Q – Is my pension income tax free?
A – No. Your STRS or PERS income is fully taxable.
Q – Are there ways for a person with a STRS or PERS pension plan to minimize the effects of income taxation during retirement?
A – Yes. A Fixed Index Universal Life policy will, over time, provide tax free income in the form of loans against the tax free death benefit. Upon death, the loans are paid-off by the death benefit. The sooner you can start contributing to an FIUL tax-free income savings plan, the greater your lifetime tax-free income will be.
Q Are there ways to provide for my dependents’ income once I die, and still take my maximum pension income?
A – Yes. A life insurance policy can pay a spouse an amount of money that will provide the same amount of income he or she received before the deceased passed away. Therefore, the pension payout could be the highest of all the options for the life of the owner, and then the spouse would receive the same amount of income as before, but now from the life insurance proceeds.
Q – Is there a simple, quick way to learn all about my STRS or PERS pension?
A – No. The programs are complex, and the decisions you make can affect your retirement significantly. You need an experienced, well-trained advisor to help you make the best decisions for your family.
Call me at 415-479-1137. I’m looking forward to helping you. Sincerely, Tom Pattinson