How Higher Income Earners Can Boost Their Tax-Deferred SavingsSubmitted by LWM | Linden Wealth Management LLC on March 8th, 2019
Wealthier individuals and entrepreneurs often tap out on how much they can contribute to their 401(k) or retirement plan. They have few options other than to invest excess cash through a taxable brokerage account. What if there was another way to get tax-deferred growth?
Today, you can open an Investment-Only Variable Annuity. It is simply a tax-deferred account similar to a 401(k) or IRA, which you can access without penalty as early as 59 1/2. Since these are taxable contributions, you can make them on an unlimited basis.
An IOVA does not have all the traditional hangups of an annuity with high commissions and restrictions. Accounts are easy to open and free of charge. There are no surrender fees and annual expenses are modest around 0.50%.
They are ideal for high net worth individuals with a lot of taxable assets. The benefits of tax-deferral can be substantial and impacted by the person's tax bracket, time horizon, and investments rate of return..
You might consider opening an IOVA if:
- You are High Net Worth Individual
- Looking to maximize retirement savings
- Have taxable assets
- Are in a high marginal tax bracket
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*This content is developed from sources believed to be providing accurate information. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel. Neither the information presented nor any opinion expressed constitutes a representation by us of a specific investment or the purchase or sale of any securities. Asset allocation and diversification do not ensure a profit or protect against loss in declining markets. This material was developed and produced by Advisor Websites to provide information on a topic that may be of interest. Copyright 2014-2018 Advisor Websites.