November 2011 - Page 2 of 3

November Love Drop: Say Hello to Marci.

Posted on November 16, 2011 - 6:57 am by Kristina Tahnyak

Hello Everyone. Here on DINKS Finance we support an organization called Love Drop; it is an organization that accumulates gifts, services, and financial contributions for a family in need each month. To date Love Drop has helped a pair of sisters who are battling Aplastic Anemia, a little girl in Atlanta, and a wife/mother with a Brain Tumor…amongst others.

I am personally a contributing member to Love Drop and I have to say that the best part of being a member of the Love Drop Community is knowing exactly where my money goes each month. All donations are hand delivered to the families in need around the country…hand delivered in person. The Love Drop Team posts a video each month of their surprise visit for each family.

This month Love Drop is coming together for Marci. She is a super strong wife and mother of three kids who lives in Colorado. Marci has already beaten breast cancer twice; unfortunately she is now battling a Stage IV cancer that has spread into her lungs and lymph nodes. Marci has spent the better part of the last decade fundraising for cancer research. She has also spent time with people whose lives have been affected by Cancer.

The most important thing in Marci’s life is quality time with her family, so Love Drop wants to give them an all-expense-paid vacation before she begins her toughest battle yet. Marci and her family are currently burdened with massive medical bills, but that is the least of Marci’s concerns. All that Marci wants to do right now is make sure that her family is able to relax and forget about the stress of her Cancer. Marci wants her family to enjoy their life, and Love Drop wants to help.

Here are some ways that you can help:

Travel – Let’s get creative – airline miles, timeshares, destination packages, money – whatever we can do! I know that we can figure out a way to help Marci and her family so let’s do whatever we can to get them on a family vacation.

Give a Dollar – Monetary Donations go towards all expenses for the family vacation. Love Drop wants to accumulate enough money to also give Marci and her family some spending money while they are on their family vacation.

Give a Gift or Service – If you or your business can offer a personalized service for Marci and her family, then please contact Love Drop. Gift Cards that Marci and her family can use on their vacation would be very helpful. Gift Cards for large restaurant chains would be much appreciated.

Share This Post With Others – If you have a Blog or a Website or if you are on Facebook, Twitter, or Linked In then Love Drop encourages you to share this post with your Fans, Friends, and Readers. The more people that know and learn about Love Drop the more money we can raise for Marci and her family.

Please click here to join Love Drop and help Marci and her family.

Is More Money Always Better?

Posted on November 15, 2011 - 6:52 am by Kristina Tahnyak 1

money advice, money tips, personal finance

Good Morning DINKS. In life we always want more. One of the curses of being a successful young professional is that we always want more…of everything. I always want a bigger apartment, a bigger office, and a better wallet collection. However having the best of everything can be a both a gift and a curse. If we make more money then we pay more taxes, if we buy a brand new car then we may always want to upgrade to the newest model. When should we stop? When is enough money enough?

Many people dream of having a fabulous life full of expensive jewellery, big houses, and an unlimited spending limit. I have to admit that the concept is nice, but when I seriously sit down and think about it I don’t think that I would want to live in a big house. I love living in my apartment, I wish that my boyfriend Nick and I had another room in the house but that is only another 100 to 200 square feet. I definitely don’t want to live in a multi-level home where Nick and I have to shovel snow and cut the grass. Two people don’t need that much room. More rooms means more dust and more dust means more cleaning…No Thank you.

The only piece of jewellery that I really want is an engagement ring from Nick… and then a wedding ring. When I graduated from University my Dad gave me a really nice watch engraved with my name. My Mother wanted to buy me a piece of jewellery with a diamond but I think that my boyfriend Nick should be the person who buys me my first diamond. Maybe I am old school, who knows, but that’s just the way it is. I do wear jewellery but not jewellery that makes me stand out in a crowd. I am only 5 feet tall and I definitely don’t want to be robbed. I love buying jewellery while I am on vacation; I am a big fan of rings and bracelets. Jewellery is not expensive when we buy it in little boutique shops or near the beach. Expensive jewellery needs to be insured and insurance premiums are an additional cost.

