Related Services - The following company listings on the Debt Consolidation Loan Directory are offered to assist you with handling your credit card bills and other monthly payments. Also, in addition shop for other financial services ranging from credit card offers to home and car insurance.
- Personal Loan Companies - Need a personal loan for debt consolidation? These types of loans often do not require collateral and are available to homeowners, as well as renters.
- Credit Debt Management - Having trouble keeping up with your monthly credit payments? Compare debt management companies in this online list that can try amd help you get a grip on your personal financial situation.
- Debt Consolidation Service - Learn about the debt consolidation process and review detailed listings for lenders and services offering to help consolidate your debts.
After You Retire:
Managing Your Expenses on a Fixed or Reduced Income
Do your research before purchasing "variable life insurance" or a "variable annuity." Both products are part insurance and part securities.
The first is a type of "whole life" insurance product (also called "permanent life" insurance) for which the policyholder's cash value is invested in one or more portfolios of securities.
The second product is an annuity, for which the consumer invests, through the insurer, in a variety of investment options, typically mutual funds.
Insurance companies issue both products, and anyone who sells them must be registered under state insurance laws and state and federal securities laws.
Although these products provide tax-deferred earnings, you can lose money investing in them. Income and value can move up and down. That's what the "variable" in the name means.
These products also may carry relatively high sales commissions, fees and "surrender charges" if you withdraw money early, typically within the first five to eight years after purchasing the product but sometimes after a longer period.
So, think of variable annuities as long-term investments that can tie up your money for many years. The older you are, the less likely a variable annuity is suitable for you.
Of special concern is that securities and insurance regulators have reported an increase in unsuitable sales of variable products to older investors, who experts say should generally stick to low-risk, low- or no-fee financial products instead of those with potentially high risks and fees.
"Before you invest in a variable life insurance or variable annuity product, be sure that you fully understand how the product works, the risk of loss, and the applicable fees and surrender charges," said Victoria Pawelski, an FDIC Policy Analyst. "Carefully evaluate whether the product is suitable for you given your investment objectives and time frame. And beware of high-pressure sales tactics from sales representatives who may have an incentive to generate high commissions and fees."
For more information about insurance and annuities, the National Association of Insurance Commissioners has a Web site (http://www.insureuonline.org) that includes a special alert for seniors on annuities. The NAIC also provides information on how to contact your state insurance regulator to verify that a company and an individual agent are licensed to sell in your state.
For additional guidance about variable annuities and what to consider before buying, the U.S. Securities and Exchange Commission has published investor tips at http://www.sec.gov/investor/pubs/varannty.htm.
Also consider going to the Web site of the Financial Industry Regulatory Authority (http://www.finra.org), the largest non-governmental regulator of securities firms operating in the United States. It publishes investor alerts and provides background and disciplinary information about securities firms and brokers that sell these products.
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Spring 2008 | Manage Money | Credit Cards | Reverse Mortgage | Research Insurance |
FDIC Consumer News is published by the Federal Deposit Insurance Corporation
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Last updated on 05/13/2008