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Family-oriented people are willing to do everything that they can for the benefit of their family. They are willing to sacrifice everything to provide them comfort and protection. The income that they earn is used for the food, clothing, shelter, medicines, education, and other basic necessities of their household. The role of a breadwinner is vital to the well-being of a family. They are like the life-blood of the family. Without their efforts, the family will surely suffer.

The questions is, how protected is breadwinning of the breadwinner from harm? Without the income that the breadwinner provides, the family fails to meet the obligations of living. A provider can protect the family?s income by the securing of a cheap term life insurance coverage. This can give his family protection that will provide them money if something bad happens to him.

The breadwinner provides income for the family, but what if something unexpected happened to him? People that will be mostly affected are his family members. A lost breadwinner in a certain family triggers the loss of income that flows into them, but it fails to stop the flow of bills and other expenses to be Read more…

In this time of uncertainty, we never know what will happen next. Whether we are riding in the most luxurious of vehicles or driving in the cheapest car there is, it doesn?t matter; we are not exempted from the uncertainties and risks of life. Accidents may happen anywhere at any time and in usually in an unpredictable manner. We are not in control of these kinds of circumstances. All we can do is to protect ourselves from these risks.

Car manufacturers, in order to solve these problems, put additional parts in cars to enhance their safety components. They put seatbelts and air bags to protect the driver and the passengers. They also make the body of cars durable enough to withstand collisions. Car manufacturers usually put every car through several tests to determine how it will react to collisions, before putting it in the market to insure its durability.

Even with these safety measures performed by car manufacturers, accidents still happen. Most accidents are caused by reckless driving and driving under the influence of alcoholic drinks. On the average, a motor vehicle crashes every 5 seconds, a person is injured in an accident every 11 seconds and a fatal injury occurs every 12 minutes. These statistics are convincing evidence of why auto insurance coverage is so necessary.

Drivers are not the only reason why accidents occur. Sometimes, the cars that drivers use can also be the major cause of an accident. Passenger cars and light trucks accounted for nearly 95% of the 11 million vehicles involved in motor vehicle crashes in 2004. Large trucks accounted for only 15 % of the vehicle accident. Regardless of the severity of the crashes, the majority Read more…

Much of what happens around us is beyond our control. We cannot predict the future, but all we can do is to prepare for it. Over the past few years, many calamities have happened. These calamities cost millions of dollars in destruction. Many buildings were crashed, many houses were burned, many schools were destroyed, many hospitals were ruined and many people died.

About these large calamities, there doesn?t appear to be anything that people can do. It is said that when nature strikes, no one is safe. All of us people are subject to nature?s devastating power. All we can do is to look at the effects of these destructions and hope that they will never happen again. We have invested so much in these structures but we have nothing to do against nature?s power.

As individuals, we may dream to have a house that is presentable and comfortable in its appointments. A place where we can live happily and secure, having no worries for tomorrow. We do everything that we can to acquire that for which we have dreamed. Some people invest millions of dollars for their home; some borrow money in order to construct one, but it is said that a house is not a home unless there is a family living in it. It simply means that people will invest much and risk much in order to provide their families the comfort that they deserve. We worked that hard to acquire a place that we can live together with our family, a place that we call home.

It is said that disaster can strike anywhere Read more…

For most of us, asset protection consists of the insurance policies we buy to protect our home and its contents and our autos. These policies have the added benefit of providing you a defense as well as source of funds to pay damages if you cause an accident.

The law also provides various means of asset protection, ranging from ?homestead exceptions?, protection of ERISA retirement funds from creditors, joint property ownership, bankruptcy and more.

There are other types of asset protection that are used by wealthy individuals to shield their assets from creditors or the tax man.

They are popular with professional, who can lose everything through a simple error of judgment.

Business and property owners may use them as a tax shelter and/or estate planning measure, as well as a way to avoid creditors.

The problem with most asset protection schemes is that they are expensive to implement and maintain, almost always forcing you to give up all or part of your ownership in the asset you are trying to protect and, in many cases, are illegal to boot.

Trusts, different corporate and partnership entities and off-shore accounts are popular in this field.

If you are one of those who feel they need this kind of protection, consult a very well qualified lawyer ? a CPA by himself won?t do. And apply common sense. A lot of so-called professionals in this field have wound up getting their clients indicted or into serious tax problems because of miscalculations they have made.