Having a multimillion dollar salary and a high net worth may be some peoples dream or goal, but we have to think about what we may be required to give up in order to make a lot of money. When I was making over $100,000 a year I was working more than 40 hours a week. My priority was work because my goal was to make as much money as possible and my relationship with my boyfriend Nick suffered. Being at the top is great while everything is good, but the fall is a lot farther when things go bad. I had a huge reality check when the market crashed in 2008 and I spent two and a half years picking up the pieces of both my personal and my financial life.

If I could have seen beyond the money back then I could have planned better for the future. The problem with making a lot of money is that we always think the money will be there; unfortunately that is not true. I was blinded by the finer things in life such as cars, vacations, and material goods; I was so blind that I couldn’t see the all good that was right in front of me, and that is my loving boyfriend Nick. Money doesn’t keep us warm at night and our relationships will (hopefully) be here long after the money is gone.

Photo by RexRoof

Build Wealth Like a Vanderbilt

Posted on November 14, 2011 - 6:57 am by Kristina Tahnyak

building wealth, money management, money advice

Good Morning DINKS. I am not sure if I ever told you this, but I really love Anderson Cooper. I love a man who is well educated, well travelled, and who can speak intelligently. Anderson Cooper is also easy on the eyes and he has a great smile, which never hurts.

Needless to say when I found out that Anderson Cooper was getting his own Talk Show I was thrilled. Every night at 6 pm I tune into NBC to see what Mr. Anderson Cooper has to say about life. His mother Gloria Vanderbilt is a regular guest on Anderson Coopers Talk Show. That’s right Anderson Cooper is a Vanderbilt! This goes without saying that he has led a very luxurious lifestyle where money is usually not a concern.

Anderson Cooper recently invited money coach Clark Howard to join him on his Talk Show and educate everyday people how to save money on regular household items every time they go shopping. Anderson Cooper grew up watching his mother Gloria Vanderbilt spend money carelessly. Anderson says that his mother has always been a big spender and she still continues to spend a lot of money to this day. Anderson Cooper loves spending money, but he hates wasting money. Anderson told the audience a story about how he used to hoard money as a child because he was always afraid that the money would eventually run out as he watched his mother spend money carelessly every day.

Money Coach Clark Howard says that the first step to learning how to save money is to find out where we spend our money. If we know where and how we spend our money then we can eliminate unnecessary expenses and make cuts in our spending. Clark Howards suggests that we keep a spending/savings journal. We should track our daily spending including prices and items as well as track our daily savings. If we wanted to buy Starbucks but we didn’t, we should write down that we just saved $5. After a few weeks of keeping a spending/savings journal we should be able to recognize where we spend our money carelessly and we should be able to make cuts in our spending. We have to learn that we can live without magazine subscriptions and taxi cab rides.

Anderson Cooper likes to be frugal, but he isn’t good at saving money. Anderson is trying to learn that not spending money is not a personal sacrifice; saving money is actually a personal benefit. Anderson Coopers biggest money mistake is being an impulse shopper, he admits that he is often influenced by sales signs and sales people which can be very dangerous for his savings and spending habits.

Here are some Quick Shopping Tips from Anderson Cooper and Money Coach Clark Howard:

You don’t need a Costco membership. Buying in Bulk is not worth it for 1 or 2 people. We often end up throwing out unused items which is always a waste of money, even if it was on sale.
Use bags when shopping, not the big oversized cart. Having a bigger space means that we can fill it up with stuff that we don’t need.
Don’t be influenced by sales people. Get in and get out of the store without making eye contact or asking for suggestions from the sales people.

Photo by o5com

Friday Roundup: DINKS is Helping You Get Organized!

