Page 13 - Mumme Booklet

DRAFT

SAVINGS ALTERNATIVES FOR RETIREMENT

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You have many choices when saving for retirement. Using the options available to you
can help create tax efficient strategies.

• Contributions are made with after-tax dollars.
• Taxed each year on the interest, dividends, or short term gains earned.
Taxable • Examples:
- Money market funds
- Certificates of deposit
- Mutual funds

• Purchased with after-tax dollars.
• Growth is tax-deferred.
Tax- • At retirement, your basis is returned tax-free but any earnings or gains are taxable.
deferred • Examples:
- Annuities
- Investment real estate

• Contributions are made with pre-tax dollars.
• Growth is tax-deferred.
• All withdrawals are taxable and penalty free after 59½.
Tax-
deductible • Examples*:
- Profit sharing plans
- 401(k), 403(b), and 457 plans
- IRA

• Contributions are made with after-tax dollars.
• Growth is tax-free provided IRS rules are adhered to.
• Tax-free withdrawals of basis anytime and gains after 59½ without penalty.
Tax-free Other rules may apply.
• Examples*:
- Roth IRA
- Roth 401(k)

Unique Asset
Permanent life insurance is a unique asset and provides more than just death benefit. It builds tax-deferred
"equity" over time through guaranteed increasing accumulated value and can provide tax advantaged
income during retirement.** It is this unique set of characteristics that make permanent life insurance an
ideal flexible financial asset throughout all stages of life.

* Earnings and contribution limits typically apply.
** Each method of utilizing permanent life insurance accumulated value has advantages and disadvantages and is subject to different tax
consequences. Using permanent life insurance accumulated value will reduce the death benefit and may affect other aspects of the
policy.
Not intended as tax advice. Consult with your independent legal or tax advisor regarding your individual circumstances.

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This plan is not complete without the Assumptions and Disclosures pages appearing at the end.
3170326-1-4 January 29, 2021 Page 13 of 108