As a derivatives trader, nobody more than myself enjoys coming up with sophisticated investment strategies. Yet, sometimes opportunities presents themselves in ways that don’t require a whole lot of complexity nor hours of research. And while I strongly believe there are no free lunches out there, sometimes you do find a $5 bill or even a $20 bill lying on the street. An insured annuity is one of those very simple, easy to understand products that complement the fixed income portion of one’s portfolio.

So, what is an annuity? It is a contract, usually between an insurance company and an “annuitant” who, for a lump sum payment, will receive from the insurance company, a stream of income for life — very similar to the benefits of owning a long term bond or perpetual preferred share.

So what is an insured annuity? An insured annuity is simply an annuity in combination with a life insurance policy. One of the disadvantages with owning an annuity without the insurance policy is that once you hand over the cheque to the insurance company, you don’t get your money back. An insured annuity solves this problem. Basically upon death, the annuitant’s estate receives the principal amount back — again very much like a bond that upon maturity pays back the principal amount.

Now, there are various types of annuities, and many factors that need to be considered in determining the appropriate type of annuity.

Single Life Annuity

A single life annuity will provide you with an income for as long as you live, ensuring that you will never outlive your money. It can also be guaranteed for a certain number of years. Should a premature death occur, the estate will continue to receive the funds at least up to the guaranteed period.

Joint and Last Survivor Life Annuity

This life annuity is payable while either you or your spouse (or common-law partner) are living. When one spouse dies, the survivor can continue receiving income payments as agreed upon when the annuity contract was established. As with the single life annuity, a guarantee period can be written into the contract.

Term Certain Annuity

This type of annuity can be useful for planning ahead when you will require a specific or additional income for a pre-defined period. A term certain annuity provides you with an income for a set period, or until a certain age.

How Life Annuity Payment Amounts Are Calculated

The life annuity payment amount is fixed and is based on:

• the amount of money used to purchase the annuity,
• the type of life annuity purchased,
• current interest rates,
• the ages of the annuitant and joint annuitant, if any,
• current long-term bond rates.

Tax Efficiency

Perhaps the greatest benefit for considering an annuity is for the tax efficiency of the prescribed annuity when using “non-registered” funds. The CRA recognizes that payments received as income from an annuity include both interest and principal. Since taxes have already been paid on the principal, the annuitant will not be taxed twice.

For example, if one purchases a life annuity for $1,000,000 and receives an annual income of $80,000, the amount that is taxable might be $18,000 (actual income and taxable amount will be based on conditions when an annuity is purchased). That leaves the investor with $62,000 on an after tax basis.

However, in order to complete the financial analysis, we have to factor in the cost of the insurance policy. Again, it will depend on the individual but for this example, let’s assume the cost of the insurance policy was $15,000. This would reduce the investor’s income from $62,000 to $47,000 on an after tax return basis.

In comparison, an affluent, wealthy investor would have to earn at least 8% from his bond portfolio in order to match the after tax return of an insured annuity. Given that most investment grade corporate bonds are paying closer to the 5-6% range, the insured annuity outperforms by a landslide.

In summary here is what an Insured Annuity can do for you?

* Provide a regular, guaranteed income stream for both you and your spouse for as long as both of you live.
* Create a tax advantage
* Ensure your principal is returned to your estate upon death
* Reduce market risk to investable assets by treating an annuity as part of the asset allocation strategy of the portfolio

Are there any disadvantages to an annuity? It’s a non-cancellable contract, and technically you lose control of those funds. The contractual payments are fixed and will never increase — hence annuities are subject to inflation risk which is why we at Frontwater believe they are a complement to a portfolio weighted towards fixed income.

Certainly, as stated above, if for no other reason than continuing market volatility, and your expectations of a long life, a look at including an annuity within your overall investment strategy might be worth a consideration.

Whenever, I speak about insured annuities, I am reminded of the story with Leonardo da Vinci and the Pope. The story goes that the Pope requested that Leonardo da Vinci submit a piece for a new commission. Leonardo drew, freehand, at arms length, a perfect circle on a sheet of paper and sent it to the Pope, who promptly gave him the commission. For those who don’t know, to draw a perfect circle, freehand and unsupported is one of the hardest things possible to draw: all the more reason to admire beauty in simplicity. To find out more about insured annuities, please contact Warren Blatt at 416-319-8172.

