retirement

Apache is functioning normally

By Peter Anderson Leave a Comment – The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited July 18, 2011.

When it comes to becoming a beginning investor, one thing that can hold a lot of people back is the fact that starting to invest can feel like it’s so confusing, with so many options out there, diffferent types of investments and investment classes.  Where should you start?  Should you hold mutual funds only? Index funds?  What about ETFs?

As part of my continuing efforts to educate myself as to what the different options out there are I’ve recently been reading up on a class of investments that are relatively recent innovations – the Exchange Traded Fund.

What exactly is an ETF?   It’s basically the investing world lovechild of a mutual fund and an individual stock where you have the diversification of a mutual fund, but also the ability to trade the investment like a stock on a stock exchange.

What Is An ETF?

Exchange Traded Funds have been around since the early 1993.   In January 1993 the first ETF was launched, the Standard & Poor’s Depository Receipts (SPDR) ETF.  The ETF basically was setup to track the performance of the S&P 500 index.  In 1995 S&P introduced a second mid-cap ETF, and after that other companies began launching a number of ETFs to track avariety of different exchanges/indexes and asset classes.

So in it’s most basic form, what is an ETF? An ETF looks a lot like a mutual fund in that it holds a variety of investments for you, but it can also  trade like a stock on the stock exchange.  ETFs allow the individual investor to diversify their holdings while still giving them the flexibility to be able to trade during the day, unlike a mutual fund.

Most ETFs are set up to track a given index like the S&P 500, so they would be classified for the  most part as passive investments – since most of them are not actively managed.  Because they are relatively passive in nature they also tend to have lower costs than some other investment options.

Reasons To Use An ETF

There are  a variety of reasons why you may want to invest in ETFs.

  • Low cost:  ETFs in general are going to have lower costs than some other investment products because most aren’t actively managed, and because ETFs don’t have to sell securities to accomodate shareholder purchases and redemptions.  They also typtically have lower marketing and other fees.
  • Flexibility for buying and selling: ETFs can be bought or sold at any time during the trading day at whatever the current market price is.  By comparison mutual funds can only be traded at the end of the trading day.   Also, since they are publicly traded securities, more advanced investment strategies like hedging strategies, stop and limit orders and purchasing on margin and short selling can be done.
  • Tax efficiency:  ETFs in general will usually have lower capital gains because of low securities turnover in their portfolios.  They also don’t have to sell securities to meet investor redemptions, which further enhances tax efficiency.
  • Diversification exposure to different markets: Like index funds most ETFs will provide instant diversification across an entire index, while still giving you access to a variety of different industry specific and commodity ETFs that aren’t available easily elsewhere.

So as you can see there are a good number of reasons why to consider ETFs for your portfolio.  There are also things to be wary of including the fact that you’ll have to pay brokerage fees every time you purchase or trade your ETFs.

Which Is A Better Option For Me: Index Fund Or ETF?

So since ETFs and indexed mutual funds are so similar in that they’re both usually tracking the performance of a given market or exchange, which one should you consider adding to your portfolio?

Mike over at ObliviousInvestor.com breaks it down in a post on ETFs vs. Index Funds, and gives the answer of “it depends”.

In summary,

  • the longer your time horizon,
  • the greater the amount you’re investing, and
  • the greater the difference between the expense ratios,

…the more sense it makes to use ETFs.

It really is going to depend on a variety of factors, including how long you’re investing for, how much you’re planning on investing, the expense ratios for the funds vs ETF, as well as how often you plan on rebalancing your portfolio as ETFs will usually carry brokerage fees/etc for rebalancing and/or purchasing new shares.

Conclusion

Exchange Traded Funds can be a great idea for the average investor, especially for those who want a few more investment options when it comes to commodities and the like.  The fact that they have low costs, are tax efficient and that they can give you some great diversification while allowing you to do some more traditional trading strategies all mean that the ETF will be popular for years to come.

