Tax Deferral With annuities, you don’t pay any taxes on your earned interest until you withdraw money. One of the benefits of owning an annuity is your contract value grows tax- deferred, allowing your contract value to grow faster when compared to taxable returns. Why? Because you earn additional contract value by not paying taxes until you begin distributions. The Power of Tax-Deferred Growth with WealthLock SM
$220,000
$210,685
$200,000
$176,649
$180,000
$160,000
$140,000
$120,000
$100,000
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4.00% Annual Return Tax-Deferred
4.00% Annual Return Taxable Investment
The hypothetical example assumes an initial premium investment of a marginal $100,000 into both a tax-deferred investment, with a 4% growth rate, and investment into a taxable account, with a 4% growth rate. The tax bracket is assumed to be 24%. Actual taxes will be paid at the individual’s ordinary income rate for the tax year at the end of the contract period or upon early withdrawal.
Did you know: An investment with a tax-deferred rate of 4.00% would require a taxable rate of return of 5.26% to equal the same amount of growth.
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