What is the RAFT Strategy for retirement?

The RAFT Strategy describes a method of using equity-indexed insurance contracts to create a guaranteed stream of income, protect your savings from market volatility, and achieve financial independence in retirement.

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Herein, what is a RAFT IRA?

WE DO. We believe our clients should start preparing for tax-free income in retirement. Our plan is named RAFT (Retirement Approach Free of Tax). It is like a Roth account on steroids.

Likewise, what is the RAFT Strategy investment? The RAFT Strategy (which utilizes equity-indexed insurance programs) provides minimal contribution limits and has two options for investing. The investor can choose annually either the fixed interest rate option or follow a specific index, such as the S&P 500.

Also know, what is the benefit of a Roth IRA?

A Roth IRA is a retirement savings account that allows your money to grow tax-free. You fund a Roth with after-tax dollars, meaning you’ve already paid taxes on the money you put into it. In return for no up-front tax break, your money grows and grows tax free, and when you withdraw at retirement, you pay no taxes.

How do you get good at raft?

Raft: 12 Pro Tips For Getting Started

  1. 1 Size Doesn’t Matter.
  2. 2 Keep Food Cooking. …
  3. 3 Build A Streamer. …
  4. 4 Make All The Items. …
  5. 5 Friends Can Distract The Shark. …
  6. 6 You Don’t Need To Stop At Every Island. …
  7. 7 Fish And Cook Water. …
  8. 8 Don’t Build On The Edge. …

Why Roth IRA is a bad idea?

Roth IRAs offer several key benefits, including tax-free growth, tax-free withdrawals in retirement, and no required minimum distributions. An obvious disadvantage is that you‘re contributing post-tax money, and that’s a bigger hit on your current income.

What are the disadvantages of Roth IRA?

The cons of Roth IRAs

  • You pay taxes upfront.
  • The maximum contribution is low.
  • You have to set it up yourself.
  • There are income limits.
  • Your savings grow tax-free.
  • There’s no need for required minimum distributions.
  • You can withdraw your contributions.
  • You get tax diversification in retirement.

What is the 5 year rule for Roth IRA?

The first five-year rule states that you must wait five years after your first contribution to a Roth IRA to withdraw your earnings tax free. The five-year period starts on the first day of the tax year for which you made a contribution to any Roth IRA, not necessarily the one you’re withdrawing from.

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