other tax-deferred retirement account now, is a tax-efficient income strategy that can add tens of thousands of dollars to a retiree's estate value and may add up to 6 additional years of portfolio longevity on average.

Pre-retirees need to be careful not to leave their portfolios exposed to “bad luck” during those years.

If you are serious about planning for retirement, you have three major "Risks" that could destroy everything you have worked so hard to achieve:

Market Risk - If you remember the downturn of 2008 and 2020 you have already felt the impact of those losses.​

Tax Risk - With our country's debt climbing to uncontrollable levels (28T+), are you prepared to lose 50-60% of your retirement income to taxes?

Capital Risk - The risk of not having enough available capital, for contributions, in order to achieve your retirement goals.

When you finally retire and need the money the most, do you want to be burdened with high taxes?

Get The IRS Out Of Your Retirement.

Call Us Today and Get Started With a Personalized Annuity Quote!

1 (651) 314-4812

According to The Administration for Community Living, a part of the Department of Health and Human Services, about 7 in 10 people (69%) turning age 65 today will need, at some point, some type of long-term-care services—either at home, in their community or in a facility. Typically, women need care longer (3.7 years, on average) than men (2.2 years). A more detailed look at long-term care, published in 2015 by Health and Human Services and revised in 2016, looks at the risk of people developing a disability and needing help with “activities of daily living,” such as bathing, dressing and eating. The study estimates that about half (52%) of Americans turning 65 today will “develop a disability serious enough” to require long-term services and support—and about one in six (17%) will end up spending at least $100,000 out-of-pocket for such services.

Long-Term Care Riders

Medicare Only Pays For 100 Days of Long-Term Care Costs. For the first 20 days, Medicare pays 100 percent of the cost. For days 21 through 100, you pay a $176 daily copayment, (as of November 2020), and Medicare pays any balance. After those 100 days are up, how will you pay for it and where will the money come from? A long-term care rider is an optional benefit you can add to an annuity contract that helps cover long-term care expenses. With some carriers, you can access the benefit right away, and if you end up not needing it, you can pass the balance of the annuity on to your beneficiaries as a death benefit.

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The following is a Hypothetical 10-Year Term Example. (For Illustration Purposes Only. Actual Results May Vary).

How Split Annuity Strategies Work

Using a split-funded annuity means that individuals do not have to wait for the annuity to reach the payout phase because the stream of income begins immediately. At the same time, the annuity's remaining balance compounds tax-deferred. Don't need an Immediate Annuity? Use the same strategy with a 10 and 20 year deferred annuity. When the annuity payments start, the lump sum no longer exists. The accumulation phase becomes the payout phase. The annuitization payments can be for a fixed period of time -- such as monthly for 20 years -- or they can be set up as payments that last for as long as you live, a so-called life annuity. The total number of annuity options is typically larger than just these two choices, allowing you to pick the annuity payout that fits your retirement plans. For example, you often have the option of adding a spouse to the plan, so that if you die first, your spouse continues to receive payments. A Tax-Free Wealth Transfer Option

Tax-free Retirement With Living Benefits

Converting a portion of your qualified plan into a tax-free vehicle could minimize your future tax liability. If you are no longer working for an employer, you have the option to roll over, or move, your 401(k) into another retirement planning vehicle. Some investors may choose to use an IRA, but others may opt to put a portion of their savings into a life insurance policy with cash value. You can do this before age 59 1/2 and avoid the additional 10 percent tax penalty by utilizing an exception to Rule 72(t) of the IRS tax code involving IRA funds. Because you can only use this exception with IRAs, you will need to roll over your 401(k) into an IRA, then take distributions from the IRA. To do this, simply request a direct rollover form from your 401(k) administrator and open an IRA with your broker or bank. If you do a direct rollover to an IRA, you will not incur any tax consequences. After you apply for the policy, contact your brokerage or financial adviser to get the paperwork for withdrawing funds under the Rule 72(t) provisions. This strategy, called IRA maximization is designed to help clients reposition a portion of their assets, known as “leave on” money, into a more tax-efficient vehicle at death. When done correctly, distributions from an IRA fund a life insurance policy, helping to manage the tax liability and maximize the amount that passes to beneficiaries, free of income and estate taxes.