Posted on November 11, 2011 - 6:49 am by Kristina Tahnyak 2

Good Morning DINKS and Happy Friday. Today DINKS Finance is helping you get organized both Financially and Personally. We have rounded up the best posts from around the web about getting organized.

Keep reading for tips and tricks on how to organize your home, your finances, and your life.

Have a great weekend.

– Crazy Sexy Credit helps us organize our paperwork, our finances, and rebuild our credit score in the post “Get Crazy Sexy-Organized Part 4” It is a step by step process to help us get our financial lives in order and improve our financial situation. Follow her on Twitter @AliLowell

– Minting Nickels talks about organizing her attic and her finances in the post “The Attic, Part 2” Lindy and her husband are big fans of yard sales. Sometimes they sell their own stuff and sometimes they buy cheap stuff on EBay and resell it at their Yard Sales. Lindy and her husband are a super thrifty family who are always looking for somewhere to make extra money. Follow them on Twitter @MintingNickels

– J. Money discusses how we can organize our money with a personal budget in the post “The Anti Budget, Budget”. It’s easy to plan a budget, but it’s hard to stick with it. Be sure to check out this post for ways to help keep your budget on track. Follow him on Twitter @BudgetsAreSexy

– Yes I Am Cheap shares videos on how to get organized for the upcoming cold winter in the post “Cheapskate Video: Save Money on Home Heating Costs”. Check out the Home Improvement videos on how to get your home organized for the winter and save money on your heating bills. Follow her on Twitter @yesiamcheap

– Enemy of Debt is currently learning how to get organized in all aspects of his financial life and each week he shares what he has learned with his readers. Check out the post “Dave Ramsey’s Financial Peace University Week 7” to learn about the importance of Insurance. Other topics include Cash Flow Planning and Super Saving. Follow him on Twitter @enemyofdebt

Photo by Striatic

Are the Madoff Family Members Innocent Victims or Willing Accomplices?

Posted on November 10, 2011 - 6:52 am by Kristina Tahnyak 4

Hello DINKS. Today we are discussing a topic that is related to both finance and to couples. When we are in a couple everything we do or don’t do in our lives is directly or indirectly related to our spouse. The money we make and the money that we spend affects our spouse. If we do something wrong in life and it has awful repercussions, we have to be aware that the back lash does not only affect us; it also affects our spouse.

I saw an episode of the Oprah Winfrey show that interviewed the families of convicted Pedophiles. One of the victims who was abused as a child said that as much as she hates her abuser, she feels bad for his family. As much as we want to hate on Pedophiles in the media we have to remember that that Pedophile has a wife or a husband. That Pedophile is a brother or a sister, and they have a family who are also affected by their actions. This is true for any type of criminal, even financial criminals who commit fraud.

A news topic that we have all been hearing about recently is the trial and conviction of Bernie Madoff and his Ponzi scheme which landed him in jail for the rest of his life. Bernie Madoff’s wife Ruth Madoff and her (surviving) son Andrew Madoff recently did an interview on 60 Minutes. I watched the interview because I wanted to see how the family of the most notorious financial criminal in history has been living with the loss of their Father and Husband to a life of crime, and the loss of their son and brother to suicide.

The Bernie Madoff Story

Bernie Madoff met his wife Ruth in 1954 in Queens New York; they had two sons named Mark and Andrew. Bernie Madoff started a Money Management Business while living in Long Island. Andrew Madoff says that his Dad was a Good Father. He installed good work ethics and family values into both of his sons. Ruth Madoff says that she and Bernie Madoff lived a moral life and they both knew right from wrong.

Andrew and Mark Madoff grew up to work as Traders for their Father in New York City. They enjoyed a life of luxury complete with Yachts and homes in both New York and Palm Springs. The Madoff financial company employed over 100 people, but Bernie Madoff repeatedly told his sons that there would be no succession of the company after he was gone. Bernie Madoff would not hand off the company to his two sons Andrew and Mark upon his retirement.

