The Power of Tax-Deferral

Date Monday, November 9th, 2009 4:22 pm

How much more money will tax-deferral give me?Save Money 2

We all know that the longer you avoid paying taxes, the more money you will have. But have you ever calculated exactly how much more money tax-deferral provides?

Did you know that after postponing taxes for just six years, a tax-deferred annuity can produce 11% more income every year than a taxable account? After fifteen years, you will have 30% more income due to tax-deferral (refer to the table below).

The longer you defer taxes, the more money you will have—That’s the power of tax deferral!

Growth Comparison

Year                                       3                      6                     9                     12                     15              

Taxable                          $11,496          $12,756        $14,406         $16,271           $18,377

Tax-Deferred                 $11,910          $14,185        $16,895         $20,122           $23,966

Yearly Income Comparison

Year                                       3                      6                     9                     12                     15             

Taxable                             $678               $765              $864                $976              $1,103 

Tax-Deferred                    $715               $851           $1,014             $1,207             $1,438

Additional  Income            5%                 11%               17%                 24%                  30%

 

For more information, contact Provada at 415-369-9990.

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