Variable Annuities

With the changing demographics worldwide, and the increased interest in retirement planning, Variable Annuities make more sense then ever.

The two most attractive features of an offshore variable annuity are investment flexibility and tax deferral. Because variable annuities typically have no life insurance component, and therefore no associated cost of life insurance charges, they are usually more efficient wealth accumulators than life insurance.

By far, the easiest, least expensive way to get access to offshore alternative investments, such as hedge funds, structured derivatives etc., is through the use of a variable annuity issued by an offshore insurance company. Investments may be moved from one manager to another with no tax consequences.

With any Variable Annuity, there are two distinct time periods involved: the accumulation period and the payout or annuity period. The accumulation period is that time during which funds are being paid into the annuity and assets are accumulated. The payout or annuity period refers to the point at which the annuity ceases to be an accumulation vehicle and begins to generate benefit payments on a regular basis.

Use of Variable Annuities for Tax-Advantaged Investing: