If you have purchase a Permanent Life Insurance Policy in the last 10 years then this article would be of interest to you. The different types of Universal Life Insurance Policies were sold with an assumed Interest Rate of 4 - 5 % on the fixed side or upto 12 % on the variable side. The interest rates on the fixed side are close to 1.5% . If the situation continues for a few more years this will cause a lot of strain in those Life Insurance Policies where the Costs start to eat into the Cash values and causing the Life Insurance Policies to Lapse even when the premiums are being paid in full.To protect yourself from that you want to look for policies which offer you a Guaranteed Death Benefit with a no-lapse clause so the Death benefit is guaranteed so long as the premiums are being paid irrespective of what happens with the interest rates. Please call me if I can be of help at (904) 233 - 5985. CA 0D55305. Please check out my website at :
http://sacramentoeducationalworkshops.com/
Monday, August 30, 2010
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Friday, December 25, 2009
What is Financial Planning?
Nowadays we keep hearing the term "Financial Planning" through different Media. Have you ever wondered what it really was?
Financial Planning is the process of Identifying your Financial Goals and coming up with a plan to either achieve it or even exceed it.
An e.g. of your Financial Goal could be Planning for Retirement or paying for your kids Education.
Now why would be waste our time trying to "plan" for our future when we could just save as much as we can each month and hope that we hit our goals?
Try to imagine how a big builder would build a mall on a big piece of land. How about if he just starts laying the foundation and start building the shops and he hopes he gets everything right?
But we all know thats not the way it works. Before a single brick is laid on the ground , there is an architect who lays out the "Blue Print" for the entire Mall...Where do we fit the J C Penneys and the Food Courts and the Movie Theatres and so on.
Coming back to our example Financial Planning is the "Blue Print" of your Financial Future. Because there are so many products with so many different features and different tax consequences depending on what you are investing for. So after all the goals have been identified , a good Professional would be able to recommend to you a good Portfolio of products which should hopefully increase the chances that you would actually achieve your financial Goals.
Financial Planning is the process of Identifying your Financial Goals and coming up with a plan to either achieve it or even exceed it.
An e.g. of your Financial Goal could be Planning for Retirement or paying for your kids Education.
Now why would be waste our time trying to "plan" for our future when we could just save as much as we can each month and hope that we hit our goals?
Try to imagine how a big builder would build a mall on a big piece of land. How about if he just starts laying the foundation and start building the shops and he hopes he gets everything right?
But we all know thats not the way it works. Before a single brick is laid on the ground , there is an architect who lays out the "Blue Print" for the entire Mall...Where do we fit the J C Penneys and the Food Courts and the Movie Theatres and so on.
Coming back to our example Financial Planning is the "Blue Print" of your Financial Future. Because there are so many products with so many different features and different tax consequences depending on what you are investing for. So after all the goals have been identified , a good Professional would be able to recommend to you a good Portfolio of products which should hopefully increase the chances that you would actually achieve your financial Goals.
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