Posted on Fri, Jan 29, 2010
As we prepare to turn the January calendar page of a pivotal new year, and a promising new decade, the Web rings out with the sound of financial resolve and reform, not only for government and institutions, but for families and individuals. In the Internet age, the best financial advice for the months ahead springs not only from a well of good people and word-of-mouth but a rich trove of Blogs and Websites.
Here are some of the New Year’s most respected financial guides, scouts and trailfinders on the best paths to follow in 2010 (including their Twitter handles):
Enemy of Debt ( @EnemyofDebt)
Nothing provides financial security like having an emergency fund in place. This fund is very important to us because having this it will mean that we can move on to two other very important financial goals we have—which will be to fund our retirement with gazelle intensity and fund our children’s college funds. One goal leads to another.
Out of Your Rut ( @OutofYourRut)
Reducing expenses, building savings and paying off debt. We don’t have much in the way of debt, but even a little is irritating (or worse!)
Bible Money Matters ( @MoneyMatters)
My financial resolution for 2010 is to get my financial life a bit more organized, and to practice what I preach on my blog. Within the past couple months my wife and I found out that we are expecting our first child, and that has really made me realize that I need to practice what I’ve been writing about when it comes to getting life insurance, setting up investment accounts now that we’ve fully funded our 8 month emergency fund, and putting together a set of instructions for my wife in case I were to die or become incapacitated. Now that we are no longer going to be a dual income with no kids family, it’s time to get organized and motivate!
Green Panda Treehouse ( @Green_Panda)
My goal for 2010 is invest at least $3k into my Roth IRA.
Debt Free Adventure ( @MattJabs)
My top New Year’s Resolution is to pay off all high interest debt and build my Emergency Fund up to $20,000. While doing this I also hope to accomplish my move to full-time PF blogger before 12/31/2010.
Miranda Marquit – Freelance PF Writer ( @MMarquit)
Refinance the house. Rates are low and we could [get] a 15 year mortgage for a little more than we are paying now, saving us big $$$!
Deliver Away Debt ( @DeliverAwayDebt)
Pay off my 2nd mortgage which totals $24,000. I want to pay it off next in my Snowball because I’m paying 12.75% on the dang thing. That is the highest interest rate of all my debts.
I’m going to follow the 75/25 rule (by Matt Jabs). The 75/25 rule says that 75% of all available debt snowball funds will be put toward the debt snowball. The extra 25% will be used to fund (with CASH) other savings goals. I want to double my Emergency Fund to $2,000, Fund a $1,000 vacation fund, and begin my Wife’s new used car fund.
One Money Design ( @OneMoneyDesign)
This coming year is an exciting one for us. We will become debt free except our mortgage by paying off our final car loan. We are already living out how paying off debt can free up additional money to meet financial goals such as snowballing debt and growing an emergency fund. It has also provided extra resources to allow us to give more when we feel called to do so.
The emergency fund has been a difficult area for our family over the past few years. It seems each year something comes up that uses up much of it. We are grateful this system works as without our emergency savings we’d be facing credit card debt. So in general, the next goal will be building the emergency fund more to the point of further protection.
Change Jar Saving ( @ChangeJarSaving)
Pay off the credit cards! And have no more bills hanging over my head.
Upper Valley Mom ( @UpperValleyMom)
Move to a envelope system and budget that husband and I can both work with, in order to get some traction.
Being Frugal ( @Lynnae)
Pay off my student loan, because that’s the last of my debt, besides the house.
Ducks and Dollars ( @skduck2003)
Pay off 4 loans (1 auto, 3 student) & increase savings in an effort to reach financial freedom!
Financial Highway ( @MoneyHighway)
We are just changing priorities from saving to paying off Student loan so main goal is to reduce student debt (only debt we have) by 40-45%.
Thrifty App ( @ThriftyApp)
Try something frugal each month that I haven’t been able to bring myself to do. January=handkerchiefs. We’ll see…
Fiscal Fizzle ( @FiscalFizzle)
At the top for 2010 is getting serious about retirement. It’s been on the backburner for too long and I’m losing time.
Credit Goddess ( @CreditGoddess)
Start a home improvement fund. Bought a house in 2009 & want to make some changes.
Centsible Life ( @CentsibleLife)
My top resolution is to continue to increase our earnings every month. More money=out of debt faster!
Small Steps For Big Change ( @SS4BC)
To be debt free? Why? Well shouldn’t that be evident? =)
Rainy Day Saver ( @RainyDaySaver)
To finish paying off our credit card debt and add extra principal payments to the mortgage.
