Archive for the ‘Finance’ Category
Do I need a will?
What about life insurance?
answer:
Though half of adults don’t have a will, everyone should. Die without one and your state will determine how your belongings get distributed. If you have kids, a judge could even decide who raises them. Unless you have lots of expensive belongings, though, you can write your will yourself; check out nolo.com for help. If you’d rather work with a lawyer, go to abanet.org and click on “lawyer locator.” Life insurance is a different story. If you don’t have children or other dependents, skip it. If you do have kids, get term insurance, the most basic, cheapest type. (Pass on cash value insurance—it comes with high commissions.) A 25-year-old female nonsmoker in perfect health could get a $250,000 20-year policy for $15 a month.
House buying guide
Don’t get shafted by bankers
Case I: Sam, 25, and her boyfriend Mark found the flat they loved, had their offer accepted by the sellers and the advisor at their bank had agreed the mortgage. Perfect. That was until they returned to the bank to sign the mortgage forms. ‘The person we’d originally spoken to had left,’ says Sam. And everyone else denied all knowledge of our mortgage offer. After lots of hassle, the new advisor eventually offered us less cash at a much worse rate of interest.’
How to sort it: This helps to show just how important it is to get something from the bank in writing once you’ve been offered a mortgage. Never leave the bank without an official letter. Many lenders will issue you with what’s called an “agreement in principle to lend”. This isn’t a formal mortgage offer but at least you know where you stand when you look for a property.
Investment strategy with exchange trade funds (ETF)
Since its invention in 1924, the mutual fund has been heralded as the “everyman’s investment.” But even if you read a fund prospectus, you can never be sure exactly how much you’re paying, what’s in the fund, or when you might incur a taxable distribution.
Ensuring that your portfolio is building wealth rather than lining some fund manager’s pocket is a major source of IRS: investment-related stress. That’s why you should consider exchange-traded funds (ETFs), a cheaper, more transparent class of investments that has attracted more than $300 billion in assets, up from half that amount in 2003.
Cost of pet insurance
Most of pet owners can’t see the advantage of pet insurance. Pets are in general considered a element of family. This is strange when the meaning of health insurance is considered very important matter on the most family. Why isn’t the pet insured?
Pet owners presently learn how expensive it is when they need treatment. With everything around us rising in cost, it is not astonishing that vet fees have also risen as well. What this means is pet insurance companies have been required to pass on this additional charge.
Kinds of auto insurance
I’ve heard about many other kinds of auto insurance. How can I tell which are important and necessary?
answer:
There are two other kinds of highly recommended auto insurance, and their cost is low enough to make you think twice about doing without them. One is medical payments insurance. This pays for medical treatment, hospitalization, and funerals of all occupants injured or killed in your car, up to the amount of coverage. Payment will be made no matter who was driving, or whether the accident was the driver’s fault. You shouldn’t be driving without at least $2000 of medical payments insurance, which will cost only a few dollars a year.
The other low-cost auto insurance you should carry is called uninsured motorist coverage. With this coverage, you will be able to collect damages if you are hurt by a driver who has no insurance to help him pay you. This protection will cost about $2 or $3 per year.
Can I do without collision and/or comprehensive insurance for my car?
You can certainly economize on collision and comprehensive insurance, even if you decide you can’t do without them entirely. Collision insurance merely pays for repairs to your car in any kind of accident. Because benefits go down in accordance with a car’s age you probably won’t get enough money to matter if your car is more than 3 or 4 years old. Therefore, you can almost surely do without collision insurance on an old car. Looking at it from another angle, even a series of small repairs could cost you less than the amount of the insurance premium. Besides, insurance companies often penalize you for making small claims—even though you have every right to—by canceling your policy. This legal, if immoral, pressure on you to pay for your own repairs makes collision insurance practically useless for small claims.
What kind of automobile insurance will give me and my family the most protection?
answer:
The one protection every driver should get as much of as possible is liability insurance. In fact, you must by law meet your state’s minimum requirement, if it sets one; but you should have much more than any state minimum. Liability insurance actually protects others against you by paying for any injury you might do them to body or property—and court awards in accident cases resulting in serious disablement or death can wipe you out financially. There is simply no limit to the amount of money you might have to pay, so the more you can meet through your insurance, the better.
How can I save on auto insurance?
I know that I can’t drive legally without being insured, but auto insurance is a great expense. How can I save on it?
answer:
There are some companies that sell auto insurance more cheaply, and some policies that offer “special treatment” savings. You will simply have to shop widely to get the best possible rates for the coverage you need.
One source you might try is an insurance broker—but be sure to talk to two or three before you decide anything. Brokers not only know many different companies and policies well, but can also advise you on which kind of coverage gives you the most.
where can I get practical help in planning college finances?
As the day of college entry gets nearer, where can I get practical help in planning college finances?
answer:
The guidance counselor in the local junior high or high school is a golden source of information. Consult her as soon as your youngster is in 8th or 9th grade, and she can help you get a head start on practical planning. Guidance counselors know which schools cost what as to’ tuition and living expenses, and also know about the many little things that add up to a lot—such as snack foods, laundry, on-campus travel, dues for fraternities or clubs, and entertainment. These are costs you have to estimate in making a sensible budget.
Alzheimer’s action plan
Many Alzheimer’s patients are in denial, which prevents them from getting their legal and financial affairs in order until it’s too late. But there are ways to minimize the damage and ensure their well-being
KNOW THE WARNING SIGNS
If your mom calls three times a day to ask the same question, something may be wrong. The inability to learn new information is a red flag. Additionally, you can ask her what day of the week it is or when she was born, data that should be very familiar to her. When you visit, be concerned if you spot mystery dings on her car or if she’s getting lost driving familiar roads.
BUY A LONG-TERM-CARE POLICY
Alzheimer’s care costs up to $75,000 per year, and regular health insurance covers nothing beyond doctor visits, lab tests, and some prescription drugs. If your parent is still healthy, look into buying long-term-care insurance ($4,000 to $8,000 per year), which cannot be purchased once a diagnosis is made. Purchase a policy for your parent at age 55; if there is a family history of early-onset Alzheimer’s, consider earlier coverage.