Retirement & Financial Planning Report: Thursday, October 28, 2004 FEDweek is the largest information resource in the federal government with now over one million weekly readers. To Subscribe, Go to http://www.fedweek.com/subscribepopup.htm *********************************************************** Valued Added Service to Our Readers:
Federal Job Search http://www.fedweek.com/Jobs/default.asp Job Bulletin Board http://www.fedweek.com/Jobs/default.asp Unlimited Internet Access for as low as $10.90 http://fedweek.sparklist.com/t/294968212/821890/148/0/ Our Readers Will Get Special Discounted Travel Rates Including, Airfare, Hotels, RV's, Car Rentals, and Special Weekend Getaways--Anywhere in the world http://fedweek.sparklist.com/t/294968212/821890/339/0/ ********************************************************** In This Week's Issue 1. Learn The Limits 2. Winning The Name Game 3. Sweet Charity 4. Computer Networks Now Offers Unlimited Monthly Internet http://fedweek.sparklist.com/t/294968212/821890/148/0/ 5. Real Profits 6. Facing The Fear Factor 7. Out Of Uniform 8. FEDweek is Announcing the Upcoming Retirement Planning Seminars http://www.fedweek.com/content/st/index.php 9. 2005 CSRS & FERS In-Print Retirement Planning Guides Now Available to All Federal Employees for Immediate Shipment http://www.fedweek.com/Publications/default.asp *********************************************************** 1. Learn The Limits If you itemize deductions on Schedule A of your federal tax return, you can deduct charitable donations. However, donations to public charities (organizations other than private foundations) cannot exceed 50 percent of your adjusted gross income (AGI). Donations of appreciated assets to public charities can't exceed 30 percent of AGI. Say you expect your AGI this year to be $60,000. You can deduct charitable donations of up to $18,000 (30 percent of $60,000) worth of appreciated property. If you donate the maximum $18,000 worth of appreciated property to charity, you also can donate up to $12,000 in cash and get a full first-year writeoff. Any charitable donations you can't deduct this year can be carried forward for up to five years, subject to the same limits. After that five-year period, donations you haven't deducted already will provide no tax benefit. Thus, if you don't want to make contributions now and take deductions several years in the future (or lose the deduction altogether), keep your current contributions down to permissible amounts. 2. Winning The Name Game You're likely to encounter many people calling themselves "financial planners," "financial advisors," or "financial consultants." No matter what they call themselves, they might be stockbrokers, aiming to sell you a stock or a mutual fund so that they can earn a sales commission. In some cases, brokers play a vital role and truly earn their commissions. Before buying, though, you should evaluate the advisor's approach. A genuine financial planner will begin by asking about your age, your financial situation, and your existing investment portfolio. Once a financial planner knows about you as an individual, he or she will recommend an asset allocation. Out of all the money you have to invest, so much should go into stocks, so much into bonds, so much in cash, and so on. Only after this allocation has been developed should you hear about specific investments. With a $200,000 investment portfolio, for example, and a suggested 60 percent allocation to stocks, the planner should recommend stocks or stock funds to bring you up or down to the $120,000 mark. 3. Sweet Charity Many local community foundations sponsor donor-advised funds. They also are offered by major financial firms such as Fidelity, Vanguard, and Schwab. With a donor-advised fund, you make an upfront contribution in cash, securities, or other assets. At the time of the contribution, you can take a deduction. Then, you can specify "grants" from the donor-advised funds to various charities. Grants will be made to the specified recipients in your name so you'll get the appropriate recognition. Thus, you can deduct now and deal with the paperwork later. Funds that are yet to be donated will be invested; investment earnings will be untaxed and can add to the amount available for future contributions. Contributing to a donor-advised fund may be particularly effective if you have unusually large taxable income this year. You can get an upfront writeoff to offset the extra income while you can fulfill your charitable commitments over a period of years. 