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 Because interest in an annuity is not subject to income tax until it’s withdrawn, 100% of the interest can continue to compound.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
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.
Concerned about potential declines in long-term yields and participation rates for fixed indexed annuities? Take advantage of the current higher rates offered by the Enhanced Choice Index Plus Series to save your clients thousands before rates drop.
Now might be a great time to consider a fixed index annuity before interest rates drop. The Index Select Annuity 7 offers a 65% participation rate in the S&P 500® Index gains without any downside risk, plus a 5.00% fixed interest crediting option.
Join us in celebrating the one-year anniversary of the Enhanced Choice Index Plus! Its many options make it a powerful tool to protect and grow clients’ assets.
Knock your next sales meeting out of the park using “Score Big With Legacy Max.” Find out more about what it is, how to use it and where to find it.
As the world becomes more interconnected, so does the need for coverage. Find out how you can offer annuities to foreign nationals working for a company in the United States.