Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Retirement Planning > Saving for Retirement

Authors Look At Power Of Tax Deferral

By Staff Writer

X
Your article was successfully shared with the contacts you provided.

An insurance company has released a paper that looks at the effects of tax deferral on retirement savings.

Tax deferral is key to accumulating extra savings and generating more retirement income, according to Matthew Grove, a senior vice president at Jefferson National Life Insurance Company, New York, a unit of Inviva Inc., Louisville, Ky., and Ira Weiss, an accounting professor at the University of Chicago.

Jefferson National, Dallas, a unit of Inviva Inc., Louisville, Ky., sponsored the analysis.

Grove and Weiss examine the performance of tax-deferred and taxable accounts over varying periods of time.

The authors of the analysis conclude that using a low-cost, no-load, tax-deferred investment such as a flat-insurance fee variable annuity could boost retirement income significantly for investors who have maxed out contributions to individual retirement accounts, 401(k)s and other tax-advantaged vehicles.

A no-load, flat-insurance fee VA contract can outperform a taxable account, even when capital-gains taxes are at an all-time low, Grove and Weiss write.

Asset-based VA fees can negate the benefit of tax deferral, the authors contend.

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.