Investment Tutorial
 

6. The Potential Benefits of Tax-Deferred Growth
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The Potential Benefits of Tax-Deferred Growth

Every investor should be aware of the effects that taxes have on their investment portfolios.  Compare the final account value of a tax-deferred account and a taxable account both invested for 20 years at an 8% annual rate of return.

Not only are the contributions made before taxes, but you also pay no capital gains throughout the life of the investment.  Thus, the potential growth of a tax-deferred account could offer a more beneficial investment option than an equivalent taxable account.  However, tax-deferred savings vehicles, such as a 401(k) plan for retirement savings and a 529 plan for college savings, have significant tax implications if you withdraw money prior to the age of 59 ½ or for nonqualified education expenses, respectively.

*Illustrations shown and returns do not reflect the results or performance of any particular investment or mutual fund.

**The funds do not offer tax advice.  Since individual tax situations vary, this strategy may not be suitable for all investors.  Please consult your tax advisor to see how this information pertains to you.

***Shares of a mutual fund are not deposits of, or obligations of, or guaranteed by, any bank or its affiliates, or are they federally insured by the FDIC.  Investments in the funds involve investment risk, including the possible loss of principal.

****Fees and charges applicable to each investment type are not reflected in this illustration.  Had they been considered, the performance would have been lower.

*****Lower maximum tax rates on capital gains and dividends would make the return of the taxable investment more favorable, thereby reducing the difference in performance between the accounts shown.

******Changes in tax rates and tax treatment of investment earnings may impact the comparative results and that an investor should consider their personal investment horizon and income tax bracket, both current and anticipated when making an investment decision as these may further impact the results of the comparison.

*******Withdrawals of earnings from the tax-deferred account will be subject to ordinary income tax and, if taken prior to age 59 ½, a 10% federal tax penalty may apply.

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Effective January 31, 2011, the Fund's Form N-MFP filings will be made publicly available via the SEC website and can be obtained by clicking the following link: http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000885093&type=N-MFP&dateb=&count=20&scd=filings


Performance Funds distributed through BHIL Distributors, Inc. Member FINRA (www.finra.org)

Trustmark Investment Advisors, Inc. serves as the investment advisor to the Performance Funds and receives a fee from the funds for its services.

Mutual funds, annuities, and other investments are:

  • not insured or guaranteed by the FDIC or by any other government agency or government sponsored agency of the federal government or any state
  • not deposits, obligations, or guaranteed by BHIL Distributors,INC
  • subject to investment risks, including possible loss of the principal amount invested

These funds may not be available for sale in all states. Contact your investment professional concerning how/if you can purchase shares of the Performance Funds. Composition of each fund's holdings is subject to change.

An investor should consider the fund's investment objectives, risks, and charges and expenses carefully before investing or sending money. This and other important information about the investment company can be found in the fund's prospectus.  To obtain a prospectus, please call 1-800-737-3676.  Please read the prospectus carefully before investing.