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Diversify, Diversify, Diversify! What the Heck Does That Mean??

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Do you hear instructions and directions to invest but don’t get what they mean or what you’re really supposed to do? Today we talk about diversification, what that means, and how it applies to you. It’s amazing what you can learn in a brief two minutes! BTW, the website I mention is www.finametrica.com, just so you can get there without delay. Have a happy! Blessings!

Protecting HarMoney …When Taking Risks Doesn’t Payoff

Have you ever thought “I can’t afford insurance!“? Or, “Insurance is a racket!“?

Please keep an open mind as you read on. The intention of this blog is to give you insights that may cause you to shift your position. Here we go …

Life Insurance – In the course of my career, I’ve heard many say, “Life insurance is the spawn of the devil …it’s just a way for insurance companies to rob you.” Nothing could be further from the truth.

Tell that to the 28-year old newlywed with a 4-week old son who lost her young husband and didn’t have life insurance. They let it lapse with the added expenses of maternity costs. They never saw the tragedy ahead of them.

Or, the family who lost their son unexpectedly in a motorcycle accident who had coverage on him with the intention of giving the policy to him when he graduated college. They didn’t have to worry about the expenses to care for his burial and were able to take an extended leave-of-absence at work to grieve. The policy more than covered the memorial service, lost wages, and the trip to get away from it all.

Car insurance – Having the minimal coverage the state requires will keep you in-line with the law. What it generally won’t do is take care of a nightmare situation, like falling asleep at the wheel and hitting someone.

In California, the minimum requirements are 15/30/5. To explain the numbers, the first is the total amount payable to one victim for medical coverage. The second number indicates how much the policy will pay in full for medical expenses of the other parties. In this case, it’s $30,000. That could be divided two ways at $15,000 each, three ways at $10,000, and so on; but the maximum paid out will be no more than $30,000. The last number is for property damage. Simply put, if victim is driving a new car and it’s wiped out, your policy will only pay a total of $5,000 towards a new vehicle for them.

Mistakenly, many believe that having insurance lets them off the hook for the balance of expenses, to be specific, medical costs beyond the limits and a vehicle that costs more to replace. This simply is not true.

Think about it, the average car costs over $31,000 now. A $5,000 limit isn’t going to cover replacing it. And if your accident causes significant physical injuries, neither will $15,000 cover emergency services, hospitalization, surgeries, and the attending doctors’ fees. If your insurance doesn’t cover the costs, YOU ARE STILL RESPONSIBLE FOR THEM.

There’s this thing called subrogation. It gives insurance companies the right to go after the liable party if their insurance doesn’t sufficiently reimburse the insured for costs beyond the limits of the policy. To be completely frank, if your insurance doesn’t cover all the expenses to make the victims “whole,” the victims’ insurance company will sue you for the balance. Believe me, they will follow through to the point of getting a judgment against you and do what they have to do to get you to pay. You could lose whatever cash you have in the bank, your valuable possessions, and your house, if it comes to that.

No one plans for an accident, and that’s why insurance exists. The key is to get the right type and amount of insurance at the price you can afford NOW. You can always get more as you’re able.

Please don’t choose ignorance. That choice can devastate you and your family for a very long time.

Let’s talk about it.

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Teachers, Municipal & Government Employees …Listen up!!

If you’re a teacher or a municipal or government employee, your retirement is wrapped up in an annuity, a CONTRACT with a life insurance company. There are specific rules you must play by to avoid penalties AND get the most bang for your buck when pulling your money out of these things… one thing I didn’t say in this 5-minute vlog is… ALL distributions are taxable. Uncle Sam will want his money, so get smart before you start withdrawing.