For a more in depth look at ETFs, check out the tutorial linked below, or to find a brokerage where you can open an account and buy ETFs, check out our list of discount brokerages.

Are you currently investing with or using an ETF?  Why are you using an ETF as part of your investing strategy?  Are you avoiding ETFs for any reason?  Tell us your thoughts on Exchange Traded Funds in the comments.

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Source: biblemoneymatters.com

Apache is functioning normally

Save more, spend smarter, and make your money go further

Are you tired of having credit card bills? Do you wish you could get out of debt once and for all?

If you want get out of debt permanently, first consider this: Debt is not a financial problem. Hard to believe, but true.

Debt is actually a personal problem that masquerades in financial clothing. That is why so many people have persistent problems with debt. They look outward for financial solutions, when the true solution is found by looking inward.

Planning a Permanent Debt Solution

Defining your debt problem correctly is critical to solving it.

That is where most debtors run into trouble. They mistakenly define debt as a financial problem and develop financial solutions. That is why their debt returns shortly after paying it off. They fail to identify the root cause of debt, opening the door to repeating the vicious cycle.

For a debt solution to be effective your plan of attack needs to be based on principles that actually work. Unfortunately, when you just pay off your balances you relieve the pain, but the underlying condition that put you in debt in the first place still lurks under the surface, ready to return.

Let’s face it, the real causes of overspending are your personal habits and attitudes. In other words, the true solution is personal — not financial. That is a key, and understanding this principle is what will make or break your success in slaying the debt monster for good.

Masking The Problem

When you get a headache what is the logical response? You reach to the medicine cabinet for immediate pain relief. Unfortunately, the various pills do nothing to cure the underlying disease: they merely treat the symptom. The cause could be excessive stress, brain cancer, dehydration, eye strain, or any number of other issues. By taking a pill you’ve treated the symptom — not the underlying cause.

The same is true with debt. Everyone knows they need to make more and spend less to solve their debt problems. So they pursue financially driven solutions to relieve financial symptoms. It seems logical on the surface.

Whether you choose to consolidate your credit card debt to lower interest rates or you choose any of the quick-payoff strategies (inheritance, gift, sell an asset, bankruptcy, home equity line of credit, or refinancing), the reality is you are treating the symptom and not creating a lasting cure.

Your financial problems are merely the accumulated reflection of the many small financial mistakes you are making on a daily basis — often without knowing any better. That’s why teaching a debtor to spend less and earn more is like telling someone to lose weight by eating less and exercising more. Everyone already knows that is the answer. The difficult part is not knowing what to do, but actually getting it done. The solution lies in your daily habits and attitudes.

[Related Article: 3 People Who Dug Out of Deep Debt]

Money Breakthroughs

I first discovered this approach to debt recovery in my work as a money coach. I started out making the same mistakes as everyone else. I thought debt problems were financial, so I coached my clients to financial solutions. The lackluster results proved it was the wrong approach.

The breakthrough came when I noticed my wealthy clients had mirror opposite attitudes and behaviors compared to my get-out-of-debt clients. For example:

  • My wealthy clients viewed their financial situation from a position of self-responsibility, whereas my debt clients were victims of their finances.
  • My wealthy clients planned their finances, but my debt clients had no plan.
  • My wealthy clients organized their plans around delayed gratification, whereas my debt clients pursued instant gratification.
  • My wealthy clients associated their self-worth with intrinsic values, while my debt clients associated self-worth with extrinsic stuff.

These are just 4 examples from a long list of opposing traits. They are guidelines or tendencies that generally hold true. While there may be personal variation, on the whole the patterns were unmistakable. These mirror opposite attitudes produced mirror opposite financial results in life.

[Related Article: 7 Ways to Avoid a Debt Relapse]

Amazingly,when I applied these principles, coaching habitudes instead of specific financial actions, the debt problems solved themselves over time.

