Roth IRAs — The cure for recession and depression

By Paul Cross

Annuity National Brokerage Co.

Recession is the state of the economy. Depression is a state of mind.

Recessionary times are trying times financially, physically and spiritually. Recession, the state of the economy, can break us down into depression, a state of mind, that robs us and blinds us of opportunities.

Let us not forget, America is where the people, not the government, make impossible dreams come true, and some of the greatest dreams materialize during trying times of recession.

The question should not be, how can we help people survive in this busted economy? The real question should be, how can we help people prosper in a busted economy? One sure way to prosper in any economy is to stop losing money to the IRS and stop losing money on Wall Street.

Recession brings on depression, the state of mind, which causes people to bury their heads in the sand and miss opportunities.

Lose interest in your money and you will lose interest on your money.

Ask a depressed person, “Would you like 2 percent or 3 percent?” They’re likely to respond “What’s the difference?” Help them bust out of depression and recognize that 3 percent is 50 percent more.

And, would you like the 3 percent tax-deferred? The depressed might think, “What’s the difference? You’ve got to pay the tax someday!”

Help them bust out of depression and recognize that tax-deferred is 45 percent more growth in a 31 percent combined federal income tax & state income tax bracket. You could grow the annuity into a rather large sum of money on which you have never paid tax, and then elect an interest income for life. And, during your lifespan, you will have never paid tax on the growth of the annuity that provided a stream of interest income. Your spouse, as your beneficiary, could continue the interest income and neither of you will have paid tax on the growth of the annuity that paid interest income for years.

“Oh, but my children will have to pay the tax dollars, won’t they?”

It’s now your choice. You can elect, with a restricted beneficiary designation form, to convert big tax balloon payments into streams of income over your children’s life spans.

Many seniors are depressed because they are dependent on interest income, and CD interest rates are causing them to deplete their life savings on the way to bankruptcy. We can help them out of depression with bonus annuities and lifetime income benefit riders with 5 percent, 6 percent and 7 percent income streams for life. Now that’s a CD buster!

It’s time to come out of depression and seize the opportunities. Roth IRA opportunities! The final quarter of 2010 presents our greatest opportunity ever to help people develop retirement income for life, tax-free, with Roth IRA conversions for everyone.

The million dollar opportunity

It’s our opportunity to help millionaires make Roth IRA conversions and pay the tax on the conversion with estate tax dollars, saving double or triple taxation. It’s our chance to help people live millionaire lifestyles with their tax dollars.

Help people out of depression with less tax on Roth conversions while the value of their plans are down, and recover losses with tax-free growth and tax-free retirement income for life.

It’s the final quarter; it’s time to run with the ball. Fumble on this one and you lose to the taxman; and your clients will pay the price.