Retirement Planning BlogRoll

How would you like to discover little known retirement wealth building tool that practically will pay for itself? You don’t have to go offshore to get tax free distributions for retirement, you don’t have to worry about tax free IRA distributions, and you don’t have to hide your money. It’s perfectly legal right here in the United States and your assets never leave the United States. The principle is guaranteed, you will never lose your money in the stock market, real estate market, commodity market, or any other market. There is a minimum return on your contribution, and if you die, your family will get a death benefit.

Introducing the “Roth on Roids”

So, exactly what is a Roth IRA on Roids? Well, it’s my own invention. I was listening to a seminar put together by Roccy DeFrancesco, who wrote a book called the Home Equity Management, and basically, the whole book is about repositioning your home equity so that you can buy a cash value life insurance, which in effect is a wealth building tool whereby there are no limits on how much you can contribute, you do not have to have a job or earned income, you do not have to have age limitations. It grows income-tax free, the principle is guaranteed. I was describing this to my son, and I was being very animated just like I found this great new tool. And as I’m going through it, I’m also telling him that the principle is guaranteed, you will never lose your money. You can’t do that with a Roth IRA or a traditional IRA. His comeback to me was, “Well, gee Dad, that sounds like a Roth IRA on steroids.” Well. I liked the idea so much that I am attempting to get the trademark for Roth on Roids.

The way to describe what Roth on Roids is as follows. A very simplistic way to describe it. It is like a bank account that you would put into a traditional bank, like a Bank of America only with a life insurance company, there is a death benefit. So again, it is like a bank account with an insurance company that has a death benefit. That’s the simplistic approach.

It is guaranteed you will never lose your money. It has a guaranteed minimum return and a maximum return. It grows tax free, the longer you let it grow, the greater it grows. Unlike a bank account where you have an interest that you are going to pay income taxes on. Life insurance companies don’t pay income taxes. So, when you buy their products, there are no taxes due. There are taxes on the premium, but the growth has no tax. For example, if you wanted the absolute safest way to keep your money someplace, you go to a bank and get a safe deposit box. You can’t buy that kind of safety, because you can’t afford the price of the safe deposit box, and that type of security.

So, when you buy a Roth on Roids, it has cash value insurance for the sole purpose to accumulate the cash, not the death benefit. The death benefit is incidental because it has to have a component of it. But using the example that you are 45 years old, you contribute $20,000 a year for 5 years, $100,000 goes in, and you let it grow tax free. At 65, you begin to withdraw the money on the value of the policy, the cash value. If you die in year one after contributing the $20,000, you have a death benefit. The death benefit will be somewhere around $400,000-$500,000 depending on your specific health. If you die in year one, your family gets 4 or 5 hundred thousand as a death benefit. If you survive for 20 more years, you would get the benefit of 20 years of tax-free growth. In this case, you would borrow $30,000 a year over a twenty year period, that’s over $600,000 assuming a 30% tax bracket; in other words, you would have to gross earn at least $1,000,000 to receive that benefit.

Roth on Roids has no limits as to how much you can contribute. On the other hand, there is a limitation for the traditional IRA and the Roth IRA. Contributions for IRAs are $5,000 a year and $6,000 if you are over the age of 50. That’s not a lot of money.

If you were to ask your accountant, “What are the Roth IRA rules; Which is better, pay the taxes now, or pay the taxes later?” he’s going to tell you later. Accelerate the expenses, reduce the income coming in. Well, he’s not going to be wrong, but we are in the lowest possible tax rates in history of the United States. Sometimes it makes better sense to pay the taxes now. The quickest way is to answer this question: Which is better, to pay the taxes when you buy the apple tree, like with a Roth IRA, or when you pick the fruit, like with a traditional IRA? If you pay the taxes when you buy the apple tree, it’s going to be less than when you pick the fruit because you can nurture that apple tree to produce significant amounts of fruits, and every time you pick the fruit, it’s going to be tax free just as with a Roth IRA. So, your accountant is not wrong by saying defer, but sometimes it is significantly better to pay the taxes when you do buy the apple tree because the production of those apples is going to be significantly more. Thus, you are going to be saving a tremendous amount of taxes.

If you ask your lawyer, his stock in trade is always going to be “it depends, possibly, maybe.” The fact of the matter is that either he doesn’t know, or if he knows, he’s not going to tell you what’s better 401k or Roth IRA, or maybe he doesn’t know that he doesn’t know that these types of programs are available or what the Roth IRA contribution limits are. The accountant is not going to take his time to come up with these types of suggestions to you, because for the price of preparing an income tax return, he’s not going to do it. Your lawyer works both sides of the fence, and unless he can figure a way to make a fee, he is very unlikely to give you the answer as well.

I’m Rocco Beatrice, 508-429-0011. Call me with your particular situation and I will be happy to discuss it with you. If I can’t solve your problem, maybe there is no solution.

Thank you.

Hi, I’m Rocco Beatrice. I am the managing director for Estate Street Partners. I have many advanced degrees. I have a lot of knowledge. I hold a Master’s in taxation, a Master’s in Business Administration; I am a Certified Public Accountant, a Certified Wealth Protection Planner, a Certified Asset Protection Planner, a Master Mortgage Broker. I hold all the credentials to value real estate and businesses.

For the past 38 years, I’ve been looking for products, advanced legal strategies, that you will be able to use to minimize your income taxes, be able to preserve your wealth, be able to protect your wealth against unscrupulous contingent fee lawyers and their predator clients. I look for ways to keep your assets away from bureaucrats who legislate continuously how to legally pick your pocket so that they’ll be able to stay in power for the next 30 years, how to put a chicken in every pot, how to buy votes. I can tell you the best way to look at Roth vs traditional IRA vs Roth on Roids.

I have worked with Fortune 100 companies. I have assisted them in creating and protecting their wealth. I am the state representative for the Asset Protection Society; I’m the state rep for Massachusetts, New Hampshire, and Rhode Island. I’m a facilitator. I will bring to the table, individuals that can solve your problems. I bring to the table a defense attorney, an asset protection attorney, a health care attorney, a conflict management attorney and other professional individuals that need to be at the table to solve your problem with their report.

A posting of the Roth 401K definition and its contribution limit is posted here Roth IRA 401k Plan Contribution Limits. This article discusses the definition of the Roth 401K plan and employee elective contributions made to their Roth IRA. We look briefly at the contribution limits of their Roth IRA as well as of their traditional pretax Traditional IRA and 401k plans. How are employer matched contribution compare and relate to employee-made contributions to the Roth IRA? How is a direct rollover made with a Roth 401K and who benefits from this plan?