College savings funds such as 529 Plans and Coverdell Education Savings Accounts (CESA) provide a tax-free advantage on earnings generated by the funds, and are among the best choices for families looking to invest for college expenses. Additional college savings programs can be explored at websites such as www.collegesavings.org.

Allocating funds on a monthly basis is the best way to build a college savings plan. And with automatic fund transfers available for most investment plans, there is little to do once the fund is set up but to sit back and watch it grow. Calculate the amount of available monthly funds that can currently be used towards a college savings plan. As you pay off outstanding debts, or experience other positive changes in your monthly income, plan on using the money you previously saved towards these debts each month to increase the amount being placed into the college savings plan.

Once you have your decided on your monthly allocation, the type of fund you wish to set up, and the financial institution you want to manage your fund, actually creating the account can be quite simple. It involves filling out a detailed application, paying the enrollment fee (if applicable), and transferring your first investment contribution.

Giving your children the gift of an unlimited future is not strictly for the very wealthy. With a little determination, discipline, and planning, you can easily set up an effective college savings plan to ensure your child gets their turn to wear that cap and gown on graduation day.

This article is for informational and educational purposes only.  It is not intended to provide legal, tax or financial analysis.  Please consult your attorney, accountant or tax advisor if you have legal, financial planning, or tax related questions.

Related posts:

1. Smart Christmas Presents: 529 College Plans
2. How to Set Up a Roth IRA
3. The 6 Keys to a Richer You: Financial Literacy and Sticking to the Plan

Keep your legacy intact with life insurance solutions

You may not realize it, but retirement plan income from an inheritance may trigger a tax bill for your heirs that can significantly eat into the amount you leave behind. If you should die, the distributions your beneficiaries take from certain retirement assets such as Traditional IRAs, 401(k)s, non-qualified annuities, and non-qualified deferred compensation is considered Income in Respect of Decedent (IRD) and subject to income tax.  The tax on IRD assets is in addition to estate taxation and thus can result in double taxation. Unlike estate taxes, these taxes are typically paid by the beneficiary and not by the estate. Additional taxable income from an inheritance can cause a host of potential income tax problems, from bumping the beneficiary into a higher tax bracket, to phasing out personal exemptions and itemized deductions and erasing certain tax credits.

One way to make up for the IRD tax bite is to take out a life insurance policy with a value equivalent to the anticipated tax bill. With beneficiary proceeds that are generally exempt from estate and income taxation, the life insurance policy can help replace the amount of your legacy that is lost due to income taxation on IRD assets.

Diversify with a variation on traditional life insurance

A traditional life insurance policy provides an income-tax free benefit, often with limited growth opportunity and flexibility. There are other life insurance options that offer the potential for growth and an income-tax free benefit. These options also build “cash value” and have the added benefit of flexibility to access cash for unforeseen events. These policies can contain fixed rate investments, or provide access to a range of variable rate investments.

For example, Variable Universal Life (VUL) is a type of policy that offers the opportunity to build cash values. A VUL policy can add diversification to your retirement portfolio. As a form of permanent life insurance, VUL provides financial protection against unexpected events. Because the cash value within the policy can be invested in separate accounts, a VUL introduces investment diversification. A VUL also offers some flexibility regarding taxes. You can use after-tax dollars to pay premiums in the VUL now for the potential to accumulate cash value tax-deferred and  receive tax-free supplemental income during retirement. Your financial advisor and tax professional can help you determine whether a VUL would benefit your circumstances.

Ask questions and explore protection options with a financial advisor

Take time to review your financial plan with a qualified financial advisor to help assess whether a life insurance product can help you achieve your financial goals in retirement. To determine what kind of policy would best suit your needs, and the amount of the policy, ask yourself:

• How much of your present living expenses will remain after death?
• Will survivor Social Security benefits offset these expenses?
• Will your tax rate change?
• Will the investment risk tolerance of your surviving spouse change?
• What is the life expectancy of the survivor?

An important consideration when purchasing life insurance is cost. Most policy premiums increase with the policyholder’s age, and variable products may have other flexible premium options that affect their cash value. Review your cash flow to ensure you will have sufficient funds to pay your premiums for the duration of the policy. Your life insurance needs will fluctuate over the course of your lifetime as your needs, goals and circumstances change and should be reviewed annually.

####

This information is being provided only as a general source of information and is not intended to be used as a primary basis for investment decisions, nor should it be construed as advice designed to meet the particular needs of an individual investor. Please seek the advice of your advisor regarding your particular financial concerns.

