Oriental Bank is kicking off this year’s tax season, when individuals are seeking money management tools to reduce their obligations with the government, with its Diversified Growth IRA (DGI) campaign, a collective investment fund that has yielded positive growth results over the past decade.
Under the slogan “DGI, the IRA for those who live in the present, but have their eye on the future,” the bank is recommending the tool to clients looking to diversify their investments for retirement age, who are willing to invest long term and agree to a moderate to aggressive investment strategy.
The total annualized return of the DGI, computed at Dec. 31, 2013, was 9.00 percent at one year, 8.75 percent for two years, 9.23 percent at five years and 2.86 percent at 10 years.
“Although the financial environment is facing significant challenges, Oriental’s DGI represents the best option to diversify the collective investment fund offering,” said Félix Silva, senior vice president of individual banking at Oriental. “Our team focuses on maximizing its growth potential, while offering a tax saving.”
The fund may invest up to 33 percent of its portfolio in U.S. stocks and/or bonds, up to 66 percent in Puerto Rico general assets, and 34 percent or more in government obligations and securities backed by Puerto Rico residential mortgages.
As with other IRAs, the deductible DGI also represent a tax break, as it allows a maximum annual deduction of $5,000 for individuals or $10,000 for married couples if they file joint tax returns.
The DGI is available in deductible and non-deductible (“Roth”) options and is only available to Puerto Rico residents.