Monthly Archives: January 2012

That Dirty Little ‘B’ word…. ‘BUDGET’ Series Part VII

Develop a savings plan…..!!
Albert Einstein said that Interest Compounding was the 8th Wonder of the World!
His statement is so very true……Especially when you use tax deferred accounts because you:
  •  Earn Interest on Your Principal!
  •  Earn Interest on Your Interest!
  •  Earn Interest on the Federal and State Tax Dollars that you would have paid!
In my world, as with our Tithe, I have an obligation to watch what I spend and save for my family’s future. I say “Obligation” because if I don’t take responsibility, who will? Likewise, if each and every person reading this article does not take personal responsibility for their financial future……NOW……Who will back YOU up?
Without exception we can think of people in our personal sphere of influence that are on the outs financially……..Also, if we really think about it, in every case just Paying Closer Attention to the money that came in and went out (Saved or Spent) would have made a world of difference in their current financial situation.
We all face the same decisions day-in and day-out when it comes to spending and saving. So often the “Spending” decision wins out, whether it be stopping by Starbucks for your daily fix to buying lunch vs. packing a lunch…..If at each and every turn you would just take a pause and clearly decide, “is what I am about to purchase a Need, Want, or Desire?” I know I might sound like a broken record when it come to this stuff, but that pause or simply any other distraction will help you save more every time!
Bottom line…..We just want everyone to…….

Life Insurance……Is protecting your family against …..

Life Insurance……Is protecting your family against loss of your income important to you?
Judging by this photo, some people need Life Insurance just a little more than others….But it is equally important for all…..
Young and old alike Life Insurance is a common denominator…..EVERYONE SHOULD OWN IT! Even the government has been running public service commercials about the importance of having Life Insurance in place.
When the breadwinner of a household is suddenly lost a crisis occurs, ie:
A.Income Stops!
B.Benefits can only be carried 18 Months Max!
C.Funeral Cost!
D.Family Bears the Brunt of All Ongoing Expenses!
These are just a few of the many and various reasons the impact of owning life will have on a family.
Many will say, “Oh, I’m not insurable”…..To that I will answer, “I can insure anyone”……Which is literally true. Many companies offer ‘Guaranteed Issue” products, which may be a little pricy, but offer an alternative to those who would otherwise be Uninsurable. We had a client come in the other day who made that statement…..So I asked him what type of medical condition he had……He said, “I’m as healthy as a horse”…..”So what makes you uninsurable”, I asked…..”My occupation, I haul explosives”. So I said, “Oh, so you’re a Truck Driver?” You see most companies will cover a healthy “Truck Driver”……I mean when have you ever heard of a truck carrying explosives blowing up? Just trying to help people…

Life Insurance……How Important is??

How about for this guy?…….While it may seem some people have a “Death Wish”, it just further defines the actual need to put a comprehensive Life Insurance Plan in force.
While we all may not take chances with our health like the guy above, but one thing is certain……..Unlike our “Birth Date”……Nobody knows their “Death date”.
I coach families and business’ day-in and day-out on the need for Life Insurance and how much they should have in force…..and in reality there isn’t anyone who doesn’t know the “Need”, but rarely do I find folks who actually know “How Much” they should have.
Typically the very minimum a household breadwinner should have is Ten Times (10 X) and as much as Twenty-Five Times (25 X) his or her Gross Annual Pay. Why?? Well it’s a pretty simple equation:
$70,000.00 Gross Annual Pay
X 10
$700,000.00 Minimum Needed Life Insurance

_____X 10% Return on Investment
=$70,000.00 Annual Income produced from Life Insurance Proceeds!

As we all know a 10% Rate of Return would be considered a far stretch these days….and I would agree, and tell you that you need MORE Life Insurance! It’s just simple math yet unbelievably few people have adequate coverage in force.

Your average young couple can each get $500,000 of coverage for the cost of a couple pizzas!…..Not much to sacrifice for the protection of your family…..Right?