OCR Text |
Show Page 4 UTAH January 1968 FARM BUREAU NEWS MV Farmers and other people don't have a company retirement plan that will provide them with a pension someday. If they are to have anything at all for retirement in addition to a skimpy Social Se' curity check, they must provide it for themselves. self-employ-ed - Recently the Congress revised a law allowing people the same kind of tax breaks corporate personnel have long had. Called the Keogh Bill or HR-10- , the law allows you to deduct up to 10 or a maximum of $2,500 a year from your income if it is applied to an approved retirement program. The earnings on the investment are sheltered from tax until self-employ- ed retirement Once committed to a program, it's difficult to change it and the money is frozen in the fund until retirement will result in Distributing the fund before age 59-1- 2 a penalty. Before entering a plan, much thought should be given to your needs and competent advice from a professional such as a lawyer should be sought On These Two Pages are brief descriptions of some retirement programs. of the many plans offered as HR-10 Insurance Company Plans The two programs offered by Country Mutual Life Insurance Company individare approved by die Internal Revenue Service and a ual may get in these programs without die services of an attorney. Another advantage is that die money that is decided will go into the program year after year may be maintained at that level even if your income falls below your expectations. These are die only programs that allow steady contributions regardless of income fluctuation. self-employ-ed Endowment Annuity The Endowment Annuity plan combines life insurance protection with an investment program. Hie plan can be tailored to your needs and may be as short as twenty years or as king as forty years. Your money is placed in an account for you to pay a specific amount when the annuity matures. You can receive a lump sum or monthly payments for a definite period or smaller payments for as long as you live The life insurance protection assures you that there will be retirement money for your wife even if you should die earlier. Only the money providing income is eligible for tax deduction. Money for life protection can not be deducted under HRrlO. Guaranteed Retirement Annuity This program provides a series of income payments made over the lifetime of a person. In case of death before retirement, the beneficiary will receive a payment of no less than the cash value or premiums paid. This is a investment program and even if you die before retirewill more back than you paid into the program. Should receive ment, you you live to a ripe old age, you will receive much, much more than you put in. no-ris- k |