This is obvious when you think about it. Your daily financial decisions result from your habits and attitudes that drive those decisions. For example, consider the following choices and their obvious financial implications:

  • Do you buy fancy coffees throughout the day or do you make a pot of your favorite coffee in the morning and bring it with you?
  • Do you lease a new car every few years or maintain your reliable used car?
  • Do you dine out frequently or cook healthy meals at home?
  • Are you a minimalist or do you desire the latest designer fashions?
  • Do you shop to get what you need or do you shop for pleasure and recreation?

When you focus on financial solutions, you treat the symptom instead of the cause. When you focus on your attitudes and habits, you focus on the cause, and the symptom takes care of itself automatically without any self-discipline.

Let me be clear — this isn’t a quick fix. The results you produce from this approach will occur gradually over time. Just as it took time to accumulate the debt, it takes time to unwind it when you work with root causes.

However, the solutions are as permanent as the new attitudes and habits you adopt — and that makes all the difference.

The truth is the financial results of your life aren’t dependent upon how much money you make. Instead, they depend on how well you manage the money you already have. This article series will show you the easiest way to adopt wealthy habits and attitudes and be smarter with your money so that you can get out of debt — permanently.

[Related Article: 5 Ways to Get Out of Debt: Which Will Work for You?]

Todd Tresidder is a financial coach and consumer advocate. His unconventional take on worn financial topics has appeared in the Wall Street Journal, Investor’s Business Daily, Smart Money magazine, Yahoo Finance, and more. He’s authored 5 financial education books including How Much Money Do I Need To Retire?, Variable Annuity Pros and Cons, and the 4% Rule and Safe Withdrawal Rates In Retirement. 

Save more, spend smarter, and make your money go further

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Source: mint.intuit.com

Apache is functioning normally

This is a guest post from Lily of The Honest Dollar, a great new personal finance blog.

The most common ways to increase your salary are to get promoted or to negotiate a raise. But promotions don’t come along often, and negotiating a raise may or may not result in a salary increase. So what do you do when you want to make more, but you’re between promotions and raises? The good news is that you’re not out of options. The bad news is that you’ll need to get creative and may have to use a little elbow grease.

Low Effort, High Reward
401(k) match. Perhaps the easiest way to get your employer to give you more money is to contribute to your 401(k), if your employer offers a match. A 2007 Hewitt Associates survey [PDF] reports that 98% of employers put some money into 401(k) plans, and two-thirds provide matching contributions. According to Hewitt, the most common type of match is 50% of employee contributions up to 6% of pay. This means that if you make $60,000, then contribute $3,600 to your 401(k), your employer will kick in $1,800. That’s free money that should never be left on the table, if you can help it.

Employee referral rewards. Most companies have employee referral programs, where an employee recommends a candidate and earns a bonus if the referral is subsequently hired. This is an effective way for firms to discover great candidates without paying exorbitant headhunter fees. But referral programs are not always well-publicized. Check with your HR department to see if a program exists and what the rewards are for referrers, then consider submitting a few referrals. Tread carefully, since referring a bunch of people who are not qualified to work at your company will reflect negatively upon you.

High Effort, High Reward
Ask for a better 401(k). Maybe your 401(k) doesn’t offer enough choice to fully diversify your retirement savings. Maybe the only investment options carry high fees. Maybe you have to pay fees to the 401(k) administrator. If your 401(k) plan is unreasonably awful, it may be time to speak up and ask for a change; SmartMoney offers a few tips to lobby for a better 401(k). While this does not directly increase your income, it puts your money to work more efficiently. High fees can cost you thousands of dollars by the time you’re ready to retire, and bad investment options can cost even more.

Improve your skill set. Even if your company didn’t give you a raise this year, the best way to score one next year is to make yourself indispensable. One way to do this is to constantly improve your knowledge and skill set. This can mean taking training classes offered by your employer, seeking additional certification in your industry, or even getting an advanced degree. The good news is that some employers are willing to pay for education. Large companies may have established tuition reimbursement programs. If you’re willing to do the paperwork and put in the study hours, you can get a graduate degree at a huge discount. [J.D.’s note: Even small companies can have tuition reimbursement programs. At the box factory, we’ll pay for one class per term. Nobody ever takes us up on it, though.]

