In Part 1, we reviewed the fundamental differences between Term and Permanent Life Insurance. Basically Term is cheaper but it expires and gets more expensive as time goes on. Permanent life is way more expensive, but it lasts forever and has the potential to build up cash value. We concluded with me learning a fact about life insurance that made me question my Variable policy. I’ll explain below what exactly that was and how it caused me to request two new quotes so I could crunch the numbers to determine whether the Term or Variable Life Insurance policy was truly the better deal. … [Read more...] about Which is Better – Term or Permanent Life Insurance? – Part 2
Insurance & Estate Planning
Some of you may wonder “What in the world does life insurance got to do with my personal finances?” The truth is that it plays a more significant role in your money than you think for 2 reasons: 1) Life Insurance is about taking care of those you leave behind. Do you have a spouse? Children? Dependents? If something were to happen to you, who would take of the bills? Pay the mortgage so they can stay in their house? Pay for your kids’ college? Life insurance is part of your safety net for protecting those you love. 2) Choose poorly and you can significantly over-pay! There are thousands of life insurance products available, and the costs can vary dramatically. If you learn about what the differences are, then you can select the … [Read more...] about Which is Better – Term or Permanent Life Insurance? – Part 1
The end is near! The end of the year that is … And with that, December is a good time to get you finances in order and get ready to settle with the tax man. Here are some tips to get yourself ready for another year: Set Your Budget for Next Year: Remember, a budget is simple: • Money In – Money Out > 0 = Success. The best way to do this is to create a table with 12 columns; one for each month. Start by listing your income towards the top. Then list all your bills and expenses. This strategy is usually a little more effective than just doing one generic monthly budget because it captures expenses that don’t occur every month or are seasonal (like Christmas expenses). This also lets you see how you’re doing throughout the entire year … [Read more...] about Year-End Financial Checklist
You don’t think twice to lock your doors, look both ways before crossing the street, or turn off your electronics when you’re not home. So why is it that so many of us are one disaster away from a financial catastrophe? That’s where a “Safety Net” comes in. By definition, a safety net is a term used by financial planners to describe a number of different things you should have to protect your family and your finances. But a safety net should be much more than just a few extra thousand bucks you’ve got saved in case aliens take over the world. A TRUE safety net could encompass a whole lot more. Here are a few ingredients you’ll need in your Safety Net. … [Read more...] about What Should Be in Your Safety Net?