4. Computer Networks Now Offers Unlimited Monthly Internet Service to All of our Readers http://fedweek.sparklist.com/t/294968212/821890/148/0/ Computer Networks, Inc. Is pleased to announce that FEDweek Readers can now get UNLIMITED Internet access for only $10.90 per month or $14.85 for Unlimited Internet with Turbo Accelerator--increasing your internet speed up to Five times the speed! Now, all Our Can Get Broadband DSL-Like Speed Over Your Phone Line at Home http://fedweek.sparklist.com/t/294968212/821890/148/0/ A Few Important Facts: Over 50% of our readers who have called the toll free information number 1-800 452-9201, signed up for this Internet service, it's that good. On-line Signup is available as well! You can get the fastest and most comprehensive internet accelerator on the market and unparalleled 24/7 customer service for only $14.85 per month--You'd pay more than twice that at AOL, Earthlink or any of the others. Take a Look at Some of these Cost Comparisons: CNW $14.85 AOL $23.90 MSN $21.95 Earthlink $21.95 AND CNW does not charge for Tech Support! It is easy to see, Computer Networks will cost you less every month! CNW has added over 7,000 new V.92 access lines to meet the needs of the FEDweek readers! Changes are that you are now covered by CNW with the latest technology that allows faster data thru-put and well as advanced compression schemes. Plus you'll get Spam controls to help keep your inbox free of junk email IF you're in pursuit of a fast, reliable Internet connection, Computer Networks Inc. has partnered with us to provide Internet Services to our readers at a special low rate as low as $10.90 per month with no long term contracts to sign (like most other internet service providers require). Best Choice: Turbo Accelerator Internet Service is the new CNW Turbo Internet access version 3.1 is the fastest and most comprehensive Internet accelerator available today. CNW offers DSL like speed over 56k dial-up connection and fast downloads of e-mail and Web pages--all for only $14.85 per month! For more information or to sign up today, go to http://fedweek.sparklist.com/t/294968212/821890/148/0/ or call CNW toll-free at 1-800 452-9201. This is a special offer to all our readers only, just another value added benefit for being a FEDweek reader. 5. Real Profits Property prices have been rising steadily, to the benefit of investors. However, not every real estate investment will be a winner. Keep these points in mind to boost your chance of success: Location leads off. The old saying that the three most important things about investing in real estate are "location, location, and location" is still true. If you're buying a rental house or an apartment building, for example, it should be in an area where people want to live. Paying the right price is paramount. Overpay for a property and you're likely to lose money. You should check out recent sales of similar buildings to make sure the price you're paying is reasonable. Leverage can make a good deal even better. Try to have as little cash as possible in the deal. When you borrow money to buy investment property, ask for the debt to be "qualified non-recourse," backed by the property and not by your other assets. Real estate will require a real effort. When you invest in real estate, it's necessary to deal with tenants, mow lawns, repair roofs, and so on. If you're not eager to do all this yourself, be prepared to pay others. 6. Facing The Fear Factor Variable annuities offer a way to invest in stock funds, tax-deferred, but there is no certainty that stocks will provide superior returns. To alleviate this concern, variable annuities typically offer guarantees to cut the risks of investing in the stock market. For many years, variable annuities have guaranteed a return of premiums paid, if the investor dies with a contract underwater. Say you put $100,000 into a variable annuity and die five years later. If the contract value is at $110,000, that's what your beneficiary would get. However, if the contract value is $90,000 at your death, your beneficiary would receive your $100,000 investment. This money?back guarantee has given way to a variety of escalation formulas. With these plans, the death benefit might be whatever is greatest: * the amount contributed; * the current contract value; * the amount contributed accumulated at, say, a 5 percent interest rate; or * the peak value of the annuity on a specified anniversary date. Moreover, some variable annuities now offer "living benefits" that provide guarantees to investors as well as to their beneficiaries. 