Tax-Advantaged Investing

Tax-advantaged investing refers to any type of investment or account that offers a tax benefit. Health savings accounts, annuities, IRAs, stocks, and certain types of insurance policies are examples of investments that can either defer, reduce, or eliminate the taxes an investor will pay. Tax-deferred accounts like IRAs and 401ks are taxed when funds are withdrawn. Tax-exempt accounts like HSAs and Roth IRAs are taxed when contributions are made allowing the investor to withdraw funds tax-free in retirement. There are many ways to invest and even beginner investors with small budgets can use investment principles and strategies to grow a nest egg. 

At Alloy Investment Management we enjoy educating clients to enable them to build their portfolios with confidence. Someone new to investing may not understand how insurance can be both a powerful tool in financial planning and transfer wealth in a tax-advantaged way until we explain it to them. We love seeing those light-bulb moments happen! If you are currently without insurance consider whole life insurance or universal life insurance. Both offer a death benefit, build a cash value over time by earning interest, and allow the policy holder to borrow against the cash value tax-free. An annuity is another type of insurance product that is tax-deferred, earns interest over time, and provides a death benefit. 

Alloy Wealth Management is an independent firm with access to nearly every carrier and every type of insurance available. We make our recommendations after comparing features and premium prices to help clients manage risks while potentially achieving their financial goals. For more information on investment management, insurance, or retirement planning, call 800-689-3935 to speak with one of our team members.