Contributons can be made until the tax-filing deadline. Life insurance can provide policyholders with the opportunity for long-term cash accumulation. While the earnings from these policies are tax-deferred, you should keep in mind that if you surrender a policy in its early years, fees and expenses can reduce the value of your investment. having annuity contracts in your portfolio can also provide valuable tac protection. Fixed annuities offer the ability to select from several guaranteed interest rate periods. While your money accumulates, the insurance company issuing your contract guarantees the interest and your principal against loss.
Variable annuities provide investment flexibility and the ability to participate in market returns.
They offer fixed-rate subaccounts as well as subaccounts tied to stocks and bonds, both domestic and global. Regardless of which type of annuity you choose, your earnings will be reinvested and compound with out a current tax liability until you decide either to surrender the contract or withdraw a portion of your funds. You may also want to consider the advantages of tax-managed mutual funds. These funds strive to lessen capital gains distributions, allowing you to defer taxes until the eventual sale of the shares. Ask your financial consultant for more information.