Financial Product from Legacy Financial Advisors, Inc. Helps Cut Risk in Complex...

Financial Product from Legacy Financial Advisors, Inc. Helps Cut Risk in Complex Economic Times

Solutions for investors from Paul J. Mauro, CLU, ChFC, Legacy
Financial Advisors, Inc., Milford, MA
MILFORD, Mass.--(Business Wire)--
"While today's stock market may be robbing Americans of sleep,
there are alternatives -financial products that conservative savers
and retirees can rely on to earn interest with less risk," advises
Paul J. Mauro, CLU, ChFC, founder and CEO of Legacy Financial
Advisors, Inc. in Milford, MA (www.lfsadvisors.com).

Mauro says, "A commonly overlooked financial product known as a
SET RATE FIXED ANNUITY is a solution for complex times."

He explains, "SET RATE FIXED ANNUITIES are purchased by
individuals who pick the length of time they want to keep their money
invested. The interest rates are set in advance for the duration of
the term - ranging from one to 10 years. You put in your money and
collect the interest or let it build up until the contract comes due."

According to Mauro, many well-established insurance companies sell
this product, but they are not vigorously marketed because profits are
low and they lack sex appeal.

Laddering Annuities

These annuities or contracts lend themselves well to laddering.
With laddering, instead of buying one contract for 10 years, the
individual buys five separate contracts that come due every two years
over the next decade. By doing so, money can be withdrawn periodically
and reinvested if interest rates go up. "Most are sold with no
front-end load or commission charged to the contract, just a declining
or vanishing rear-end, early termination charge. Laddering these
contracts, reduces the chances of having to pay a termination charge
if some of the money is needed at some time in the future," Mauro
explains.

Tax-deferred Interest

Set Rate Fixed Annuities are excellent tax planning tools. With
this product, the individual is in control of paying income taxes on
the interest. Says Mauro, "You only pay taxes on the interest you
spend. With $500,000 in a set rate contract earning 5 %, one can leave
the entire $25,000 in interest untouched and not have to pay taxes on
it every year."

Those who need steady income from the interest, can have it sent
to them every month by check or deposited in their bank account just
as Social Security does. If done this way taxes would be due when
withdrawn. Since contracts are annuities they can help avoid probate
at death as well.

Fixed Rate Annuities are backed by the claims-paying ability of
the insurance company and usually pay a fair interest rate. "Shop
around before buying. Insurance companies are very competitive right
now," emphasises Mauro.

"Fixed Rate Annuities are a boring financial product without any
frills, but in these economic times boring is good," says Mauro who
recommends making a selection with help from a professional in the
financial industry who holds the CLU ChFC or CFP designation. These
individuals have taken the advanced courses necessary to know how to
best use these products.

Fixed annuities are long-term investments designed for retirement
purposes. Surrender charges may apply Withdrawals are subject to
ordinary income taxes and, if made prior to age 59 1/2, may be subject
to a 10% penalty.

Paul J Mauro CLU CHFC is Managing Partner of Legacy Financial
Advisors Inc. located in Milford, MA. (www.lfsadvisors.com). Legacy
has recently opened its 7th office in Massachusetts at 35 Harvard St,
Worcester. Securities and advisor services are offered through SII
investments Inc. Member FINRA SIPC. SII and Legacy are not related
companies.

Photos available for this release:

To view photos, go to www.enr-corp.com/pressroom and enter Release
ID: 172892

Pirozzolo Company
Dick Pirozzolo, 781-235-9911
dick@pirozzolo.com

Copyright Business Wire 2008