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Register now to manage accounts, create MAx Models and get access to our Knowledge Bank.

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Create Account to manage your assets on the Jefferson National Account Management website.

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Advisors
Register now to manage accounts, create MAx Models and get access to our Knowledge Bank.

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Create Account to manage your assets on the Jefferson National Account Management website.

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Advisors
Register now to manage accounts, create MAx Models and get access to our Knowledge Bank.

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Create Account to manage your assets on the Jefferson National Account Management website.

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Increasing Retirement Income Through the Power of Tax Deferral

Matthew Grove and Professor Ira Weiss, Ph.D.

As the Baby Boomer generation ages, financial services companies have found their new reason for being. They have seized upon the image of a mass retirement wave in the U.S. to create an entire "retirement income" industry built on marketing income solutions to retiring boomers.

Although there's no doubt that retirement income will play an important role in the years to come, the reality is that the median boomer is 51 years old—fourteen years away from the traditional retirement age. Because of this, the focus of Baby Boomers and the generations that follow would be better aimed at savings accumulation.

For many investors, tax deferral should play a significant role in the accumulation process. By deferring taxes, investors allow gains to compound at a higher rate, creating significantly higher accumulated values over time.

Notwithstanding this fact, many advisors underestimate the potential impact of tax deferral on retirement savings. And, many are uncertain how to quantify the value of tax deferral.