Kingdom First Mom ( @KingdomFirstMom)
To practice what I preach (use coupons effectively, pay off debt, build savings)
My Money Power ( @myMoneyPower)
My PF Res is to Be Happy. A positive outlook can make a big impact in your finances. There are studies showing depression leads to spending.
Financial Samurai ( @FinancialSamura)
1) Earn $1 million bucks, 2) Win a minor tournament like the SF Tennis Open, and 3) Meet 36 new people, or 3 a month!
Money Help For Christians ( @MH4C)
This year are goal to save enough extra money each month so we can pay off our mortgage 12 years early.
What Are Your Top Financial Resolution for 2010?
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Posted on Tue, Jan 26, 2010
Insurance may not be the first place you look for a significant deduction on your federal income tax return this tax season, but it definitely shouldn’ t be your last.
The most common deduction for medical insurance often goes unnoticed by a large segment of the workforce. The premiums your employer pays under a group health insurance plan with pre-tax money are never included in your W-2 wages, and so are never taxed. That’s a deduction you may never have realized you were getting,
Self-employed persons can deduct health insurance premiums above-the-line. This deduction is available to independent contractors, and owners and partners running small businesses.
If you’re not self-employed, and you don’t work for a company that provides health insurance with a cafeteria plan, you may be out of luck. But there is a possible out. The Internal Revenue Service allows you to count health and dental insurance premiums as part of the 7.5% of your adjusted gross income that has to be spent on health care before any out-of-pocket medical expenses can be deducted.
Auto insurance might also be deductible, if you drive your car or truck for business purposes. Generally, the deduction for car and truck expenses is available for self-employed people who drive for business, or employees who use their own vehicle as a part of their job. Your daily commute to work is not tax-deductible, but there is a notable exception for people who have to travel extraordinary distances to get to their job site.
Homeowners insurance is definitely deductible for rental properties. If you have an office in your home, a percentage of your homeowners policy may be deductible.
Also remember that you cannot take a double tax benefit for an expense. So if you receive a reimbursement for property damage (which is a tax-free event), you’ll be able to deduct casualty losses only for any damage that remained unpaid by your insurance.
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Term Life Insurance Quote or Research how to
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Posted on Fri, Jan 22, 2010
Second in a Series of Posts on the Haitian Earthquake Tragedy and Insurance
The magnitude-7 earthquake that struck just outside Haiti’s capital, killing many, and causing untold property damage will cost hundreds of millions to repair. But most private insurers will pay little in claims, because the private insurance market is almost non-existent in developing countries such as Haiti.
“Insured losses will be minimal, despite the severity of the event,” said Robert P. Hartwig, president of the Insurance Information Institute, in a Wednesday interview. “The reason is that Haiti is one of the poorest countries in the world, with very little private insurance.”
In a more developed part of the world, such as California, a big earthquake would result in “billions” in insured losses, Hartwig said. “Insured losses in Haiti will probably be measured in millions, and not that many.” That is a tragedy for the Haitian society in and of itself.
“For this type of event, no one insurer has any kind of large exposure,” said Tom Larson, senior vice president of Eqecat Inc., a catastrophe insurance risk modeler. “One insurer might have lost everything they have insured in Haiti in this one event, but we don’t expect it to be a major event to any one of them.”
Eqecat estimated that the cost to rebuild Haiti will run into the hundreds of millions, but that much of that will come from international aid rather than private insurance payments.
So far, German reinsurer Hannover has said it estimates a EUR20 million loss from the earthquake, though the company did not immediately say the nature of its loss.
A spokesman for Chubb Corp. said the company is not aware of any insured exposure in Haiti.
American International Group Inc., one of the largest commercial insurers, has not issued a public statement on the scope of the potential insured losses there.
Haiti will likely receive some help from its main catastrophe insurer, the Caribbean Catastrophe Risk Insurance Facility, a regional fund administered by participating governments. A spokesman said that Haiti’s earthquake coverage is up to $8 million, which would be paid from the fund in about 14 days, once the earthquake is categorized. The spokesman said he knows of little private insurance coverage in Haiti.
U.S. companies pledged more than $43 million in aid within the first 72 hours after the quake struck Haiti. U.S. aid, including individual donors, is predicted to sharply increase in the aftermath of the tragedy.
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Term Life Insurance Quote or Research how to
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Posted on Tue, Jan 19, 2010
Who doesn’t love a Top 10 List? Especially when it can save you substantial amounts of money and help you protect your family against financial disaster!
Here are the Ten, count ‘em, TEN, top tips on WHY and HOW you should shop for the best in life insurance value. Think of it as a “T-minus-10 countdown” to your family’s financial security!
