INVESTING BLOG

Bonds are essentially loans to a corporation or the government. Bonds are often referred to as income investments because, in return for the use of your money, the bond's issuer agrees to pay a certain rate of interest at regular intervals for a set period until the bond matures or the principal is otherwise repaid. Bonds can be for varying lengths of time (maturities) and of varying quality. Short-term bonds are defined as those that mature in three years or less. Intermediate bonds mature in three to 10 years, and long-term bonds have maturities of 10 years or more. The quality of a bond relates to its riskiness. Bonds issued by the U.S. government are of a higher quality than those issued by many state and municipal governments, because the U.S. government is less likely to default on its debts. Company-issued bonds can vary even more dramatically in quality. As with any investment, the higher the risk associated with an investment, the higher the potential return you generally ...

Like auto insurance coverage, it is sometimes difficult to see the true value of life insurance coverage until you actually need it. In the meantime, the only way you will feel comfortable with your life insurance policy is if you understand, and agree with, the reasons you bought it in the first place. There are many reasons for an individual to own life insurance coverage. Perhaps the most compelling reason is to purchase a death benefit which will provide for the financial needs of their survivors. Determining how much life insurance coverage you need is a four step process: Determine total short term needs in the event of your untimely death Determine total long term needs in the event of your untimely death Determine total resources available to family members Provide insurance coverage for any remaining shortfall Determining Your Total Short Term Needs Short term needs are financial obligations and/or expenses arising within six months of death. Examples of short term needs inclu...

Once you have determined that you need life insurance, and calculated how much coverage you require, you will have to choose between several types of life insurance policies. There are two very different types of life insurance contracts — term and permanent. Term Insurance Overview Term life insurance is often referred to as "pure insurance" because it involves only the payment of a premium in exchange for a promise to pay a death benefit in the event of your death while the contract is still in force. Term life insurance provides protection for a specified maximum period of time and is usually renewable at the end of each period at progressively higher premiums. As you get older, your risk of dying increases, so the cost of term insurance goes up. Term insurance carries no cash value element, making it less expensive than permanent alternatives. Annual Renewable Term Annually renewable term (sometimes called Yearly renewable term, YRT, ART) is an example of a term insurance...

Once you have decided to try to sell your home, the next big decision you will face is whether you want to sell it yourself of go through a real estate broker. The broker usually charges 5% to 6% of the selling price for her services. However, realtors know the local market, can help you determine a reasonable selling price, and save you a lot of the hassle involved if you sell it yourself. In selecting a broker, invite several real estate brokers to tell you what they would deem to be a fair selling price and explain their commissions and fees. They'll probably do this for free. You will also want to ask about their past experience in the area. Nearly 90% of all home sales are through agents and brokers. However, if the market is a "sellers market" and your home is market ready, perhaps you will want to try selling it yourself. Is Fix-Up Necessary Before Listing? It doesn't hurt to do minor repairs and cosmetic touch-ups prior to showing your home to potential buyers...

Understanding how to manage money will make a big difference for your financial stability. “ Money is a very powerful thing, which you hardly notice when it goes right, but which can create havoc when it goes wrong.” – Milton Friedman  A major study conducted by the Financial Industry Regulatory Authority demonstrated that people with higher levels of financial literacy are more likely to find financial security or stability.  Financial literacy means the scaled ability to competently understand what money is, how to raise money, and the various ways of effectively managing money. Financial literacy does not guarantee financial security, although financial literacy and security are strongly correlated. People who understand finances have a higher chance of becoming financially secure and wealthy. People who do not understand finances are much less likely to establish financial security or acquire personal wealth.  Just as there is a scale to reading literacy and compre...

Anyone who has ever owned a car knows that automobile insurance is expensive. A 2017 survey conducted by the National Association of Insurance Commissioners found that the average annual premium for each car was $857.44 (that includes liability, collision, and comprehensive coverages). Understanding auto insurance is the first step towards ensuring that you have the right coverage at the best price. Risk The cost of your individual coverage depends on many factors — factors that the insurance company calls Risks. The lower risk you represent to the insurer, the lower your insurance will cost. The cost of your insurance will be impacted significantly by the type of car or truck you buy. A few of the factors that impact your risk include: Safety features on your auto. Crash test results for your auto. Average repair cost for your auto. How many miles you drive each month. If in school, your grades may impact your cost. Your age (younger drivers statistically have more accidents.) Your ge...