After all, most of us do not inherit wealth, so, if we are going to gain it, we must build it. And for most of us, the opportunity to build wealth exists, over time, as we turn our ability to earn an income into cash flow from which we “capture” financial assets. We capture financial assets by spending less than… Read more →
Month: June 2014
The Financial Planning Process is… a process.
It is not a product, not a package solution, but a process. A process which can lead to the accomplishment of financial and life goals. At its core is the idea that you should begin by determining what is important to you. You will be in a position to make the best use of your assets only after you have come to… Read more →
What about income loss due to accident or sickness?
Loss of income due to accident or sickness is a life risk exposure similar to that of the death of a household provider, except that the actual cash need is greater since the disabled provider has ongoing needs in addition to those of the spouse and children. Disability income insurance pays a benefit when someone is unable to work. To… Read more →
The term I prefer is “financial independence.” And the question is, “What does it take to be financially independent?” It takes income. Income which is sufficient to meet required outflows, and which is not dependent upon continued employment. Please note that the attainment of some arbitrary age, such as 65, is not what is required. Some folks are financially independent… Read more →
How much life insurance do I need?
Life insurance pays a cash benefit to a beneficiary upon the death of someone. The human life value. What is the value of a human life? Of course, a human life has great value with regard to achievement, companionship, inspiration, and so on. There is also the financial value of a human life. To understand this concept, ask the question,… Read more →