In many cases having the advantage of tax deferral means you'll be able to save substantially more dollars than with a traditional taxable account.
The key to meeting retirement income goals is to maximize accumulation by keeping costs low, protecting principal, and minimizing taxes. For only $20/month*, Our Retirement Income solution may help you do just that. Among the Monument Advisor variable annuity's 350+ investment choices, Jeff Nat offers direct access to the same strategies insurance companies use to create income guarantees and downside risk protection, but at a third to half the cost. Compounding that savings over time can potentially help build more reliable retirement income streams for your clients. More...
While variable annuities with income guarantees have gained popularity as a retirement income tool, this next generation of Investment-Only Variable Annuities (IOVAs) could eliminate those needs. Read this paper to learn how well an unguaranteed low-cost Investment-Only VA can replicate a rider’s guaranteed income, thus eliminating the need to pay fees on riders that frequently exceed 2% or even 3% per year.
Many advisors underestimate the potential impact of tax deferral on retirement savings. And, many are uncertain how to quantify the value of tax deferral.
Fidelity finds that investors may benefit significantly from deferring taxes on investments that generate large distributions taxed at ordinary income rates, like short-term capital gains or certain types of interest and dividends. How? By replacing those tax-inefficient assets held in taxable accounts with suitable alternatives held in tax-deferred investment vehicles like low-cost variable annuities.
The purpose of this paper is to examine a variety of scenarios to determine when a guaranteed VA is worth the cost of the additional protection it provides, and when an unguaranteed low-cost Investment-Only VA may provide greater benefit for the client.