Showcasing Tax-Deferred Growth During Tax Season
Help your clients take more control of their retirement portfolio when it comes to the potential impact of income taxes. Show them the advantages of tax-deferred growth on a fixed index annuity.*
Interest credited to annuities such as AssetShield isn’t taxed until a withdrawal is made. This allows the contract value to grow and interest to compound over time. Your clients may also have time to prepare for the impact of taxation when a distribution does occur.
Earning Power of Tax-deferred Growth
| Federal tax bracket | ||||
|---|---|---|---|---|
| 22% | 24% | 32% | 35% | |
| Rate your tax-deferred annuity earns** | Rate needed in a taxable investment to be equivalent to the earning of your annuity | |||
| 1.50% | 1.92% | 1.97% | 2.21% | 2.31% |
| 2.00% | 2.56% | 2.63% | 2.94% | 3.08% |
| 2.50% | 3.21% | 3.29% | 3.68% | 3.85% |
| 3.00% | 3.85% | 3.95% | 4.41% | 4.62% |
| 3.50% | 4.49% | 4.61% | 5.15% | 5.38% |
| 4.00% | 5.13% | 5.26% | 5.88% | 6.15% |
Source: The Standard “The Power of Tax Deferral”