The Courier-Journal from Louisville, Kentucky • Page 17

THE COURIER-JOURNAL, MONDAY OCTOtTR WC 3 8 Money Maze Will assist you with your new home purchase or Spinning CDs over to annuity sounds good Lower your current monthly payment 712 FIXED POINTS First Mortgage Loans Don't Delay Call Today 454-4462 invest in a fixed or variable annuity with a life insurance company only insurance companies can issue annuities. A fixed annuity, Harpring explained, would guarantee your princi Equal Housing Lender FsnnwMa 1930 Bishop Lane Suite 601 Louisville, Ky 40218 Intmt Dmd or 1 15 yw ma wW 1 ortghrton In 7 HP MM rati uqact to tftangt alttKNt note. KEN BERZOF COLUMNIST occasionally, without current taxation. The principal would not be guaranteed, and the value of your accounts could increase or decrease, depending on the performance of the underlying investments. However, at the death of the holder of the annuity, the beneficiary would receive an amount at least equal to the total of the premiums, even if the account value was less than the premiums, Harpring said.

Depending on the insurance company, the maximum age for purchasing an annuity may be from 75 to 85, and the age at which you must start drawing income would be from 80 to 98. The IRS imposes a 10 percent penalty for withdrawals before age 59, although this won't apply in I am in my 70s and retired. My wife and I have about $50,000 worth of certificates of deposit coming due and are considering a tax-deferred annuity. We don't need interest to live on, so an annuity sounds good. Would it be? R.C., Louisville A tax-deferred annuity may well be your answer, said Lynn Harpring, a Certified Financial Planner and a principal of Harpring Pope.

"Not only will you avoid taxes on current earnings in an annuity, but also you will earn interest on the money you would have paid in taxes compound interest instead of compound taxes," he said. Because you don't need current income, Harpring said, you could mm Mill frl'urf' rTf You Know Its A pal and earn interest at a rate that would vary from time to time, as declared by the insurance company. A variable annuity would have several investment options, such as a money market, stock or bond account from which to choose, and the investment mix can be changed Hi' offer fixed or adjustable rules, short ami long terms Great Time To The Savvy Shopper your case. Insurance companies usually don't impose a sales charge on annuities, but there is a 2 percent state tax for Kentucky residents that the insurance company may charge against the premium, Harpring said. Withdrawals may be subject to a charge declining over five or 10 years, he added, but the annuity owner can usually withdraw up to 10 percent of the annuity value each year without charge.

When withdrawals are made, earnings are subject to income tax. "A policy owner can make withdrawals on an irregular basis (different amounts at different times) or systematic basis (fixed amounts at regular times), or may want to annuitize the policy and receive income for the rest of his or her life, or jointly with his or her spouse," Harpring said. If the annuity owner died before beginning to make withdrawals, the spouse could own the annuity policy and receive income to supplement Social Security. Tax withholding Can you tell me the maximum amount of one's wages subject to Social Security withholding? H. Louisville It's $55,500 for 1992, said the Social Security Administration, up from $53,400 for 1991.

The figure rises each year; next year's ceiling is expected to be announced next month. (This year's ceiling for the I. 45 percent Medicare tax is $130,200.) Questions about investments and money may be sent to Money Maze, co Business, The Courier-Journal, 525 W. Broadway, Louisville, Ky. 40202.

Not every question can be answered, but all will be considered. Replies cannot be guaranteed. Advice given in this column is not Intended as a solicitation or endorsement of specific securities. and a fixed rate loan "safety net option that gives jou a Purchase Or Refinance. break on future refinance costs.

We also provide Now You Know its expanded, remodeled store next Monday. It's the first time the discount clothing store has had a shoe department. A model-train show will be held at Bashford Manor Thursday through Sunday. Richman Brothers at Jefferson Mall is going out of business, and that means savings of 40 percent or more on remaining stock. Most of the casual wear has been sold, but professional wear, such as business suits, remains.

Have you happened on an interesting new store? Do you have a gift idea or shopping tip you'd like to share? Call "The Savvy Shopper" hot line at (502) 582-4040 and tell us about it. Ar-lene Jacobson will answer the phone from 11 a.m. to 1 p.m. on Mondays, or you can leave a message on our recorder at other times. Our fax number is (502) 582-4360, or write to "The Savvy Shopper," The Courier-Journal, 525 W.

Broadway, Louisville, Ky. 40202. izing in home wares and tableware; Queen of Tarts, specialty cakes and desserts; Terry L. Dillard, graphic designs; Harcourt and stationery and invitations; Douglas D. Fowley, photographer; and Brown-Watcrhouse-Kaiser Jewelers.

The event will be held at Essentials, 143 Thierman Lane, from 2 to 8:30 p.m. There will be tastings of sweets and a groom's cake, as well as displays of home accessories and. gifts. Mail watch Ear X-tacy plans to open a new store in Eastgate Shopping Center in Middletown on Friday, selling CDs, cassettes, some albums, T-shirts and posters. Maurice's, which carries men's and women's apparel, will open a new store at River Falls Mall later this fall.

Fashion Shop in Bashford Manor Mall will sell shoes when it opens Continued from Page 1 ideas at a trunk show today and tomorrow at the Crescent Hill Woman's Club, 2641 Grinstead Drive. The show is being held by Embellishments, a new gift and accessories business, from 11 a.m. to 7 p.m. both days. Among the items on display will be Brookhill and Anichini linens, hand-blown crystal from Simon Pearce and Mariposa, jewelry from Mish, hand-painted porcelain from Ann Marie Murray, Bridge-water spongeware and Cherubini earthenware, as well as candles, rush baskets, stationery and holiday decorating accessories.

With 6 you get Six Louisville businesses will hold a daylong symposium Thursday for anyone planning a wedding or other special occasion. The stores and services include Essentials, special servicing on your loan after closing. Su call us, our Who To Call. suburban banks are open six dais a week to serve you. REPUBLIC Bank Trust Company I miisv ilk', krntui'kv Srnll I r.ij;cr, I'ri'siilciU I rFA ptTy'sic'anL fer Centers.

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