THE BENEFIT OF TAX-DEFERRED ACCUMULATION

The Chart Example shows you the following:

$50,000.00 In a Tax Deferral product versus paying taxes on the growth annually.
In this example a $50,000 deposit is shown at 10,20, and 30 year increments.
The interest rate is assumed at 8% compound interest. The tax bracket is 31%.

10 YRS. $107,950 vs. $85,570
20 YRS. $233,050 vs. $146,440
30 YRS. $503,130 vs. $250,620

After Taxes you still have a total of $250,620.
After 30 Years the Taxable Account has $250,620.
After 30 Years the Tax-Deferred account has $503,130.
After Taxes are paid at the end of 30 years the remaining amount is $347,168 Dollars.
Your benefit equals.$96,548 after taxes have been paid.
The benefit is quite evident.

The value of a tax-deferred account is quite evident. Funds can be deposited in Single Premium accounts or you can save money on a monthly payroll deposit basis.

Educators throughout America see the value in their statements that arrive quarterly or annually. The single premium accounts can be either tax shelter accounts or tax deferred accounts. Funds deposited in TSA accounts are considered Flexible Premium Tax Shelters.

Funds deposited after taxes are called Non-Qualified accounts and those accumulate on a tax-deferral basis. Funds in these accounts also accumulate on a tax deferral basis and only the net growth is taxed upon withdrawal. This is due to the fact that the initial deposits were already taxed before these accounts were set up.

On a side by side comparison the CD accounts, which pay taxes annually, are no match for the tax deferred accounts whose funds accumulate on a tax deferred basis.

CD vs. TDA? The choice is yours. We offer comparisons so the choice is yours to make. Our desire is to disseminate information so you can make the right decision.

THE POWER OF A TSA
In addition to the deferral of taxes on earnings, a TSA provides another substantial tax advantage. Your TSA contribution is, within certain limits, excludable from your gross pay. For example, if you earn $2,500 per month and including other factors such as social security taxes and other taxable income, pay a combined marginal 31% in federal and state taxes, you will take home approximately $1,725 each month. If you save $300 each month in an after-tax savings program, your take home pay will be reduced by the full $300, and your resulting new take home pay will be $1,425.With a TSA, you are saving on a before-tax basis. You can save $435 each month in a TSA and still take home $1,425. In other words, you can save $300 a month on an after-tax basis or $435 a month in a TSA and still have the same take home pay.

A $300 monthly contribution to a regular savings account is equivalent to a $435 pre-tax TSA contribution. This example assumes a 6% interest rate and does not reflect the current interest rate.

Educators with the State Teachers Retirement System do not have Social Security taken out of their paychecks.

There is a mandatory 8% deducted before taxes.

A LIFETIME OF BENEFITS WITH YOUR ANNUITY

Annuities: Benefits That Can Last a Lifetime

Annuities have long been the classic investment for retirees seeking to secure a reliable supplemental income for their entire life, and there are a number of reasons why:

Lifetime Income: If outliving your savings is a concern, an annuity could be the solution. You can arrange to receive a steady stream of periodic payments, for the rest of your life.

Tax Deferred Growth: Annuities can offer tax relief. Perhaps the greatest advantage of an annuity is that your money accumulates tax deferred — you won't pay taxes on your money while it's growing, only as you withdraw it. Most people don't think of Uncle Sam as a benevolent uncle, but through tax-deferred investments, he has provided an attractive advantage. This benefit may allow your money to accumulate faster than it would in a comparable, currently-taxable vehicle. However, withdrawals made before age 59 1/2 may be subject to a 10% IRS penalty.

Competitive Interest Rates: Annuities can offer competitive interest rates and bonuses that accrue and are credited along with your regular deposits.

EXCELLENT COMPANIES WITH EXCELLENT PRODUCTS

Our chosen companies offer a wide array of products in the TSA market.

An example of the type of companies we have chosen are the following:

Several of the companies are the largest Insurance Companies in the world. One has over $400 Billion dollars in assets and generates $50 Billion dollars per year.

Several companies are over 100 years old and 400 years old respectively. As your agent we have the ability to choose companies that will protect and serve your interests.

An example of interest rates that you will earn yields over 12% the first year. That is guaranteed. Many of our companies offer bonuses on each deposit you make. A bonus plus the regular rate quickly generates outstanding returns. You get Quarterly and Annual reports showing each deposit and their cumulative effect.

There are monthly deposits and single premium deposits and each offer excellent returns. The benefit of pre-tax savings and tax-deferred growth creates growth month after month and quickly creates the kind of savings program you deserve.

The companies are excellent and they are chosen for their service departments. 800 telephone numbers make them available at no cost for any questions or service that you may require.

The 403B market generates hundreds of millions of dollars in deposits monthly. As an educator you cannot afford to allow this opportunity to go any longer.

TSA PRO is here to serve you and the education community.

E-MAIL : TSA PRO / LEON FAINSTADT