Category: Personal Finance

Life Insurance Lets You Die Neat


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… Continue Reading “Life Insurance Lets You Die Neat”

A Disturbing Question


All life insurance salespeople regularly meet people who are delusional about how much capital is needed to replace their career earnings. According to LIMRA, in Canada, insured husbands have enough life insurance to replace their income for 4.1 years, and wives for 4.6 years.  What… Continue Reading “A Disturbing Question”

Never Ask Why


Why is a power question. Why demands that the other person rationalize their behavior or result. It is never positive. In some, maybe many cases, it will cause your client to shut down. The most common users of “Why?” are authority figures or ones… Continue Reading “Never Ask Why”

What Is A “Good” Financial Plan?


I have been trying to understand the point of a financial plan for the last month or so. I have come to the conclusion that only a few people know and I am not certain that I am among them. I have talked to… Continue Reading “What Is A “Good” Financial Plan?”

Einstein Was Wrong


Einstein reputedly said “Compound interest is the most powerful force in the universe.” I suppose it is possible that he said that, but I doubt it. Compound interest was not a point of discussion when Dr. Einstein was young and was barely considered by… Continue Reading “Einstein Was Wrong”

Understanding Bonds


A bond is a collection of promises. It is not strictly money but rather, it is an instrument that can be exchanged for money. Probably. Its value at some future time, when you want to change it back into money, is unknown but it… Continue Reading “Understanding Bonds”

Life Is Like Juggling.


I found a scholarly paper on Juggling. ORG that points out that while many people can juggle 9 balls, and a few can juggle 12, no one can presently juggle 13 balls. It claims that 15 may be possible, but the problem is how… Continue Reading “Life Is Like Juggling.”

Every Investment Provides the Same Rate of Return


True if you consider all the inputs. Like skill, access, tax treatment, time, risk and more.  You always bring more to an investment than money.  You need to know what else is there. Investment yield is a function of exchanging outputs for inputs. It… Continue Reading “Every Investment Provides the Same Rate of Return”

Business Owners and Life Insurance


Let us suppose you have a business worth $3,000,000 and other assets worth $1,000,000.  Everything is looking good.  I approach you about life insurance.  You suggest that the business is your estate.  The wife and children will have $4,000,000 in the event of your… Continue Reading “Business Owners and Life Insurance”

Catch-Up Is A Bad Goal


Humans are goal-seeking devices. They plan and execute flawlessly when permitted. Because they are so good at achieving goals, it is crucial that they have the right ones. Many of us have coached children in sports. We are familiar with the condition of catch-up… Continue Reading “Catch-Up Is A Bad Goal”

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