health, life insurance, protection, risk management

Diet, health, and the financial impact on life insurance

The purpose of life insurance is to manage risk. Individuals and families need protection in the event a primary bread winner passes away.

Several factors drive what life insurance costs for an individual. Women tend to live longer, so their cost for life insurance is lower than it is for men. The healthier a person is, the less expensive it is for them to obtain life insurance. People who smoke pay significantly more for life insurance.

Each person’s health situation is unique. Part of the process of obtaining life insurance is to collect medical samples for testing. The underwriter also reviews records from your doctors over the past 5 years. They also examine driving records.

Once all of the information is collected the underwriter evaluates the data at hand and assign the insured person a health rating. The better the rating, the lower the premium. 

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economy, interest rates, retirement, risk management

The End of the 10 Year Bull Market

There is a Chinese curse… “May you live in interesting times.” (1)

 

Given the past month, we clearly live in interesting times. Twice this week the market has opened down more than 5% triggering circuit breakers. While these breaks helped, the market still declined.

 

As of March 12, 2020 the SP500 is down 26%.

 

On March 3, 2020 the Federal Reserve announced a 50 basis point rate cut and are expected to cut rates another 100 basis points at its March 18th meeting. (2) On March 12, 2020 the Fed announced a $5.5 trillion program to assist in Repo operations. (3)

Yes… $5.5 trillion… The scale of the program is beyond anything ever attempted to stabilize markets.

 

WHAT ARE THE ISSUES THAT ARE FEEDING INTO EACH OTHER? HOW DID WE GET HERE?

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economy, retirement, risk management

Psychology and the Market

On Monday February 24th 2020 the Dow dropped over 1000 points in a single day.

 

Human behavior is driven two forces, fight or flight. When facing a dramatic event we as individuals are forced to REACT to what happens. 

When looking at the market, if a person is underinvested and it goes up day after day making new highs, that person may experience FOMO… fear of missing out. They might make the decision to invest based on emotion instead of fundamentals.

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disability, health, protection, risk management

Deaths of Despair

In recent months companies at the center of the Opioid Crisis have been fighting in court about the roles they played in the epidemic that has affected millions of Americans. The over prescription of highly addictive drugs has had severe impacts on families, businesses, and the economy as a whole. (1) But the Opioid Crisis is only part of a much larger problem facing American Society.

In March of 2017 a landmark study was released connecting opioid abuse, financial security and death rates in the United States. The information is sobering and should be the focus of policy changes at all levels of government.

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disability, economy, health, life insurance, protection, retirement, risk management

Women and Financial Security

In 2018, the government of Iceland passed a law making it illegal to pay women less than men. (1) 

According to a World Economic Forum report, “At the current pace, gender gaps can potentially be closed in 54 years in Western Europe… and in 151 years in North America (reflecting lack of progress in the region this year).” (2)

A recent study by Economic Policy Institute found that women earn 74 cents for every $1 earned by a man with similar education and experience. This wage gap has always existed and is disturbing in a society founded upon equality and justice. (3)

This wage gap has important implications for women and their financial security, especially during retirement. 

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economy, life insurance, new economy, protection, retirement, risk management

How to Deal with Being Laid Off: 5 Strategies To Prepare For Job Change

Each day we read reports that the economy is booming.

“U.S. housing and consumer are strong” (1)

“Factory output is poised to speed up.”

“Stronger global growth expectations and a weaker dollar should help.”

“The stock market hits record highs…”

With that being the case, you might find it surprising that several large corporations have recently announced they will be laying off large numbers of employees, especially managers.

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AI, Climate change, economy, new economy, retirement, risk management

The Work of Nations: 30 Years On…

When I first read “The Work of Nations” by Robert Reich in the mid-1990s I had almost no background in macroeconomics. (1) But in reading it, Reich was able to effectively describe how radically the economic system was changing as a result of Globalization. Reich at the time was Bill Clinton’s Secretary of Labor and a key member of his economic team.

As context, China’s economy in 1991 was $400 billion compared to $6,174 billion for the US. China entered the global trade organizations in 1992. Today China’s economy is $14 trillion compared to $21 trillion for the US.

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Climate change, economy, environment, ESG, interest rates, retirement, risk management, Socially Responsible Investing, SRI

Mixed Economic Signals, Debt Issues and Fossil Fuel Companies

Several years ago, Bloomberg Businessweek did a bio pic on Hank Paulson, Bush’s Treasury secretary who served during the Financial Crisis of 2008. After reviewing the events that led to the Crisis, connecting the dots, and seeing the impact of what happened, Paulson had this to say at the end of the film…

“The whole reason I’m doing this, is not because I want to look back, but because I have increasingly come to the view that it’s important that there be a historical record for those that come after me, so we don’t replay this movie all over again.” (1)

Fast-forward to November 2019, and we see many positive and negative conditions developing that raise questions about the longevity of the 10-year bull market in stocks and the health of the US economy.

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Climate change, environment, ESG, retirement, risk management, Socially Responsible Investing, SRI

Socially Responsible Investing Grows

“Integrity is the essence of everything successful” -Buckminster Fuller

One of the benefits of the information age is the ability to make rational judgements about companies that you invest in. To the degree that a company fails to meet an investors expectations of what is acceptable, a company or industry becomes un-investable.

“Sustainable, responsible and impact investing (SRI) is an investment discipline that considers environmental, social and corporate governance (ESG) criteria to generate long-term competitive financial returns and positive societal impact.” (1)

A recent study by the US Sustainable Investment Finance Foundation revealed the tremendous growth in sustainable investing.

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life insurance, protection, risk management

The Risk To Your Child’s Future

Loss of a parent shatters the life of a child. Period.

Loss of a parent’s love.
Loss of a guide through life’s challenges.
Loss of protection and security.

These are losses that are beyond measure and replacement. But the truth is these losses can be worsened by the financial impact that comes from a lack of planning and losing a parent.

7 in 10 of all households said they would have trouble covering everyday living expenses after several months if the primary wage earner died. (1)

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