Neither Ameriprise Financial nor its affiliates may provide tax or legal advice. Consult with your tax advisor or attorney regarding specific tax issues.

Variable life insurance is a complex investment vehicle that is subject to market risk, including the potential loss of principal invested. Before you invest, be sure to ask your financial advisor about the variable life insurance policy’s features, benefits, risks and fees, and whether the variable life insurance is appropriate for you, based on your financial situation and objectives.

Financial planning services and investments offered through Ameriprise Financial Services, Inc. Member FINRA & SIPC.

Related posts:

1. Putting Away the Plastic: Life After Credit Cards
2. Making Sure Money Is Still There When You Can’t Work
3. Protecting Your Money

Income is money that you are earning or the allowance you are given now. When you are extended credit, the creditor needs to determine if you have the financial capability to meet the loan payment schedule. The amount of income needed for a loan depends on the amount and type of the loan. For example if you are borrowing money for a house most creditors will require that your monthly payments not exceed 35% to 50% of your take-home income.

For credit purposes, character is measured by how you pay previous loans or debts. This information is available by way of a credit report. There are three major consumer credit reporting companies in the United States: Equifax, Experian and Trans Union. Creditors report the payment history of their loans to these credit-reporting companies. The credit reporting firms also collect information about other debts you may have. If you have your car repossessed, your homes foreclosed, bounced checks or file a bankruptcy then this information is also reported in the credit report. The information in your credit report is generally kept on file for two to ten years.

Stability is an estimate of how much your financial situation may change during the term of the loan. If your employment is unsteady or unlikely to continue, then the creditor may have concerns about your ability to meet loan payments. If your expenses will be increasing or your debts are expected to grow in the near future, then the creditor may also have concerns about your ability to meet loan payments.

Debts are how much money you currently owe other creditors. This includes credit cards, car loans, home loans, school loans, and all other loans. If you have lots of other loans or a high amount of outstanding debts then a creditor may have concerns. Most creditors have debt guidelines for different types of loans.

For example if your total current credit card debt exceeds 20% total income then you may be considered to have a maximum amount of credit card debt. For a home loan the maximum amount of debt could be as high as 200% to 300% of your total income.

Assets are how much money or value you have on hand. Assets include cash in the bank, savings accounts, certificates of deposit, bonds, stocks, etc. Assets also include cars, motorcycles, a house, or other valuable stuff. Creditors consider assets a safety net for a loan. In some cases creditors will require a certain asset to be listed as security for a loan. This is almost always true for car and home loans. However if a creditor determines you have sufficient assets to fall back on, then they feel more comfortable making a loan.

Expenses are the total of the bills you pay monthly or regularly. Expenses include regular costs for food, rooming, electricity, water, sewer, insurance, tuition, books, car gas, etc. Creditors need to be sure you have enough money left over each month after your expenses to make your loan payments.

Related posts:

1. An Overview of Credit Reporting
2. Good Credit vs. Bad Credit
3. Top 6 Reasons for Credit Card Debt

• Job Seekers: Expenses related to job seeking can be a legitimate deduction on your taxes. Qualified expenses include phone calls, unemployment agency fees, resume preparation costs, travel and transportation fees, and career counseling services.
• Teachers: Any classroom related expenses such as books, computer equipment (including software and services), supplies, and other materials used in the classroom are legitimate deductions. Save your receipts!
• Home Office: If your home has a space solely dedicated to use as a home office, depreciations in home office equipment, computer expenses (if solely used for business purposes), and even the percentage of heat and electricity used by your home office are qualified deductions.
• Charitable Contributions: Any donation you make to a legally recognized charity is tax deductible, as long as it meets IRS standards. Double check charitable organizations to which you have donated to ensure they qualify.
• Military Personnel: Active military personnel qualify for many legitimate deductions regarding travel, uniforms, and educational expenses. Check with your tax professional to see which write-offs you can claim.
• First Time Home Buyer: As a first time home buyer, expenses such as property taxes and mortgage interest are legitimate deductions on your tax return.
• Energy Efficiency: Tax credits for using energy efficient appliances and heating systems are deductible in addition to alternative energy systems such as solar panels, wind turbines, and residential fuel cells. Energy saving home improvements such as insulation, lighting, windows, and roofs also qualify.

