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I. BURT MEISEL, CLU, CHFC OFFERS THE FOUR Ds OF RETIREMENT SUCCESS FROM 'QUERY,' A PUBLICATION OF THE AMERICAN SOCIETY OF CLU & CHFC

 BRYN MAWR, Pa., July 13 /PRNewswire/ -- Ben Franklin had it down pat with his "a penny saved is a penny earned." Today's savers have a slightly different angle to consider, according to the American Society of CLU & ChFC.
 I. Burt Meisel, CLU, ChFC, a Southfield, Mich., financial and insurance consultant, in a recent American Society article points out that a fully deductible IRA dollar saved today can multiply by thousands. Meisel has these four words of advice to those who are concerned about retirement planning: deduct, defer, don't delay.
 The First two "Ds" ... Deduct, Defer
 Let's suppose that you're not covered by a pension at your place of employment, so you qualify for a fully deductible Individual Retirement Account. It's the last day of the tax year, you haven't saved any money toward the future -- and you decide now to put away $2,000.
 There are two ways to do it. One is tax-favored and one is not. The tax-favored one is known as an IRA and the other is any regular form of savings that is not deductible. It may seem like the same $2,000 at first. Let's take a look at what happens just because a decision was made on what route the money will take for its later use.
 Regular IRA
 Amount $ 2,000 $ 2,000
 Current Taxes (assume 25 percent) $ 500 $ 0
 Net investment $ 1,500 $ 2,000
 Interest earned (6 or 4.5 percent
 after taxes) $ 68 $ 120
 Year-end total $ 1,568 $ 2,120
 25-year total $ 69,856 $116,312
 35-year total $127,746 $236,241
 These are amazing differences considering the same amount of money was committed for the same number of years. In the "regular" savings plan, the taxes were paid each year -- reducing the principal and the interest earned. In the IRA, the contribution was deducted and the taxes deferred because it went into a "shelter" for retirement. In both cases, the investor was successful because a gain was made and not a loss. There was a major difference in what was earned: a full 6 percent for the IRA money, and 6 percent minus a 25 percent tax each year for the "regular" investor.
 Of course, the IRA investor will pay taxes when the money is withdrawn at retirement, whether taken as income payments or as a lump sum. But, there will be more left on a net basis since more money stayed in the IRA account as it grew. In effect, interest was earned on what would have been taxes.
 The final two "Ds" ... Don't Delay!
 Meisel had these final words of advice to those who are concerned about retirement planning: Don't Delay. "The first step in saving for retirement is to get stated ... today. A penny saved soon becomes a dollar," he concluded.
 /delval/
 -0- 7/13/93
 /Editors: Meisel can be reached directly at 313-354-4010.
 You can also contact the American Society directly at 215-526-2508 (Phyllis Bonfield, assistant vice president-public relations) for local sources on this important topic of IRAs and retirement planning./
 /CONTACT: I. Burt Meisel, Chartered Life Underwriter and Chartered Financial Consultant, 313-354-4010; or Phyllis Bonfield of the American Society, 215-526-2508/


CO: American Society of CLU & ChFC ST: Pennsylvania IN: INS SU:

MJ-CC -- PHFNS2 -- 0706 07/13/93 07:34 EDT
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Date:Jul 13, 1993
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