Discuss SPDA with your accountant and financial adviser.

SPDA investments (and the resultant appreciation) grow tax-deferred. They are not taxed until distributions are taken.

When money is withdrawn, only the income portion – not the principle – gets taxed. And, SPDAs are taxed as income, not capital gains.

Investors looking for low-risk and long-term growth may find that over time, a SPDA will out-perform several other types of investments. Unlike other investment vehicles, they do not expose an investor to extreme market risk.