My question if i may ask is: what is the ideal starting account balance if i am to enjoy the trading rewards and realize a
reasonable growth of my account in medium term period (say abouth 3 months)?
This life insurance plan provides a death benefit if you should die, as well as tax -
deferred growth of your account value, growth linked to a formula based on changes in an equity - index, flexible premium options, a variety of riders and waivers, and two death benefit options.
Strongly promoted a safe and clean environment and executed all marketing strategies that resulted in 12 %
growth of account acquisition within territory.
While retirement seems a long way away for many people, and may never come for others, what makes these accounts so attractive is the tax savings that they can bring, specifically not taxing
the growth of your accounts right away.
To me the better tax benefit is
the growth of the account over the years with the gains being tax free.
Rather than having taxable gain on 100 % of
the growth of your accounts, your life insurance cash value can grow tax free, increasing you overall financial leverage AND return on investment return on investment.
Variable annuities were introduced in the 1950's as an alternative to fixed index annuities which offer a guaranteed contractual rate of interest in terms of the cash value
growth of the account, similar to dividend paying whole life insurance.
You will only be taxed on
the growth of the account IF you withdraw beyond your basis.
And don't forget that you can also access
the growth of your account tax - free, by taking a life insurance policy loan (sometimes called a swap loan) against your cash value.
This can significantly speed up
the growth of the account, so if your employer matches your contributions, a 401 (k) may be right for you.
This means that you will not be getting a 1099 on
the growth of your account value each and every year.
The premiums you pay are fixed throughout the life of the contract, while the performance of your chosen subaccounts determines
the growth of your account value, and can also determine the value of your death benefit.
The growth of your account (investment gains, dividends, and interest) would generally be taxed and / or penalized if taken out before you reach age 59 1/2.
You can withdraw the contributed amount (but not
any growth of the account) at any time you wish, for any purpose, with no tax consequences.
Once you've contributed funds to the account, qualified withdrawals of the contributions and
the growth of the account will be tax free.
This means that
the growth of the account is not taxed every year like a typical mutual fund or investment account.
Disadvantages to funding through a 401 (k) include a loss of opportunity to benefit from
the growth of the account.
As an example, a properly structured cash value whole life insurance policy that is purchased from a mutual company, is one that has tremendous liquidity, low cost (majority of the cost is buying lifelong level insurance — not to be compared to term), no tax on
the growth of the account, tax free loans, tax free withdrawals (up to basis), tax free to survivors, no contribution limits, no required withdrawals, is free from creditors, and has minimum guarantees.
The Google Reader blog recently published the following graph that shows
their growth of accounts over the past five years:
This means that there is no tax due on
the growth of the account until the funds are withdrawn.
And don't forget that you can also access
the growth of your account tax - free, by taking a policy loan (sometimes called a swap loan) against your cash value.
The premiums you pay are fixed throughout the life of the contract, while the performance of your chosen subaccounts determines
the growth of your account value, and can also determine the value of your death benefit.
This means that
the growth of the account is not taxed every year like a typical mutual fund or investment account.
Variable annuities were introduced in the 1950's as an alternative to fixed index annuities which offer a guaranteed contractual rate of interest in terms of the cash value
growth of the account, similar to dividend paying whole life insurance.
Rather than having taxable gain on 100 % of
the growth of your accounts, your life insurance cash value can grow tax free, increasing you overall financial leverage AND return on investment return on investment.
You will only be taxed on
the growth of the account IF you withdraw beyond your basis.