ETF Trends
ETF Trends

Note: This article is courtesy of Iris.xyz

By Laurence Greenberg

Read any industry publication and you’ll see that the buzz is about retirement income solutions. The choices include variable annuities (VAs) offering a range of different living benefits, target date mutual funds, and payout mutual funds, all designed to generate income during retirement years.

But with all the hype, one statistic has been overlooked: The median baby boomer is 54 years old, and the youngest boomer is in their mid-40’s. With ten to twenty more years until retirement, accumulation is still a big issue for more than half of the 76 million boomers, as well as the younger generations following them. In this era of do-it-yourself planning and a failing retirement safety net, experts agree that most Americans need to save more. But many consumers have a big objection to annuities—simply stated, they’re hesitant to tie up today’s savings for tomorrow’s income. So how can you help them overcome this block to see the benefits of annuities?

[related_stories]

To maximize long-term savings, few things beat the power of tax-deferral. When you stockpile your investments for years or decades—compounding growth without stripping away 15 to 39 percent in taxes each year during the accumulation period—you could have substantially more by the time you reach your retirement.

A study, co-authored by University of Chicago professor, Ira Weiss, Ph.D., and Jefferson National, set out to prove this point. You may be surprised to learn that tax deferral can quickly outperform a taxable investment.  It may surprise you even more to learn how little time it can take for a tax-deferred account to break even with, and then outperform, a taxable account. The key is using a low-cost, no-load tax-advantaged investing solution.

Click here to read the full story on Iris.xyz.