President Kuzma: Is an annuity the right fit?

A few weeks ago, I was sitting at the airport waiting for my flight and I was reading an article on my phone about whether the bull market is coming to an end and the resulting impact to the economy. I know, thrilling spine-tingling reading. Anyway, what interested me was the chart following the article showing average savings rates across the country. Here are some highlights:

Money Market Account with $10,000 or more—0.25%

Money Market Account with $50,000 or more—0.38%

One-Year CD—0.6%

Five-Year CD—1.5%

I point this out because in case you weren’t aware, the PFA Legacy Annuity is paying up to 4.25% right now. We are offering a one-year bonus of 1.25% on new annuities with a deposit of $10,000 or more through the end of the year. Our rates are significantly higher than any of the rates I saw in the chart. What is the interest on your savings today?

While the PFA annuity has a longer surrender penalty period than the CD (nine years vs. five), another important factor to consider is that if rates do increase in the future, the rate on your PFA annuity will most likely rise as well. Our rates are not locked in like they are with CDs. That 1.5% for the five-year CD is the best you will get for the next five years.

Bottom line—if you are looking for a way to get the most out of your money in this low-interest rate market, I suggest you consider a PFA annuity now. An annuity might not be the right solution for you as everyone’s personal and financial situation is unique. There is only one way to find out. Give our National Sales Director John Denning a call (800-535-2071) or send an email ( to learn all the details and let us help you find the best solution for your financial future.

John Kuzmirek: Where did the time go?

Where did the time go? My youngest child Haley is soon to be off to college. She will be attending Duquesne University, Mylan School of Pharmacy, this fall. I had the pleasure of being Haley’s softball coach since she was 12 years old. It was something really special for both of us. It was our “thing”, something that we got to spend a lot of time together doing, and something we both enjoyed tremendously. It was a great experience, and Haley was fortunate to be on a team with the finest group of young ladies and parents around. My wife Paula, Haley and I will cherish the friendships and all the good times traveling and playing tournaments! Although Haley had the opportunity to play in college, she chose a school that doesn’t have a softball team, but has an excellent pharmacy program.

On August 18th she moves into her dorm and Paula and I will officially be “Empty Nesters”. I don’t know how I’m going to feel that day on the ride home. Paula will have to drive as I won’t be able to see through my tears! Although I am extremely proud of the nice young lady she grew up to be, it’s very hard to let go and accept the fact that she is on her own (even though she’s only 30 minutes away from home). I trust that God will guide her to make good decisions and be very successful, but I sure will miss her. Of course Haley can’t wait to start a new chapter in her life.

As most parents in our situation, we didn’t save nearly enough to pay for all of her college expenses. Who does? It’s a reality that hits home as “the day” draws near. I wish I could go back in time to make sure that I would be better prepared. For those of you who are parents of young children, it’s not too late to start preparing for “the day” when you drop your son or daughter off at college. There are many educational saving plans available to help take the stress of college expenses out of the equation and let those tears that will flow down your face, be tears of pure joy and happiness for your child. We have a great resource at Polish Falcons in John Denning who can help you with the financial part of college planning. Reach out to him! Time marches on, so there’s no better time to start! God bless you!

John Denning: Are You Ready Financially?

Marvin H. Feldman, CLU, ChFC, RFC, President and CEO of the LIFE Foundation

Fifty percent of the US population accounts for just 2.7% of all health-care expenditures, while 5% accounts for 49.5% of all health-care expenditures, according to Kaiser Family Foundation.

The life expectancy at birth of an average American was 62.9 years in 1940, five years after Social Security was created. Life expectancy today is 78.7 years (source: Center for Disease Control). As a result of this increased life expectancy, it will take $293,000 to pay for post retirement health care that’s not paid by Medicare, according to Kaiser. Are you financially prepared for this?

Are you financially prepared to raise your children? A child born in 2012 will cost a higher-income family (those making at least $105,000 of before-tax income) $399,780 in 2012 dollars (i.e., a present value amount) and $501,250 in inflation adjusted dollars through age 17, and this does not including college (source: Department of Agriculture). How will this be paid if you were to die or become disabled today?

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Polish government prepares to sell stake in Energa

The Polish government is gearing up for central Europe’s biggest Initial Public Offering (IPO) in two years as it prepares to sell a stake in electricity company Energa. The Polish State Treasury has started the process of selling 141.5 million shares (a 34.2% stake) in the country’s third-biggest utility company, raising up to $913 million. Shares have been set at a maximum price of $6.50 each, according to a prospectus published on Energa’s website, with Bloomberg News reporting that the state, whose share will fall to 50%, plans to sell its shares for at least $4.85 each.

Source: Polonia Media Network

Yield of Polish treasury bonds falls below 3%

The yield of Polish treasury bonds has fallen below 3% for the first time in history, according to a notation by Finance Minister Jacek Rostowski on his Facebook account. The yield on two-year bonds dropped to 2.97% and the yields on five- and 10-year bonds are also at record lows, he wrote. The trend is part of a global one. Polish bonds are following the same path as German ones, which also recently noted a record-low yield. Deputy Treasury Minister Wojciech Kowalczyk said that a substantial section of investors interested in Polish bonds come from Japan. The Bank of Japan’s easing of its monetary policy has resulted in a large influx of capital not only to Poland, but also to the rest of the region. National Bank of Poland (NBP) specialists warn against an excessive influx of foreign capital financing Poland’s public debt. NBP board member Andrzej Raczko told CNBC that it is important who buys Polish bonds. “If these are short-term investors, hedge funds, this would not be good news. If these are serious institutions, with a long-term investment horizon, like pension funds, that would be great news,” he explained.

Source: Polonia Media Network