The Ponzi Scheme

A Ponzi scheme is a completely fake operation. Bernie Madoff created phony paper statements that showed profits for his clients, when in fact his company was not profitable at all. The Madoff Company actually had $50 billion in liabilities, but Bernie Madoff was still reporting profits to his clients.

Andrew Madoff remembers that his father’s way to keep everyone happy was to give them money. It wasn’t necessarily hush money because Bernie Madoff was not paying off people to keep his scandalous secret; he just kept the money coming in and therefore no one was asking questions.

The Madoff family had an endless supply of cash and therefore they (just like everyone else) assumed that Bernie Madoff’s company was profitable. There was no need to ask questions or have any doubts about the company’s solvancy.

The Madoff Family: Victims or Accomplices?

In 2008 Bernie Madoff asked his wife Ruth to transfer $10 million from her brokerage account to her personal checking account. Ruth Madoff did not ask any questions because this was not an unreasonable request. Soon after this transaction Bernie Madoff called a family meeting in his office and confessed to his Wife and two sons that he was broke, and that he had been lying to everyone.

Mark was furious with his father and later turned him into the authorities which led to the arrest of Bernie Madoff. All three family members claim that they did not know anything about the Ponzi scheme until the day that Bernie Madoff confessed his crimes to them. To this day Bernie Madoff claims that he acted alone, but I am not sure that I believe him.

His two sons Andrew and Mark Madoff worked for their father but they both claim that they had no knowledge of the Ponzi scheme. When Bernie Madoff was offered bail his wife Ruth asked their son Andrew to co sign a $10 million Bail Bond, but Andrew refused.

The repercussions for the Madoff family have been horrible, and I do feel bad for them; but that doesn’t mean that they had no knowledge of Bernie Madoff’s “bad” business. Mark Madoff could not bear the backlash of his father’s shame, and on December 11^th 2010 he committed suicide while his wife and daughter were away on a vacation.

Andrew Madoff’s (the surviving son) assets have all been frozen pending an investigation into his involvement in the Ponzi scheme. Andrew Madoff’s current net worth is approximately $60 million. Since Bernie Madoff’s arrest Andrew’s wife has changed her last name, although they still remain married. It is interesting to know that Ruth Madoff also still remains married to Bernie Madoff, even though he will spend the rest of his life in jail.

The Bernie Madoff Ponzi Scheme has definitely impacted his family and the financial world forever. My question to you DINKS is… Should Bernie Madoff be the only person punished for the Ponzi scheme?

5 Investing Tips for People of All Ages!

Posted on November 9, 2011 - 6:41 am by Kristina Tahnyak

investing tips, investing advice, stock market tips

Good Morning DINKS. Today we are discussing easy investment tips for investors of all ages. If you are new to investing or you are a veteran then these tips can help you be successful while investing. Just because we have been investing for a long time doesn’t mean that we know what we are doing. The truth is that many long time investors often make rookie mistakes.

Investing does not have to be complicated. Actually investment basics are very simple and they apply to all levels of investing.

Check out these 5 Successful Investing Tips for Everyone:

Buy and Hold. No strategy works better than the buy and hold. It is a lot of work to try and pick the correct investments at the correct time when we try and time the market. It can also be very stressful to watch our investment accounts on a daily basis. Once we decide which investment to buy we should stick to our strategy and hold it through the market ups and downs.
Buy in When It’s Low. If you see red don’t get angry, just buy in. It is a natural reaction for people to be upset when they see the value of their investments declining. However when the market is down we have to think of the investment cup as being half full. When the market is low it is a great time to buy investments. It is true that when the market is down our existing investments may be declining in value, but it also means that we can buy new investments at a very cheap price.
Invest Regularly. Dollar Cost Averaging is a successful investment strategy. It allows us to continuously buy into the market when investment prices are both high and low. Dollar cost averaging helps us average out the cost of our unit price and therefore it makes more profit when the market increases.
Invest For the Long Term. Short term fluctuations in the market are normal, we shouldn’t panic. We must stick to our original investment strategy and stay invested for the long term. When we receive our quarterly investment account statement we should not panic when we see the value of our investments dropping. The market functions in cycles and we will gain back our losses. Successful investors invest for the long term.
Always Diversify Your Investments. We should always have a mixture of fixed income, equity, foreign, and domestic investments. The reason that diversification is a successful investment strategy is because we have a little piece of all the pie. If our hands are in every cookie jar we can make gains in one investment if the other is losing. Diversification hedges our investments against our potential losses as the market fluctuations and moves through the cycle.

