Skip to main content

4 Best Investments To Make In 2018

It’s the dawning of a new year and you  finally  have some money to invest. Perhaps you just got a raise. Or, maybe an end-of-year bonus is burning a hole in your pocket. Either way, you need to be smart about investing if you want those extra dollars to count. Shutterstock The problem is, you have no clue  where  to invest your cash. While you’re aware of the myriad investing options available, the sheer number of possibilities is overwhelming. In the investing world, this is called “paralysis by analysis.” You spend so much time analyzing your options that you wind up putting it off and never investing at all. And eventually, the extra cash you set aside gets consumed by bills or unexpected expenses. In other words,  life happens. 4 Investments You Should Absolutely Make in 2018 If you want to make sure your extra cash doesn’t disappear, you need to invest it right away. A certain amount of analysis is fine if it helps you find the right investment options for your
Post a Comment

Why Insure Ourselves?


                When someone says that you can always self-insure, it does not mean going out and getting independent health insurance. Self-insuring means that you save up enough money to cover the related and possible expenses that may occur in the event that you need to use the insurance. Most people who self-insure only do so on life insurance policies, once they have built up enough wealth that their loved ones would be taken care of without the life insurance policy.


What Does It Mean to Self-Insure?           

     When you self-insure,  you basically pay for any accidents or bills yourself. You do not have insurance to cover the costs that insurance normally would. You pay for everything completely on your own. This means if your home burns down, you will have to pay to rebuild it. If you are in a car accident, you pay for the repairs and the medical bills. If you are sued as a result of the car accident, you are responsible for paying a lawyer and any judgement. If you are diagnosed with a serious illness, you pay for all treatment on your own.


 What Are the Risks of Choosing to Self-Insure?          

          An insurance policy is there to protect your finances. It will help protect you from going bankrupt from an illness, an accident or a natural disaster. The insurance company will help you if you are sued as a result of someone being hurt on your property or an automobile accident.
              It is best defense against a tragedy affecting your finances for years to come. It is vital to have most types of insurance (health, home, car and life) in most stages of your life.


Should I Self-Insure for Car Insurance?  

            It is the law to have car insurance, and so you should not self-insure for car insurance.

              Additionally car insurance protects your assets if you were in an accident. The car insurance company will help if you were sued for being responsible for an accident. When you consider your car insurance policy you should make sure that the liability coverage is high enough that the person would not come after your home or savings account.


Should I Self-Insure for Health Insurance?          

    Health insurance is another area where it is against the law to self-insure. The Affordable requires you to carry health insurance or you will be responsible for paying a penalty each year. Additionally, medical bills quickly add up in a catastrophic event or as the result of a serious illness. For example, it is not uncommon for health insurance costs to rise above a million dollars if you are diagnosed with and battle cancer. If you did not have health insurance, then you would not be able to pay for the treatment. A better option would be to purchase a high deductible policy, which has a lower premium rate, but covers you if the worst things were to happen.


Should I Self-Insure for Home Insurance?        

      Homeowner’s insurance is also important to have. The cost of homeowner’s insurance is small in comparison to the cost of replacing your home.              Even if you do have enough money to purchase a new home, you should have homeowners insurance. This is considered an asset and you should protect it properly. Many policies will also protect you in the event that someone was injured in your home and decided to sue you.


Should I Self-Insure for Life Insurance?
                The only time you should consider self-insuring is for life insurance. You should only do that when you are completely debt free and have enough saved that the insurance policy would not make a difference in whether or not your family would be taken care of. Until you reach that point you should purchase a term life insurance policy of about three to four times your annual income. Although, you may add a little bit more if you are heavily in debt. You may consider carrying life insurance even after you have reached this point if you want to pass on something to your children after you have passed away.


                 Insurance is designed to help protect your assets and your wealth. It helps to limit the financial impact of certain disasters and tragedies you may face. Although, it can be frustrating to give money to the insurance companies every month, it is worth the peace of mind of knowing that the companies will be there when you need them. You do need to choose reliable and trustworthy insurance companies, that will work with you as you file your claims.



Labels:

Comments

Post a Comment

Popular posts from this blog

10 Golden Rules for Stock Trading Success

Your stock trading rules are your money. When you follow your rules you make money. However if you break your own stock trading rules the most likely outcome is that you will lose money. Once you have a reliable set of stock trading rules it is important to keep them in mind. Here is one discipline that can reap rewards. Read these rules before your day starts and also read the rules when your day ends. Rule 1: I must follow my rules. Naturally if you develop a set of rules they are to be followed. It is human nature to want to vary or break rules and it takes discipline to continue to act in accordance with the established rules. Rule 2: I will never risk more than 3% of my total portfolio on any one stock trade. There are many old traders. There are many bold traders. But there are never any old bold traders. Protecting your capital base is fundamental to successful stock market trading over time. Rule 3: I will cut my losses at 5% to 15% whe
Post a Comment
Read more

How Much Money Should You Invest?

                               Many first time investors think that they should invest all of their savings. This isn’t necessarily true. To determine how much money you should invest, you must first determine how much you actually can afford to invest, and what your financial goals are.                  First, let’s take a look at how much money you can currently afford to invest. Do you have savings that you can use? If so, great! However, you don’t want to cut yourself short when you tie your money up in an investment. What were your savings originally for?                  It is important to keep three to six months of living expenses in a readily accessible savings account – don’t invest that money! Don’t invest any money that you may need to lay your hands on in a hurry in the future.                  So, begin by determining how much of your savings should remain in your savings account, and how much can be used for investments. Unless you have funds from another
Post a Comment
Read more

Investment Strategy

                 Because investing is not a sure thing in most cases, it is much like a game – you don’t know the outcome until the game has been played and a winner has been declared. Anytime you play almost any type of game, you have a strategy. Investing isn’t any different – you need an investment strategy.                  An investment strategy is basically a plan for investing your money in various types of investments that will help you meet your financial goals in a specific amount of time. Each type of investment contains individual investments that you must choose from. A clothing store sells clothes – but those clothes consist of shirts, pants, dresses, skirts, undergarments, etc. The stock market is a type of investment, but it contains different types of stocks, which all contain different companies that you can invest in.                  If you haven’t done your research, it can quickly become very confusing – simply because there are so many different types
Post a Comment
Read more