As to be expected, there are downside considerations to annuities, in regards to taxation. For instance, should the owner be under the age of 59 ½ and be in need of withdrawals, they may be subject to the IRS 10% penalty on gains. In addition, the total value of the annuity will be subject to federal estate tax. (Please be sure to ask me about the workaround on these topics.)
While annuities are a perfect fit for tax deferral and lifetime income, there's also an alternative solution that will benefit your clients with regards to taxation: cash value life insurance. There is no other asset class available that provides protection from rising taxes and market volatility; while providing for LTC needs and even funding travel interests.
Remember - tax deferral is great, but tax free it better. If you want to maximize cash value life insurance for your clients' supplemental life insurance, contact me today at 866.866.7050 ext. 1105 to discuss positioning strategies. We have found True G.R.I.T.TM Essentials (Growth, Retirement, Income and Taxes) are the foundational strategies used by successful planners. Leveraging bucket planning in the process of creating a comprehensive plan, will allow you to taken into account multiple products and solutions, including: short- and long-term planning horizons, guaranteed versus non-guaranteed income, tax versus non-taxable, estate planning and LTC.
Continue to join me weekly as I share the various strategies that support the True G.R.I.T. sales system.