Life Insurance
[money magazine]
The main purpose of life insurance is to protect your family's finances when you die. Permanent insurance does that for your entire lifetime, while also providing an investment component savings build within the policy and you can tap or borrow against this “cash value." In contrast, basic term insurance provides coverage for a set number of years for a much lower premium. At the end of the term, you typically get no cash back. But by then your kids will be grown and your house paid for, so the policy will have done its job. There are three main types of Life Insurance: Traditional Whole, Universal, and Variable. Whole has a fixed premium and guaranteed minimum growth. Universal allows you to raise or lower your premiums and resulting cash balance. Variable lets you choose how the cash is invested. When shopping for Life insurance I recommend you to go with a reputable company.
Integrity Advisors Pension Consultants Inc.
800 Westchester Avenue Suite N 409
Rye Brook, N.Y. 10573
Contact: Charles Gonzalez
914-288-8908 Office
914-251-0694 Cell
CR Consulting [ Recommends ]
Buying Life Insurance for your children when they are young. A Whole Life Plan can also be a great investment. The premium is minimal the plans are ten, fifteen, or twenty years. The younger the child the plans Cash Value will Double in Interest by the time they reach retirement age.
If you would like to learn more about becoming a Life Insurance Agent, CR Consulting recommends this website www.adbanker.com
Journal News
By Humberto Cruz
Roth Ira's and Compounded Interest
You may have read something like this before, but the numbers are worth repeating. Amanda, starting at age 20, socks away $2000 a year in her Roth IRA, putting the money in a diversified stock. She stops contributing at age 30 and never adds another cent. Her brother, Caesar, waits until he is 30 to start, then puts in $2,000 a year in the same fund until he is 65. Caesar contributed a total $ 70,000 compared to $20,000 for Amanda. But assuming an average annual compounded return of 8 percent, realistic if not conservative for a long-term stock fund investment, Amanda would have accumulated $462,647 by age 65, compared to $372,204 for Caesar.
The reason: With more time to let her money grow, Amanda benefited from the power of compound interest.
Knowledge of compounded interest is the most powerful motivator to get more Americans to save, according to a recent survey by the Consumer Federation of America. But based on years of federation research, most people underestimate the power of compound interest by two-thirds. The basic concept of compound interest is that the interest you make on your savings earns additional interest and that interest in turn makes more interest, and so on and on.
For example, if you deposit $100 in an account that pays 5% percent interest, you'll earn $5.00 and have $105.00 after one year. The second year, you will earn 5% percent interest not just on the original $100 but also on $5.00 interest you earned the first year. That makes for a total of $5.25 in interest, bringing our account value to $110.25 after two years. That doesn't seem like much. But even at a modest 5% percent compounded return, your money will double in a little more than 14 years. For typical rates of return, you can use the “Rule of 72" to estimate how long it would take your money to double. Just divide 72 by the rate of return. If you earn 8 % percent a year compounded, for example, it would take about nine years. If you earn 9 % percent, it would take about eight years. The way the math of compounding works, the growth in the account value is relatively modest at first.
Perhaps that's why so many people underestimate its eventual impact. Most of the growth of a long-term investment occurs in the later years. Therefore you must be patient.
CR Consulting recommends you go to your financial institution and start an IRA. Or look at my links & numbers page to learn more about this Investment. Age to start is 18 years old.
