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Choose an article below Bridging the Gap Between Risk and Reward There are many ways for you to save money, each with its own pros and cons. The stock market and mutual funds offer the potential for high rates of return, but with a higher risk level to match. Traditional savings accounts or certificates of deposit (CDs) offer safety and no investment risk, but at the lowest interest rates in years. Have you invested in the stock market and lost, but still want the potential for a higher return than most saving accounts or CDs can offer? An indexed annuity may be the answer you’re looking for. Indexed annuities are fixed annuities offering a combination of benefits to help you achieve potentially higher returns, with downside protection. This is accomplished many ways: Linking to a popular stock market index . Indexed annuity interest rates are usually linked to a popular market index such as the S&P 500 Index. With interest rates linked to the changes in a popular stock market index there is opportunity to share in the potentially higher returns of the market. Indexed Annuities also have an interest-locking feature, which locks in your interest when it is credited. If the index value later falls, you don’t have to worry about losing interest you have already earned, and you will never be credited with a negative return. Offering a minimum guarantee. A guaranteed minimum cash surrender value protects your money in the event of consistent market losses. Providing tax-deferral. * Federal and state taxes are deferred on interest earnings until the money is withdrawn — allowing your money to grow faster in three ways: Your principal earns interest, your interest earns interest, and you earn interest on the money you would have spent on taxes. If you want to bridge the gap between stock market risk and low traditional savings rates, ask a financial adviser if an indexed annuity is right for you. *Interest earned is taxed upon full or partial surrender.
Charitable Giving Made Easy Many of us would like to provide for a favorite charity at our death. Perhaps it's a charity that has benefited a family member directly, or it may be an organization we have worked with in the past on care-giving or fund-raising. The dilemma comes when we realize that merely leaving assets to the charity at our death will deprive our loved ones of those same assets, and most of us either don't have "extra" assets to give, or would love to learn of a way to leave a substantial sum of money to the charity and provide for our loved ones. Fortunately, there is a way to accomplish both goals. Rather than leaving assets to the charity at our deaths, we can create a pool of funds payable at our deaths on a discounted cost basis using life insurance. Life Insurance premiums represent cents-on-the-dollar when compared to the death benefit the charity receives when we die. For this purpose, a survivorship life insurance policy that pays proceeds only upon the second death of two insured individuals (a husband and wife, for example) provides a more cost-effective solution. Since the death proceeds will be paid only upon the second death, the premiums for this type of policy are significantly lower than a policy that insures only one life. And if we make the charity the policy's owner, we can even get a current income tax deduction for the premiums we pay on the policy for the charity's benefit. (See your tax adviser for possible limitations on deductibility of premiums.) For any desired level of giving to charity, a survivorship life policy often proves the lowest-cost method of providing those dollars. Conversely, for any given annual premium contribution level, a survivorship life policy typically provides the highest death benefit to the charity. The death benefit guarantee in the policy helps assure that the proceeds will be available to the charity regardless of future changes in the financial markets. So, the end result is that at your death your assets pass to your family, and your favorite charity receives the death benefit proceeds from a cost-effective life insurance policy. Be remembered for the good work you've done. Leave a significant endowment to your favorite charity on a deeply discounted basis with survivorship life insurance.
The Value of Regular Check-Ups Do you get a regular check up from your doctor or dentist? If you answered “yes,” you probably go for the check-up so that you’ll be in good health in the future, for both your benefit and your family's. Just like a regular health check, it’s also a good idea to get a regular insurance check-up – for many of the same reasons. Your financial future, and your family's, could very well depend on it. Like a health check, an insurance check-up just takes a little time. But afterwards you’ll have confidence in knowing that you’re better prepared for the future. An insurance check-up is easy and painless. Your insurance professional will talk with you about your current situation in relation to your original and current goals. He or she will gather information to see if your existing insurance program is on track, and if not, what is necessary to bring it up-to-date. After all information is received, your agent will review his or her findings with you. If changes need to be made, your agent will offer suggestions to adjust your current coverage or provide alternatives to help you reach your goals. Your life insurance is one of the most valuable assets you own. It is there to take care of your family when you are no longer present to provide for them yourself. Life insurance can:
We all know that making periodic course adjustments along the way is the best way to "stay on course." Help secure your family’s future by requesting an insurance check-up. James Schuett is an SMS and a licensed agent with the Jefferson Pilot Financial family of companies. He co-owns Illiana Insurance located at 113 W. Washington St. P.O. Box 409 Philo, IL 61864; 217-684-2277.
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