Q: Is there any investment that pays at least 3 percent interest with a 90 percent guarantee?
N.S., 71, Leesburg
A: The only time you will hear the word guarantee is when someone is selling an annuity. The guarantee is only as good as the financial stability of the insurance company or the Florida Insurance fund. And The quoted return includes a return of principal as well as earnings. It is best to be careful when purchasing annuities.
Q: How can I help protect myself against lawsuits?
A: Talk to your home and auto agent about adding a $1 million umbrella policy to protect against liability. Such policies are inexpensive.
Q; I have a 403(b) and a 457 retirement account with my two children as beneficiaries. When these accounts are passed on, are they subject to probate? Also, whose age would be used to determine the required minimum distribution once the beneficiaries receive the accounts?
L. K., Leesburg
A: When individuals are named beneficiary on qualified retirement plans, those funds are not subject to probate. Assuming the children are of majority, the required minimum distributions will be based on their individual ages.
Have a question? E-mail firstname.lastname@example.org. Include your name (only your initials will be printed), hometown and phone. Questions are answered by certified financial planners from the Central Florida chapter of the Financial Planning Association. Answers are for educational purposes only; you should also consult a financial professional. Questions and answers may be edited for space considerations.