Identifying and claiming these additional tax write-offs positions the educated taxpayer for a greater return come April. Make sure you are claiming every possible deduction and limit the amount of money you shell out to Uncle Sam.

This article is for informational and educational purposes only.  It is not intended to provide legal, tax or financial analysis.  Please consult your attorney, accountant or tax advisor if you have legal, financial planning, or tax related questions.

Related posts:

1. Why Tax Preparers Find Extra Deductions on Your Return
2. Turn Your Donations Into Tax Deductions
3. Do Not Overlook These Tax Deductions!

Follow these six steps and you will soon be well on your way to easy street:

1.  Know Your Situation: Take the time to understand exactly where you are at financially. What is your total income? What are your debts? How much is left over after you pay bills? Using a spreadsheet or other type of software tool to map these numbers out in a “Personal Finance Sheet” makes it much simpler to identify how much you need for monthly expenses, and how much you can afford to put away for future investments or savings.
2. Set Goals for Your Future: Clearly define both your short- and long-term goals. Want to pay buy a $25,000 car in the next two years? How about retiring by 55 with $1 million in savings? The key here is to capture your goals somewhere and refer back to them periodically. Keep in mind that any goals you set should be realistic, specific, measurable, set within a certain timeframe, and actionable.
3. Explore Alternatives: No one is saying you need to continue down the financial path you are currently on, so what’s the harm in taking a look at alternative routes? When exploring your options you can choose to do one of four different things; stay the course, expand your strategy, modify your strategy, or adopt an entirely new strategy.
4. Evaluate: Now that you’ve identified the alternative strategies, evaluate the feasibility of each one and how it fits into your personal finance plan. The important thing here is to identify which options you can believe in and work towards.
5. Act: Now that you have your strategy mapped out it’s time to act. Begin by implementing the first actions identified in your goals, and go from there. If you find you cannot act on your chosen strategy for financial or other reasons, it may be time to take a step back and reevaluate the situation.
6. Measure: In order to know where you are at with your goals and to make projections for the future, you need to know how your financial strategy is working. Failure to measure your results frequently can cause you to lose sight of the goals you set up at the beginning of your planning.

Keeping a keen eye to the future through the use of these six steps will ultimately lead you to greater financial security. With a little work on your part, you can soon be living the good life — golf clubs and Cadillacs.

This article is for informational and educational purposes only.  It is not intended to provide legal, tax or financial analysis.  Please consult your attorney, accountant or tax advisor if you have legal, financial planning, or tax related questions.

Related posts:

1. Using Life Insurance to Fill Gaps In Your Financial Plan
2. Getting to $100,000 in the Bank
3. Financial Planning – Helping You See the Big Picture

One great way to begin saving towards retirement is to set up a Roth IRA personal retirement account. Roth IRAs (or Individual Retirement Accounts) allow you to set aside after-tax income up to a specified amount each year. Earnings on the account are tax-free, and tax-free withdrawals may be made after age 59 and a half. Funds are used in much the same way as traditional investment programs, and can either be managed by your selected investment manager, or managed personally, whichever suits your individual needs.

 Setting up a Roth IRA account is fairly simple and straightforward. The first step in the process is to identify exactly where you should open your account. Many financial institutions offer IRAs, each with its own strengths and weaknesses. It’s important to search for a company that suits your needs. Questions to keep in mind when researching IRA offerings include the following:

•  Is there a minimum initial investment? Minimum contributions?
• What sorts of fees are assessed to the account?
• Does the company offer automatic contributions?
• What investment options are available? Can you invest in stocks? Mutual funds? Real estate?
• How reputable is the provider?

 If you already work with a financial advisor, they can assist you in selecting an appropriate financial institution to work with. A good starting point is the three leading American investment institutions — T. Rowe Price, Fidelity, and Vanguard. These large investment firms have more investment options than smaller institutions, and can support both aggressive and conservative investment plans.

 Actually setting up the Roth IRA account involves little more than filling out a detailed application (similar to a credit card application). You will need your social security number, banking information, and funds to cover an enrollment fee and initial investment into the account. Automatic fund transfers can also be selected to automatically transfer funds from your bank accounts into the Roth IRA each month, making investment that much easier.

 The only thing to do now is to sit back and watch your investment grow.  

 This article is for informational and educational purposes only.  It is not intended to provide legal, tax or financial analysis.  Please consult your attorney, accountant or tax advisor if you have legal, financial planning, or tax related questions.