7. Out Of Uniform The Uniform Trust Code (UTC) is a model law, introduced in 2000, in an attempt to standardized states' laws regarding trusts. The UTC has been adopted in about a dozen states while others have rejected it. Major provisions include: * The UTC requires trustees to notify beneficiaries about the existence of trust and disclose the assets. This may help beneficiaries keep rein on trustees but it also cuts down on privacy. * The UTC makes it easier for an irrevocable trust to be modified, if all the beneficiaries agree. Some tax pros fear this could cause the trust assets to be included in the creator's taxable estate. * The UTC gives certain creditors more ability to settle claims against beneficiaries by going after their trust assets. This might make those assets includible in beneficiaries' taxable estates. Thus, you need to consult with a knowledgeable attorney to determine whether you're better off setting up a trust in a UTC state or in a state where the UTC won't apply. 8. FEDweek is Announcing the Upcoming Retirement Planning Seminars http://fedweek.sparklist.com/t/294968212/821890/342/0/ Over The Next 30 Years, the Baby-Boomers (YOU) Will Transfer to Your Heirs Over Thirty-Five Trillion Dollars! As you know, the baby-boomers are growing more mature every day and are planning for their retirement. Are you a baby-boomer? Are you prepared for your retirement and to transfer your estate to your loved ones? FEDweek has partnered with two of the most respected federal retirement and estate planning training organizations to provide federal employees with the highest quality of seminars related to your federal retirement, financial and estate planning. Below are the seminar locations through 2004: ************************ Date Nov 9-11 (PBSC) Honolulu HI - Doubletree Date Nov. 16-17 (PBSC) Indianapolis, IN - Radisson Hotel Airport Date Nov 16-18 (NITP) Washington, DC - Washington Plaza Date Nov 30- Dec 2 (NITP) Linthicum MD - Holiday Inn BWI Date Dec 6-8 (NITP) Huntsville Al - Holiday Inn Research Park Date Dec 7-9 (PBSC) Houston TX *********************************************************** There are still a few seats available for these locations. For a complete list of seminar locations and dates through December, 2004, Go to http://fedweek.sparklist.com/t/294968212/821890/342/0/ We've also recently added additional seminars for 2004 (Even Hawaii and San Diego!!) dramatically expanding the coverage areas to include most cities throughout the entire country, with more to come. Go to http://fedweek.sparklist.com/t/294968212/821890/342/0/ to see the latest schedule. These comprehensive programs will provide the participant with valuable information about retirement planning and ways to ease the transition into retirement. The seminar speakers, all experts in their field, will challenge you to ask tough questions. These seminars are broken down into a number of components that discuss considerations necessary for planning for retirement, including: FEDERAL RETIREMENT BENEFITS THRIFT SAVINGS PLAN INSURANCE, MEDICARE AND SOCIAL SECURITY BENEFITS FINANCIAL AND TAX PLANNING ESTATE PLANNING LIFE AFTER RETIREMENT AND SECOND CAREERS For more info on these retirement planning seminars, go to http://fedweek.sparklist.com/t/294968212/821890/342/0/ Also, pass the word along to your colleagues that there will also be multi-seminar attendee discounts for employees attending from the same agency office location. Publisher's Note: All Seminar Attendees Who Register For Any Retirement Planning Seminar Will Two Valuable FEDweek Publications FREE! 9. 2005 CSRS & FERS In-Print Retirement Planning Guides Now Available to All Federal Employees for Immediate Shipment *********************************************************** Brand New 2005 CSRS & FERS Retirement Planning Guides Just Published! Go to http://www.fedweek.com/csrs.htm to place your order now for the CSRS Retirement Planning Guide or go to http://www.fedweek.com/fers.htm to place your order for the FERS Retirement Planning Guide. Or if you are are federal agency, library or bulk purchaser you may also go to our publication page at http://www.fedweek.com/Publications/default.asp that lists of our publications by categories and the discounts available for bulk purchases. *********************************************************** Special FREE Offer Exclusively to Our Readers: As a Special Thanks to All of