moneyFYI

Will Rogers once said that, “Just because a thing is common sense, does not mean it will be common practice.” Not much has changed in the 80 years since.

As an example, the most valuable asset most people have is the ability to earn income. They have other valuable assets too. Their home, their household goods, their jewelry, their car, and their teeth.

How many of these are fully insured against loss or damage?

All but their income.

We can agree that it is common sense to insure the things you value. After 30 years in the business, I can assure you that it is not common practice.

Maybe it is because people don’t know what their income is worth. Here is a handy chart showing the net present value of $1,000 worth of monthly after tax income. It assumes your capital will earn, after tax, 1% more than inflation.

View original post 383 more words

Advertisements

About #nofeeslender

Having invested more than a decade of solid experience in the Real Estate Mortgage Industry (in Retail Banking, Retail Brokerage and Wholesale Banking Lending) along with countless years of cutting-edge, high-technology real estate computer system knowledge, I gratuitously provide my Valued Clients--both "Property Virgins" and Long-Term "Real Estate Gurus"--with informative, analytical, technological, resourceful and expert advice that help them make the best informed decisions for their own unique situations to reach their mortgage planning goals. Specialties:"I specialize in helping individuals like you and family like yours find, qualify for and own a home of their dream with little or no money down, even with less than perfect credit!"
This entry was posted in Financial Planning. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s