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 Monument Advisor variable annuity offers virtually unlimited tax deferral for clients who have recently sold a business, received a sizable inheritance, or received any additional significant payouts such as a bonus. Large cash flow events like these can create tax headaches for clients. Investing with Monument Advisor—our low-cost, tax-deferred variable annuity—can help cushion the annual tax burden and may potentially improve portfolio performance by 100bps without increasing risk (source: Increasing Income through the Power of Tax Deferral, Ira Weiss, Ph.D., University of Chicago & Matthew Grove, Jefferson National, 2008). More...
High tax rates have been top of mind for advisors and their clients in recent years, particularly for high-income investors and the high-net-worth. The majority of advisors and their clients value tax deferral, but many are unaware of the full scope of its benefits. And to optimize client outcomes, a new generation of variable annuities is key.
JeffNat President Larry Greenberg explores the hurdle advisors face as April 15 approaches: Analysts expect this year to be one of the worst on record for capital gains distributions. And that could mean a huge tax bill for high net worth clients.
Laurence Greenberg, President of Jefferson National, examines how advisors can use the tax planning process to help clients control not only how much clients pay in taxes—but also when they pay taxes. Greenberg provides guidelines for a number of different tactics to help clients diversify between different tax rates and different types of taxes, as well as to diversify between taxable investments and tax-deferred vehicles. He discusses the benefits of tax deferral and the various tax-deferred vehicles that are fundamental for nearly all clients to tax-optimize portfolios.
Greenberg explains how asset location is an effective strategy to minimize the impact of taxes, enhance after-tax returns and create "tax alpha" without increasing risk—and next-generation low-cost, Investment-Only Variable Annuities (IOVAs) are an effective solution once clients max out traditional tax-deferred vehicles, such as IRAs and 401(k)s.