I recently had a conversation with one of my clients about their retirement plans. Of course, my client had seen commercials on television regarding annuities, but was confused at to what they were.
An annuity is contract between an insurance company and a contract owner. The money in the annuity has the potential to create an additional source of retirement income, and can provide a variety of income streams. Many individuals use annuities to help them achieve their long-term financial goals.
With an annuity, you can choose from a range of payout options including retirement income you cannot outlive. Since it's an insurance product, your money's potential growth is tax-deferred, which means you don't have to pay ordinary income taxes on your annuity's growth until you take withdrawals or start income payments. Compounded over time, tax-deferred interest can have a positive impact on the growth of your retirement reserves.
Also, if you die before you start taking an income from your annuity, your beneficiaries will receive a death benefit equal to the full accumulation value.
A fixed index annuity offers options that credit interest based on the changes in an external index that varies from day to day and is not predictable. Remember though, when you buy a fixed index annuity, you own an insurance contract and are not buying shares of any stock or index.
For more information, contact Chris Castanes.
Monday, August 6, 2007
Tuesday, January 16, 2007
Charitable Giving
Let's assume that you wanted to give a lot of money to your favorite charity or church. We all would like to give $50,000 or $60,000 to a good cause. Even $100,000 would be better. But the money just isn't available. Here's the solution that can help everyone.
Life insurance can be used in a very interesting way. By naming a charity or other non-profit organization as beneficiary of a life insurance policy, you would be able to use the premiums as a tax deduction. In the event of death, the church would be able to receive a "gift" of thousands of dollars.
Many agents prefer whole life policies because they build cash value, which can be used in the event of emergency. And making the charity the owner of the policy gives control of the policy. Some clients would rather keep ownership of the policy to themselves. Either way is okay.
So overall, it's a win/win situation for the organization and the client. The non-profit can receive large donations that you have created, and you can help reduce your tax bill.
And there are so many worthy causes that could use help like this. The list includes humane societies, churches, Salvation Army, as well as organizations that want to fight diseases of the body and mind.
For more information, call Chris Castanes at 843-283-3300 or email him at castanes@gmail.com
Life insurance can be used in a very interesting way. By naming a charity or other non-profit organization as beneficiary of a life insurance policy, you would be able to use the premiums as a tax deduction. In the event of death, the church would be able to receive a "gift" of thousands of dollars.
Many agents prefer whole life policies because they build cash value, which can be used in the event of emergency. And making the charity the owner of the policy gives control of the policy. Some clients would rather keep ownership of the policy to themselves. Either way is okay.
So overall, it's a win/win situation for the organization and the client. The non-profit can receive large donations that you have created, and you can help reduce your tax bill.
And there are so many worthy causes that could use help like this. The list includes humane societies, churches, Salvation Army, as well as organizations that want to fight diseases of the body and mind.
For more information, call Chris Castanes at 843-283-3300 or email him at castanes@gmail.com
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