Personal Finance

Personal Finance.

Health Insurance

• 1-What kind of health insurance plan do you have? Are you happy with it?

Reword these paragraphs in your own words. Do not use the same exact words as in the paragraphs.

Life Insurance

• 2- I like the “Family Need” method with the worksheet to use to break down what the actual monetary need would be. The other methods seem very simplistic, and while they all allow for some form of security, the “Family Need” method takes individual needs into consideration. This may amount to a higher monthly fee though. This is another item that needs to be taken into consideration. If someone cannot afford the insurance, it is not right for them.

Focus on personal finance

3- The book mentions four different types of wills: simple will, traditional marital share will, exemption trust will, and stated amount will. When picking a will it should be determined on how much property and assets you own. A simple will leaves everything to a spouse. A traditional marital share will, will split the total of assets in half, one for the spouse and the other to their heirs. It may also be left up to a trust in which one person is designated to decide on who gets what. The exemption trust will is when everything is left to the spouse except for a designated amount which is put in a trust fund for the living spouse. The stated amount will, will allow a person to give specific amounts to specific beneficiaries.

Focus on Financial Planning, Appendix A

4-The Federal government is the single largest source of financial assistance for postsecondary education for students with or without disabilities. Students with disabilities should consider all types of funding sources since many scholarships are not disability specific. There are different types of financial aid; grants, scholarships, work-study, loans, etc. Be sure you understand the type of financial assistance you are seeking. If you have a question about the repayment of loans, information specialists who staff the US Department of Education’s Financial Aid Information

Week 4 Electronic Reserve Readings

• 5-A 529 plan is a savings plan that is designed to encourage individuals to save for potential college costs in the future. One of the major benefits of these plans is that contributions grow tax free. As long as the benefits are used for college expenses, you will not be taxed on your returns. Another benefit is that contributions are tax deductible. This means that any contributions will help to reduce your tax liability.

Life insurance needs

6- I recently got married and had a child about a year later and this chapter actually made me feel somewhat insecure about my current coverage provided by my employer, which I believe is about enough to cover a funeral. It is fairly cheap to increase my insurance coverage through my employer so this is what I will pursue in the short term. In the long term, the return of premium insurance, which pays back all your premiums at the end of the term, and the universal, which has a cash value that can be borrowed against, seem to me to be the most enticing.

Need to Know – Financial Survival Kit

• 7-Emergency Fund: an emergency fund of 6-12 Months expenses. Keep most of it in an online or credit union savings account, because they tend to pay higher interest rates. Debt Free Lifestyle: Debt is enslavement. It hinders your freedom to make life decisions and inhibits your wealth building ability. For example, if you have large debt obligations, you might feel like you need a paycheck so badly that you would fear leaving a bad or abusive job. However, there is a difference between Good Debt and Bad Debt. Good debt makes you money and is usually tied to a safe and secure stream of passive income. Bad debt is an expense. It is a burden and should be avoided like the plague. An example of good debt is wisely acquired mortgages. Some examples of bad debt are; credit card debt, any type of title loan, car loans, boat loans, and pay day loans. Just remember that any debt used to consume is bad debt.

Becoming an Educated Investor

• 8-This video covers the benefits of becoming an educated investor. Marian Blanton, a schoolteacher who learned how to invest wisely and turned her teacher’s salary into an investment portfolio worth $1.3 million. Better investing doesn’t happen accidentally. Good investors work at it. They study. They learn. If you feel like money sitting in cash or money market accounts is wasting away, think again. Cash can be a great place to store money while you research, study and learn how to make smart decisions with it. People with cash have the ability to take advantage of great investment opportunities when the real estate or stock markets go down. Those who were fully invested don’t have those same opportunities.

Personal Finance

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