Related posts:

1. More Than Ramen Noodles — 10 Tips to a Prosperous Retirement
2. Putting Away the Plastic: Life After Credit Cards
3. Set Up a College Savings Plan in 90 Seconds or Less

With the convenience of electronic commerce, It’s easy to apply this view to our credit card limits. However, be warned. A credit limit is simply a loan. Of course, once any of this limit is used for purchases, it must be paid back. Many consumers may not think of it this way when they use the credit line. This leads to many people becoming overextended and finding it harder and harder to keep up. In turn they begin to miss payments, pay less than the minimum requirements, or worst of all, file bankruptcy.

Twenty years ago creditors really had two levels of credit, “A” credit, and then everyone else. Those consumers who had “A” credit (in essence, perfect credit) received all the offers, and everyone else simply dealt with not having credit cards and not qualifying for many types of financing. Since then creditors have extended too much credit, which has lead to consumers’ current perception of money and therefore their difficulties paying it back. Today 70% of American consumers have less than ideal credit. This means that creditors have less people meeting their original guidelines for lending and have reassessed the way they lend.

As a result of all of this, creditors have changed the system they use to judge credit worthiness. Instead of just two classifications, they now divide credit applicants into several different levels (A, B, C and even D credit). The applicants with the best credit (“A”) receive better (lower) interest rates. As the consumer’s rating decreases, their interest rates increase. Though a consumer could have a “D” credit rating, they could still receive financing, but the interest rates of such financing are simply mind-boggling. It is not uncommon to see interest rates as high as 29% (we have seen higher). Let’s do the math. For the purposes of this example, we will use the following statistics:

• Consumer 1: “A” credit, 6% interest, $2,500 balance
• Consumer 2: “D” credit, 29% interest, $2,500 balance
• Each consumer paying the minimum payment due (3% of balance)

Consumer 1 would pay back approximately $3,000 over the course of eight and a half years. Consumer 2, however, would pay back close to $9,225 over the course of 21 years. While Consumer 1 would only pay $500 in interest, Consumer 2 would pay back over $6,725 in interest charges on top of the principal. That is a high price to pay.

Since damaged credit will cost you more in the long run, it is a good idea to try to keep your credit rating the best it can be. If you want to have good credit, then you need to use it wisely. Pay the balances in full every month, or if you are unable to, pay substantially more than the minimum due. At the very least be sure to pay the minimum due and always pay your bills on time. Late payments could cause late fees, raised interest rates and can hinder your chances of receiving future financing.

Another thing that can affect your ability to qualify for financing is the creditor you have accounts with. Lenders know who is a “D” lender and who is an “A” lender. If you have accounts with “D” lenders, not only are you paying astronomical interest rates, you may also be compromising your ability to qualify for better types of financing with lower rates. It’s best to maintain accounts with “A” lenders (with lower interest rates) and avoid “C” & “D” lenders (with high interest rates).

Start treating money like money, and credit like credit. Use funds that you have before you start using credit. And when you need to apply for credit, or want to establish good credit, be sure to do it wisely. Apply for credit cards with no or only a small annual fee and a low interest rate. Be wary of low introductory rates, for they usually rise considerably after the first three to six months. Following these tips can help you keep your credit in good shape and pave the road for a better tomorrow.

Related posts:

1. An Overview of Credit Reporting
2. Pieces to the Credit Puzzle
3. The Fed Battles Unfair Credit Card Practices!

We couldn’t be happier for our hard working settlement, client services, accounting, support staff and sales personnel. Thanks to all the great clients who voted with their feet and made DMB Financial their #1.

We’re also celebrating two new milestones. As of January 10, 2010 we’ve saved over $123,000,000.00 for more than 13,000 clients nationwide. We’re looking forward to another mega year of restoring financial freedom to thousands of Americans!

Related posts:

1. Success Fee Based DMB Financial is Named a ‘Leading Credit & Debt Professional’
2. Welcome to the DMB Financial Blog!
3. Success Fee Based DMB Financial Names New CEO

Some lending institutions use more than one type of credit report because they are required to as a measure of meeting lending requirements. Others use multiple sources to ensure that they are getting a more comprehensive background on a consumer’s credit history. When a consumer completes a credit application, many creditors submit the personal information that is on the credit application to credit bureaus. This is how the credit bureaus compile personal information such as a consumer’s name, employment information, address, social security number, marital status, and telephone number. By using a credit report, the creditors will be able to cross-reference the information that the consumer provides on their application with the information that the credit bureau accumulated through other credit applications. Many credit institutions hire companies that research and verify that the information on a consumer’s credit application is accurate.

