Americans Lack Understanding of Tax Savings

New Survey Reveals Many Not Using Opportunities to Save

BLOOMINGTON, Ill., Jan. 15 /PRNewswire/ -- As Americans gear-up for tax
day, many do not know which investments can help them save on their income
taxes or defer paying them, according to a new survey by COUNTRY Insurance &
Financial Services. More than half say they either do not have a good
understanding of these investments (30 percent) or are unsure (21 percent).
Americans' admission to their lack of awareness appears to be on target,
as half of those surveyed could not name a tax-deferred investment. A couple
of right answers -- 401(k) or an IRA -- were selected by only 50 percent.
Further, more than one-third (36 percent) currently do not have an IRA or
401(k) account.
"Retirement accounts such as a 401(k) or an IRA help sock-away money for
the future while providing valuable tax savings," says Keith Brannan, vice
president of Financial Security Planning for COUNTRY Insurance & Financial
Services. "If you are not taking advantage of these accounts, you could be
missing an opportunity to pay less in taxes. More importantly, you could also
be missing an opportunity to use those funds to meet future retirement goals.
Learning about them or talking to a professional can help you improve your
financial security."
Brannan also encourages Americans to consider investing any tax refund
they might receive this year. The COUNTRY survey shows that while 30 percent
of Americans received a significant income tax refund last year, less than
half (46 percent) used that "found money" toward improving their long-term
financial security.
"As you prepare to file your taxes and receive financial information from
your employer, now is the perfect time to evaluate your overall financial
picture," adds Brannan. "With predictions that 2008 may be a tough economic
year, people may find a need to focus on spending behaviors."
Tips for long-term tax savings

-- Contribute to an IRA or 401(k) if you are not doing so already. The
contributions you make can be tax deductible. If your employer
offers a match on your 401(k), contribute enough to receive all of
the match.

-- If you are an empty nest parent, consider maxing out your 401(k).
This could help replace a lost tax deduction, since you can no longer
claim your children as dependents.

-- Invest in a mutual fund focused on long-term capital gains. Long-term
gains are treated more favorably at tax time.

-- If you own a small business, set up a sponsored retirement plan. The
money you spend to match your employees' contributions is tax
deductible.

For more information on Americans' sentiments about financial security,
please visit http://www.countryfinancialsecurityindex.com.
The COUNTRY survey is based on a national telephone survey of 3,000
Americans and is compiled by Rasmussen Reports, LLC,
(http://www.rasmussenreports.com) an independent research firm. The margin of
sampling error for a survey based on this many interviews is approximately
+/- 2 percentage points with a 95 percent level of confidence.
About COUNTRY
COUNTRY Insurance & Financial Services (http://www.countryfinancial.com)
serves about one million households and businesses throughout the United
States. It offers a full range of financial products and services from auto,
home and life insurance to retirement planning services, investment management
and annuities.
SOURCE COUNTRY Insurance & Financial Services

Anshula Ahluwalia of Ogilvy Public Relations, +1-312-397-6074,
anshula.ahluwalia@ogilvypr.com; or Jay Verner of COUNTRY Insurance & Financial
Services, +1-309-821-3372, jay.verner@countryfinancial.com