William Penn Life, 2003 (38. évfolyam, 1-12. szám)
2003-10-01 / 10. szám
the hearing impaired call 1-800-925- 4618 or 1-202-942-3147 in Washington, D.C. • Investigate Any Call Features Callable CD's give the issuing bank the right to terminate the CD after a set period of time, but they do not give you that same right. If the bank calls or redeems your CD, you should receive the full amount of your original deposit plus any unpaid accrued interest. • Understand the Difference Between Call Features and Maturity Don't assume that a "federally insured one-year non-callable" CD matures in one year. If you have any doubt, ask the sales representative at your bank or brokerage firm to explain the CD's call features and to confirm when it matures. • Confirm the Interest Rate You’ll Receive and How You’ll Be Paid You should receive a disclosure document that tells you the interest rate on your CD and whether the rate is fixed or variable. Be sure to ask how often the bank pays interest: for example, monthly or semi-annually. And confirm how you'll be paid: for example, by check or by an electronic transfer of funds. Money Links For more information about Certificates of Deposit and to learn what to do if you have a complaint about a specific financial product or company, call the FDIC Central Call Center at: 877-275-3342 Or, visit the FDIC’s website at: O www.fdic.gov You can also learn more by visiting the website of the U.S. Securities and Exchange Commission at: 3 www.sec.gov MoneywiSe • Ask Whether the Interest Rate Ever Changes If you're considering investing in a variable-rate CD, make sure you understand when and how the rate can change. Some variable-rate CD's feature a "multi-step" or "bonus rate" structure in which interest rates increase or decrease over time according to a pre-set schedule. Other variable-rate CD's pay interest rates that track the performance of a specified market index, such as the S&P 500 or the Dow Jones Industrial Average. • Research Any Penalties for Early Withdrawal Be sure to find out how much you'll have to pay if you cash in your CD before maturity. • Ask Whether Your Broker Can Sell Your CD Some brokered CD's are issued in the name of the "custodian" or deposit brokers. In some cases, the deposit broker may advertise that the CD does not have a prepayment penalty for early withdrawal. In those cases, the deposit broker will instead try to resell the CD for you if you want to redeem it before maturity. If interest rates have fallen since you purchased your CD and demand is high, you may be able to sell the CD for a profit. But if interest rates have risen, there may be less demand for your loweryielding CD. That means you may have to sell the CD at a discount and lose some of your original deposit. • Find Out About Any Additional Features For example, some CDs offer a death benefit that allows a CD owner's heirs to redeem the CD without penalty when the owner dies. The bottom-line question you should always ask yourself is: Does this investment make sense for me? A high-yield, long-term CD with a maturity date of 15 to 20 years may make sense for many younger investors who want to diversify their financial holdings. But it might not make sense for elderly investors. EE THAT’S A QUESTION YOU MAY not have asked yourself very often, if ever. But, it’s one you should ask yourself at least once a year. We can’t stress enough the importance of regularly checking the beneficiaries listed on your life insurance policies. It is the only way to ensure that the people you want to receive the benefits of your life insurance are the ones who will receive it. Think about the changes that have occurred in your life since you purchased your life insurance. Getting married, having children, losing a loved one, getting divorced, getting remarried-all these life changes affect your responsibilities. Do the beneficiaries currently listed on your life insurance policies reflect such changes? If you think you need to update the beneficiaries listed on your policies—either primary or secondary beneficiaries-contact your WPA representative. Or, call our Home Office toll-free at 1-800-848-7366. Williu Pen Life, October 2003 5
