Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
When a person has paid the maximum permitted amount into tax deductible plans they might want to have a supplemental plan. The vehicle for this plan is either life insurance or an annuity for most people. These two products have tax deferral as a part of their design. When these products are used to increase the amount being set aside for retirement, current income tax on earnings is generally not reported. This means that interest on the principal plus the interest earned plus the taxes unpaid make this an attractive way to save money.
.JPG){kind=avatar}
When a person has paid the maximum permitted amount into tax deductible plans they might want to have a supplemental plan. The vehicle for this plan is either life insurance or an annuity for most people. These two products have tax deferral as a part of their design. When these products are used to increase the amount being set aside for retirement, current income tax on earnings is generally not reported. This means that interest on the principal plus the interest earned plus the taxes unpaid make this an attractive way to save money.