Increase the Yield On Your Bank Deposits by 45%
Those in a 31% tax bracket can increase the growth on their bank deposits by 45% with tax-deferred annuities. Here is how it works:
If your bank account earns $1000 in annual interest income, shortly after year's end, you'll receive a 1099 for $1000 to report on your tax return. This means you'll owe Uncle Sam $310. That $310 equals 31% of what you earned, but it equals 45% of the amount you get to keep ($310 divided by $690 amount kept = 45%).
By transferring your savings to an annuity, you eliminate the 1099 and get to keep that $310 in interest to compound tax-deferred. It's like borrowing from Uncle Sam at 0%.
Other key differences between Bank CD's and Annuities are compared in the table below:
|¹ First year yield/rate reflects fixed rate
plus premium bonus or interest rate enhancement.|
Interest is based on current rates and subject to change without notice.
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