| Positive Effect of Tax Deferral |
 |
The ability to shelter
your earnings from the impact of taxes is one of the most
prudent ways to build and preserve wealth for retirement.
Without the continuous drag of taxes, your money grows faster.
This would naturally allow you to set aside more for your
retirement.
Here is how tax deferment
works to make your savings grow swiftly:
· Your principal earns interest each year
· Your accumulating interest earns interest
· The money you would have ordinarily paid as taxes
each year is saved as your annuity to earn interest for
you.
The longer you defer, the more your savings benefit from
tax deferment. Over time, the additional interest earnings
on these tax savings can really add up... Depending on your
tax bracket, tax deferral can mean as much as 30% to 40%
faster growth of your money, compared to a taxable savings
paying the same rate.
|