There is also an abundance of fraud, especially with off-shore accounts. The money you deposit into an off-shore trust might simply disappear.

Don?t forget the IRS has been subpoenaing the names of people who just bought books about off-shore investing from the so-called gurus of this field and are now delving into their finances.

Finally don?t trust that the lawyer-client relationship will protect you, especially if you?re moving money off-shore. I?ve witnessed several instances of lawyers turning their clients in when the IRS or District Attorney pays them a visit.

Asset Protection for the Rest of Us

Most of us just have to worry about the simple mistakes we can make that cause personal injuries to another. A car accident or a slip and fall on your property can result in a lawsuit and a huge claim for damages.

This is where our homeowner?s or auto insurance companies step in. They will provide lawyers to defend the claim, hire experts if necessary and pay damages up to your policy limits.

In spite of the rash of lawsuits plaguing the US, most people with adequate insurance have little to worry about.

There are several reasons for this. First of all, personal injury lawyers, in spite of their reputation as sharks, really don?t want to throw defendants out of their houses, even if they could. They rather go for the low hanging fruit ? in this case the proceeds of your liability insurance policy.

They know that unless you were drunk or grossly negligent, any liability award can be discharged in bankruptcy. They also know that many states have ?homestead laws? that prevent the seizure of your home and that the money in your retirement plans are protected by varying degrees, depending on the state you live in.

In Read more…

Recently a friend in the insurance industry was telling me about an insurance product that had decreasing premiums rather than the increasing ones we have become so familiar with in the term insurance arena. This lead to a discussion about investing and how we are always looking at making money on the upside.

Yet, you can actually make more money faster in a down market. That’s not to say that we should all run out and start changing our investments, it’s just that we have become so accustomed to looking at things from the same box, that we miss opportunities that are right before our eyes.

What if you could see things from a different perspective: the one that fits your goals, your life priorities, your current situation, your values, and the way you want to live? Do you get frustrated when hearing the same old messages of make more money, save more money, cut back, get a better return. This vertical thinking does not allow for creative, individual solutions to very personal financial situations.

A 12 step e-course might seem like a lot of work, or a long to wait to get an answer ? but, hey, we didn?t get to where we are today overnight ? the quick fix is the 360 degree view of the current reality combined with some day to day very Read more…

The questions below will help you interview and evaluate a financial planner to see if they are the right one for you. You will want to select a competent, qualified professional with whom you feel comfortable whose expertise and business style suits your financial planning needs.

1. What experience do you have?

Find out how long the planner has been in practice and the number and types of companies with which they have been associated. Ask the planner to briefly describe past work experience and how it relates to their current practice. If your financial planner will be offering you investment advice, it is advisable to work with someone who has been through a recession or down stock market.

2. What are your qualifications?

The term “financial planner” is used by many financial professionals. Ask what qualifies him to offer financial planning advice and whether he holds a designation such as the Certified Financial Planner or Chartered Financial Analyst marks. These professional designations show dedication to the profession and the ability to pass detailed examinations. Determine what steps the planner takes to stay current with changes and developments in the financial planning field. If the planner holds a financial planning designation or licenses, check on his background with the NASD AIMR , SEC or other relevant professional organizations.

3. What services do you offer?

The services a financial planner offers will depend on a number of factors including credentials, licenses and areas of expertise. Financial planners cannot offer insurance or securities products such as mutual funds or stocks without the proper licenses, or give investment advice unless registered with state or Federal authorities. There are some planners who offer financial planning advice on a range of topics but are not licensed and do not sell financial products. Others provide advice only in specific areas such as estate planning or on tax matters.

4. Are you Independent of financial product sponsors?

Product sponsors include stock brokerage firms (discount and full service), insurance companies and banks. Ask the financial planner about the type of clients and financial situations he or she typically likes to work with. Some planners prefer to develop one plan by bringing together all of your financial goals. Others provide advice on specific areas. Make sure the planner?s viewpoint on investing matches your own and is not too cautious or overly aggressive for you. Some planners require you to have a certain net worth before offering services.

