What is a Fixed Tax Deferred Annuity?
A Fixed Tax Deferred Annuity is a contract between you and the insurance company that will credit a guaranteed interest amount to your account on an annual basis for the duration of your deferred period. The interest rate may be guaranteed for one year with a minimum resetting floor in additional years, or a set guaranteed rate for multiple years.
Benefit of a Fixed Tax Deferred Annuity
The benefit of using a Fixed Tax Deferred annuity is simple. The Interest that you earn on your money will not be subject to income tax. This will provide access to a much larger income stream later on because these vehicles are generally used to fund income once you have retired, and because you are no longer paying income taxes based on your earnings, your taxation rate is greatly reduced when you start withdrawing the money. This money is always growing, tax-deferred, until the end of your agreed term or until you make a withdrawal from it. This means more money growing at a higher rate of return and less money going back to the government in the form of taxes as you utilize the funds for income. Your CD can't do that! Remember, you will pay no taxes while your money is compounding during this period.
Why should I choose a Fixed Tax Deferred Annuity?
Many people are now using tax-deferred annuities over CD's for the bulk of their retirement investing. In addition to tax deferral, Fixed Tax Deferred annuities also avoid probate on death, therefore, your beneficiaries are guaranteed instant access to the funds. Some Fixed Tax Deferred annuities offer first year bonuses and immediate access to your interest if necessary in addition to your free withdraw amount. If you are currently invested in CD's for your retirement, this is a great alternative.
Please click the link below to have a qualified, Independent representative contact you to determine if a Fixed Tax Deferred Annuity is right for you.
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