How to Save on Taxes When Growing Your Income

How to Save on Taxes When Growing Your Income

How Fixed Deferred Annuities Can Help Keep Your Tax Payments Low While Saving for the Future

The unfortunate fact of the matter is the more money you bring in, the more you’ll owe in taxes. However, the more money you make, the better opportunities you have for income growth and a secure retirement plan. Fortunately, through various investments, such as fixed deferred annuities, there are ways to securely grow your income without significantly raising your tax bill. Through our wealth management firm, Fortis Lux Financial, you can work with an advisor to determine the best game plan when it comes to maximizing your income while keeping your tax payments in check.

Invest in the Right Annuities

The best way to avoid an unnecessarily large tax bill is with fixed deferred annuities. These secure investments grow your income at fixed rates without incurring any value you need to add on to your taxes until you withdraw money from them. If you intend to set aside the money for retirement and not touch it until then, fixed deferred annuities are the best way to grow your future savings without paying yearly taxes on that growth.

Roll Over Annuities

Some fixed deferred annuities expire or generate payments after certain periods – quarterly, biannually, annually, or once every few years. To avoid a tax penalty for cashing out the money and reinvesting it in another venture, simply roll over the annuity. One of our advisors at Fortis Lux would be more than happy to work with you to accurately roll over your annuity, should you need to access your growing savings in an emergency.

Avoid Early Withdrawals

Withdrawing money from these savings is when you’re most likely to incur high taxes and fees. While it can be tempting to dip into these funds for big expenses like a new car, buying a home, or college tuition, if your goal is to avoid high tax payments through fixed deferred annuities, only do this as a last resort.

Fortis Lux has been serving American individuals and business owners for over a hundred years. Contact us today by phone or online submission form to learn more about how annuities can play a role in your retirement or even in your annual income – and how we can help manage a complete financial plan to help you build equality and grow your money securely.