The Power Of Tax Deferral With Index Summit 6
While many investment vehicles are subject to income tax on an annual basis, the Index Summit 6 allows assets to grow tax-deferred. This means returns compound at a faster rate and provide greater earning potential than a taxable investment. Take a look at how $100,000 would have grown in a tax-deferred Index Summit 6 annuity versus an S&P 500® investment taxed at an annual rate of 24%:
The Index Summit 6 grew at a significantly faster rate and outperformed the taxable S&P 500® investment – even after deducting the assumed 24% tax.
The Index Summit 6 can only be sold through a Broker/Dealer that is contracted with Great American Life Insurance Company. Any sales solicitation must be accompanied or preceded by a prospectus. Obtain a copy of the prospectus.
This graph is a hypothetical example of the mathematical principles related to tax deferral. It is not intended to predict or project the performance of any investment or investment strategy. Past performance is no guarantee of future results.
Historical values of the S&P 500 are based on the S&P 500 Price Return Index (SPX) for one-year terms beginning on January 1, 2000. This index does not include dividends paid on any of the stocks included in the index. You cannot invest directly in an index.
The Index Summit 6 values are based on hypothetical performance of the Term with Participation Rate indexed strategy for one-year terms beginning on January 1, 2000. For purposes of this example, we assumed a 75% upside participation rate for each term and a 50% downside participation rate for each term. A different set of assumptions would lead to different results, which could be significantly different from the strategy returns shown in the example. Upside participation rates are set at the start of each term and are subject to change. It is likely that the upside participation rate for an indexed strategy will vary from term to term. Downside participation rates on currently offered strategies are not subject to change. This example also assumes that no withdrawals are taken from the Index Summit 6, which means it does not reflect deductions for early withdrawal charges or the potential negative impact of a withdrawal on strategy values.
For the purposes of this example, the investment in the stocks that make up the S&P 500® index is assumed to be taxable at an annual rate of 24%. An investor's personal tax rate may be higher or lower than the 24% rate illustrated. Lower capital gains and dividend tax rates would make the taxable investment more favorable than shown in the graph and reduce the difference in performance between these two investments. The amount of tax-deferred accumulation would be reduced if early withdrawal charges and the negative impact of withdrawals on strategy values were reflected.
All guarantees subject to the claims-paying ability of Great American Life. Registered index-linked annuities involve risk and may not be suitable for all investors. Any sales solicitation must be accompanied or preceded by a prospectus.
For producer use only. Not for use in sales solicitation.