5. Will you be the only person working with me?

The financial planner may work with you himself or have others in the office assist with your activities. You can meet everyone who will be working on your investments or plan. If the planner works with professionals outside his own practice (such as attorneys, insurance agents or tax specialists) ask to get a list of their names to check on their backgrounds.

6. How will I pay for your services?

As part of your financial planning agreement, be sure you see in writing how they will be paid for the services provided. Planners can be paid in several ways:

? a salary paid by the company for which the planner works. The planner?s employer receives payment from you in fees or commissions to pay the planner?s salary.

? fees based on an hourly rate, a flat rate, or on a percentage of your assets and/or income.

? commissions paid by a third party from the products sold to you to carry out the financial planning recommendations. Commissions are usually a percentage of the amount you invest in a product.

? a combination of fees and commissions whereby fees are charged for the amount of work done to develop financial planning recommendations and commissions are received from any products sold.

7. How much do you charge for your services?

While the amount you pay the planner will depend on your needs, the financial planner should provide you with an estimate of possible costs based on the work to be performed. Such costs include the planner?s hourly rates, flat fees or the percentage he would receive as commission on products you may purchase as part of the financial planning recommendations.

8. How are you licensed?

Many financial planners offer advice in securities or insurance when they are not licensed in these areas. Some states may not require licensing but consumers may want their advisor be properly regulated and licensed. Licensed persons pass examinations and have many hours of continuing education annually. However, there are some licensed advisors who are are merely salesmen in an advisors suit.

Ask the planner to provide you with a description of her conflicts of interest in writing. For example, financial planners who are employees of banks, insurance companies or investment firms often favor their own company products, even when less competitive. The planner may also have relationships or partnerships that should be disclosed to you, such as business he or she receives for referring you to an insurance agent, stockbroker, accountant or attorney for implementation of planning suggestions.

9. Have you been publicly disciplined for any unlawful or unethical actions in your professional career?

Several government and professional regulatory organizations, such as the National Association of Securities Dealers (NASD), your state insurance and Read more…

If you are looking for a safe investment and you have between $100 -$1,000 to invest, you should consider a certificate of deposit or CD. When purchased through a bank, CD?s are federally insured up to $100,000.

When you invest in a certificate of deposit, you are lending your money to the bank for a set period of time at a fixed rate of interest. At the end of that time period, the bank pays you back your investment with the interest you?ve earned. The annual interest earned is reflected by the annual percentage yield or APY.

There are several details to consider before investing in a CD. First, find out when the CD will mature? Banks offer certificates of deposit with maturities ranging from 3-months to 10-years or more. Figure out how much to safely invest and how long you feel you can leave that money alone so that it earns interest. Also, make sure you get the maturity date in writing.

Second, you?ll want to know the annual percentage rate (APR) you?ll earn on your investment. Investing larger sums for longer terms usually earns the best interest. However, even a small investment can earn you higher interest than a traditional passbook savings account.

Next, find out how the interest is compounded – daily, monthly, or annually? Daily compounding is best because it earns you more interest. You can shop for the best CD rates at www.bankrate.com or check with your personal banker.

Shopping on the internet, I found rates for a $1,000 1-year CD in my local area ranging from 2.96 to 3.97 APR and a 3.00 to 4.05 APY respectively. So if I invested $1,000 at 2.96 APR, at the end of 12 months I?d get paid Read more…

The USS Constitution first ventured into the waters in 1798. From there she became an icon of durability and success.

In battle, the ship became known as ?Old Ironsides? because the shots fired from enemy ships seemed to bounce off her hull. She may be best remembered for her service in the War of 1812.

Today, the loyal ship may be found resting quietly in the Boston Harbor.
During the week of the Fourth of July, at the Boston Harborfest, ?Old Ironsides? makes her annual voyage down the harbor. This is termed the ?Turn-Around? cruise.

As investors, we can learn a lot from this old ship and its history.
The first is longevity.

It is easy to be influenced by the short-term direction of the market. A long-term perspective, if warranted, is best observed. Of course if you have a short-term goal, aggressive investments such as individual stocks may not be the best alternative. However, if you have many years before retirement, you should ignore the short-term volatility. As with ?Old Ironsides,? she fought many a battle, but more than two hundred years later remains afloat and above water.

A second point to remember, just like the ship, your portfolio may require maintenance from time to time.

