In this context, traditional whole life insurance and annuities must be considered as safe and secure options for acquiring sufficient money to have a satisfying retirement.
Traditional whole life insurance contains the basic essentials of term insurance, with an investment element added.
The growth of that investment is nontaxable to you. This favorable treatment of return on investment is exclusive to life insurance and offers a significant wealth buildup vehicle.
- · tax-favored cash values
- · death benefits
- · competitive interest rate
- · guaranteed return
When you begin receiving income from an annuity, only part of your income is taxable because you receive both interest and a partial return of the invested principal.
These charges are in addition to any insurance company fees that might be imposed upon the withdrawal.
To fully make the most of the tax advantages you should plan on holding the annuity for many years so that the earnings can grow without current taxation. No matter what the tax advantages of an annuity are, you still must pay close attention to the rate of return on the investment.
- · a guaranteed return.
- · a competitive interest rate.
- · and, tax-free or tax-favored benefits
Keep current on the tax laws. They change frequently. Our Congress will be proposing some very beneficial changes in your ability to save for your retirement. Look for this in an upcoming post.
Call (773) 614-3201 or e-mail me at firstname.lastname@example.org if you have questions regarding life insurance and annuities