|Triple Compounding Solutions! |
One of the
primary advantages of deferred annuities is the opportunity to accumulate a substantial
sum of money by allowing your premium and interest to grow tax-deferred. Interest
earned on your an annuity is not currently taxable by the federal or state government
until you choose to make a withdrawal. This is the key difference between an annuity
and other taxable financial vehicles. A 6% return may sound good initially, but
if you are in a taxable vehicle with a combined 34% tax bracket, your actual return
is 4%. Combine this with an average inflation rate of 4%, and what have you truly
gained? Thatís right... nothing!
that in mind, consider the many advantages of an annuity, including triple
compounding! With annuities you will earn interest on your principal, interest
on your interest, and interest on what you would normally pay in taxes. You will
not pay income taxes on annuity interest until you withdraw it from your annuity.
You control when you pay income taxes!