Positions may weaken and require your attention. Other positions may grow to a point where profit taking is in order. As with the strong currents of the Read more…

Step 1: Spend less than you earn

Perhaps the simplest financial concept is the toughest for us to conquer- spend less than you earn. After paying your living expenses (bills, loan and mortgage payments, cost of food, charitable contributions, taxes, etc), you can begin to save and invest toward your future. If you are spending more than you earn, you must find a way to change this. You may even need to change your lifestyle- drive a more efficient car, eat out less, live in a smaller home, cancel your cell phone, etc. Make a commitment to your financial success to spend less than you earn. This may take a lot of discipline, but is an essential first step towards your financial wellbeing. Once you spend less than you earn, you will be on your way to reaching all of your goals.

Step 2: Prepare for an emergency

Before doing any actual investing, you need to establish an Emergency Fund (cash held in an account for emergencies). This fund can be used for various emergencies, but, its main purpose is to pay your living expenses in the event of a sudden loss of income. That is, if you lose your job, you will still be able to pay your bills without having to abruptly withdraw money from your investment accounts. A relatively conservative amount to keep in your Emergency Fund is that equal to 6 months of living expenses.

Step 3: Determine your goals

Would you take a road trip without an ultimate destination? How long will the trip take? What should you pack? In what direction would you drive? These questions are easily answered once you know where you are going. The same is true for investing. Before any investments are actually purchased, you must know your ultimate destination- you must create a list of your goals.

Determining your goals and writing them down will serve as the foundation for a proper investment plan, allowing you to customize your investments to each specific goal. Some examples of ?goals? are: retirement, college, buying a house, taking a vacation, and buying a car.

In writing down your goals there are a few pieces of information you must identify. You must know the following about each goal: name (NAME), time until realization (TIME), cost in today?s prices (COST), planned contributions (PAYMENT), and current money saved for this goal (PV). Below is an example of a goals list:

NAME – TIME – COST – PAYMENT – PV – RATE

Retirement – 30 years – $2,500,000 – $1,000 mo.- $350,000 – ???

College Kid 1 – 12 years – $100,000 – $500 mo.- $20,000 – ???

College Kid 2 – 10 years – $100,000 – $500 mo.- $22,000 – ???

Buying a Boat – 6 years – $30,000 – $150 mo.- $0 – ???

Step 4: Invest

After determining your goals, you can begin to invest toward achieving them. Doing so means calculating the annual rate of return (RATE) needed to achieve each individual goal. For example, you may need a 7% rate of return to achieve your retirement goal, while only a 5% rate of return to attain your college goals. Thus, your actual investments may be significantly different for each goal, but will be tailored to each individually. (There are online resources and calculators that offer assistance computing your required rates of return.)

When purchasing investments, you need to buy those that will collectively earn the annual rates of return necessary to reach your goals. You may choose to invest on your own, use an investment advisor, or search for a broker/dealer to assist you with Read more…

?No Down Payment!? – it’s an offer you can’t help but notice and be tempted by. Sometimes no down payment can be an absolute blessing and completely work in your favor, but other times it can cause huge financial problems down the track. It may mean that you have to make higher payments, pay a higher interest rate, have a longer loan and basically just pay more overall.

Sometimes you might be willing to pay more in order to have the benefit of no down payment, and that’s okay as long as you accept the offer with your eyes open.

But it’s very important to be wary – there are many dodgy people in the world of finance who are quite happy to tempt you in with no down payment, knowing that they’ll make heaps more money over the long time than if they just told you about the standard deals that were available.

Buying a house with no down payment can be a really good move for people with bad credit or no credit history. This type of arrangement allows them to buy their own home, and as an added bonus it helps them to either establish or improve their credit.

There are plenty of things besides real estate that can be purchased with the option of no down payment. A lot of car dealers now offer no down payment financing, but again, it’s important to be careful. This type of financing is aimed at people can’t afford the down payment, either don?t care or don’t understand that they’ll pay more in repayments, interest, and charges, or whose credit isn’t sufficient to buy any other way. If you’re in that sort of situation, then no down payment financing can be very appealing. If, however, you’re in a good financial position, it’s probably best to walk away and find out what other options you have. If you have good credit and a reasonable income, there Read more…