Eco Friendly Paul Brown Friendswood Ideas by Acline Wyle.

The office is one of the most effective and accessible places where you can go green and really make a difference. This is because oftentimes, one business uses an entire building and employs hundreds of people. Therefore, if everyone at the workplace began making more eco friendly choices, the positive impact would cause the entire company to save energy and save money.

The Benefits of Going Green in the Workplace

The amount of energy that is regularly wasted in any given business place would most likely shock you. Since energy wasted is money wasted, offices can really reap the economic benefits of going green because of how much money can be saved every month. For example, lighting is responsible for 10-20% of the lighting costs of commercial buildings. This means that even something as simple as switching to energy saving light bulbs can really cause a company to save a lot of money in the long run.

Carpooling is another great idea. I’m sure I don’t have to go into details about how expensive gas can be. This is especially true if you live in a metropolitan area such as Los Angeles where traffic is such a huge issue. By carpooling, not only does everyone save gas money, they also save time because they can use the carpool lane!

Another helpful suggestion is to recycle as often as possible. This really applies to big corporations that go through countless amounts of paper everyday. The great thing about recycling is that it can go both ways because you can recycle the ink and paper products in your office, and then you can go out and buy recycled products when you run out.

Fundamental Paul Brown Friendswood Ways Author Nathalie Fiset.

What do you think could come in as more important to our basic human needs such as food, shelter, medicine, education or even the need for affection? There could be one issue that would predetermine everything that will transpire on the planet, and that is the planet’s condition. If the world were on the brink of destruction, saving it would be the priority of every single individual. And save it we must. Although the threat is still not at a life and death level, there is an alarming truth that there are several problems that are now bugging the place that we live in. Say hello to global warming. And try to say bye – stop global warming!

Global warming, which is also known as the greenhouse effect, has been here long before you or anybody else out there existed. It’s been here for thousands of years. And through those thousands of years, the earth’s temperature has increased, and so has the effects of global warming. Time magazine has actually coined this problem as a planetary emergency.

There are major solutions that have been done worldwide to cope, alleviate or altogether stop the effects of this major problem. But among these choices, the obvious choice that the human race is supposed to concentrate on is how to stop global warming. Since we have all contributed to the occurrence of global warming (in our own little ways), then we should also join forces in combating this dilemma.

1. Join organizations that promise to educate you about the effects of global warming and what you can do to put a stop to this problem. Be an activist on this matter. After all, everything begins with you.

2. The next step is to conserve energy. And yes, there are so many ways that an individual can save energy. Let’s list some here: car pooling, turning off appliances that are not in use; unplugging any electronic devices that are not in use; buying energy-efficient lamps; keeping the filters of your air-conditioning unit clean; taking a walk (instead of driving); turn off the faucet when enough water has been consumed; do not use appliances or products that release chlorofluorocarbons into the atmosphere (examples are hairsprays and refrigerators that have CFCs); use EEF appliances; start planting trees, etc. These are basic things that we have learned even from grade school and yet, tend to forget the most.

3. If you are a slave of your profession, then, cut on those work hours to help save energy. For every individual that would cut down an hour from his work, there would be millions worth of energy saved. Learn to maximize your time and to properly manage it. I guess you never imagined before that this could also stop global warming, huh?

4. Recycle. Need we elaborate on that?

5. Use environment-friendly fuels and vehicles. They may be a little bit more expensive but they do not contribute to pollution. Honda was the first to come up with a vehicle that is cell-powered, thus, there are no harmful emissions. If you cannot afford cell-powered vehicles just yet, you can opt for those that can run thirty miles in just a gallon of fuel. This way, carbon monoxide is greatly reduced.

6. If you can, harness the power of the sun, wind and water to generate electricity. There are equipments in the market that can be used to harness solar, wind or geothermal energy. These sources of energy are clean and reusable. If, again, you can’t afford to tap on the power of these sources, then, at least, choose an electric provider that does not pollute the environment by the use of fossil fuels.

7. Insulate your home to prevent excessive use of heaters. During summer, dress lightly to minimize the use of air-conditioning units.