Our Readers. We've Extended This to the First 50,000 Copies Sold of the 2005 CSRS and FERS Retirement Planning Guides. FEDweek will give you a FREE Special Report: Preserving the American Dream for Federal Employees and Retirees when you Order Your 2005 CSRS or FERS Retirement Planning Guides. Limited One per order. (while inventory lasts, of course) ************************************************************ This is an Early Bird Offer Exclusively to FEDweek Readers for the first 50,000 copies sold. Go to http://www.fedweek.com/Publications/default.asp to place your order for Your 2005 CSRS or FERS Retirement Planning Guide now. *********************************************************** *********************************************************** To go directly to each of these publication's pages: The 2005 CSRS Retirement Planning Guide http://www.fedweek.com/csrs.htm The 2005 FERS Retirement Planning Guide http://www.fedweek.com/fers.htm *********************************************************** The 2005 CSRS & FERS Retirement Planning Guides http://www.fedweek.com/pub/index.php Now in their seventh year of print (and over 350,000 sold), these CSRS and FERS Retirement Planning Guides truly help you fully understand your federal retirement. These planning guides simplify the retirement planning process, helping you calculate your annuity (with plenty of examples), warn you about possible reductions in your annuity, tell you how Social Security fits into the picture, and what to do about health and life insurance. In short, they contain everything you need to know to make your federal retirement a success. These 2005 CSRS & FERS Retirement Planning Guide are NOT Dot.com downloads or government handouts or pamphlets, they are In-print comprehensive and easy-to-understand planning guides that were written and edited by our veteran-team of federal retirement planning experts in the field. Here are some of the key features and updates that these 2005 retirement planning include: A step by step guide to embarking on the retirement journey A description of the new long-term care program, with explanations of potential traps for those close to retirement A quick reference guide to benefits your survivors would stand to receive on your death A description of how Tricare-for-Life might replace FEHB as your health benefits provider Details on how to carry retirement and other benefits into retirement and how you can change those benefits after retirement An easy to follow guide to understanding annuity statements How the new TSP investment, rollover, withdrawal and other rules will affect you before and after retirement Latest information on COLA rates and policies, payments to survivors and other benefit rates The latest information on Social Security benefit rates and eligibility rules The latest information on FEGLI, FEHB, service crediting for retirement purposes and other vital retirement-related issues ALSO IN THESE 2005 CSRS & FERS RETIREMENT PLANNING GUIDES: How to calculate your annuity (with plenty of easy-to-follow examples) Eligibility requirements Different retirement types (regular, early, deferred, special disability) Credit for military service Deposits and redeposits Cost of living adjustments The effect of divorce on annuities Social Security The Thrift Savings Plan Taking health and life insurance into retirement Annuity taxes Survivor benefits And much more! *********************************************************** Go to http://www.fedweek.com/pub/index.php to place your order now and get your FREE Special Report: Preserving the American Dream Handbook for Federal Employees shipped to you immediately. *********************************************************** Other Ways to Order: You may also call our toll-free order line at (888) 333-9335 to place your order for these retirement planning guides: The 2005 CSRS Retirement Planning Guide The 2005 FERS Retirement Planning Guide Bonus: Now, the first 50,000 copies of these CSRS and FERS Retirement Planning Guides will come with a FREE Special Report: Preserving the American Dream Or you may also mail your order with payment of $13.95 ($9.95 plus $4.00 s&h) to: FEDweek P.O. Box 5519, Glen Allen, VA 23058. FEDweek Publisher, Don Mace VP of Marketing, Kevin Couch Website: http://www.fedweek.com 11541 Nuckols Rd. Suite D Glen Allen, VA 23059 (804) 288-5321 [EMAIL PROTECTED] --- You are subscribed to financialplanningreport as [EMAIL PROTECTED] To unsubscribe, send a blank email to [EMAIL PROTECTED]
