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May 31

Personal Finance Coaching

All life insurance entails paying premiums over time. If you die the insurance policy pays based upon the terms of the agreement.

I think that you really should have sufficient life insurance so that if you, or your partner, pass away you can reside off the interest. Assume a four% return on your investment.
A portion of your premium is placed in a separate savings account that accrues worth over time, which can later be reclaimed if the policy is ended. Premiums for cash value life insurance are generally 7-10 occasions higher than those of term life insurance. Other names for money value policies are entire life and universal life policies.
As lengthy as you pay you are covered and if you die while the term insurance policy is active, your beneficiaries will obtain the quantity of specified coverage. Stick With Term Insurance – don’t mix investments and insurance.
I think that you ought to not mix your insurance and your investments. The return on investment is not usually extremely appealing and you will likely be in a position to do significantly far better investing the distinction in between the cost of a term policy and a money worth policy.cy.

Personal Finance Coach

This morning when watching TV with my nine year-old son an American Express commercial came on. This prompted him to ask me about the reward points they have been promoting.

His question was, “How considerably is a point worth?” Very good question, and one I’m not positive most credit card users ask themselves.

Let’s appear at the cost of a Totally free airline ticket purchased with reward points. Let’s say that you can get an airline ticket for 25,000 points – this assumes that you didn’t need to use a “rule buster” that charges 50,000 miles.

Based upon our equation, 25000 points/$328 = 76.22 points per dollar.

Since points are earned for every single dollar charged on a rewards credit card this implies that you ought to charge $76.22 for every dollar that you can use towards the “totally free ticket”.

Simply because we know the typical consumer spends in between 12% and 30% far more when they pay by credit card we can calculate the genuine price of this $328 ticket.

If you were spending 20% much more and you charged $25,000 over a year – so you can get the “free of charge ticket” – the true price of they ticket is $25,000 x .2 = $five,000.

Want to acquire a $328 ticket for $5,000? I didn’t believe so – after all you’re smarter than a 4th graderright?

Hey everyone, I’m excited to be here. I enjoy writing about financial and investing topics

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