Y.L. Prinzel
Expert
- 85
Is there some reason to put "tax-deferred inside of tax-deferred" that holds up to the scrutiny of what's best for the client?
What is it?
I think I could understand that argument better with a muni bond since you are actually sacrificing gains for tax avoidance. With a variable annuity, you aren't taking a smaller return (i.e. the small coupon on muni's) for the sake of a tax deferral, so there is no negative aspect to adding one to your IRA--except that you could better maximize your IRA contribution cap by keeping it out....but if all you have is 5-6k to invest each year then what's the difference?