Variable Annuity/Life Program

Achieving Greater Growth Through Tax-Deferral: Fight Back Against Taxes

All things being equal, a tax-deferred account will grow to a larger sum over time than a fully-taxed investment. That is why investors are continually urged by financial experts to accumulate as much as possible on a tax-deferred basis.

Your first step should always be to maximize contributions to qualified deferred accounts such as IRAs and 401(k)s. Once you've done that, you can consider using a variable annuity or variable life insurance to make additional investments that can grow tax-deferred. What makes the variable annuity and/or variable life such a potentially powerful tool is that there is virtually no limit to the amount of dollars you can set aside in this type of investment to grow tax-deferred.

That said, it is important to review with a tax advisor the tax ramifications for the eventual withdrawals from your tax-deferred investments. Then withdrawals, under current tax law, will be treated as ordinary income and thus the investor will not receive the more favorable long term capital gains tax rate on these investment dollars.

How the Variable Investment Management Service Works

Research: We research the variable annuity and variable life marketplace; we investigate and analyze various variable annuity and variable life companies.

Recommendation: We then select a vendor we feel provides the best combination of low cost, excellent investment options, safety and flexibility. We receive no sales compensation from the company we recommend. However, we may receive an investment consulting fee. This fee can be paid from the investment or by you directly.

Management: After you choose to invest in the variable investment, TriCapital will manage your dollars in that account. We will track and analyze the choices within the variable investment and create a diversified, proactively managed portfolio. You will receive regular reports from the variable annuity company and custom quarterly reports prepared by us.

If you have already invested in a Variable Annuity or a Variable Life Investment

We can analyze this investment as well to determine if it is appropriate to stay invested or make a change. If it is appropriate to stay invested where you are than we can request paperwork from the sponsoring company to provide this service. We have many servicing agreements in place already. Call us to review your options.