Most people would argue that these, altogether, would not stop global warming. Well, maybe for now that is true. But with the collective efforts of each and everyone in the planet, and if everyone would be disciplined enough to care for environmental issues such as this, then even two degrees off the present global temperature would be such a major feat.

Global Paul Brown Friendswood Cooling by Brian H Campbell.

There is some global warming from vast amounts of anthropogenic or man made pollution. The industrial age brought about a lot of negative changes in the environment that are indisputable. Hot gasses entering the atmosphere for over a 100 years has caused a limited amount of climate change. Global cooling is a thorn in the side of those
who want to pass Cap and Trade legislation.

Sounds like I am totally in the global warming camp. Not so! People look at one side and do not give any credence to the other side of the debate. The Farmers Almanac has been predicting weather for a long time and they look at solar patterns, including sunspot activity as some of its major sources for their predicting model. Also, scientists from around the world are dissenting from the global warming side. Why? At least in part because there is convincing proof we are entering into a global cooling period. This global cooling period could last for ten years.

One of the strongest arguments given by climate change proponents is that ice cap melting and shrinking icebergs is solely the result of CO2 or other pollutants. If this were the only way ice melts than how come we are still not in the Ice Age? Natural cyclical weather changes is the answer. This proves that when we hear of icebergs melting or polar bears floating on ice it is not necessarily global warming that caused it. When the Ice Age ended the ice melted, therefore polar bears or other animals died in the process? Polar bear numbers are increasing in some parts of the world now and icebergs growing. Other areas there decreasing. This is how the cycles of weather have performed for centuries.

Is it possible global climate change could make icebergs melt faster? Yes, it is possible but why think icebergs never melted until now? This in a sense is what you are saying when cyclical weather changes are not considered when icebergs melt. Global warming is blamed for almost everything without taking other facts into account. Cyclical weather
changes is an indisputable fact while global warming needs much more study.

Paul Brown Friendswood Food Waste by Stephen William Moore.

There’s a simple way to reduce global warming and save money at the same time – don’t waste food.

In his book, ‘Waste – The Global Scandal’, Tristram Stuart, calculates that British households consign 5.4 million tonnes of edible food to the bin each year. That’s 25% of all the food that Britons eat at home. It hits them in the pocket as well. That means that it costs each British household, on average, £8 ($14) a week.

Stuart quotes some more amazing British food waste statistics. Among other other perfectly-edible items that go in the bin annually are:

- 2.6 billion (yes, billion!) slices of bread;

- £370 million worth of bananas;

- 1.6 billion uneaten apples;

- 484 million opened pots of yoghurt.

Unfortunately, the message of food waste has been passed to our children – about a third of school packed lunches end up in the bin.

The repercussions of this waste are serious on a global scale. The developed countries’ demand for food pushes up global food prices. In 2007, average global food prices rose by 23 per cent. By the following year, prices had gone up by a staggering 54 per cent.

This matters. The result of increased food prices is that up to an estimated 100 million extra people were pushed into chronic hunger. Chronic hunger in turn increases the child mortality rate amongst this group. It’s estimated, according to Stuart, that the rate has risen to 25 per cent.

And waste food contributes to the pressure on scarce land resources. 8.3 million hectares of land are needed to produce just the products wasted in the UK and the US. That’s seven times the amount of Brazilian rainforest that was destroyed in 2008 to produce food.

As food prices rise, the greater the financial incentive to deforest the rainforests. But they’re vital to deal with global warming.

So what can you do to reduce your food waste?

Don’t buy too many meat and dairy products at once. These products are more perishable than other foods and take up to four times more land to produce and result in more greenhouse gas emissions (particularly from cattle).

Use a shopping list. With the massive variety of foods available in the supermarkets, it’s easy to make impulse purchases. Make a list and stick to it. Only buy ‘buy one, get one free’ deals if it’s something that you regularly use and will finish.

Keep an eye on what’s in the fridge. Much food is wasted because we’ve forgotten that it’s in the fridge or cupboard.

Myth Or Paul Brown Friendswood Reality by Niraj Chandra.

