Union of Poles in America - SAMPLE INVESTMENT STRATEGIES

Q: Does it make sense to save for a home this way?

A: It depends. Although the savings are tax deferred, there are significant penalties if any of the money is withdrawn before age 59-1/2. If the cash build-up is good enough, it might be well worth paying the penalty. We recommend the Member contact tax counsel if he has this goal in mind.

Q: Can a Member buy an annuity for someone else?

A: Yes. But there may be a gift tax question if the amount exceeds $10,000 to a non-spouse. A spouse can certainly buy an annuity for the other spouse. An adult child can buy one for his parents. A corporation can buy one for an employee.

Q: Can the annuity be used to finance a college education?

A: Yes, but only in certain circumstance. Again, we recommend the Member contact tax counsel first.

Q: Is a Member committed to a fixed investment strategy at the beginning? Does he have to deposit the same amount each month or year?

A: No. The Member invests at a rate he is comfortable with. It can increase or decrease at whim. This annuity is flexible.

Q: What is a sensible time to have the payout period begin?

A: When the Member feels he needs cash, the payout period should start. It may be at retirement, in which case the ANN-2001 is a supplement to his employer's pension plan. The Member may wish to take his profit-sharing balance and purchase an UPA annuity with it. The Member may wish the annuity payout to start when Social Security payments start. The Member may wish to hold back the payout period so that he receives a supplement to use against inflation.