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Financial Freedom Is Merely Organized Common Sense
Tag: insurance
Identical Answers With Different Meaning
If I have two identical answers to the same problem, but one of them is wrong, should I think a little deeper? 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… Continue Reading “Identical Answers With Different Meaning”
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You Cannot Know Cost By Asking Price
The attached piece is valuable. It outlines why something for nothing does not work in respect to insurance. Tim O’Brien, a casualty insurance broker in Long Island, New York, wrote it for IRMI and sent it to me. Personal Risk Management: Go Beyond the… Continue Reading “You Cannot Know Cost By Asking Price”
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Fear Causes Risk
If you are fearful, you will tend to respond to situations poorly. It is like the Laffer Tax Curve. Beyond an optimal point, the more your raise the tax rate, the less tax you get. With fear, the more upset you are, the lower… Continue Reading “Fear Causes Risk”
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People Have “Poor Mental Models” About Potential Disaster
Life insurance is sold not bought. A truism that defies logic. Of the four ways to put money into an estate, life insurance is the least costly. People should line up to buy it. In my experience they do not. We have yet to… Continue Reading “People Have “Poor Mental Models” About Potential Disaster”
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Insurance. What’s It For?
Insurance is to provide cash to replace an asset that has been lost due to some covered condition. People seem to understand that when they are buying fire insurance on their house. Collision damage and theft insurance on their car are clear too. Same… Continue Reading “Insurance. What’s It For?”
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What Does Insurance Poor Mean?
You are insurance poor if you have insurance that costs more than it is worth to you, or if you have too little of some insurance that has value for you. The are ways to cure the problem. Step 1. Understand your assets and… Continue Reading “What Does Insurance Poor Mean?”
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A View of Financial Plannning
Financial planning does not work the way most people think. At least not in the beginning. Financial planning is not about making you wealthy or even secure. It is about getting the most of what you want by using the least of the resources… Continue Reading “A View of Financial Plannning”
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What If Stupid Hurt?
Why do people put off the decision to own life insurance? Pretty simple really. There is a cost but no benefit to the present self and a benefit for the future self that cannot be enjoyed by the present self. In these situations the… Continue Reading “What If Stupid Hurt?”
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Thinking About Risk – Catastrophic
Catastrophic risk is the condition that appears when the result is not because of volatility. It happens or it does not happen. With investment risk, you manage the process to more closely match your objective. Like adjusting the steering wheel when you are driving.… Continue Reading “Thinking About Risk – Catastrophic”
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Why We Have Insurance
Can we be safe? Really?? I wonder. I have noticed the Lac Megantic rail tragedy, the Calgary flood, the 777 crash in San Francisco that Sheryl Sandberg missed by a fluke, and the untimely deaths of James Gandolfini and several children left in overheated… Continue Reading “Why We Have Insurance”
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