If you hold a life insurance policy you no longer need, selling it may bring in cash. A policy will have the most appeal to buyers if it was bought when you were much healthier than you are now. Then the premiums will be lower, in relation to the death benefit, than a policy bought from someone whose health has not deteriorated.

The policies most attractive policies to potential buyers are:

* Universal life. These are permanent life insurance policies, meant to remain in force for the life of the insured individual. With "universal" life, there is some flexibility in paying premiums.

* Convertible term. These are inexpensive policies covering a certain time period. They can be converted to permanent life insurance, without requiring the insured individual to take a medical exam.

If you put your insurance policy up for sale, request that an unrelated party hold a prospective buyer's funds in escrow. Then your insurance policy can be placed in escrow and the policy can be exchanged for the purchaser's cash.

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The Thrift Savings Plan Open Elections Act of 2004 requires retirement
financial literacy and education.
 
They must also provide information and counseling on the benefits the
Federal Government provides and on how to plan for retirement.

In an effort to help federal employees prepare for their retirement,
FEDweek has partnered with PBSC's "Federal Retirement Seminar Solutions"
PBSC has the track record and expertise to help you get the most out of
your retirement. PBSC has been providing help to federal employees for
over 20 years.

These seminars will focus on the "benefits" of the system. We believe
that retirement planning involves two primary areas:

"How do I get it (enough money)?" (the area everyone focuses on) and

"How do I not lose it?" (This is the financial risk area that many
overlook.

We don't want an ignored risk to snatch your retirement away at the last
minute)

This comprehensive  3-day program will provide the you with valuable
information about retirement planning and ways to ease the transition
into retirement.

How can I increase the guaranteed monthly pension income by as much as
10-20% General understanding of the Federal retirement programs TSP
strategies Why asset allocation is important For a complete overview,
go to

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u=aHR0cDovL3d3dy5mZWRlcmFscmV0aXJlbWVudHNlbWluYXJzLmNvbS9zY2hlZHVsZS5odG0%3d&x=e33e29ea

Medicare Part B covers medical bills but does not provide full coverage. You pay 20 percent of the bills for doctors' visits and outpatient treatment, for example. Therefore, many Medicare enrollees buy Medicare supplement ("Medigap") insurance from private companies. There are several types of policies, but each type is standardized by federal law.

Every type of Medigap policy will pay the 20 percent share of doctors' bills and other medical treatment. Different types have additional benefits.

A recent survey found that "Plan F" is by far the most popular type of Medigap policy, with a 40 percent market share. Its benefits include care outside the U.S.; long stays in skilled nursing homes; deductibles for hospitalization, medical, and outpatient expenses; and so-called "excess charges." The last-named coverage pays the difference between what a doctor or provider charges and the amount Medicare will pay.

For federal retirees who keep their Federal Employees Health Benefits insurance, FEHB effectively acts as a Medigap plan since it fills in as the second payor behind Medicare, and thus most do not purchase Medigap coverage as well.

Real estate investors may collect untaxed cash flow because depreciation deductions can turn taxable income into tax losses. If so, can they deduct the loss from their ordinary income that year? Perhaps, under the "passive activity loss" rules.

For most taxpayers, passive losses up to $25,000 per year can be deducted. To take the maximum $25,000 loss, your adjusted gross income (AGI) must be under $100,000. If your AGI is over $100,000, your maximum deductible loss is reduced until it disappears at $150,000 in AGI.

Suppose, for example, Joan Wilson's AGI this year is $130,000. She is 60 percent through the $100,000-$150,000 phaseout range so she can take only 40 percent ($10,000) of the $25,000 maximum deduction.

If Joan has an $8,000 loss from rental property this year, she can deduct all of it. However, if her loss is $14,000, only $10,000 can be deducted this year. The other $4,000 can be deducted in the future, when the property produces taxable income or when it is sold.

Married couples with children can make the most of an IRA. Suppose Al Brown dies with $100,000 in his IRA. Al has named his wife Beth as beneficiary of that account. As a surviving spouse, Beth can roll over the IRA she inherited from her husband into her own IRA. Then she can name beneficiaries of her IRA and take required distributions.

Suppose Beth is 75 then. According to the IRS Uniform Distribution Table, she and a beneficiary have a joint life expectancy of 22.9 years. Thus, Beth must withdraw at least 1/22.9 (4.4 percent) of the IRA that year. The other 95.6 percent can stay in the IRA, earning tax-deferred income. The next year, Beth must withdraw 1/22 of the new balance in her IRA. And so on, each year.

Suppose Beth dies with the IRA balance still at $100,000. Her son Dave, the beneficiary she has named, can't roll over that IRA to his own IRA but he can re-title the account as an inherited IRA the name of Beth Brown (deceased) for the benefit of (f/b/o) Dave Brown.

If Dave is 47 years old then, he has a 37-year life expectancy on the IRS Single Life Expectancy Table For Inherited IRAs. Therefore, Dave would have to withdraw at least 1/37 (2.7 percent) of the IRA balance that year, leaving 97.3 percent for further tax-deferred growth.

Parents of young children often create custodial accounts, which may be set up under the Uniform Transfer to Minors Act (UTMA), used in most states, or the Uniform Gift to Minors Act (UGMA). There are few differences between UTMA and UGMA accounts: UTMA may permit a wider variety of assets to be held but either account will enable minors to own bank accounts and securities, the most common holdings in custodial accounts.

Compared with other vehicles that permit minors to own assets, such as trusts and guardianships, custodial accounts are simple and inexpensive to create and maintain. In addition, transferring income-producing assets to a child's custodial account can save taxes, year after year.

Suppose, for example, you and your spouse are in the 28 percent tax bracket. You have $10,000 worth of taxable bond funds yielding 4 percent. These funds generate $400 worth of taxable income each year, and a $112 tax bill, at 28 percent.

If you transfer your shares in the bond fund to a custodial account for a child, the income tax bill is transferred as well.

Assuming your child has little or no other investment income, the $400 received from the bond funds will be tax-free.

In order for a prenuptial agreement to be recognized by a court, both sides should have their own independent lawyers and the agreement should be fair, not one-sided. A solid prenuptial agreement, signed before a wedding, can cover everything from household spending to disposition of assets in case of death or divorce.

Of course, asking your future spouse to sign a prenuptial agreement isn't the most romantic topic of conversation for a couple making wedding plans. One tactic is to tell your fiancée that you're creating an entire estate plan–which you should be doing anyway. That estate plan might include a prenup along with a new will, life insurance, trusts, etc.

Another approach is to tell your fiancée that you have an advisor, such as an accountant or a financial planner, who insists that you have a prenuptial agreement in place before you get married. Blame anyone you want--but just make sure you get it done.