Why Tax Deferral is Key: A New Approach to Tax Planning with IOVAs

Despite low yields and ongoing volatility, many advisors have a strategy to help their clients manage the market and earn meaningful gains in 2016.

But another hurdle approaches on April 15 as tax bills come due. Taxes can be your clients’ single biggest investment expense—especially for the high net worth, who can face rates as high as 40 percent or even 50 percent, when Federal and State taxes are combined.

That’s why tax deferral is key. According to surveys by Jefferson National, 96 percent of RIAs and fee-based advisors say tax deferral is important. Yet, less than 20 percent know tax deferral can potentially add 100 bps or more to a portfolio. And more than half said clients have no knowledge about tax deferral beyond 401(k)s and IRAs. Many are missing opportunities to maximize wealth.

Click here to read more on why IOVAs are Built for Tax-Advantaged Investing.