Start saving early Taking advantage of tax-deferred growth and protection
Kevin and Susan’s investing challenges
Kevin and Susan Moore are both working professionals. They already make significant contributions to their respective 401(k)’s but would like to save even more for retirement. The Moores’ 401(k)s are invested for growth. To give their portfolio more balance, they want the additional savings to combine tax-deferral with more security and protection from down markets. The Moores’ strategy Kevin and Susan meet with their financial advisor, and after discussing their priorities, they agree to invest $25,000 now plus an additional $5,000 per year for 10 years in a ClearFlex Fixed Indexed Annuity (FIA). This strategy gives Kevin and Susan the flexibility to invest systematically while providing them with opportunities to grow their money tax‑deferred.
The power of tax deferral ClearFlex can give Kevin and Susan $36,227 or 26% more savings over 20 years
$173,895
$180,000 $150,000 $120,000 $90,000 $60,000 $30,000 $0
$137,668
Taxable Savings
Tax-Deferred Savings
This hypothetical chart illustrates how tax deferral would affect a $25,000 initial premium with annual subsequent premiums of $5,000 added over a 10-year period, before any withdrawals or fees. The chart assumes an annual interest rate of 5% and a federal income tax rate of 28%. Actual tax rates may vary for different taxpayers and assets from those illustrated (for example, capital gains and qualified dividend income). Actual performance of your investment also will vary. Lower maximum tax rates on capital gains and dividends would make the investment return for the taxable investment more favorable, thereby reducing the difference in performance between the examples shown. Consider your personal investment time horizon and income tax brackets, both current and anticipated, when making an investment decision. This example illustrates tax deferral and does not represent the past or future performance of any product. Actual results will vary.
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