Take Advantage of Tax-Deferred Investing
Contributing to your Plan is a great way to take advantage of tax-deferred investing. Contributions to your Plan and all future earnings on those contributions are tax-deferred until money is withdrawn.
The chart below shows how monthly contributions over time in a tax-deferred retirement plan compare to monthly contributions and any potential earnings compounded in a currently taxable instrument (such as a bank savings or brokerage account).
FOR illustrative purposes only. This hypothetical illustration is intended to show a comparison between investing in a tax-deferred versus a taxable investment vehicle. It is not intended as a projection or prediction of future investment results, nor is it intended as financial planning or investment advice. It assumes $100 monthly contributions, a 15% federal income tax bracket, and reinvestment of earnings with no withdrawals. Rates or return may vary. Distributions from a tax-deferred retirement plan may be taxable as ordinary income. The 10% early withdrawal penalty does not apply to 475 plan withdrawals. Assumes that the taxable account does not hold and investment for more than 12 months. Taxable investments held longer than 12 months may qualify for lower capital gains and/or qualified dividend tax rates, which may make the return on the taxable investments more favorable, thereby reducing the difference in performance between the accounts shown. The illustration does not reflect any associated charges, expenses or fees. The tax-deferred accumulation shown would be reduced if these fees had been deducted.
For more information of the benefits of tax deferred investing contact your plan consultant.
Hunter Nighbert
Financial Advisor
hnighbert@mcfadvisors.com
859-967-0990
MCF Advisors, LLC (“MCF”) is an SEC-registered investment adviser. Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by MCF), or any non-investment related content, made reference to directly or indirectly in this presentation will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this presentation serves as the receipt of, or as a substitute for, personalized investment advice from MCF. To the extent that a reader has any questions regarding the applicability of any specific issue discussed herein to his/her/its individual situation, he/she/it is encouraged to consult with the professional advisor of his/her/its choosing. MCF is neither a law firm nor a certified public accounting firm and no portion of the webinar content should be construed as legal or accounting advice. A copy of MCF’s current written disclosure statement discussing our advisory services and fees is available upon request. If you are an MCF client, please remember to contact MCF in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing / evaluating / revising our previous recommendations and/or services. The scope of the services to be provided depends upon the needs of the client and the terms of the engagement.