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...
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.