Non-Cash Rewards
Ask for non-monetary rewards. Bankrate.com notes that it’s difficult to negotiate hard benefits, or “employment areas defined by statues and tax deductions [including] health benefits, pension plans and 401(k)s, stock options, insurance programs, tuition reimbursement and day care.” However, employers have more leeway when it comes to non-regulated benefits and rewards that don’t necessarily require a large and lasting cash outlay, like a raise would. For example, consider asking for an extra week of vacation or a flexible work arrangement where you can telecommute once a week. After all, time is money, and getting more free time (especially free time with family or friends) can be a lot more valuable than a meager raise.

Volunteer within the firm. There are many ways to contribute to your company outside of excelling at your job. Join the recruiting team and participate in school events and interviews. Offer to write a company blog. Even organize the firm holiday party. These volunteering gigs may not have immediate or monetary rewards, but they will expand your in-firm network outside of your department. This might create career opportunities that would not otherwise have been available, and it doesn’t cost you anything but your time.

Get a Virtual Raise
Taking advantage of all your company has to offer will require some effort on your part. In the short term, your paycheck may not get bigger, but you may be making more money nonetheless. On a $60,000 salary, in a single year:

  • You can get $1,800 by getting the maximum 401(k) match if you company matches 50% of employee contributions up to 6% of salary.
  • You can get $1,500 for referring a candidate who is later hired by your company. (Payouts vary, but the number seems reasonable given going rates in technology, nursing, and chemical engineering.)
  • You can get $11,000 more out of a 401(k) contribution of $10,000 this year if you manage to lower your investment cost by 0.5% per year for the next 20 years by convincing your company to cover administrative fees or offer lower cost funds.
  • You can get $5,000 in tuition reimbursement. Of course, you also get the benefit of additional education and accreditation.
  • You can get the equivalent of $1,200 in salary if you get one additional week of paid vacation.
  • You can get priceless career opportunities by expanding your network through volunteering opportunities within your firm.

Taken together, those are over $20,000 in non-salary benefits. Opportunities vary at every company, but you won’t get a dollar if you don’t try.

Source: getrichslowly.org

Apache is functioning normally

By Peter Anderson 3 Comments – The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited December 9, 2019.

For a while now on this site you’ve heard me extolling the virtues of the Roth IRA, talking about how I think it should be a part of any person’s investment plan, and how it’s a great tool to help diversify your retirement savings.

When I have written the posts I’ve mostly focused on the Roth IRA because that’s the main avenue we’ve taken part in for our own investing. We would have liked to invest more, but some unforeseen (and foreseen – the baby) medical events in the past couple of years have kept us from investing too much.

Now that we’re starting to have a bit more free money to save and invest we’re looking more at the options we have available to us.

My company recently made some changes to the company 401(k)plan moving to a new plan administrator. With the move we’re going to have a lot better low cost investing options in our plan with some good index funds from Vanguard now available, as well as there now being a completely new Roth 401(k)option.

Because we now have more and better choices our investing path will be slightly different. Here’s what we’ll be doing now:

  • Invest in Roth IRA to max: First, we would like to invest in our Roth IRA to the max of $6000 per investor. So that means $6000 for each of us, my wife and I. Little Carter has no earned income so he’ll have to wait. 🙂
  • Invest in company 401(k) & Roth 401(k)to max: Next we’ll be investing in my company 401(k)and Roth 401(k)to the max. For 2020 that means a combined total of $19,500.
  • Investing in taxable accounts: Next we would be investing in taxable investments, most likely through an account with Betterment.com, M1Finance or one of the other robo-advisors. That may not be happening much this year since we’re also trying to save for a down payment for a house.

