By: David Racich

David Racich — Thu, 04 Jul 2013 15:36:00 +0000

A tax deferred variable annuity, like all insurance or investment products, needs to be suitable to the buyers financial profile, which includes risk tolerance assessment, financial goals and a life expectancy report. A tax deferred variable annuity is a security investment and an insurance product. It has a general interest rate account and separate sub accounts using equities and bond instruments. Tax deferred variable annuity separate subaccounts can lose money. Three items to consider that may make sense for a tax deferred variable annuity purchase: If you’re in a high tax bracket, the tax deferral feature could, over time, be of significant value in your investment posture is market driven.

New answer on: When Do Variable Annuities Make Sense?

By: David Racich