A recent article in The Wall Street Journal advised readers to “beware rule changes on Coverdells.” Coverdells Education Savings Account, in case you’re not familiar with them, are investments that offer tax-free growth and withdrawals, as long as the money is use for qualified educational expenses. They were once known as education IRAs, and sometimes [...]
I was listening to a personal finance podcast the other day, and the question was raised again about what kind of life insurance someone should buy. The host went on for the next couple of minutes talking about how everyone should “buy term and invest the difference.” Now I’m a fair person, and I admit [...]
Too often, you have been advised to buy term insurance and invest the difference in the stock market for better return. Even though this sounds convincing on paper, it lacks verifiable facts, ignores feasibility of continue investing in stock market and demonstrate ignorance of life insurance tax advantage. When you calculate long term compounding tax [...]
Life insurance needs will change but it is best to keep life insurance policy instead of dropping the coverage when you grow older. When an individual ages, a permanent policy becomes an increasingly important asset, because a person’s insurability tends to decrease over time. A term policy provides temporary coverage, but relying on term insurance [...]
Time magazine had a wonderful article explaining why the life insurance industry is so much safer than all the other financial service industries. The article explained that insurance companies only held about ten percent of total assets in the real estate investments that pulverized the bank and investment industries. The article even explains that AIG, [...]
When we think or talk about insurance, we typically relate it with a cost or treat it as an expense. This is true for health insurance, homeowner’s insurance, car insurance, or even term insurance. And most of us try to minimize our expenses, and we should. The common thought process flows as follows: If I [...]
Subscribe to Blog RSS
Add to Technorati Favourites
