IRIS: A New Approach to Tax Planning with IOVAs
Many advisors have a strategy to help their clients manage the market and earn meaningful gains, despite low yields and ongoing volatility. But another hurdle approaches as tax bills come due. Taxes can be a clients’ single biggest investment expense—especially the high net worth, who can face rates as high as 40 percent or even 50 percent, when Federal and State taxes are combined.
That’s why tax deferral is key. And after maxing out qualified plans, a new category of Investment-Only Variable Annuities (IOVAs) is built to maximize the power of tax deferral.
Jefferson National’s CEO Mitch Caplan introduces a new approach to tax planning in a recent IRIS publication. Throughout the article, Mr. Caplan explains how IOVAs can be used for a range of tax-advantaged investing strategies including asset location, tax-efficient rebalancing, building a personal pension, preserving a windfall, legacy planning and wealth transfer.
Read more on how IOVAs are used for tax-advantaged investing, here.