With a new President whose tax policies differ radically from those of his predecessor and a sinking economy that has the government trying to plug holes with money it doesn’t have, it’s almost certain that major tax changes are on the way. This has many in the annuity industry wondering, with good reason, what affect these changes might have on their business. Many of President Obama’s tax policies target wealthy individuals-exactly the people annuity producers want to talk to. But, while we can’t project with any certainty what changes will come down the road, based on Obama’s stated tax proposals during the campaign, the outlook for annuities is actually pretty good. That’s right. President Obama’s tax proposals might actually be good for your business.

Some of Obama’s Tax Proposals:

  • Increase the capital gains tax to 20% for individuals making over $200,000 and families making more than $250,000
  • Keep estate taxes at 45% with an exemption amount of $3.5 million ($7 million for married couples) More details please visit:-talviainen.fi ambientfactor.fi ferreta.fi kubisslondon.fi mattijohanneskoivu.fi akavanentre.fi kilpishop.fi
  • Seniors earning less than $50,000 would not pay income taxes
  • Increase the two highest marginal tax rates from 33 percent to 36 percent and 35 percent to 39.6 percent

If you want to see President Obama’s entire tax plan, visit

So how might these policies affect your annuity sales? The answer is simple. The higher the tax rates are for wealthy individuals, the more they will seek instruments that offer tax deferral, i.e. annuities. For example, many investors might decide that rather than paying a 20 percent capital gains tax, they’d rather move their money into an indexed annuity where they can still get a piece of the market and their money grows tax-deferred. Also, seniors who don’t rely on their investments for income, might also elect to roll those into annuities so they can reduce their income below the $50,000 threshold. This way they could avoid paying income taxes until they have to take withdrawals on their annuities.

Leave a Reply

Your email address will not be published.