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Tax Deferral*

The Power Of Tax-deferred Growth

If you could increase the return on your investment without taking on any more risk, would you?

That´s exactly what happens when you invest in accounts that defer tax withholdings until the time of withdrawal. Without tax deferral, assets grow more slowly. For example, when you pay taxes at the rate of 28% on your annual gains, it reduces the amount of your money that could be earning valuable interest.

Keep All Your Money Working For You

As the example in chart above shows, over a 20-year period, a $100,000 investment at 8% interest grows to only $306,499 without tax deferral. However, if your money is tax deferred, all your financial gains are added to your accumulating money, which then earns compound interest over the 20-year period. For example, a $100,000 investment, earning 8% tax-deferred returns, will grow to $466,096 over 20 years. That´s $145,000 more in earnings. More good news—when you withdraw your money during retirement, you´ll likely be in a lower tax bracket at that time and will pay less in taxes.

Let Experience Be Your Guide

If you´re saving for retirement, but not taking advantage of tax-deferred investing, it could have a dramatic impact on your future. Consult with an experienced representative today on how tax deferral can positively affect the growth of your retirement assets.

* Tax deferral offers no additional value if an annuity is used to fund a qualified plan, such as a 401(k) or IRA and may not be available if the annuity is owned by a “non-natural person” such as a corporation or certain types of trusts.

The Power Of Tax-Deferred Growth Chart