If you have an account with a creditor that reports to a credit bureau, your credit report will reflect a payment and account history. The information that a credit bureau reports regarding a consumer’s history on a credit account is referred to as a “tradeline.” On your credit report, there should be a “tradeline” for every creditor that reports account information to the credit bureau that is providing the report. Following is a summary of the information that is normally included in a “tradeline” on a consumers credit report:

1. Name of the creditor
2. Account number (usually incomplete of coded for security purposes)
3. Type of account (installment loan or revolving)
4. Balance owed
5. Summarized payment history
6. Date the account was opened
7. Credit limit
8. Co-signers on the account
9. Date information was last reported to the bureau

In addition to the information that is normally reported, a “tradeline” may indicate the following:

1. If the account has been included in a bankruptcy proceeding
2. If there has been a repossession of collateral
3. If an account has been charged off
4. If an account has been turned over to collections

Not all credit institutions report to credit bureaus, but most of them do. Most credit bureaus report payment history in 30-day payment intervals because 30-day periods are reflective of monthly billing cycles and payment installments. Policies vary amongst creditors with regard to the threshold at which they report delinquency to the credit bureau. Some creditors do not report delinquency until the consumer’s account reaches 60 days past due, while others report delinquency at 30 days past due. Some creditors do not report any account history to the credit bureau unless there is delinquency on the account.

The “historical method” of reporting delinquency on your credit report will reflect the number of times that you fell more than 30, 60, 90, and 120 days behind on your payment obligations. Other credit reports utilize a rating system that assigns a “status” for each 30-day range of delinquency. This method is referred to as the “simple method of payment.” An R-1 rating indicates an account that was current or paid “as agreed.” An R-2 indicates that a consumer paid 30 days or more after the due date but less than 60 days after the due date. An R-3 indicates that the bill was paid 60 or more days after the due date but less than 90 days past due. An R-4 indicates that the consumer paid 90 or more days past due but less than 120 days. R-5 indicates that a consumer paid 120 or more days past their due date. R-7 usually means that a creditor repossessed collateral on the account and R-8 reflects that the account was turned over to collections. R-9 can be used to reflect many different statuses on an account. It may be used to reflect that a debt was discharged in bankruptcy, repossessed, foreclosed upon, or in collections.

Credit reports often include a section that provides information that is considered public record such as tax liens, judgments, and arrests and convictions. Credit reports also give records of inquiries. Inquiries are records that reflect requests made by creditors to a credit bureau for a consumers credit report. Inquiries indicate the name of the creditor that requested the report and the date on which the report was requested.

Following are factors that are of particular interest to lenders:

• Does the applicant have a stable job? How many years have they been at their place of employment? Do they have a responsible job title?
• Does the applicant have a stable style of living? Have they been at their place of residence for five years or more? Do they own or rent their home?
• Does the applicant exhibit stability with their finances? Do they have a checking and savings account? Do they have many recent inquiries?
• Does the applicant have a good payment history on existing and previous lines of credit? Do they have a past credit history free of judgements, bankruptcies, charged off accounts, or other signs of financial mismanagement?
• Does the applicant have a favorable debt to income ratio? (Debt to income ratio is a comparison of your outstanding indebtedness the income that you have to support debt repayment) Does it appear as though they are overextended on credit?

Credit Scoring

Creditors often rely on credit scores to help them determine the risk of lending to consumers. The information on a consumers credit file may be used to compile a score that will be used to determine if a consumer is granted a loan or line of credit. If a decision is made to grant a line of credit to a consumer, the credit score may be used to determine the interest rate that will be applied to the loan or line of credit. Generally speaking, the riskier it is to lend to a consumer, the lower the chances are that the consumer will be approved for the line of credit and the higher the interest rate at which the consumer will be required to repay the debt at if they are approved.

Many lenders have “in house” scoring systems but they also rely on scoring models that are provided by credit reporting bureaus. Different credit bureaus use different credit scoring models, but the standards of determining a consumers credit worthiness are consistent from model to model and they are based on the Fair Isaac Company’s scoring criteria. The scoring system that is used may be termed a “Beacon,” “Empirica,” or a “FICO” score depending on what credit bureau is supplying the score. Some lenders rely upon “merged” credit reports that provide a compilation of consumer account and credit scoring information from more than one reporting bureau.

