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