William Penn Life, 1985 (20. évfolyam, 1-6. szám)

1985-07-01 / 4. szám

“Your Money’s Worth”

By John L. Lovász, National Treasurer

The single most important money transaction you may make in your lifetime is the purchase of a home and obtaining a mortgage loan to cover its cost.

To save money on your mortgage loan there are two simple ways:

The first can provide a sizeable tax deduction. It involves the proper handling of points. Points is the name of the extra charges paid as a condition of the mortgage loan. Each point is equal to 1 percent of the total loan amount — for example four points on a $75,000 mortgage loan is equal to $3,000.00 (4 x $7^000).

Points are considered by the IRS to be prepaid interest on your mortgage loan and can be deducted in full on your tax return.

In order to obtain this deduction you must fill in the Truth-in- Lending statement, that you sign when you receive your mortgage, that the points are properly designated as either “prepaid interest” or as a “loan originator fee” and not as a “loan discount fee.”

It is also necessary that these

fees be paid by the borrower from funds outside the loan.

The second money-saving mortgage tactic can save thousands and thousands of dollars in mortgage payments as well as pay off the mortgage in a fraction of their projected terms, merely by making small additional monthly principal payments to the lending company holding the mortgage.

The key to this bit of mortgage magic is compound interest, which simply stated, is just interest on interest.

If you had a 25 year mortgage of $52,000 at 12.5 percent, and paid an additional $131.87 in principal with your first payment you would save $2,730.33 in interest over the life of the loan.

• However, you must remember that in most cases before the mortgage loan is paid in full, one of the spouses in the family will pass away. That is why I strongly recommend purchasing a mortgage insurance policy. In case of death the insurance will cover the mortgage loan balance and thus insure that the home will be there for the surviving spouse.

First Quarterly Financial Statement

Ledger Assets 1-1-85 Income

Premium Income Miscellaneous Income Investment Income Total Income

Disbursements

Benefits Paid Dividends to Members Miscellaneous Disbursements Commissions & Fees General Operating Expenses Taxe?, Licenses & Fees Capital Losses Pension Plan Payments Annuities Withdrawn Total Disbursements Total Net Ledger Assets 3-31

Life Department

A»H Dept.

$58,478,286 24$1,191,189.79

$ 862,719.36$ 301,405 84

42,811 44000

1,550,785 68000

$ 2.456.316.48$ 301,405.84

$ 940,385 86$ 241,562 55

54,098.100.00

93,398 260.00

95.481 1946,592.25

602,268 4095.20

19,355 600.00

21,610.060.00

0.000.00

0.000.00

$ 1,826.597 47$ 288,250 00

$59,108,005.25$1,204,345.63

Anneity

Total

$9,786,555.84$69,456.031 87

$ 497,526.81$ 1,661,652.01

00042,811.44

0001.550,785 68

$ 497,526.81$ 3,255,249.13

$ 0.00$ 1,181,948.41

0.0054,098.10

57,274.19150.672.45

18,397.89160,471 33

0.00602.363.60

0.0019,355.60

0.0021,610.06

55,578.3255,578.32

222,483.35222,483.35

$ 353,733.75$ 2,468,581.22

$9.930,348.90$70,242.699.78

John L. Lovász, National Treasurer WILLIAM PENN ASSOCIATION

LEDGER ASSETS — MARCH 1985

Bonds..................................................................$57,648,283.06

Stocks............................................................... 3,609,437.90

Mortgages......................................................... 2,762,884.86

Real Estate-Home Office & All Other ............... 1,689,689.43

Policy Loans.................................................... 1,938,939.86

Real Estate Loans............................................. 3,740.31

Cash & Bank Deposits...................................... 2,614,908.92

Electronic Data Process Equipment ................ 18,035.19

All Other Assets ............................................... 139,182.22

Total Ledger Assets..........................................$70,425,101.75

Less: Liabilities............................................. (182,401.97)

Net Ledger Assets — March 31, 1985 ..............$70,242,699.78

An Introduction to Mt. St. George

Recently there have been many inquiries about the requirements for entry into the Knights of St. George Home in Wellsburg, West Virginia and what other facilities are available there.

For those of you who have not had the privilege of visiting our facility in West Virginia I would like to tell you what we have to offer.

There are 505 acres of beautiful rolling hills with three miles of paved roadway. This provides not only a private setting and panoramic view but also a pleasant area to just walk and relax in.

Camp Rolling Hills has a

MEMBERSHIP MEETING MINUTES WILLIAM PENN FRATERNAL ASSOCIATION SCHOLARSHIP AT THE

HYATT REGENCY, NEW BRUNSWICK, NJ. ON FRIDAY,

MAY 24, 1985

1) The annual meeting of the William Penn Fraternal Association Scholarship Foundation is called to order by President John Sabo at 6:00 P.M. He welcomes everyone attending this meeting.

