Pacific Life’s New Educational Materials
Help Advisors with Year-End Portfolio Reviews and Tax Planning
Facilitates Tax-Management Discussions by Highlighting
the Role of Variable Annuities in Reducing Annual Taxation
Newport Beach, Calif. (January 21, 2014)–As financial advisors prepare to meet with clients, review portfolios, and suggest strategies for 2014, Pacific Life Insurance Company has released new educational resources on the core benefits of variable annuities, including their role in managing taxation.
Taxes are sure to be a concern for investors this year. Congressional efforts to reduce the federal deficit resulted in several new taxes, tax increases, and limits on deductions in 2013. More changes are set for discussion in 2014. “This is already affecting many clients in terms of their ability to reach their retirement goals,” says Christine Tucker, vice president of marketing for Pacific Life’s Retirement Solutions Division. “Through our new materials, we want to help advisors explore tax-management solutions for these clients by highlighting the many ways in which variable annuities can provide tax-deferred investing strategies in combination with guaranteed lifetime income at retirement.”
As an example, Tucker points out that variable annuities can help clients achieve broader investment portfolio diversification in a tax-efficient manner. Investment earnings are not taxed within a variable annuity until funds are withdrawn. As a result, even asset classes that are traditionally considered tax inefficient can be added to portfolios in a more tax-efficient way.
The new resources that explain these tax advantages are part of Pacific Life’s LIFT campaign, launched earlier this year. With the tagline, “LIFT retirement savings with the help of a variable annuity,” the campaign educates both advisors and clients in the core benefits of variable annuities, including tax-deferred growth, a wide choice of professionally managed investment options, and guaranteed lifetime income for retirement. Campaign resources include a variety of print and digital communications, including a new client video that describes these core advantages in several quick, easy-to-understand chapters. There is also an innovative online tool called the Tax Deferral Analyzer. Advisors can input basic client data and then show clients the effects of tax deferral on accumulating assets, making retirement income last, and leaving a legacy for beneficiaries.
To learn more about Pacific Life’s LIFT campaign, advisors are invited to visit www.PacificLife.com or call a Pacific Life consultative wholesaler at (800) 722-2333.
About Pacific Life
Offering insurance since 1868, Pacific Life provides a wide range of life insurance products, annuities, and mutual funds, and offers a variety of investment products and services to individuals, businesses, and pension plans. Pacific Life counts more than half of the 100 largest U.S. companies as its clients. For additional company information, including current financial strength ratings, visit Pacific Life online at www.PacificLife.com.
Pacific Life refers to Pacific Life Insurance Company and its affiliates, including Pacific Life & Annuity Company. Client count as of May 2013 is compiled by Pacific Life using the 2013 FORTUNE 500® list.
This material is not intended to be used, nor can it be used by any taxpayer, for the purpose of avoiding U.S. federal, state, or local tax penalties. This material is written to support the promotion or marketing of the transaction(s) or matter(s) addressed by this material. Pacific Life, its distributors, and respective representatives do not provide tax, accounting, or legal advice. Any taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor or attorney.
Insurance products are issued by Pacific Life Insurance Company in all states except New York and in New York by Pacific Life & Annuity Company. Product availability and features may vary by state. Each company is solely responsible for the financial obligations accruing under the products it issues. Insurance product guarantees are backed by the financial strength and claims-paying ability of the issuing company and do not protect the value of the variable investment options.
You should carefully consider a variable annuity’s risks, charges, limitations, and expenses, as well as the risks, charges, expenses, and investment goals of the underlying investment options. This and other information about Pacific Life are provided in the product and underlying fund prospectuses. These prospectuses are available from your financial advisor or by calling (800) 722-4448 or (800) 748-6907 in New York. Read them carefully before investing.
Variable annuities are long-term investments designed for retirement. The value of the variable investment options will fluctuate and, when redeemed, may be worth more or less than the original cost. Annuity withdrawals and other distributions of taxable amounts, including death benefit payouts, will be subject to ordinary income tax. For nonqualified contracts, an additional 3.8% federal tax may apply on net investment income. If withdrawals and other distributions are taken prior to age 59½, an additional 10% federal tax may apply. A withdrawal charge also may apply. Withdrawals may reduce the value of the death benefit and any optional benefits.
IRAs and qualified plans—such as 401(k)s and 403(b)s—are already tax deferred. Therefore, a deferred annuity should be used only to fund an IRA or qualified plan to benefit from the annuity’s features other than tax deferral. These include lifetime income, death benefit options, and the ability to transfer among investment options without sales or withdrawal charges.
Variable insurance products are distributed by Pacific Select Distributors, Inc. (member FINRA & SIPC), a subsidiary of Pacific Life Insurance Company and an affiliate of Pacific Life & Annuity Company (Newport Beach, CA), and are available through licensed third-party broker/dealers.