Photo by Sound from way out

DINKS Dilemma: Rich and Single or Poor and In Love?

Posted on November 8, 2011 - 6:28 am by Kristina Tahnyak 6

dinks dilemma, couples advice, singles advice

Good Morning DINKS. Today I would like to discuss our DINK morals and a choice that hopefully none of us will ever have to make. As DINKS we are all in a Dual Income Relationship without Kids. This means that we have double the revenue coming in and we do not have the big expense of raising children. But, what if your spouse didn’t work. I am not talking about your spouse losing their job; I am talking about getting into a relationship when one of the two people is not working. Would you enter into a relationship that doesn’t have money?

Some people say that money can’t keep us warm at night but our spouse can. Is it more important to you to have someone to share your life with, even if that person is broke; or do you prefer to be financially well off because it is actually money (not marriage) that makes you happy?

Couples and Marriages break up all the time over money (among other things). This leads me to believe that money is more important than love because if we really truly love our spouse than money wouldn’t be an issue. Although I do have to admit that my boyfriend Nick and I do argue (indirectly) about money. When we sit down and think about it almost everything, whether directly or indirectly, always revolves around money. However I don’t think that I would ever leave my boyfriend over money because my love for him is stronger than my love for money; but I can’t say that I would ever start dating someone who didn’t have a job.

There are so many other aspects of a relationship, such as compatibility, similar interests, family values and long term goals that can cause a new (or old) couple to break up. When we add money into the mix things just become more complicated. I admit that money can be a very stressful subject especially if we don’t have it.

The reason I bring up the subject of money and marriage is because I have a friend who recently started dating a new guy. They have been on a few dates over the last couple of weeks and only recently she found out that he doesn’t actually work. She seems to really like him but she isn’t sure that she can be in a committed relationship with a man who doesn’t make any money.

For the time being it is ok that he doesn’t work or earn an income because their relationship is still new, but if they were to become serious my friend doesn’t want to be stuck always paying the bill for everything. The guy has a Bachelors Degree and he should have no problem finding a job, but my friend is always worried about the “what if”. What if he doesn’t find a job, what if she ends up paying for their mortgage, groceries, and other monthly bills?

It may be better for my friend to break up with the guy while their relationship is still new and they are not too attached to each other. Two years down the road when the couple is emotionally committed to each other it may be harder to walk away if money is still an issue.

DINKS I ask you, if you were not yet in love, would you enter into a relationship if the other person didn’t work?

Photo by Ma1974

Is Price Always the Bottom Line?

Posted on November 7, 2011 - 6:06 am by Kristina Tahnyak 2

price of items, pricing, merchandise prices

As DINKS we all make money and as normal people functioning in society we also all spend money. Sometimes we spend money on things that we like such as vacations and personal items and sometimes we spend money on items that are necessary to live such as food and housing. My question to you DINKS is when you choose to spend money is the price always the deciding factor?

If you are saving for your retirement, is the price of a stock a deciding factor when you are choosing which investments to buy? Normally the price of a stock should not be a deciding factor. The company’s performance , the stock dividend payout, and the daily fluctuations in the value of the stock should all be deciding factors, but the price of a stock really isn’t the issue. There is no point in buying cheap stock if the company is not sustainable and we don’t make a profit.