2) Roll is called and the following are present: Joseph Arvay, John Balia - Gay B. Banes - Emma Beganyi - Frank Bero - Joanne Bero - William Bero - Barbara Botkin - Stephen Danko - Stephen G. Danko - Stephen J. Danko - Zoltán B. Emri - Charles Fabian - Ethel Fodor - Louis Fodor - Frances A. Furedy - William Haberstroh - Joseph Hamari - Anne Hrabar - Michael Hrabar- John Kaluczky - Michael Kara- John F. Kenawell - Albert G. Kertesz - Anne Kertesz - Anne Marie Kertesz - Julius Kesseru- Helene Kohut - William C. Kohut - Stephen M. Lang, Jr. - Wilma Lang - Violet Lenart - John T. Lesko - Jeanne Lesko- John L. Lovász - Julius Macker- Paul Molocko - Elizabeth Nagy- Gus G. Nagy - Elsie Radvany- Frank Radvany - Ethel Sabo - John Sabo - Joseph Toma - Sylvia Toma - Elmer W. Toth - John Tusai - Frank Wukovits, Jr. - Frank Wukovits, Sr. - Gladys Wukovits - Mary Ann Wukovits.

3) Minutes of the Executive Committee of the William Penn Fraternal Association Scholarship Foundation, Inc. dated July 19,1984, held at the Home Office for the purpose of awarding

By John F. Kenawell, Executive Vice President

30 visitors. There is a meeting room and a private chapel for your convenience. Meals are available through our dining facilities at the Home.

These facilities are available to members, branches, church, scout and civic groups, etc. Arrangements for using the facilities can be made through the Home Administrator or the Home Office.

Continued on page 12, column 4

Actuarial Comments

By Robert E. Bruce, FCA, MAAA

In previous editions of “William Penn Life” we have talked to you about some of the benefits available to you as a result of the new 1980 CSO life insurance legislation. In those articles our emphasis was on the value and usefulness of the new Single Premium Whole Life plan.

One of our suggestions was that you:

1. Put the cash value of your present certificates into the new Single Premium plan; and then

2. Continue to pay your present premiums, or more, into one of the new annual (or monthly) premium plans.

We now suggest that a good place to put these premiums is the new 1980 CSO Ordinary Life plan. The new premium rates are far lower than on the old Ordinary Life plan, sometimes as low as one-half. The rates per$1,000 get lower the more you buy. “Cheaper by the dozen.” The reason is that each certificate creates certain expenses, no matter how small the amount of insurance. Above the minimum, the expenses increase less rapidly than the amount of insurance.

Here are some sample rates per $1,000:

Issue

Amount of Insurance

Age$5,000

$25,000

$50,000

$100,000

25$ 7.95

$ 6.45

$ 5.95

$ 5.70

3510.87

9.37

8.87

8.62

4516.92

15.42

14.92

14.67

5527.67

26.17

25.67

25.42

As it works out, once you buy $10,000 of this plan, each additional $1,000 costs you only: $5.45 at age 25; $8.37 at age 35; $14.42 at age 45; $25.17 at age 55.

These rates are the same for men and women, smokers and nonsmokers. The rates are designed to be payable for life with the protection also lasting for your whole life. The cash and other “nonforfeiture” values built into the plan are guaranteed for the entire time the certificate remains in force.

Because these rates are so much lower than before, there is no present intention to pay dividends on this plan. However, if the future experience seems to warrant, WPA management will certainly consider passing any benefit along to members in the form of dividends.

The various state insurance departments have set up rules to guard the solvency of insurers: companies as well as fraternal societies. These rules are, of course, very conservative, for your protection. Under them, no insurer can guarantee to maintain the premium rates at levels as low as those listed above for $25,000 or more. The insurer can charge these low rates as long as it retains the right to raise them slightly if experience goes bad. On this plan, at issue ages 25, 35, and 45 the most that could ever be charged is the $5,000 rate shown above; at age 55 the maximum is $29.59.

However, the Association has no intention of ever charging more than shown above. The purpose of the “nonguaranteed” feature is merely to give you members the best deal that it can.

lodge with a fully equipped commercial kitchen and seating capacity for approximately 125 persons. The 32' x 62' stainless steel pool offers an excellent, entertaining afternoon or weekend for your Branch or church group.

Our Retreat House is available for overnight or weekend stays. It offers sleeping capacity for approximately

Net Ledger Assets — December 31, 1984 ... $69,456,031.87 continued on page u, column 3

Continued on page 13, column 3

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