RAFT, or the Retirement Approach Free of Tax, is about taking control of your future through safe investing using properly designed and funded equity indexed universal life contracts.
Radio host and author of "The RAFT Strategy, How to Build Your Tax-Free Nest Egg Without Risk," Laurett Arenz, says that a lot of people will have their retirement nest egg wrapped up into a volatile investment, as if they had all their chips on the retirement table while gambling their future. Arenz's idea is to take some of those chips off the table, such as an IRA or 401K, and get protection as well as a great rate of return. She deals with safe money investing and in terms of the RAFT strategy, you're able to take that money out tax-free when you start taking distributions.
With this strategy, your principle is protected and on the upside, you're able to lock in gains. The average rate of return over the past 10 years using this strategy has been 8-10%. Arenz trains advisors throughout the country to create a tax-free retirement account according to IRS guidelines and the laws in their state to create a liquid account that's safe and provides a great rate of return.
Annuities and equity indexed universal life contracts are both built similarly in that they both offer that principle guarantee. With an equity indexed universal life contract, there will be an insurance policy attached to it, which offers both a death and living benefit. Arenz designs her life contracts to include a living benefit and she'll lower the death benefit to the lowest amount possible to save money so there's not a lot of fees in the account. The goal in creating this account is to generate a significant tax-free distribution down the road, Arenz says.
This product works because it offers a tremendous amount of compounding rate of return along with a tax-free distribution. Arenz says that if you haven't looked at insurance as a way to create a significant retirement account, "things have changed," and it's important to get the most up to date information. That's why she's put together the RAFT strategy and through her website, this book is offered free of charge.
Radio host and author of "The RAFT Strategy, How to Build Your Tax-Free Nest Egg Without Risk," Laurett Arenz, spoke with Retirement News Today, providing online retirement news video content. Retirement News Today is a featured network of Sequence Media Group.