Many prominent scientists and engineers claim there is no such thing as man-made global warming. One engineer, living in Canada, goes so far as to say human responsibility for global warming is a “stunning whitewash of reality”. On the other hand, environmentalists like Al Gore and Dr David Suzuki claim the very opposite.

Faced with these conflicting views, I did a little research of my own. I found that belief in man-made global warming is much like belief in god – there is lots of evidence but no absolute proof, and we will not know for sure until we are dead.

The skeptics claim that the human contribution to environmental pollution is negligible; nature generates far more greenhouse gases than human activity. They question the science behind climate change because different computer simulation models produce different results. They point out that ice ages have occurred in the past even when there was no industrial activity.

The supporters of man-made global warming, on the other hand, point out that the recent increase in levels of carbon dioxide is far greater in the last couple of hundred years than at any time before, and there has been a dramatic increase in global temperatures during this time. This cannot be just a coincidence.

The supporters also point out that climate change models can reproduce the observed temperature trends with reasonable accuracy only when the effects of greenhouse gases are included in the computations. Different climate change models do produce different results, but this is generally true of all computer simulations. The supporters also point out that there is almost unanimous consensus amongst climatologists about man-made global warming.

I found that belief in global warming varies from region to region. Most of the world believes in it, but many North America “think tanks” totally deny man-made global warning. There are also “think tanks” that state that even if global warming exists, the most cost effective approach is to do nothing about it right now and simply adapt, as future technologies will be more cost efficient. This is called the adaptive model of global warming. Further investigation reveals that many of these “think tanks” are funded by big businesses including oil companies that have a vested interest in preserving the status quo.

To me the “do-nothing” approach appears to be the most inappropriate. Ignoring problems does not, in general, solve them, and delayed action is inevitably much more expensive than tackling issues early on. The “do-nothing” viewpoint helps only large corporations to delay the inevitable a little longer. This is similar to the disinformation campaign used by tobacco companies a few decades ago.

Does the greenhouse effect really exist? To find out, I observed the outside temperature conditions during a recent flight to New Delhi, India. This city is known for its high air pollution levels.

As the airplane lost altitude during its descent, the outside air temperature increased from minus 60 deg.C at cruising altitude, to plus 32 deg.C at a height of about 3000 feet above the airport. Then, surprisingly, the temperature started dropping again, until we touched down at the airport with an outside temperature of 29 deg.C.

Hence, the temperature was highest about 3000 feet above ground level, creating a temperature inversion layer. This was, indeed, the greenhouse effect occurring in a localized area, due to air pollution. No matter what the deniers may say, to me this is clear and simple proof that pollutants generated by human activity do indeed cause warming.

Fact Or Paul Brown Friendswood Fantasy by Duane Flowers.

In this article I’d like to look at global warming and whether in reality it is fact or fiction or fact or fantasy, as indeed the case may be.

There have been a lot of reports in the newspaper over the last few years about global warming and frankly I just don’t see it. Looking around me for the last two years, we’ve had the shortest summers that we’ve had in a long time and while the winters may have little less snow than I remember as a kid they are far from anything resembling the doom and gloom being prophesied.

This year we barely had a summer August which is generally our hottest month surrounded by September and July being pretty hot themselves, this year it just didn’t happen. We had a couple weeks of what I’d call summer, reminiscent of the hot and humid summers of 10 years ago, but it basically it just wasn’t there and now it seems we skipped directly into winter.

Praying Mantis

The praying mantis here in Japan has always been a good indicator of what’s to come, at least as far as natural indicators go, in that they lay their eggs on the ground when they are expecting a mild winter and they lay their eggs high up in the trees when they’re expecting colder winters. The higher up they go the colder the winter they’re expecting and for the first time in many, many years the praying mantis has laid its eggs up high in the trees which means this winter is going to be a cold one.

So with the new influenza peaking right about now and winter right around the corner with the old influenza coming on its heels I think the especially cold winter that’s coming is one to be very careful about and it also tends to goes against all these warnings of doom and gloom and global warming, at least from the evidence I’ve seen so far.

