Personal Finance Coaching

All life insurance entails paying premiums over time. I believe that you really should have sufficient life insurance so that if you, or your partner, pass away you can live off the interest. Assume a four% return on your investment.
If you will need $40,000/year earnings then you'd want to have 1 Million dollars in life insurance.
Now, cash value life insurance Vs term life insurance.
As long as you pay you are covered and if you die whilst the term insurance policy is active, your beneficiaries will obtain the amount of specified coverage. They differ from cash worth policies in that the premiums do not partially go towards a savings plan and are a lot lower.
Stick With Term Insurance - don't mix investments and insurance.
I believe that you really should not mix your insurance and your investments. Thus, I suggest staying away from cash value policies. The return on investment is not generally extremely appealing and you will likely be in a position to do considerably much better investing the difference between the price of a term policy and a cash value policy.

Personal Finance Coach

This morning when watching TV with my nine year-old son an American Express commercial came on. His question was, "How significantly is a point worth?" Excellent question, and 1 I'm not certain most credit card users ask themselves.

On face worth the question is a basic mathematical equation:

Let's look at the price of a No cost airline ticket bought with reward points. The average domestic airfare in the initial quarter of 2010 is $328.00. Based upon our equation, 25000 points/$328 = 76.22 points per dollar.

Since points are earned for every dollar charged on a rewards credit card this signifies that you must charge $76.22 for each dollar that you can use towards the "free of charge ticket".

Simply because we know the common consumer spends in between 12% and 30% a lot more when they pay by credit card we can calculate the actual price of this $328 ticket.

Want to acquire a $328 ticket for $five,000? I didn't believe so - right after all you're smarter than a 4th grader-right?

Private Finance Coaching