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Do you want your money to grow faster?
The value of a tax-deferred investment can best be seen by applying the "Rule of 38". It states that non-tax-deferred investments (which are taxed annually at 28%) take about 38% longer to double in value than do tax-deferred investments with the same rate of return. The "Rule of 38" works for any rate of return which
is taxed at 28%, and it can serve as a good example of the value of tax-deferred investing.
See for yourself how the "Rule of 38" can work for you:
Note: These illustrations are hypothetical and do not represent the projected performance of any investment. All investment results fluctuate and may decrease as well as increase. The tax-deferred rate-of-return does not reflect the deduction of any charges or fees, such as the mortality and expense risks, surrender charges or account administration, and portfolio management fees. These charges and fees would reduce actual performance if reflected. Please see the prospectus for details.
It’s important to point out that all earnings in tax-deferred investments will be taxable upon withdrawal. In addition, actual results will vary depending on your tax rate and any additional charges and fees associated with the tax-deferred investments.
Usually the higher the rate of return, the greater amount of volatility and investment risk. The "Rule of 72" is simply 72 divided by the interest rate to determine the number of years needed for your investment to double.
The Futurity line of variable annuities is intended for long-term retirement planning goals. Taxes are due upon withdrawal of earnings from the contract. Withdrawals are subject to a 10% federal penalty tax if made prior to age 59 1/2. Early withdrawals have the effect of reducing the death benefit and contract value. Annuity units will fluctuate in value so that an investor may receive less
than the principal amount invested at redemption. The Futurity line of variable annuities is a combination fixed/variable annuity contract with a market value adjustment issued by Sun Life Assurance Company of Canada (U.S.) and in New York by, Sun Life Insurance and Annuity Company of New York and distributed by Sun Life of Canada (U.S.) Distributors, Inc. Both companies are members of the Sun Life Financial group of companies. For complete information including all charges, please request a prospectus from your financial advisor or www.futurity.com. Read it carefully before investing or sending money.
05/02 SLPC 8871
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