After writing Part 1 of “Why I Disagree…”, I got a call from the 32-year old dad with the infant daughter, addressed in Part 1. Here is why he would have been better off skipping life insurance when single. This young couple have been renting for $900/month and want to buy a modest house for $130k. […]
More than once someone has come to me, about to make a life insurance mistake because “Dave Ramsey said…”. I admire Dave as he has done a ton of good; but regarding insurance, I have to take issue. Here is one of Dave’s insurance commentaries which I think miss the mark. One recent article was […]
I recently got a call from a mom and adult daughter, neither married, who had had equity no-load mutual funds within IRA’s. They got spooked during the volatile first quarter of 2016, heard a fellow on the radio promoting a strategy “safe from the stock market”, and jumped out of the frying pan into the […]
Do you own several life insurance policies? People tend to buy policies piecemeal in response to life events like the birth of a child or an agent’s sales pitch. Collecting life insurance policies is often uncoordinated and inefficient. Just having multiple policies, each with an annual policy fee, and missing volume discounts of larger policies […]
Many people pay monthly, quarterly, or semi-annually for things they could pay annually. Consider an insurance policy costing $1000 annually or $87.50 monthly. How much does it cost to pay it monthly? In absolute dollars, it’s an easy calculation: twelve $87.50 payments total $1,050 or $50 of annual interest. But if I have at least […]