The History Of The Roth 401k

From Wikipedia:

The Roth 401(k) is a type of retirement savings plan. It was authorized by the United States Congress under the Internal Revenue Code, section 402A,[1] and represents a unique combination of features of the Roth IRA and a traditional 401(k) plan. As of January 1, 2006 U.S. employers have been free to amend their 401(k) plan document to allow employees to elect Roth IRA type tax treatment for a portion or all of their retirement plan contributions. The same change in law allowed Roth IRA type contributions to 403(b) retirement plans. The Roth retirement plan provision was enacted as a provision of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA 2001).

Roth 401(k) Contribution Limits

The Roth 401(k) is subject to the same contribution limit as the regular 401(k). For 2020 that means there is a contribution limit of $19,500. If you are 50 or older the limit is bumped up to $26,000.

Note: The Roth 401(k) and the regular 401(k) are subject to the same contribution limit. In other words the total contribution for both account types is $19,500. You can’t contribute $19,500 to one account and then an additional $19,500 to the other. So the Roth 401(k) offers no new opportunity to invest, just the opportunity for a different tax treatment than the regular 401k.

Roth 401(k) Withdrawals

I would never suggest taking money out of a retirement plan before you actually retire, but in some cases of hardship and so forth it may be necessary. Here are the rules for taking distributions from your Roth 401k(k) account.

Qualifying Distributions

In order to withdraw your money without tax penalties you need to have had the account for at least 5 years as well as being at least 59½ or disabled. Required minimum distributions begin at age 70 1/2, unlike the Roth IRA which has no RMD.

Non-Qualifying Distributions

If you need to take the money out for other reasons and you don’t meet the above criteria (5 year account/59.5 years), then you will see penalties. For the Roth 401(k) you have to report taxable income in proportion to the account’s earnings when you take a distribution.

For example, if 70% of the money in the account is from your contributions and another 30% is from earnings, your distribution will be 30% subject to taxes and penalties even if the amount you withdraw is less than the amount of your contributions. This sets it apart from the Roth IRA which allows tax free withdrawals of your contributions at any time. So again, there will be a 10% penalty and the regular tax rate charged on the proportion of your early withdrawal that is attributable to earnings.

The situations where you can take a non-qualified distribution are limited, so seek tax advice when heading down that road.

Benefits Of Roth 401k

The Roth 401(k) has several benefits that should be noted.

  • Higher contribution limits than the Roth IRA: While the Roth 401(k) has the same after tax contributions, it has a higher contribution level than the Roth IRA which tops out at $6000/year.
  • Rollover option: If you leave a company you can roll a Roth 401(k) directly over into a Roth IRA.
  • Good for high income individuals: High income individuals are limited when it comes to contributing to a Roth IRA. No such limitations exist for Roth 401(k).
  • Post tax contributions mean you pay no more tax: Like the Roth IRA you won’t be paying any further tax on the money or earnings in retirement. It’s a good way to diversify tax risk.

The Roth 401(k) combines some of the great parts of the Roth IRA – the tax free withdrawals at retirement – with the higher contribution limits of the traditional 401k. Because of that it’s a great choice for a wide variety of investors, as long as their company’s plan offers the Roth 401(k)as an option – which not all of them do.

Do you have a Roth 401(k)option in your plan, and are you taking advantage of it? Tell us your thoughts on the Roth 401(k)in the comments!

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Source: biblemoneymatters.com

Apache is functioning normally

When planning for the overall financial security for yourself and those you love, life insurance should typically play a part. This is because the proceeds from a life insurance policy can be used to ensure that dependents and survivors won’t be left with having to pay a debt or other expenses out of their own pockets. These funds can also be used for ensuring that the daily living expenditures of a spouse and children can continue – without those you care about having to go into a financial hardship, or even to change their lives drastically.

If you are in the process of shopping for life insurance – or you soon will be – then several key factors are important to keep in mind. These include securing the right type and amount of insurance coverage, as well as making sure that the company you plan to purchase the coverage through is safe and stable financially, and that it also has an excellent reputation for paying out its policy holders’ claims. One carrier that meets these standards is Primerica.

