Whether they’re snatching your purse, diving into your dumpster, stealing your mail, or hacking into your computer, they’re out to get you.  Who are they? Identity thieves.

Identity thieves can empty your bank account, max out your credit cards, open new accounts in your name, and purchase furniture, cars, and even homes on the basis of your credit history.  If they give your personal information to the police during an arrest and then don’t show up for a court date, you may be subsequently arrested and jailed.

And what will you get for their efforts?  You’ll get the headache and expense of cleaning up the mess they leave behind. You may never be able to completely prevent your identity from being stolen, but here are some steps you can take to help protect yourself from becoming a victim.

Check yourself out

It’s important to review your credit report periodically.  Check to make sure that all the information contained in it is correct, and be on the lookout for any fraudulent activity.

You may get your credit report for free once a year.  To do so, contact the Annual Credit Report Request Service online at www.annualcreditreport.com  or call (877) 322-8228.  If you need to correct any information or dispute any entries, contact the three national credit reporting agencies:

1. Equifax: www.equifax.com
   (800) 685-1111
2. Experian: www.experian.com
   (888) 397-3742
3. TransUnion: www.transunion.com
   (800) 916-8800

Secure your number

Your most important personal identifier is your Social Security number (SSN).  Guard it carefully.  Never carry your Social Security card with you unless you’ll need it.  The same goes for other forms of identification (for example, health insurance cards) that display your SSN. If your state uses your SSN as your driver’s license number, request an alternate number.

Don’t have your SSN preprinted on your checks, and don’t let merchants write it on your checks. Don’t give it out over the phone unless you initiate the call to an organization you trust.  Ask the three major credit reporting agencies to truncate it on your credit reports.  Try to avoid listing it on employment applications; offer instead to provide it during a job interview.

Don’t leave home with it

Most of us carry our checkbooks and all of our credit cards, debit cards, and telephone cards with us all the time. That’s a bad idea; if your wallet or purse is stolen, the thief will have a treasure chest of new toys to play with.

Carry only the cards and/or checks you’ll need for any one trip.  And keep a written record of all your account numbers, credit card expiration dates, and the telephone numbers of the customer service and fraud departments in a secure place–at home.

Keep your receipts

When you make a purchase with a credit or debit card, you’re given a receipt.  Don’t throw it away or leave it behind; it may contain your credit or debit card number.  And don’t leave it in the shopping bag inside your car while you continue shopping; if your car is broken into and the item you bought is stolen, your identity may be as well.

Save your receipts until you can check them against your monthly credit card and bank statements, and watch your statements for purchases you didn’t make.

When you toss it, shred it

Before you throw out any financial records such as credit or debit card receipts and statements, cancelled checks, or even offers for credit you receive in the mail, shred the documents, preferably with a cross-cut shredder.  If you don’t, you may find the panhandler going through your dumpster was looking for more than discarded leftovers.

Keep a low profile

The more your personal information is available to others, the more likely you are to be victimized by identity theft. While you don’t need to become a hermit in a cave, there are steps you can take to help minimize your exposure

• To stop telephone calls from national telemarketers, list your telephone number with the Federal Trade Commission’s National Do Not Call Registry by calling (888) 382-1222 or registering online at www.donotcall.gov
• To remove your name from most national mailing and e-mailing lists, as well as most telemarketing lists, write the Direct Marketing Association at 1120 Avenue of the Americas, New York, NY 10036-6700, or register online at www.dmachoice.org
• To remove your name from marketing lists prepared by the three national consumer reporting agencies, call (888) 567-8688 or register online at www.optoutprescreen.com
• When given the opportunity to do so by your bank, investment firm, insurance company, and credit card companies, opt out of allowing them to share your financial information with other organizations
• You may even want to consider having your name and address removed from the telephone book and reverse directories

Be diligent

As the grizzled duty sergeant used to say on a televised police drama, “Be careful out there.” The identity you save may be your own.

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With the thought of retirement looming in your future, the importance of a regular monthly income during your golden years grows greater.  Annuities play a main role in retirement planning because they provide that regular stream of income you need to enjoy retirement living.

Annuities 101: Which is Right for You?

Annuities are all around us.  Most of your retirement options are in the form of annuities: company pensions, IRA’s, 401(k)’s.  All these are capital investments made by you or your employer over time that will eventually provide you with a series of regular payments, which is the definition of an annuity.  But what if you have contributed the maximum into your 401(k) or IRA account or want another retirement investment strategy?  Is an individual annuity a good investment strategy for you?

