"I busted a mirror and got seven years bad luck, but my lawyer thinks he can get me five."Steven Wright
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Are Social Security Private Accounts a Good Deal or Raw Deal for African Americans?
Whew! I almost wrote a really long article about the Social Security System and what it means to Black folks. Fortunately,I fell asleep while writing it just like you would have reading it. Ican't think of anything more boring then an in depth analysis ...
Different Kinds Of Investments
These days, you can't retire without using the returns from investments. You can't count on your social security checks to cover your expenses when you retire. It's barely enough for people who are receiving it now to have food, shelter and utilities. ...
Insight Into Trading - What Percentage Of Your Trades Are Winners?
An Inquiry into Trading Systems, Money Management and the Human Psyche At a recent seminar, I got involved in an interesting discussion with other attendees centered on trading success. More specifically, the percentage of successful trades and ...
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There are many insurance companies in the world giving their life insurance quote.
It's pretty difficult to pick which one is the best. What should you do? One strategy that'll work is to keep switching insurance companies. Any company will make more money by selling to people who are more price sensitive.
A person needing an insurance may be willing to pay high. A person who keeps switching insurance shows that he is price sensitive and hence, he will get a lower price.
Your life is not the only thing you can insure. You can also insure your house and your car. There are many websites offering free car insurance quotes and home insurance quotes.
There are usually two types of life insurances.
Term Insurance
Term insurance is paying the life insurance while betting that you'll die. You bet $2,000 per year. If you die during that year, you win, say, $1 million dollars. If you don't die, there goes your $2,000.
Life insurance has a major drawback -- You get to die first before you can get your money. So many insurance companies combine life insurance with some form of investment. Is this a good idea? Most of the time, it is not.
Permanent Insurance
Permanent insurance is insurance with savings. Say, you paid $20,000 per year for 10 years. If you die within that10 years, you'll get $1 million. However, at the end of the 10 years, if you fail to die, you still get your $200,000 back, often with interests.
Your insurance agent will usually encourage this. Why? Because they get more commission out of this. Why? Because insurance companies make more money out of this arrangement. Why? Because it's not good for you, at least usually.
First of all, this is not an apple to apple comparison. Say you pay your life insurance to get $1 million dollars. Maybe you got to pay $2,000 per year. With compound insurance, to get a $1 million dollar settlement, you need to pay $20,000 per year, but only for 10 years. Usually, the insurance agent will make things even more confusing for you by offering $100 million dollar compound insurance for $2,000/year.
So how do you make it apple to apple? You compare the permanent insurance with regular term insurance plus regular investment. So, the permanent insurance of $20,000 per year is equivalent with $2,000 term insurance and $18,000 per year investment. If you buy the $2,000 term insurance and invest the $18,000 per year, how much money you'll make after 10 years? A simulation shows that you'll make $286,874.
Now, is permanent insurance a good insurance? Well, just compare that $286,874 with what you'll get back under the term. Usually you'll get less. When you get less, the insurance company makes more. So insurance companies provide greater intensives for the insurance agent to sell permanent insurances.
However, permanent insurance have one advantage. Tax benefit. Your assets can accumulate free of tax. Also, regular investments will often be subject to inheritance tax while insurance may not be.
So a good strategy is to simply buy permanent insurance with $0 coverage. They'll compare the ROI of the permanent insurance apple to apple. Hence, all mutual funds will turn to insurance company providing effectively the same service. It's good, it works, it's productive, and hence governments prohibit that, of course.
You can check out whole life insurance quotes on the web.
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 The Seeds Of The Satyam Scandal - Forbes
Until the past few weeks, the corporate headquarters of Satyam Computer was an island of calm a short drive outside the bustling city of Hyderbad. Flags of countries representing Satyam's customers line the driveway leading to the front door ...
8 Reasons To Dump Your Mutual Fund - Denver Post
Many financial advisors and academics do not recommend selling stocks and mutual funds when prices are tumbling during bear markets. If you can just hold on through thick and thin, they argue, you are likely to enjoy returns better than any other ...
Stock traders' tough floor routine - Los Angeles Times
Reporting from Jersey City, N.J. -- The stock market has been placid for most of the day, but Peter Kenny holds his breath as the final hour of trading approaches. A professional trader at Knight Capital Group Inc. who buys and sells stocks for large ...
Six Lessons for Investors - Wall Street Journal
1) Beware of market forecasts, even by experts. As 2008 began, strategists from Wall Street's 12 major firms forecast the end-of-the-year closing level and earnings of the Standard and Poor's 500 Stock Index. On average, the forecast was for a year ...
Favorite stocks for 2009: Top picks from 75 advisors - Bloggingstocks.com
Filed under: International markets , Newsletters , Mutual funds , ETF Investing , Commodities , Oil , Agriculture , S and P 500 , DJIA , Stocks to Buy , Green Stocks , Obama Picks , Best Stocks for 2009 Looking for a shopping list of new stock ideas ...
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