Sentences with phrase «longer deferral»

A longer deferral period will allow a client to buy a larger annuity payment because (1) assets have more time to grow; (2) there will be fewer years of distribution; and (3) more mortality credits are available.

For clients who may be unwilling to accept an increase in stock holdings within an investment portfolio, a smaller DIA purchase with a longer deferral period may be a more appropriate way to buy long - life income protection.

Purchasing the annuity at a younger age with a longer deferral period would generally give you a better premium - to - income ratio.

The longer the deferral stage, the greater your future income.

Longer deferral periods mean (1) more time for the insurance company to invest your money before starting payments and (2) fewer years of expected income payments.

Not exact matches

Younger family members with long lives ahead of them can «stretch» mandatory withdrawals over many decades, preserving tax deferral and increasing the ultimate value of the account.

And Wendy Long will work to reverse President Obama's foreign policy of deferral and appeasement.

Learn more about how tax deferral and other long - term investing strategies can help you pursue your retirement goals with our guide to Investing Principles.

The specific guaranteed deferral time periods vary from carrier to carrier, but can be as long as 20 years.

At a fee of $ 150 to $ 300 per hour, an accountant can often provide great insight and potential tax deferral strategies for situations such tenants - in - common (often after only an hour long consultation).

But in order for your portfolio to achieve this type of deferral at that rate of return would require you putting all your money into the one or two stocks that happen to be able to compound at that rate over long periods.

The solution is to work longer and perhaps to defer the start of CPP and OAS in order to capture the 8.4 per cent annual boost for each year CPP is delayed after 65 to age 70 and the 7.2 per cent boost in OAS for annual deferral to age 70.

If you're eligible for a low rate now, it could be cheaper in the long run to give up tax deferral and pay the tax now.

This also leads to longer holding periods, which provide greater tax deferral and lower brokerage costs.

Variable annuities are long - term investments intended for retirement purposes that offer tax - deferral, professionally managed investment options and flexible payouts.

Working through the numbers, we would find that the tax deferral strategy wins if you hold the asset long enough for it to grow 62 % or more.

So apart from the Canadian dividend tax credit giving you a major tax - deferral opportunity, dividends can supply a big part of your overall long - term portfolio gains.

The false idea that there is a benefit from deferral causes «experts» to claim it is better to delay RRIF drawdowns as long as possible, even while ignoring any higher tax rate that may apply later.

Contributors get the benefits of tax deferral but forfeit the more advantageous long - term capital gains treatment.

The deferral of earnings to the future reduces book value, reduces short - term earnings relative to book value, and increases expected long - term earnings growth.

Deferral tends to make sense if you expect to live particularly long.

We'll likely get serious around Age 60, with a 15 - 20 year deferral (allowing payments to start at Age 75 - 80, and set it up to last as long as we live).

You gain the benefit of tax - deferral but lose the benefit of the long - term capital gains tax rate.

But even middle - class taxpayers can benefit, as long as they have enough time to reap the benefits of tax deferral and a similar or preferably lower forecast tax bracket in retirement.

The main purpose of this new rule is to reduce Jeff's future corporate tax deferral from 40 per cent down to 27 per cent on the $ 250,000 of 2019 income no longer subject to the SBD rate.

Tax deferral is encouraged by the government to stimulate long - term saving and investment, especially for retirement.

Holding for a long time reduces trading costs and allows for tax deferral, because the tax on capital gains is postponed until you sell.

Lifetime withdrawal benefit amount tied to the length of the deferral period — the longer you wait to take your lifetime withdrawal benefit amount, the higher your lifetime income will be5

And because any growth in your annuity value is generally not taxed until you take money out of the contract, the combination of tax deferral and the ability to establish guaranteed income can be an effective way to plan for retirement and other long term goals.

When saving for the long term, it may make good investment sense to rely on tax deferrals.

Q: Take out as little as you can, to extend the tax deferral as long as you can, says Dean Paley, Burlington, Ont. - based CPA.

If you opt for the most tax deferral and draw your TFSA down first, it could mean you're taking larger taxable withdrawals from your RRSP and holding company in later years and paying more tax in the long run, at the expense of some short - term tax savings.

Unlike long - term deferral period annuities (longevity insurance) that are primarily meant to protect against longevity risk, a short - term deferral period annuity can provide a steady income to pre-fund retirement spending over the entire retirement life cycle.

Although it is not considered in detail in this paper, a DIA with a longer post-retirement deferral period can be seen as an insurance product that pays out a significant income per dollar invested later in retirement when a client is most at risk of outliving assets.

This year, the budget, tabled on March 22, takes aim at long - standing tax deferral opportunities afforded to certain professionals, including lawyers, accountants, dentists, medical doctors, veterinarians and chiropractors.

An outdated, not fit for purpose Controlled Foreign Companies (CFC) regime, coupled with the «Check the Box» election, no exemption for foreign dividends, and pliant treaty partners like Luxembourg and Ireland (who can't compete unless they drop their Corporation Tax aspirations), and you have the perfect (tax) storm: very low effective corporate tax rate and long term tax deferral (there being no incentive for the likes of Apple to repatriate their profits to the US).

And because any growth in your annuity value is generally not taxed until you take money out of the contract, the combination of tax deferral and the ability to establish guaranteed income can be an effective way to plan for retirement and other long term goals.

This combination of tax deferral and the ability to establish guaranteed income can make an annuity an effective tool for retirement planning and other long term goals.

Because of the mortality credits accrued during the deferral period, the time period between the purchase of a longevity annuity and when the longevity annuity payout begins, longevity annuities can be more efficient over the long run than immediate annunities, all else being equal.

So long as the employer complies with the new rules (adopted in 2006 and characterized as the «COLI Best Practices Act»), however, the tax - free nature of the death benefits and the tax deferral on earnings credited to policy value remain.

You also must have your money in the contract for a long time in order to have the tax deferral justify the high fees.

This provision allows deferral of taxes on gains from the sale of a real estate property as long as the proceeds are reinvested in a similar...

The exchange rules permit the deferral of taxes, so long as the taxpayer satisfies numerous requirements and consummates both a sale and purchase within 180 days.

The like - kind exchange provision in the IRS tax code allows for the deferral of tax owed on any gain from the sale of a real estate property as long as the proceeds are reinvested in a similar property.

Section 1031 allows deferral of taxes on the disposition of real estate held for investment or business purposes, as long as that real estate is exchanged for another «like - kind» property (commonly referred to as «(1031 exchanges»).

Now, as long as non-borrowing spouses establish their legal ownership and take responsibility of the loan, they may remain in their homes for a deferral period.

TREB says change could produce many benefits for Realtors, such as a lower income tax rate, greater accumulation of wealth through long - term tax deferral, providing a vehicle for retirement savings, faster repayment of debts, cheaper funding of non-deductible expenses, providing an incentive to save, providing individual pension plans, tax deferral on bonus accruals and a capital gains exemption.