Show Clients the Benefits of Tax Deferral

February 4, 2020

The Power of Tax Deferral

One benefit of an annuity is tax deferral. Clients don't pay taxes on their earnings until they withdraw funds. Tax-deferred annuities make their money work harder with triple-compounding, which means clients:

  • Earn interest on principal.
  • Earn interest on interest.
  • Earn interest on tax savings. Because interest in an annuity is not subject to income tax until it’s withdrawn, 100% of the interest can continue to compound.

Here’s an example of how tax-deferral benefits could increase a client’s earning power. Consider a client whose federal tax bracket is 25% and has a tax-deferred annuity that earns 2.50%. To match those earnings with a taxable investment, the client would have to earn a rate of 3.33% instead!

See how a tax-deferred annuity from The Standard can help your client’s money work harder for them.

The Power of Tax Deferral

For example purposes only. If you have questions regarding your specific situation, please consult your tax advisor.

Client-Friendly Flyer

Download this flyer to help show clients the benefits of tax deferral.

Sales Concept Flyer

17067

The Power of Tax Deferral

More About Sales Insights & Tools
Discover how you can help clients leave a lasting legacy while meeting their RMD requirements. The Legacy Max Enhanced Death Benefit Rider offers a unique dual growth strategy, ensuring clients can enjoy their monthly income without diminishing their death benefit value.
Understanding whether annuities are insured requires a detailed examination. It’s crucial to explore the nature of annuities, the protections they provide and the significance of the financial stability of insurance companies.
In case you missed it, the Fixed Index Annuities Resource Toolkit is here to help you master FIAs. It contains the FIA essentials you need to understand, explain and sell annuities, boosting your sales strategy.
Unlock new sales opportunities and strengthen client relationships with our comprehensive guide to offering beneficiary reviews. Learn how to align beneficiary designations with clients' wishes and address their changing financial priorities, all while establishing yourself as a trusted advisor.
The Legacy Max enhanced death benefit rider offers guaranteed and performance-based growth with no downside risk, so your clients can leave a lasting legacy.
Maximize your earnings with our Internal Transfer Program, offering full commissions on most internal annuity transfers for clients aged 85 and younger. Use our annuity portal to review policies, avoid transfer hassles and earn full first-year commissions while increasing client satisfaction.
The 50/30/20 allocation model using fixed index annuities offers a strategic alternative to the traditional 60/40 portfolio. Find out how FIAs can become a valuable addition to a balanced investment strategy.
Paul Garofoli shares a strategy for clients to leave a legacy without underwriting, using the Legacy Max Enhanced Death Benefit Rider. This approach helps clients convert “live on” assets into “leave on” legacies, ensuring their financial plans benefit future generations.