“Nothing is certain but death and taxes.” – Benjamin Franklin
TAXES AND CHANGE ARE INEVITABLE, BUT A FIXED INDEX ANNUITY CAN BE A POWERFUL STRATEGY FOR MANAGING THE IMPACT OF TAXES ON YOUR CLIENTS!
Strategies for Management
There are two main strategies suggested for maximizing tax efficiency
Strategy 1: Tax Deferral
Non-qualified funds held outside of an IRA or employer sponsored retirement account that are not needed for current spending, like a 401K, may generate taxable income that could be deferred until the funds are needed. Money placed in a fixed index annuity has the opportunity for tax deferred growth potential.
You can make interest on your principle, interest on your interest, or even interest on taxes saved!
Strategy 2: Partial Roth Conversions
Fixed index annuity products can be used for full or partial roth IRA conversion. This is a powerful tool for creating tax diversification in a retirement income portfolio as well as a nontaxable retirement income distribution stream.
Here at NFI Solutions, we have a knowledgeable sales team at the ready to help aid you in coming up with the best strategies of managing tax impact for your client!
Check out our agent resources tab while you’re here on our website, not only do we have great people ready to assist you, but we also have powerful tools you can access at any time!
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