The History of Primerica Insurance Company

Primerica has been in the business of offering term life insurance that is affordable since 1977. Since its beginning, the company has had a key focus on serving middle America’s “Main Street” families in neighborhoods across the country. Primerica was started by Arthur (Art) Williams, a former high school football coach turned life insurance advisor.

Within just the first few years of operation, the company contracted with Massachusetts Indemnity and Life Insurance Company – and by 1982, the company had gone public and started trading its stock on the NASDAQ market.

The company takes more of an educational approach, and in addition to insurance coverage, it also focuses on educating its prospects and customers. For instance, the company’s complimentary Financial Needs Analysis asks some important questions to pinpoint exactly where an individual or family is on their goals, and then it suggests various financial solutions that fit both their needs and their budget.

There are currently three components to Primerica’s life companies. These include the following:

  • Primerica Life Insurance Company
  • Primerica Life Insurance Company of Canada
  • National Benefit Life Insurance Company

Primerica’s products are offered through independent representatives, many of whom work on a part-time basis. Over time, Primerica has earned numerous awards and accolades, including being named to the 2015 Forbes list of America’s 50 Most Trustworthy Financial Companies. The company has it main headquarters in Duluth, Georgia.

Primerica Life Insurance Review

Today, Primerica is a leading provider of term life insurance in the industry. The company pays out an average of $3.5 million in benefit claims every day – and more than 90 percent of these allegations are paid out within 14 days of the claim being submitted. Currently, Primerica serves more than 4.3 million customers and policy holders.

The company currently has more than $728 billion of life insurance in force. A significant portion of the policies that are sold via Primerica agents are done so using the “Buy Term Invest the Difference” philosophy. This alludes to having clients purchase affordable life insurance, and use the remainder of their funds (that may have been spent on more expensive permanent insurance protection) to invest in mutual funds and other appropriate investments for the client.

Using this concept, Primerica believes that people should look at purchasing life insurance in the same manner that they view buying auto, health, or home owner’s insurance – in other words, maximize the amount of the coverage and invest the difference. Doing so can provide individuals and families the ability to accumulate more money, and in turn, live a stress-free retirement in the future.

Certainly, one of the key advantages of the term life insurance products that are offered through Primerica is the lower rates (as compared to a comparable permanent life insurance policy). While an insured can get a nice amount of coverage for a reasonable rate, especially if they are young and in good health at the time of application, it is important to keep in mind that term life insurance is only issued for a set period, such as ten, fifteen, twenty, or thirty years. Then, once the initial policy has expired, it will be required that the insured renew the policy if they want to keep coverage in force. This, however, will typically be at a much higher premium rate, given the insured’s then-current older age.

However, for those who are seeking a way to cover “temporary” needs, such as the payoff of a mortgage and ensuring that a child or grandchild has enough money to attend college in the future – then a term life insurance policy could be a viable option.

Insurer Ratings and Better Business Bureau (BBB) Grade

Due to its robust and stable financial footing, and the timely way it pays out claims to its policy holders, Primerica has earned high ratings from the insurer rating agencies. This includes an A+ (Superior) by A.M. Best Company, of which less than 20 percent of life companies meet this standard.

Also, Primerica has been an accredited company via the Better Business Bureau (BBB) since January 1, 1980. The company has been provided with a grade of A+ by the BBB, on a scale of A+ to F.

Over the last three years, Primerica has closed out a total of 140 customer criticisms through the Better Business Bureau (12 of which were closed out within the past twelve months). Of the total 140 customer complaints, 77 of them focused on problems with the company’s products and services, 33 focused on billing and collection issues, and the other 30 had to do with advertising and sales issues.

Life Insurance Coverage Offered Through Primerica

Primerica offers straightforward and affordable term life insurance coverage. Many of the policies that are sold by this company offer renewal options, so that the insured may continue coverage once the initial period of the policy has been surpassed.