Michael Crichton

The latest and unfortunately last Michael Crichton book called “State of Fear” talks about global warming from a very interesting aspect. In my opinion Michael Crichton was a genius, he really understood science and medicine and all the things he wrote about. He actually understood them more deeply than most of us. For those not familiar with the name right off the bat Michael Crichton wrote “Jurassic Park”, “Rising Sun”, “Timeline”, “Congo”, “Sphere” and a slew of other bestsellers that became blockbusters as well.

The thing with the movies is that a lot of the science was taken out, the research the technical details, etc. were all made into something that non-technical movie watchers would enjoy. But if you read the books you’ll find all that detail. In Jurassic Park you can learn all about DNA and details about how that kind of DNA cloning is theoretically quite possible.

But in his latest book, “State of Fear” he goes deeply into the research about global warming. He suggests that many of the facts that are out there about Global Warming are just wrong and are not at all based on the research. The doctors and/or scientists that are putting forward a lot of this research are basically quacks, which is basically what he is saying, and that many of them are the kind of researchers that will write whatever you want if they’re paid enough. Whether this is true or not I don’t know in that I haven’t read any of the research myself, but for someone like Michael Crichton to suggest it, it is definitely food for thought.

Paul Brown Friendswood Facing the Problem By Browne Stille.

A family produced and reared cattle just for their needs and hence there was less use of pesticides. The eggs laid by the chicken were used for the family and the cattle and livestock were well taken care of. Agricultural produce was devoid of pesticides and hence was healthy for consumption. The modern day farms use the latest techniques and production means, but in the process, the environment is affected and the future generation is sure to pay a price for this mechanized development.

If you want to raise animals, it means using up more than 50% of the water in the US. As per statistics, 87% of the agricultural land in US is used for raising livestock and animals for meat. We are facing the problem of global warming, thanks to our mindless attitude. Methane is one of those greenhouse gases which lead to global warming. Raising cattle for meat also causes water pollution as well. Close to thirty percent of the raw materials and fossil fuels is used for raising cattle for meat. Deforestation is increasing at a fast rate and this is primarily due to the fact that rain forests are being cut down for raising animals for meat.

In addition to the above, animals are treated very badly. The costs incurred for raising the cattle and processing meat is expensive. Hence, people are slowly changing to vegetarianism. It is advised that you slowly eliminate non-vegetarian food from your diet and include lots of plant food which is naturally grown.

This is definitely a healthy option and you are sure to slowly begin to love eating vegetarian food. Both animals as well as your conscience is all for it and going to feel happy about this decision.

Next Paul Brown Friendswood Ice Age by Robert F Allison.

One major problem in the debate over climate change is a general lack of knowledge on the subject. People usually don’t think about where their electricity, gasoline, or toilet paper comes from. Part of this acceptance comes from the way industry separates products from the production process…When we turn on lights in L.A., we don’t see the plants and coal mines that generated the power…Only those paying careful attention make the connections. Another part of the problem is that we are reluctant to question science, which has such prestige that people rarely stop to question who is funding research and whether that could compromise findings. (Gibson 17)

Most people also don’t understand how the theory of global warming works. They think that a really cold winter is evidence that global warming is a myth. However, scientists that support the ideas of global warming are referring to long-term climate change. Climate refers to environmental patterns over a long period of time. Weather refers to short-lived events, and can have isolated extremes. One of the predictions of many scientists is that global warming will cause more extreme weather: hotter summers, longer droughts, colder winters, and stronger storms. According to their theories, Europe could be tossed into another ice age because of global warming, not turned into a tropical paradise. This is because of the effect global warming could have on ocean currents.

Skeptics will often find any opportunity to attack the views of scientists based on some isolated weather event, or the lack of such an event. If the scientists predict increasing frequency and intensity of hurricanes, skeptics will point out that this last hurricane season was extremely mild, with the only intense storms hitting Mexico. Ultra-conservative commentator, Rush Limbaugh, doesn’t just consider global warming to be a myth; he calls it a hoax and a religion. “It’s got salvation, got everything in it. It has the primary ingredient of every religion: faith. Because none of it can be proved” (Limbaugh 4). Limbaugh also takes issue with the use of the word “consensus” by global warming activists, and is right to do so. “Consensus and science-I got blue in the face saying this-don’t and cannot mutually co-exist” (Limbaugh 4). If scientists had reached any sort of consensus, this would be a dead issue. Most scientists agree that the temperature of the earth has been gradually increasing, but that doesn’t mean they agree on the possible causes or consequences.

