Reader Question: I have seen many advertisements for Charitable Gift Annuities, and I have always passed over them, partly as “too good to be true.” My husband received information from an organization and the numbers interested him. The annual payout for someone who is age 70 to 74 is 5.8%. For ages 80 through 84, […]
Are Charitable Gift Annuities a Good Idea? – April 19, 2015
Should I Dump My Bonds?
Reader Question: I am 66 years old and my wife and I are debt free. She is the beneficiary of a $5 million trust that is 100% invested in a number of bond funds including 20% in a high yield bond fund. My question is, “Should I sell the bond funds and buy stocks or […]
Are Annuities a Good Idea?
Reader Question: I’m 39 years old and have money in an IRA annuity which is invested 100% in the guaranteed interest account earning 3%. Should I change to a more aggressive mix? Answer: I have often written about the disadvantages of owning an annuity in an IRA. An annuity’s biggest advantage is tax deferral of […]
No Heirs, Lots of Money… What to do?
Reader Question: Do you have any advice for a 68 year-old widow who is contemplating purchasing a hybrid long-term care/life insurance policy? The policy requires a one-time up-front deposit of $58,000 and will pay up to $3,000 a month for long-term care services (pays for up to 5 years). If you die before using the […]
The Art of Divorce – Part II
Last week we began a discussion about the cost of divorce; what type of assets are subject to division; and the use of mediation versus the traditional divorce process where both sides choose an attorney and square off and fight it out… often resulting in higher attorney fees and significant emotional stress. The rules for […]
The Art of Divorce – Part I
Fortunately, I do not have intimate knowledge of divorce proceedings (I’ve been married thirty-five years…I think!) but I recently heard a presentation by an attorney who specialized in divorce law and she confirmed a number of observations I’ve had over thirty-something years of practicing as a financial advisor and she opened my eyes to several […]
Change a Child’s Life for Free!
The Alabama Supreme Court has voted in favor of the Alabama Accountability Act which allows Alabama taxpayers to receive an income tax credit of up to half of your state income tax liability by donating to a qualified Scholarship Granting Organization (SGO). These scholarships provide money to allow students from low income households to transfer […]
Free Financial Advice? Don’t Miss the 2015 Alabama Money Expo Event on March 7th!
Most people could benefit from financial advice but, in many cases, they simply don’t know where to go to get sound advice and they don’t want to find themselves in the middle of a sales pitch. Look no further than the free 2015 Alabama Money Expo being held on Saturday, March 7th at Carver High […]
No Last Will & Testament? Read this Horror Story!
About thirty years ago, a widow came to me after her husband died suddenly. He basically had a great income, a very nice home with a large mortgage and a $1 million life insurance policy. Unfortunately, he did not have a will and the beneficiary of the life insurance policy was his estate…meaning the proceeds […]
Is a $1 million Umbrella Liability Policy Enough?
Reader Question: After meeting with our financial advisor my husband and I, both retired, realized that our investments exceed the current $1 million umbrella policy we have. Your article stated that IRAs are safe “under most circumstances”. We don’t have risky lifestyles except we do own a cabin on a water-ski lake. Our home and […]