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Retirement
Planning
—— Because
you have worked hard to achieve your goals
At the American
Fraternal Union, we believe the use of life insurance and tax-deferred
investment products are an important part of your financial plan for
retirement, whether your retirement is just around the corner or 20 or
more years away. Our goal is to help you make decisions that
maximize the benefits of retirement for you and your family and make the
transition to retirement as enjoyable as possible.
Retirement is a
time of life when people face the extraordinary task of dealing with
important issues, all needing resolution in a very short time frame.
Just when you are coping with the emotionally charged prospect of no
longer earning a paycheck, you find that you must confront an array of
pension, cash flow, investment, insurance and tax decisions, some of
which are irreversible! Perhaps more than any other stage in
your adult life, retirement decisions have major consequences not only
for your own security and quality of life, but for future generations
of your family as well. Invest today in an American Fraternal
Union retirement account and have the peace of mind you deserve.
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Taxable
versus tax-deferred - Put the advantage of tax
deferral to work for you!
This
chart illustrates the powerful advantage of tax-deferred retirement plans
with compounding interest versus taxable contributions with compounding.
The American Fraternal Union offers
competitive rates, daily compounding interest, and no upfront loading
charges. Open up your tax-deferred
Annuity,
IRA, or
Roth IRA today and start investing in your
secure tomorrow!
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The Power of Tax Deferral |
|
Year |
Annual Contribution |
Taxable Savings |
Tax-Deferred
Savings |
|
Beginning Balance |
Interest 8% |
Taxes 28% |
Ending Balance |
Beginning Balance |
Interest
8% |
Ending Balance |
|
1 |
3,000 |
3,000 |
240 |
67 |
3,173 |
3,000 |
240 |
3,240 |
|
5 |
3,000 |
16,830 |
1,346 |
377 |
17,800 |
17,600 |
1,408 |
19,008 |
|
10 |
3,000 |
39,100 |
3,128 |
876 |
41,352 |
43,460 |
3,477 |
46,936 |
|
15 |
3,000 |
68,565 |
5,485 |
1,536 |
72,514 |
81,456 |
6,517 |
87,973 |
|
20 |
3,000 |
107,551 |
8,604 |
2,409 |
113,746 |
137,286 |
10,983 |
148.269 |
|
25 |
3,000 |
159,137 |
12,731 |
3,565 |
168,303 |
219,318 |
17,545 |
236,863 |
|
30 |
3,000 |
227,391 |
18,191 |
5,094 |
240,489 |
339,850 |
27,188 |
367,038 |
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Assumptions for this hypothetical example are (1) $3,000 annual
contribution, (2) 8% investment return, and (3) 28% combined federal
and state tax bracket.
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