Investing in indices has been called the poor man’s investment portfolio. They're generally not managed, so the costs of the funds are relatively low and the volume of diverse company represented is broad based. There are a variety of ways to invest in indices: mutual funds, options, certificate of deposits, annuities and life insurance. They all have differing tax treatment: mutual funds, options or certificate of deposits are taxable, annuities are tax deferred and life insurance can be tax free.
Today on the Business Insurance Zone, national insurance columnist Steve Savant and co-host Eric Palmer discuss the risks, taxation and popularity investing in foreign and domestic indices with the differing product opportunities.
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Steve Savant is the host of the daily producer show, Let’s Get Down to Business, and the weekly consumer show, Steve Savant’s Money, the Name of the Game. Steve is the number one online author and videographer of insurance content. During his 30-year career in the financial services industry,... More