An annuity contract can be immediate or deferred.  If you are planning for retirement, you will want a deferred annuity that delays regular payments to you until you are at least 59-1/2.  Until you begin receiving payments, you can pay a lump sum or regular monthly payments into your annuity account, very similar to an IRA or 401(k).  In addition, similar to other retirement investment options, contributions and earnings into an annuity are tax deferred, which is a good option if you plan to be in a lower tax bracket by your retirement age.

A retirement annuity can be a good option if you have the money and time to invest in them.  Annuities can be expensive to start because of the large lump sum deposit or larger monthly contributions.  Additionally, unless your annuity has at least 15 to 20 years to mature before regular payments are distributed, you won’t experience much return on your large investment.

Types of Annuities

The most popular types of annuities chosen for retirement accounts are fixed annuities and variable annuities.  These annuities offer conservative payment options or more investment control respectively for the annuity purchaser.

Fixed Annuity – A fixed annuity provides a fixed rate of return as agreed in the annuity contract and a fixed regular payment amount at retirement.  Though payments are fixed, you can choose an option to increase payment amounts by 3% to 5% each year for inflation.

Variable Annuity – This type is the most popular annuity type.  Variable annuities allow you, the investor, to decide how to invest your funds.  You can chose from a number of mutual fund type investment options called “subaccounts” offered by the annuity provider.  Though by law annuity funds cannot be directly invested into mutual funds, subaccounts offer similar diversified investments in stocks, bonds, and money market accounts.

Annuities are usually purchased as a contract from an insurance company through the help of a broker or investment counselor.  Contact a retirement professional  at www.iamllc.biz and work with them to determine which annuity is right for you.  As with any retirement plan or investment, it is wise to seek help in understanding more about the best investment options for your retirement.   Visit www.kenhimmler.com for valuable information on this topic.

Cash value, or permanent, life insurance is life insurance that is designed to be kept until your death–whenever that may be. Part of your premium pays for the “pure” insurance coverage and expenses, and the balance is held by the insurance company in a cash value account. The type of permanent life insurance you buy (e.g., whole, universal, variable) will influence the pace at which the cash value portion of your policy grows. The interest and earnings grow tax deferred until you withdraw the funds, and are part of the income-tax-free death benefit if you die. However, these policies may require a higher cash outlay than term life policies.

Who should consider cash value life insurance?

Cash value life insurance is well suited to cover long-term needs, because coverage continues for the rest of your life. You won’t need to renew your policy periodically, nor will you need to provide proof of insurability (e.g., a medical exam) once the policy is in place. Cash value insurance allows you to lock in a premium schedule, so you won’t have to worry about rising premiums as you get older or your health deteriorates.

Advantages of cash value life insurance

As with any life insurance policy, the purpose of cash value insurance is to provide adequate financial resources for your surviving loved ones in the event of your premature death. Knowing that this protection is in place may allow you to sleep a little easier at night.

A cash value policy is similar to an annuity in this respect. All of the interest and earnings on the policy’s investments are allowed to grow free from income taxes until you surrender the policy or begin to withdraw your funds. Depending on the amount credited to the cash value account, you can accumulate a substantial amount of equity in your cash value policy over a period of years.

Generally, you’ll have the right to take a loan from the insurance company, secured by the cash value in your policy. A fixed or variable interest rate will be charged. Keep in mind, however, that if you take a loan against your cash value, the death benefit available to your survivors will be reduced by the amount of the loan. In addition, policy loans may reduce available cash value and can cause your policy to lapse. Finally, you could face tax consequences if you surrender the policy with an outstanding loan against it.

With most cash value life insurance, you can take withdrawals from your cash value account. Policy withdrawals may be tax free up to your basis in the policy (the amount you’ve paid into the policy in premiums). As with loans, the amount of the withdrawal from your cash value account will reduce the death benefit available to your survivors, as well as the available cash value,n some cases by an amount greater than the withdrawal amount. Different tax rules apply to withdrawals and loans from cash values if the policy is a Modified Endowment Contract. In that case, withdrawals and loans are considered made from earnings first, and would be subject to income tax.

Disadvantages of cash value life insurance

The premiums for cash value insurance usually cost more than for a comparable amount of term insurance in the early years of the policy. The reason is that with a cash value policy, you’re initially paying more than is currently needed to pay for the insurance, so that you can build a fund (the cash value account) to help offset the higher insurance costs you’ll need to pay when you’re older.

If you buy a variable life insurance policy, the underlying investments in the cash value account expose you to the possibility of financial loss as well as financial gain. It all depends on how those investments fare. Any losses will cut directly into your cash value account and may affect the amount of the death benefit, although a minimum death benefit is usually guaranteed. (Guarantees are subject to the claims-paying ability of the insurer.) Now with the invention of the Equity Linked Life Insurance there is now a way to participate with the potential upside of the market without the downside.

 For more information on financial planning, visit www.iamllc.biz