There are many different ways in which policy holders may structure their insurance coverage through Primerica, as the company offers individual riders and add-ons like terminal illness benefit, waiver of premium, and increasing benefit riders.

Primerica offers value through their unique approach to buying life insurance. Its primary life insurance offerings include the TermNow and Custom Advantage plans. Both options offer guaranteed insurability to the insured’s age 95, as well as a terminal illness benefit, industry leading renewal options, affordable renewal rates, and the flexible use of riders that can help with increasing the coverage and / or better “customizing” the policy to better fit the insured’s needs.

Other Products and Services Available Via Primerica Insurance Company

In addition to term life insurance coverage, Primerica also offers several other products and services that can provide solutions to its clients. These include:

  • Investments – Primerica offers mutual fund investments so that clients can put away money for the future. In many cases, clients may have the option of either investing a lump sum, or dollar cost averaging whereby they invest a certain amount of money on a regular basis over time.
  • Auto Insurance Coverage – Primerica offers auto insurance coverage through the Primerica Secure Referral Program. Here, clients can obtain competitive rates in ten minutes or less, and most individuals will qualify for this coverage.
  • Home Owners Insurance Coverage – As with the auto insurance coverage, the home owners insurance coverage that is offered via Primerica is done through the Primerica Secure Referral Program, which can make it easy for individuals to find out the quote they are eligible for, and to move forward if it is the plan they choose.
  • Long Term Care Insurance – Primerica also offers long-term care insurance coverage via some of the oldest and most experienced companies in the long term care insurance market place. Having this coverage can help clients to ensure that their other assets and savings are secure and in place for their originally intended purpose.
  • Pre-Paid Legal Services – While many people may need the services of a lawyer, not everyone can pay the high fees that attorneys are known for charging. With legal insurance protection, though, the playing field is leveled. By having a legal insurance plan, clients can access a plethora of different services, such as will creation, legal consultation, motor vehicle-related benefits, durable powers of attorney, IRS audit assistance, and probate benefits.
  • Identity Theft Defense – Today, identity theft is the fastest growing crime – which puts everyone in harm’s way when it comes to having their identity stolen. By having identity theft protection, though, if an incident occurs, the client may be covered from a financial perspective, as well as via a long list of other support services.
  • Debt Reduction / Payoff Solutions – The debt solutions that are offered through Primerica can help individuals and families to get on the road to debt freedom. The Primerica Debt Watchers product allows clients to use the information that is contained in their Equifax Credit Report to put together a simple to understand plan towards paying off their debt. This differs from many of the other debt relief products that are found in the market place today because it doesn’t just limit clients to seeing debts on their credit report, but rather to create an overall plan for becoming debt free.

Also, in addition to the other educational solutions and concepts that may be provided include the following:

  • High Cost of Waiting
  • Pay Yourself First
  • Theory of Decreasing Responsibility
  • Rule of 72
  • Power of Compound Interest
  • Debt Stacking

Being out of debt, and well protected with life insurance and other coverage, can make clients’ lives much easier.

How to Get the Best Life Insurance Rates with Primerica Insurance Company

If you are seeking the best rates on life insurance through Primerica – or from any other life insurance carrier – then it is recommended that you work in conjunction with an independent life insurance agency or broker. In doing so, you can compare different life insurance policies, companies, and premium prices – and from there, you can choose which one will be the greatest for you.

When you are prepared to proceed with finding out the best coverage option for you, we can offer support. We are an independent life insurance brokerage, and we work with many of the best life insurers in the market place today. We can get you all the necessary details needed to make a well-informed life insurance coverage buying decision. We can do so for you very swiftly, simply, and conveniently – all from your computer – and without you having to meet in person with a life insurance agent.

