Newly Patented Investment Program for 501(c)(3) Tax-Exempt Organizations
Released on = December 13, 2006, 5:07 am
Press Release Author = Alan J. Lang, inventor/owner
Industry = Non Profit
Press Release Summary = This program simplifys asset allocation by offering insured return of principal and stable cash flows with full stock market growth potential.
Press Release Body = For immediate release:
December 13, 2006 Press Release: Alan J. Lang
A new twist to an old investment vehicle that will greatly benefit charitable entities with 501(c) (3) corporate charters is new to the market this month. Basically, the newly patented (patent # 7149712) process enables endowment funds to be invested in mutual funds for maximum growth potential, create a 5% annual cash flow and have the original principle insured against market loss. The investment vehicle is a variable annuity*.
The patent specifically covers funds invested in Endowment Funds, Charitable Remainder Trusts, Charitable Lead Trusts, Pooled Income Funds and Preneed Funeral Contracts.
While the pieces to building the investment vehicle are relatively simple, they require advanced skill to organize them correctly.
There are five basic steps the 501 (c) (3) corporate entity needs to take. First, secure an annuitant, preferably between the ages of 68 and 72. The only qualifications are their age and their willingness to support the charitable cause.
Second, a contract is selected with all of the appropriate riders, naming the charity as the owner and beneficiary with the volunteer/donor named the annuitant. With $500,000 (as an example) from the permanent endowment invested according to the process specified in the patent, the charity immediately receives a $25,000 cash addition to the endowment deposit. The total of $525,000 begins earning from day one.
Third, appropriate mutual fund investments are selected according to risk tolerance.
Fourth, annually on the anniversary date of the original contract, the death benefit will increase 5%. On the first anniversary date of the contract the charity can begin to withdraw 5% cash every year.
Fifth, upon death of the annuitant, the contract will pay a lump sum of either the guaranteed death benefit or the cash value of the mutual funds, whichever is higher.
Although these five steps seem simple enough, like most things, putting all the right features together at the proper time is a bit more complicated than meets the eye.
It is a new concept still unfamiliar to the professionals.
Alan J. Lang, a financial advisor with Cantella & Co., Inc., located in Naples, Florida, recently received a patent (patent # 7149712) for the process, and is now prepared to make it available to qualified tax-exempt non-profit organizations throughout the USA. Mr. Lang can be reached at 1-877-434-5264.
*Variable insurance products, including variable annuities are offered by prospectus only. The prospectus contains information about the product's features, risks, charges and expenses, and the investment objectives, risks and policies or the underlying portfolios, as well as other information about the underlying funding choices. Read the prospectus and consider this information carefully Principal value, income payments, and investment returns of a variable annuity will fluctuate, and you may have a gain or loss when money is received For illustrations purposes only. Does not reflect actual investment results and are not guarantees of future results Securities and Investment Advisory Services offered through Cantella & Co. Inc., Member NASD/SIPC.
Web Site = http://
Contact Details = Alan J. Lang 5551 Ridgewood Dr. Ste. 304 Naples, FL 34108 (877) 434- 5264 alang@Cantella.com