A survey of more than 530 climate scientists from 27 different countries showed that 82% of the scientists agreed that global warming is occurring. Only 2.6% said they “strongly disagree.” When asked if current scientific knowledge can allow for a reasonable assessment of greenhouse gases, two-thirds of the scientists disagreed with the statement.

The question most people are most keen to ask climate scientists is probably “do you agree or disagree that climate change is mostly the result of anthropogenic (man-made) causes?” Slightly more than half (55.8%) of climate scientists surveyed agreed, 14.2% were unsure, and 30% disagreed. Interestingly, more scientists “strongly disagree” than “strongly agree” that climate change is mostly the result of anthropogenic causes. The survey clearly shows that the debate over why the climate is changing is still underway, with nearly half of climate scientists disagreeing with what is often claimed to be the “consensus” view. (Bast 4)

The study goes on to clarify that the question wasn’t whether humans have any effect on climate, but whether they are mostly to blame. It’s certainly quite possible that humans are having at least some effect on the climate, but nothing can be proven with any certainty.

Some skeptics believe that mankind is too insignificant and could not possibly have so much influence on the environment. S. Fred Singer is a well-known climate change skeptic. He has been trying to gain support for the theory that climate change is a natural, cyclical process. He believes the earth has a 1,500-year cycle of warming and cooling, with minor ice ages interspersed with interglacial periods. Singer claims that his research shows this cycle going back at least one million years, often with abrupt changes. At one time, Greenland was quite green, with crops and livestock farming. Warm waters were abundant with fish and seals. There were two thriving settlements, but they were eventually lost to glaciers, malnutrition, and starvation. Dairy farmers were even forced to eat their cows. This was due to a 1.5 degree Celsius drop in average temperatures between 1100 and 1400. “Denmark would not re-colonize Greenland until 1721, when the Little Ice Age was losing its grip on the huge island. Today, 150 years into the Modern Warming, Greenland has 50,000 people” (Singer xii). Singer believes that these cycles are caused by solar changes, not greenhouse gases.

Impact and Paul Brown Friendswood Consequences by Tom A Sullivan.

Once we change the global climate, we can’t change it back! How can this be? Humans can impact global temperatures to make it warmer, but not colder. Once global warming is carried to certain level, it is a runaway effect that is out of our hands at that point. WE could stop adding any excess Carbon gasses at all and Global Warming would still continue without our added efforts. Currently, humans are adding vast quantities of Carbon gasses to the atmosphere that thicken our greenhouse gasses trapping heat from escaping from earth. These excess gasses are emitted from vehicles we use, power plants that burn fossil fuels, and forests we burn. Even if we stopped burning forests and using nonrenewable energy sources, we could not stop Global warming once it begins it’s process.

Besides humans emitting greenhouse gasses as we use energy and clear forest, carbon will naturally begin to release from the frozen ground and the ocean once the Earth reaches a certain temperature. Hundreds of thousands of metric tons of Carbon gasses will be released into the air as the permafrost begins to melt as global warming takes places. As the ground that is now frozen at the higher latitudes begins to melt, decay will naturally start to take place and carbon gasses will be released into the atmosphere as this process takes place. The ice that is there now is, in a sense, preserving organic matter from decay. So, as temperatures warm and the ground thaws, it will begin to rot. The additional Carbon gasses from this thaw will add to the global warming effect making earth hotter which will lead to even more ice melting.

Additionally, the ocean, or shall we say Carbon Sink will release much of its dissolved carbon gasses as ocean temperatures climb. How does this work? Currently, global warming has not happened as fast as scientist thought it might, because excess Carbon gasses produced by human activity was being absorbed into the ocean. This is why the ocean is referred to as a Carbon Sink. As is true with any liquid that contains dissolved gasses, as the temperature of that liquid increases the dissolved gasses are released into the atmosphere. This is why warm soda goes flat much more quickly than cold soda. So, all of this excess Carbon that has been absorbed from our atmosphere into the ocean will be released as the ocean warms. In return, the Carbon gasses will make Earth warmer and the warming ocean waters will release more dissolved gasses.