Why Does This Strategy Work?

This strategy works because although you are required to take the RMDs .....

you are not required to spend it. So after the taxes are paid, you can use the funds and put them towards a tax-free IUL policy that continues to grow free from stock market volatility that you can use to supplement your future retirement needs, have access to living benefits to help cover long-term care needs and leave an inheritance to your heirs is a win-win. Unlike a traditional IRA or a 401(k), where every dollar is taxed, with life insurance the cash values can be accessed on a more favorable tax basis. The death benefit is typically income tax free. Establishing an irrevocable life insurance trust can remove the assets from a taxable estate. The owner makes annual distributions from the IRA, which pays the taxes on the withdrawals, and funds the life insurance inside the ILIT. (Annuities are Probate Free).

If you have maxed out your 401(k), an Indexed Universal Life Insurance Policy (IUL) may offer you a tax-free solution. An indexed universal life product can be a very effective way to supplement your retirement income with policy loans and withdrawals that may be tax-free and provide income-tax-free life insurance benefits to ensure your family or business goals are achieved. An IUL policy can help diversify and balance the risk of your financial portfolio. It can give you more control, flexibility, and options for your financial future. With qualified retirement accounts such as a 401(k) or IRA, there are limits on how much you can contribute annually and there are restrictions on when you can access your money without penalties. An IUL may be a good plan for you if you're concerned about: *Providing for your heirs when you die *Having enough money to support your lifestyle in retirement *Potential market volatility now and down the road *An uncertain economy and inflation *Taxes going up An IUL can help you financially protect your loved ones and give you the opportunity to grow cash value for your retirement. As part of a sound financial strategy, an indexed universal life insurance policy can help you take on whatever the future brings. It provides a death benefit to help replace income and pay the bills when you die. And it offers unique potential for you to build substantial cash value you can use as additional income when you retire. Your money can grow tax deferred through the years. And when the policy is designed properly, distributions and the death benefit won't be taxed. Structured properly, an Indexed Universal Life policy can be the most efficient way to solve your insurance and savings needs. Having a guaranteed income solution in place, something that's protected against these risks and covers your essential needs takes the "What Ifs" out of retirement. Learn how an an IUL or annuity purchase today, can provide guaranteed income and peace of mind for life.

Tip: 75% of Applicants Qualify for the Average ( 2 Hearts ) Insurance Standard Rating


Wouldn't it be nice to have an income that's protected from stock market losses? Especially if you're retiring in a Bear Market. Deferred annuity contracts go through two distinct phases: accumulation and payout. During the accumulation phase, the account grows tax deferred. When it reaches the payout phase, it begins making regular payments to the contract owner. What You Get.

  1. Tax-deferred growth. You will pay no income taxes on the earnings from your annuity growth until you begin making withdrawals or receiving periodic payments.

  2. An annuity can help you save additional money for retirement once you've maxed out other tax-favored investments.

  3. Annuities can help you catch up on retirement savings when you have less time to save.

  4. Annuities offer potential for tax-deferred growth and an income stream for life.

  5. Unlimited contributions.

  6. Choice of saving options.

  7. No mandatory withdrawals.

  8. A Death benefit for your heirs.

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Americans are living longer. The bad news is..... Americans are living longer. Because people are living longer, they're going to have more health issues later on in life. Retirement used to last 10 years after you stopped working, now it's more like, 30 to 40 years of retirement years. So why look into annuities? Well, if you’re a Baby Boomer with little or no pension and most of your money is in low-interest savings accounts, if you are concerned about rising taxes and inflation, if you are in the "Red Zone" , five to ten years away from retirement, if you are concerned about stock market downturns, and if you are concerned about rising health care costs in retirement, then an annuity may be the key to a secure and comfortable retirement. It helps to have a plan to achieve a more secure future.


We've put together a clear guide to your options for 401(k), 403(b), and 457 plans (including how to avoid a surprise tax bill or IRS penalties that could put you in the crosshairs). Download Your Free Guide today!

What to do with your old 401(k), 403(b), or 457 plan

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