FREQUENTLY ASKED QUESTIONS
NVESTMENTS
Q: I've had money in CDs for years. I have good income, so I just let it grow. With interest rates so low, is there anywhere I can earn better interest and not risk my life savings?
A: Absolutely! Not only are Bank CDs not paying you much interest, but you also have to pay taxes on the interest earned whether you use it or not. A tax-deferred Annuity would be a much wiser option. You can have your money earning more interest and lower your reportable income at the same time.
Q: My Banker recommended that I put my son's name on all of my accounts so he could help me if I should need it and to avoid them being frozen at my death. Is that good advice?
A: No. While putting your son's name on your accounts will accomplish these goals, they could also create potential problems. When you assign his name on your accounts, they legally become as much his property as they are yours. If your son has creditor problems or a lawsuit, your money could be attached. If your son goes through a divorce, your money will be considered community property that can be awarded to his spouse. A simple Financial Power of Attorney given to your son will offer the protection you need.
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2007 S.A.F.E. Planning. Inc.