Laws to take away your tax free and tax deferred status

Have you ever thought of how the current Obama laws may effect your investments?

When someone invests in an annuity, the gains are “tax deferred” until they are taken from the annuity. This saves the investor quite a bit of money, and also makes them money since the money that would be taken out for taxes are used as a base for the interest process.

For example if you have $10,000 in an annuity and earn 5% interest it would be to the benefit of the investor to let the $500 interest stay in the account along with the taxes. Actually you are earning interest on interest! By removing funds from the investment for taxes prior to the disbursement phase of the investment, you are losing interest on that money.

Lets look at the difference;

Now:

$10,000 Original investment

$     500 Earned interest*

Total Investment Value $10,500  and the next years interest is based on this amount.

Proposed:

$ 10,000

$        500 Earned Interest

$   –     50   Taxes  Leaves 10, 450 for future bases of interest to be earned.

This may not seem like a lot, but imagine larger investments, or the amount that is lost to the investor because the tax deferral is removed from investments. If a 10% tax is taken from each earning over a investors working  (accumulation) period, imagine the loss of money and future income that creates!

Tell your representatives that you do not want the government tampering with your investment money. Make them aware that with Social Security in its current state that they should leave your investments alone. They will get the interest when you retire, or when you take the money out. For more information email me at Jonathan@centralvafinancial.com

God bless and take care… Call me for your Insurance, Medicare, and investment needs, and you will be well taken care of!

Jonathan