Thursday, May 31, 2007
Many graduates will enter the work world and others will continue on with their education, but chances are whatever they do they are not financially prepared. As important as their academic education is, their financial education is questionably the most important in securing their future.
So, how can you give a gift to a graduate that shows your love and caring for them while also pleasing the recipient? Sure a nice sports car or some cash would be pleasing, but what does that say to them as they are entering a world where debt and lack of savings runs rampant? It could be that they have earned these special gifts and now is the time to reward, but another gift may be more appropriate.
With that in mind, a gift that promotes financial education may be better suited for a recent graduate entering the cruel world. Here are a few financially intelligent gift ideas for high school or college graduates that will prepare them for a lifetime of financial success.
1. Publication - Many authors offer books, games and audio/video publications that can prepare anyone for today’s fast-paced world. A few of my favorites are George Clason, Napoleon Hill and Zig Ziglar, to name a few. Their publications provide a variety of knowledge from Biblical guidance to modern day wealth creation. Their books also provide a multitude of information and advice for building a solid financial foundation.
2. Training Seminar – A real estate, entrepreneurship, or similar financial seminar taught by a respected speaker such as Robert Kiyosaki, will provide a lasting impression on a young mind that will last a lifetime. At the seminar they will most likely meet others who are ambitious, and this could be encouraging to a budding entrepreneur. Many seminars are primarily sales pitches to sell products, so make sure you choose one that is educational in content.
3. Whole Life Insurance – While on the surface this may sound unimportant to a young person that is healthy, but it will provide a lifetime of financial stability while providing guaranteed security. Permanent, investment grade life insurance can also contribute to the graduate's continuing education in the future, or for the education of their children. It could also be used for many other financial obligations, or as a loan to purchase a car or home. Primarily they will be protected from unexpected loss or illness, and by showing them how life insurance can be used as a financial tool, you can share with them a gift that will keep on giving.
To learn more about financial gifting to graduates read our newsletter Gifting to Young Adults
Give the gift of Financial Education, subscribe graduates to Financial Intelligence
Monday, May 14, 2007
Discover if whole life insurance is right for you. Are you wondering what to do when it comes to purchasing life insurance? Losing someone you love is always difficult, but emotional struggles don't have to be compounded by financial difficulties.
Life insurance secures your loved ones future. Life insurance provides tax-free cash benefits, in most cases, to your heirs after your death. This cash (known as the death benefit) can help to replace your income and can secure your family's financial needs.
Typically, Whole Life Insurance has premiums that remain fixed for the life of the policy. A part of the premium is used to accumulate a guaranteed cash value thus adding a savings element. Dividends, which are not guaranteed, may also increase policy cash value. The policy remains in force during the insured's entire lifetime, provided premiums are paid as specified in the policy.
Term insurance is, as it suggests, for a given term. Usually 10, 15, 20 and 30 year terms are available. As you get older the companies will only write policies with shorter terms. The death benefit will disappear when your term expires, or if you renew will increase dramatically. While term insurance provides excellent savings benefits for a short period of time, it is not a long-term solution. The lost opportunity costs and potential loss of the death benefit are the main vulnerabilities.
When deciding between whole-life and term you have to ask yourself if you want to rent or own? With term you are renting and with whole-life you own. While many insurance agents only talk about the death benefit, they seldom ever discuss how many death claims are actually paid on term insurance. This is the biggest reason why term insurance is cheap.
Permanent or whole life insurance can also provide a living benefit. Part of your premium goes into a cash reserve and accumulates tax-deferred. You can generally access this cash reserve at any time for many purposes including critical illness or loans. It can also be used for many other needs like education expenses and retirement income.
Bottom line, whole-life insurance will be there for you and your family, as long as premiums are paid, for your entire life. When considering Life Insurance, speak to a professional and make sure you consider things like retirement, taxes, inflation and your estate.
For more information please visit www.legacyinsuranceagency.com
------------------------------------------------------------------------------------------------Written by: Barry Page President, Legacy Insurance Agency, PLLC Ocean Springs, MS 39564 Barry Page is a licensed insurance agent. (c) Copyright 2007 www.legacyinsuranceagency.com