1. Don’t wait till you REALLY NEED the coverage! By that time you’ll be that much older, you’ll be sick or you will have encountered a health issue that will cause your premiums to be significantly more than you anticipated. That is of course if you can even qualify for the coverage!
2. The highest financial rating doesn’t necessarily mean better coverage. The important thing is to at least be looking at an “A” rated company. There is little, if any difference between one company’s term policy and another, so basing a decision solely on ratings won’t always get you best deal. The highest rated companies tend to be more conservative in their underwriting and attaining the “best available” with them will be a bit more difficult.
3. Shop online first before (or instead of) meeting individually with an agent! Many online life insurance brokerage companies can be a useful source of information and can save you up to 75% on your premiums. The reason is of course because they are impartial and are not driven to sell you only one company’s product.
4. Pay annually if you can afford it. Paying annually can save you up to 20% with some companies versus monthly, quarterly or semi-annually.
5. Don’t smoke. If you are trying to save money then being a smoker won’t help your cause. However, if you do smoke, most companies will let you re-apply for nonsmoker rates if it has been at least 1 full year from your last usage.
6. If you have cholesterol or blood pressure issues get it controlled with medication. Insurance companies don’t like to see health issues go unattended. If you are doing something to control it they will likely look at that favorably and give you the benefit of the doubt when it comes to approval time.
7. Buy the right amount of coverage. If you are considering buying $90,000 of coverage, buy $100,000 instead. Many times it will cost less, the same or just a tad more for additional coverage. Insurance companies may give breakpoints at $100,000, $250,000, $500,000, $750,000 and $1,000,000.
8. Read the “Prepare for the Medical Exam” section before completing your exam. Eating a few Twinkies or calling your stockbroker a half hour before your exam will surely turn your lab results sour and cost you big time!
9. Obtaining coverage through your company’s plan may be a good alternative…in the short-run. Many employer’s plans however are not portable and won’t let you continue your coverage if you leave. If you need coverage then, you’ll have to apply for an individual policy anyway. Don’t leave it to your employer to take care of you!
10. Buy at the right time of “your” year. If you’re 30 ½ years old, you’re as old as 31 in the eyes of the insurance company. Most insurance companies round up when determining your age and because premiums increase with age that can make a big difference. So, if you’re approaching 30 ½ and you have thoughts of applying, don’t wait! Get a free life insurance rate quote right now from Efinancial!
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Term Life Insurance Quote or Research how to
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Posted on Fri, Jan 15, 2010
According to the World Bank’s
Natural Disaster Hotspot study, Haiti is one of the countries most vulnerable to adverse natural events. The country’s weak infrastructure, degraded environment, and history of ineffective governments with serious fiscal problems all converge to magnify the size and scope of a natural disaster.
This was clearly displayed during the 2004 hurricane season when over 5,000 Haitians lost their lives following Tropical Storm Jeanne, and in 2008 when Tropical Storm Fay and Hurricanes Gustav, Hanna and Ike inflicted damages estimated at about US$900 million, or around 15 percent of GDP.
The earthquake disaster which has struck Haiti in 2010 has dwarfed even those staggering figures.
In 2007 The World Bank initiated The Haiti Catastrophe Insurance Project. Its objective was to reduce Haiti’s financial vulnerability to natural disasters through insurance coverage against earthquakes and hurricanes.
The effort would be achieved by providing financing to Haiti to allow it to join the Caribbean Catastrophe Risk Insurance Facility (CCRIF) and purchase financial protection against catastrophic earthquake and/or hurricane events.
The pilot initiative represented the first entity created to protect small island states from the financial impact of natural disasters and had two main components with the first being to assist Haiti in joining the CCRIF through the financing of the entrance fee.
That fee was equal to the first year’s insurance premium of US2.57 million. The second project component was payment of annual insurance premium to assist Haiti in purchasing the catastrophe insurance coverage during the first three years.
Now a discrepancy has emerged in the aftermath of the earthquake. CCRIF said Haiti’s government will receive a little under $8 million for earthquake damage. The Eqecat catastrophe risk modeling firm in Oakland, Calif., estimated economic damages from Tuesday’s quake to be “in the hundreds of millions of dollars.”
CCRIF said the amount it will pay Haiti is approximately 20 times the country’s $385,500 premium for its earthquake coverage policy taken out as part of its disaster risk management strategy.
CCRIF announced that it is “hopeful that the rapid payment of funds under Haiti’s policy will assist the government and people of Haiti in addressing immediate needs as they begin the recovery and rebuilding process.” Yet, while the amount being paid by CCRIF is something, it is nowhere near enough.
CCRIF is owned, operated and registered in the Caribbean for Caribbean governments. It is designed to limit the financial impact of catastrophic hurricanes and earthquakes to Caribbean governments by quickly providing short-term liquidity when a policy is triggered.