Before you become a DINK did you live with a roommate? If so, was it because you would be lonely living alone or was it because you needed someone to share the monthly expenses. I lived with a roommate for the first year that I moved away from home. Living with a roommate was more of a hassle and inconvenience than anything else. However, it was cheap living while I was on a student budget. The next two years I lived on my own and it was quiet at times, but I really liked having my freedom and my own privacy. After that I moved in with my boyfriend Nick and the rest is history.

Now Nick and I we share all of our expenses, we even share the monthly expenses if we don’t share the amenity. That is the benefit of living with a spouse and not a roommate. Your spouse may feel obligated to share all expenses (or maybe they do it out of love), but a roommate has absolutely no obligation to share expenses if they amenity is not mutual beneficial.

Think about the last time you bought a gift. When you narrowed it down to two gifts was the price of each gift the deciding factor when you chose which gift to buy? When you go shopping for a birthday, anniversary, or graduation gift do you shop with a budget in mind, or do you just shop for the perfect gift?

Think about your last trip. Was your last travel destination decided by the cost? If you were choosing between two cities or two hotels was price the deciding factor in your travel destination? Of course we all like to get a great deal, in an ideal world we would take a fabulous five star vacation at a two star price, but those types of deals just don’t exist. So DINKS I ask you, whenever you make a decision is the cost always the bottom line?

Let’s stop discussing our spending for a moment and look at the opportunity cost of our working environment. How much crap do you tolerate at work? And if your working environment is less than ideal do you only tolerate it for the pay check? I love my job now, but my previous working environment was definitely less than ideal. Although I admit that I tolerated a lot of unpleasant activities in my office because the pay check (at the time) was worth the cost of my personal sanity…for a little while.

What about your friends? Do you socialize with other couples who are in your same income bracket? Do you spend your free time with other people who have the same spending habits as you? If you are a saver do you have frugal friends? If you enjoy spending your money on life’s little luxuries, do your friends also enjoy the finer things in life?

I think it is safe to say that for many of us (whether we willingly admit it or not) price, cost, and money are always the deciding factor in our lifestyle and everyday choices. Some of us may not even realize it but price is always the bottom line.

(Photo by Zoetnet)

Weekly Round Up: Food, Cooking, Eating Out and Restaurants

Posted on November 4, 2011 - 6:45 am by Kristina Tahnyak 3

Happy Friday DINKS. November if finally here and this means the holiday season is quickly approaching. Halloween is over, Thanksgiving will soon be there and then it will be Christmas Time. I love the holiday season, mostly because I love eating. I also love the weather, I love spending time with family and friends, and I also love having time off work; but mostly I’m just into the holidays for the food.

Check out these great posts we have rounded up relating to food from around the web:

– Money Crashers helps us plan our weekly menus and keep our budget in tack at the grocery store in the post “10 Family Meal Planning Tips & Ideas on a Budget”. Planning ahead is definitely a money saving tactic. Before I go grocery shopping I make a list of all my meals for the week; I try to make 2-3 meals that require the same ingredients so I can cook on a budget.

– Get Rich Slowly talks about the love of chocolate and the cost of celebrating Halloween in the post “The Great Cost of Halloween Chocolate”. Halloween can definitely be an expensive time of the year when we calculate the cost of costumes, decorations, and candy.

– Young and Thrifty gives us tips on where to eat good food in the post “Cheap and Good Eats: Daily Kitchen Edition” Daily Kitchen is a restaurant that changes it menu daily. This can be both a blessing and a curse. You can never eat the same meal twice, but if you really loved a plate you may not be able to get it again.

– So Over Debt shows us the signs of a dedicated save-a-holic in the post “6 Signs You’re Too Poor to Shop at Wal-mart”. Everyone should read this post, just to see if you have ever been so broke that you walked across a massive Wal-Mart store just to save 0.30, I know that I have.