Related posts:

1. Good Credit vs. Bad Credit
2. Pieces to the Credit Puzzle
3. Gobble Gobble: Consumption is Your Enemy When Fighting Credit Card Debt

Money market account

People typically house surplus cash in a money market account when they want to earn a slightly higher rate of interest than a checking or savings account. A money market account may restrict cash withdrawals each month, but in general, it usually offers enough liquidity to ensure access to your money when needed. Some money market accounts issue checks to facilitate withdrawals.

Before you open an account, check bankrate.com for the best money market rates. It’s not enough to simply compare the Annual Percentage Yield (APY); you need to consider the frequency of compounding interest. For example, interest that is compounded daily will grow more quickly than interest that is compounded monthly, quarterly or annually, so your yield will be higher as a result.

The FDIC has temporarily increased insurance on FDIC-insurable funds, including money market accounts, from $100,000 to $250,000 per depositor, per insured bank until December 31, 2013. After that date, the amount will revert back to $100,000.

Certificate of deposit

A certificate of deposit (CD) is a savings vehicle that ties up your money for a set period of time, ranging from three months to six years. In exchange for “lending” your money for the fixed period, you earn a fixed or variable amount of interest. When you purchase a CD with a fixed rate, you have the advantage of knowing exactly how much money you will earn when the CD matures.

In general, the more you invest in a CD and the longer the timeframe, the higher the earned interest rate. Bankrate.com publishes rates to help you sort through your options. Before you buy, check out the frequency of compounding and whether the interest earned is rolled into the CD or paid to you by check during the holding period.

You can buy CDs directly from a bank or credit union, or you can buy them from a brokerage. Note that a CD purchased from a brokerage may be considered “callable,” meaning the issuing bank can drop the CD if interest rates fall.

Help increase your interest earnings and keep at least some of your savings accessible with “laddering,” a strategy that involves purchasing multiple CDs with staggered maturity dates. As each CD expires, roll the money into a new CD of the longest duration. Eventually, you will own continually maturing CDs that also earn the best rates.

Like money market accounts, CDs are covered by FDIC insurance. If you withdraw from a CD before the maturity date, you may be subject to a penalty.

Fixed annuity

A fixed annuity is another savings option that offers principal protection. A fixed annuity provides a set amount of interest income at regular intervals. It is usually purchased in a lump sum, which is forfeited by the buyer in exchange for guaranteed income over a predetermined interval. For example, you can purchase an annuity that provides payments for the rest of your life or until a certain dollar amount is reached.

A fixed annuity is a tax-deferred investment, meaning you pay no taxes on the income until your money is withdrawn. However, earnings from an annuity are subject to ordinary income tax, which tends to be higher than the capital gains tax applied to other forms of investment income.

Annuities are sold on commission and can be costly because of the variety of fees attached to them. If you expire before the annuity does, the money is gone unless you purchased a special death benefit rider. If you decide to cancel your annuity after purchase, you may be hit with a stiff surrender fee. Because of the complexity of annuities, make sure you understand all the fees and restrictions of the product before you sign on the dotted line.

As an insurance contract, an annuity is not guaranteed by the FDIC. You can check the strength of the issuing insurance company with a rating agency such as Moody’s or Standard & Poor’s.

Save trouble by seeking expert advice

If you need a safe place to put your money outside of the stock market, talk to a qualified financial advisor for professional advice. A financial advisor can help you evaluate your savings options and make decisions that support your overall financial plan.

###

This column is for informational purposes only. The information may not be suitable for every situation and should not be relied on without the advice of your tax, legal and/or financial advisors. Neither Ameriprise Financial nor its financial advisors provide tax or legal advice. Consult with qualified tax and legal advisors about your tax and legal situation. This column was prepared by Ameriprise Financial.

Fixed annuities are long-term insurance products.  Before you purchase, be sure to ask your financial professional about the annuity’s features, benefits, and fees, and whether the annuity is appropriate for you, based on your financial situation and objectives.

Financial planning services and investments offered through Ameriprise Financial Services, Inc., Member FINRA & SIPC.

© 2009 Ameriprise Financial, Inc. All rights reserved.

Related posts:

1. Using Life Insurance to Fill Gaps In Your Financial Plan
2. 66 Fast Money Saving Tips
3. Making Sure Money Is Still There When You Can’t Work