Sentences with phrase «interest on a tax deferred basis»

The cash value account grows or earns interest on a tax deferred basis.

Not exact matches

It's important to keep in mind that a brokerage account is a taxable account, so unlike tax - deferred retirement account like a 401 (k) or IRA, you'll need to square up with the IRS every year based on your gains, losses, and proceeds from dividends or interest.

A Fixed Annuity offers tax - deferred growth based on a guaranteed fixed interest rate, while a Variable Annuity allows you to pursue greater growth potential by investing in the market.

Fixed index annuities are long - term, tax - deferred † retirement vehicles that offer a unique combination of growth potential (via interest based on one or more market indexes) and the protection of optional and standard guarantees — all designed to help you pursue your long - term financial goals.

The interest and dividends that your account earns will also grow on a tax - deferred basis and not be taxed until you withdraw them.

From a strategic standpoint, the popularity of cash value life insurance stems from its ability to both provide insurance protection and grow funds on a tax - deferred basis — interest and earnings in policies of this type are not taxable unless a triggering event occurs, such as surrendering the policy.

You'll get the protection of a fixed annuity, the potential for tax - deferred interest earnings based on the performance of a specific index, and the opportunity for guaranteed income for life.

Fixed indexed annuities can offset those shortcomings: In addition to earnings that grow on a tax - deferred basis, they guarantee a set interest rate and provide exposure to stock market returns, which tend to be higher than bond market returns, according to Ibbotson's white paper.

The Sage Choice Single Premium Deferred Annuity builds from a single initial premium and earns a competitive fixed rate of interest that accumulates on a taxed deferreDeferred Annuity builds from a single initial premium and earns a competitive fixed rate of interest that accumulates on a taxed deferreddeferred basis.

Fortunately, there is a way that you can earn money faster, on a tax - deferred basis, with a guaranteed fixed rate of interest of as high as 3 percent.

If the interest is not withdrawn, then the gains will compound on a tax deferred basis.

So while my wife's LIRA was based on the capital provided at that long - ago voluntary termination from her employer's pension plan, it has of course grown tax - deferred since then: to roughly double what it was at inception but apart from reinvesting dividends and interest, no further outside injections of capital occurred.

Adjusted Operating Earnings represents GAAP net income adjusted for exclusion of, a) investment gains and losses, net of tax, b) dividends on participating life policies related to capital gains, c) equity base tax (release), d) a deferred tax benefit associated with a foreign subsidiary, and e) the inclusion of certain statutory interest maintenance reserve amortization, net of tax, with an offset for amortization of deferred acquisition costs where applicable.

In a different situation, if you have accumulated a sufficient cash value and there is enough money on your account to cover the premium, you may still want to pay the amount you find appropriate to earn interest which is credited on a tax - deferred basis.

Whole life policies do accumulate a cash value on a tax - deferred basis, however, the net rate of return is low when compared to a balanced investment portfolio and the insurance cost, expenses and method of determining the dividend scale / interest rate are not disclosed.

Moreover, the interest accumulates on a tax - deferred basis, allowing the cash to accumulate faster.

A Fixed Annuity offers tax - deferred growth based on a guaranteed fixed interest rate, while a Variable Annuity allows you to pursue greater growth potential by investing in the market.

In the savings component, interest may accumulate on a tax - deferred basis.

Universal life offers insurance protection until your death, with guaranteed premium levels and tax - deferred benefits that are based on current interest rates.

From a strategic standpoint, the popularity of cash value life insurance stems from its ability to both provide insurance protection and grow funds on a tax - deferred basis — interest and earnings in policies of this type are not taxable unless a triggering event occurs, such as surrendering the policy.

Universal life insurance can offer the best of two worlds — a fixed amount of coverage with a tax - deferred, cash accumulation account based on current interest rates.

In the earlier years of the policy's coverage, the policyholder pays a premium higher than the cost of insurance, and the balance of the premium is placed in an accumulation account that earns interest on a tax - deferred basis.

Universal Life and Whole Life policies contain a cash value account that grows over time and earns interest on a tax - deferred basis.

As your cash value account grows through tax - deferred interest, the policyholder can easily take loans against the policy on a tax - free basis for any reason, In fact, policy loans are not required to be repaid.

Both earn and accumulate interest on a tax - deferred basis, so the interest earned is not taxed until the money is withdrawn.

In this way, the interest grows on a tax - deferred basis, which increases your cash value.