SafeMoney

Triple Compounding Solutions!

One of the primary advantages of deferred annuities is the opportunity to accumulate a substantial sum of money by allowing your premium and interest to grow tax-deferred. Interest earned on your an annuity is not currently taxable by federal or state governments until you make a withdrawal.

This is the key difference between an annuity and other taxable financial vehicles. A 6% return may sound good initially, but if you are in a taxable vehicle with a combined 34% tax bracket, your actual return is 4%. Combine this with an average inflation rate of 4%, and what have you truly gained? That’s right...nothing!

With this in mind, consider the many advantages of an annuity, including triple compounding! With annuities, you earn interest on your principal, interest on your interest, and interest on what you would normally pay in taxes. You will not pay income taxes on any annuity interest until you withdraw it from your annuity. In other words, you control when you pay income taxes! 

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