Many Americans have been sold term life insurance due to its supposed low cost. However, this totally fails to account for the Lost Opportunity Cost (LOC), in other words, what the money spent on term life insurance could accomplish elsewhere. You’ve all heard the radio ad along the lines of, “I got him 1 million […]
The most common method of producing retirement income is the SWIP (Systematic Withdrawal Plan). It appeals to consumers because it is driven by the underlying desire of people to ‘have their cake and eat it, too’…or at least the hope that you can. Psychologically, when a person has acquired something, they tend to want to […]
There are some who will advocate that you pay off debt, at all costs. Having debt can even be portrayed as an evil thing. Debt can be positioned in your financial life in three different ways: Good debt, bad debt and debt that needs to be restructured. To counteract the negative connotations of debt, this […]
It happened to me again this past week. I had a life insurance policy holder e-mail me with this question: When I die do I get my death benefit and my cash value or just my death benefit? Let’s start by saying she won’t get anything – she will be dead! I asked her and […]
According to Dave Ramsey, in a YouTube video titled: Mutual Funds vs. Market Index Funds the two most important factors for financial success are: first you must invest, and secondly what Rate of Return (ROR) you earn. Inicisic has established and documented that Dave Ramsey’s advice is predicated on earning a 12% ROR every year […]
Today we cover a simple example of why Rate of Return (ROR) shouldn’t be our primary focus. Instead our primary focus should be on financial strategy. To make the point we follow a simple story. Use the following chart as a reference to the scenarios as the story unfolds Pam is the owner of a […]
It is only fitting to launch this blog with a discussion regarding Rate of Return (ROR). To do that, we will critique a video by The Money Minute titled: Becoming a Millionaire with 5 Dollars a Day – Investing 101 (https://www.youtube.com/watch?v=4whBx8unitU) A story line in the video is about Johnnie, who is 10 years old […]