Clearly, it was the World Bank’s intention to safeguard against what has happened in Haiti. But the disaster has far outscaled the cost for recovery. A tragic lesson is not enough insurance, not for a family, but for an entire nation. Learn more about life, health and home insurance protection at America’s advocate for financial security with a free insurance rate quote at Efinancial.com
Links to ways you can help donate to Disaster Relief in Haiti can be found on the following Google page: Support Disaster Relief in Haiti.
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Term Life Insurance Quote or Research how to
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Posted on Tue, Jan 12, 2010
Can the new age of social media and “crowdsourcing” ensure better investment advice? A Website that works more like Digg or StumbleUpon than MarketWatch lets the voice of the people be heard loud and clear.
At Efinancial, we know that getting only one point of view or learning about just one product or company is as limiting as “tunnel vision.” After all, you can’t choose the right financial value if you don’t have a choice. The same idea goes for Investimonials. The goal of the social site is to help users cut through the “spammy” or ” scammy” financial sites that litter the web, by offering a comprehensive hub of user reviews for each product.
Investimonials is launching with eight categories, including the top rated Brokers, Newsletters, DVDs, Books, and websites, but plans to have “dozens” over the next few years. The site already has 3,000 products ready to review, though the vast majority of them are waiting for reviewers just like you to comment to them.
Users who complete a review on the site, will be rewarded with ‘iv bucks’, which can be traded in for prizes.
EliteTrader, an age-old competitor has been around for a decade and possesses more than one thousand total reviews. Investimonials has a fres h new outlook. Like any social media site, it will be the people who write and read the site who decide its success.
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Term Life Insurance Quote or Research how to
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Posted on Fri, Jan 08, 2010
A bride and groom can safeguard their wedding day with insurance for the reception, the caterer, the flowers, the limousine and the honeymoon. Now, a University of Illinois professor is suggesting that the same couple insure their marriage against breaking up. The innovative new idea? Divorce insurance!
To create such an insurance product, underwriters think like statisticians identifying several “risk factors” associated with divorce that could figure out who would qualify and how much the insurance would cost. These include age, work location and education level, among other factors.
Critics say the idea may never make it to the altar since divorce is not a “fortuitous event” like an earthquake or hurricane. It’s a matter of choice, which presents a “moral hazard.” Couples choose whether to get divorced, or whether to do the things that get them divorced. One soluton to the dilemma may be to have a “blackout period,” such as two or more years after you get married and buy the insurance before untying the knot.
Buying divorce insurance when you get married sounds a little like a pre-nuptial agreement. You’re hedging your bet in case till death do us part comes apart. If you’ve planing a wedding, you may want to consider life insurance fore newlyweds before divorce insurance.
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Term Life Insurance Quote or Research how to
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Posted on Mon, Jan 04, 2010
The marriage vows promise “Until Death Do Us Part.” But the striking statistics of divorce in America tell a drastically different story.
About two million Americans get married each year and roughly half wind up in a divorce proceeding. Even more astounding, 20 percent of marrriages end within the first five years, 30 percent of marriages end in 10 years.
The simple fact that a divorce process can take years, during which time two households may need to be maintained and attorney fees have to be paid, means that a family’s financial security hangs in the balance, especially when children are involved.
Who should be the owner of life insurance policies related to a divorce settlement?
Keep in mind the purpose of an affordable life insurance policy to begin with. In most cases, life insurance is used to protect the income of a spouse providing alimony and/or child support. The reason for the life insurance policy does not end with divorce where young children are involved, In that eventuality, the life insurance policy would insure the life of the spouse providing child support, and the beneficiary would be the spouse receiving the support. If the providing spouse were to die, the life insurance proceeds can be used to replace the lost income.
Who owns and controls the policy beneficiary?
The owner of a life insurance policy is a central issue, because the owner can change the beneficiary at any time. If the policy has cash value, the owner has control of this as well. Consider that divorced spouses often remarry and have additional children. Non-custodial parents often lose contact and concern for their former spouse, and perhaps even their common children.
Most divorce courts will require the providing spouse to maintain a life insurance policy that will cover the support payments for however long the payments are supposed to be made. However, enforcing this may become problematical as time goes on, especially given that there is no automatic way of being notified that payments are being made, or that no changes have been made to the beneficiary.
If you are concerned about enforcing life insurance protection as part of a divorce settlement, ask your attorney if the policy ownership can be entrusted to you. Even if this means paying the premiums yourself, the premiums can always be figured into the support payments.
Have more questions and Life insurance and Divorce? Ask Efinancial for answers!
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Term Life Insurance Quote or Research how to
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