We understand that the process of purchasing a life insurance policy can seem a tad bit overwhelming. There are many different variables and components you need to consider while choosing the right coverage for your needs. But there is good news. This process can be so much easier when you are working with an ally on your side who can point you in the right direction. So, contact us today – we’re here to help.

Source: goodfinancialcents.com

Apache is functioning normally

Save more, spend smarter, and make your money go further

As we ring in the New Year, financial resolutions top our to-do lists, from saving more to finding a new, better-paying job and getting out of debt once and for all.

As you map out your next money move, take heed of some of these top market and economic predictions for added guidance.

Higher Borrowing Costs

Looking to open a new credit card or apply for a mortgage this year? It may be wise to act sooner than later.

With the broader economy improving since the financial crisis (e.g. the national unemployment rate is hovering at 5%, down from nearly 10% in 2009), economists, including Janet Yellen, chairwoman of the Federal Reserve, believe it’s time for a tightening of monetary policy (translation: boost interest rates to curb inflation.)

Fortune Magazine’s “Crystal Ball,” says we can expect a three-quarter-point increase by next Thanksgiving to 1.25%.

When the Fed raises the overnight bank-lending rate (aka the Fed Funds rate) that typically has a domino effect on interest rates for other mainly short-term financial products like credit cards and car loans.

What this means for us? If you’re in the market to borrow money, I recommend reviewing your credit ahead of any applications to see what improvements (if any) are necessary. The higher your credit score, the better chances you have of achieving the lowest interest rates on the market.

If you’re seeking to refinance or buy a home this year, also aim to lock in a rate as soon as possible. While an increase in the Fed Funds rate isn’t necessarily a precursor to higher mortgage rates, we’re already seeing an uptick on 30-year home loans to above 4%. And Fannie Mae’s National Housing Survey shows that more than 50% of consumers think mortgage rates will continue to elevate over the next year.

Finally, for those of us with adjustable rate loans (e.g. some student loans and mortgages) we may want to pay off our debt more aggressively or refinance to a fixed-rate loan to put a lid on rising monthly payments down the road.

Less Sticker Shock in Housing

With home loan rates expected to track north, home values may see some cooling in 2017. That’s because when mortgage rates jump, demand for housing tends to slowdown, placing pressure on sale prices.

Not to mention, after riding a hot streak in recent years with prices across the country hitting near pre-recession levels, real estate experts at Zillow.com now predict a “normalizing” market with more moderate price growth of 3.6% across the country in 2017, compared to 4.8% last year.

Prepare for more affordability in areas that have experienced the steepest gains. In Los Angeles, for example, home prices have trended considerably higher in recent times (up 7.3% over the past year, alone). In 2017, though, the city can expect a tempering of home values to a growth of just 1.7%, according to real estate website Zillow.com.

As for rentals, after double-digit surges, rents in many large metro areas will also see slower growth in 2017, per Zillow. Rents across the country are expected to rise approximately 1.7 percent this year to about $1,429 per month, down from a 6% appreciation reported last year.

Partly to blame for the cool down in rent is a glut in inventory. Builders were very busy over the last few years, but the demand for new units in some hot neighborhoods like Brooklyn, N.Y. is failing short of supply.

As a result, some landlords at higher end luxury apartment buildings in that borough have been striking sweet deals with renters since last summer, The New York Times reports.  For example, at 7 DeKalb, a new high rise in Brooklyn, “the landlord is offering two months of free rent with a 14-month lease, and use of the building’s fitness center and other amenities for a year without charge.”

That’s a good reminder to prospective renters everywhere that it can never hurt to negotiate, especially this year!

Have a question for Farnoosh? You can submit your questions via Twitter @Farnoosh, Facebook or email at [email protected] (please note “Mint Blog” in the subject line).

Farnoosh Torabi is America’s leading personal finance authority hooked on helping Americans live their richest, happiest lives. From her early days reporting for Money Magazine to now hosting a primetime series on CNBC and writing monthly for O, The Oprah Magazine, she’s become our favorite go-to money expert and friend.

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