– Brooklyn Bitches on a Budget is known for living a big fabulous life on a small budget in the great borough of Brooklyn. It’s no secret that I want to live in NYC and Brooklyn would be my first choice of where to live. These bitches often share their delicious budget recipes. Check out their post “Big Fat Ginger Cookies”.

– K Cooks So Can You offers great recipes for busy people, families, couples, and friends. I have already made the “Guacamole – aka How To Win Friends” and it was delicious. I am a huge fan of Guacamole! I also love the “Monday I’m MUCH too busy to cook but really should Supper”. Be sure to check out her blog for great meal ideas and great recipes.

Photo by TinouBao

Life Insurance: Do You Have It? Do You Need It?

Posted on November 3, 2011 - 7:09 am by Kristina Tahnyak

life insurance decisions, life insurance tips, life insurance advice

Good Morning DINKS. Today we are talking about a subject that has always been controversial in Personal Finance; today we are discussing the benefits and features of Life Insurance. Last Thursday as I was watching The Big Bang Theory on CBS I saw 3 different life insurance commercials…in a ½ hour TV show. It made me start to think…is Life Insurance really needed by the masses like shampoo or deodorant? As a Financial Planner I personally don’t sell Life Insurance to my clients, but I do take it into consideration when I am preparing a Financial Plan.

Life Insurance is an important aspect to our Estates and therefore we have to consider the option of having life insurance when we are drafting a Will. For many years there has been a debate as to whether purchasing Life Insurance is a smart idea or a sucker’s investment. Some people don’t want to buy Life Insurance because they pay the premiums while they are alive but they don’t get to enjoy the benefits after they are gone. Some other people buy Life Insurance because they feel it gives them the peace of mind that their family will be provided for in the unforeseen event of their death; and for some people family is priceless. I personally believe that Life Insurance can be an important part of our Financial Lives, but it all depends on the reason why we are purchasing the Life Insurance Policy.

My Grandparents never purchased Life Insurance on themselves or on each other because they felt it was bad luck. My Grandfather always said that he never purchased Life Insurance because he didn’t want to die. Unfortunately at one point or another we are all going to pass away. My Grandparents felt that purchasing Life Insurance would speed up the process.

Life Insurance should be purchased to protect assets in the event of death. Many people do not hold individual Life Insurance Policies but they do have Life Insurance on their assets such as their Home, Car, and Cottage if they have a loan outstanding against them. If we don’t have assets but we have debts Life Insurance can be a way for us not to leave a financial burden on our families after we pass away. If we have assets that do not have loans attached to them, and we do not have debts, we may not need Life Insurance.

I have a coworker named Dave who works in personal finance and he is still not convinced that Life Insurance can be a good financial strategy. He repeatedly (almost daily) tells us how insurance is the biggest profit making industry in Finance and anyone who buys life insurance should save their money and play Black Jack. In Dave’s eyes when it comes to Life Insurance the house always wins because everyone pays premiums but not everyone receives the benefits of their Life Insurance Policy.

This may be true for Term Life Insurance Policies. Term Life Insurance is purchased for a specific period of time such as 5, 10, 15, or 20 years. Throughout the term the insured pays the Policy Premiums but if they don’t die within the term no one receives the policy money. So what do you think, is buying Life Insurance a Gamble or a Good Bet?

Life Insurance can be used to provide cash flow to a family in the event of the loss of income from the Head of Household. If there is only one spouse working in the home they may buy a Life Insurance policy to guarantee that the surviving spouse continues to receive a monthly income in the unfortunate event of his or her death.

Some people buy Life Insurance to leave a financial legacy behind after they have passed away. As a Financial Planner I often see Grandparents leave a financial legacy for their Grandchildren’s Education. In Personal Finance we always advise clients that the Life Insurance premiums should be worth their cost. Insurance should always be for protection, not profit.

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(Photo by Gareth1953)

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