Guaranteed Income and No Risk of Principal – Too Good to be True?

It is difficult to go more than a week without seeing or hearing advertisements for an investment that guarantees zero risk of principal loss, promises an attractive return (5-10% per year), and ensurers lifetime income that never expires.  Admittedly, these promises can sound very attractive on the surface, especially for risk averse investors.  But are they too [...]

Pregnancy and Voluntary Short-Term Disability Insurance

Everyday investors tend to speculate on stocks based on the often ill-conceived notion that they have unique information or better information than the rest of the investment world.  This perception of ‘asymmetric information’ is often the polar opposite of reality.  In fact, institutional investors have an enormous information advantage over retail investors – one that [...]

Dismissing High Deductible HSA Plans Is a Costly Mistake

This time of year means open enrollment season and that means battling a consistent bevy of confusing acronyms: FSA, HSA, HRA, PPO, HMO, POS, and on.  Reorienting every year to the different meanings, rules, and benefits of these acronyms is akin to relearning the scoring rules of curling every four years.  Most Americans are interested [...]

5 Medicare Open Enrollment Mistakes to Avoid

Records show that organ donation elections vary dramatically from country to country.  Even bordering countries with similar cultures have huge differences in the percentage of citizens who participate in organ donation programs.  Consider two countries that neighbor Germany: Austria and Belgium.  99.9% of Austrian citizens and 98% of Belgian citizens are registered organ donors.  In Germany, [...]

Long-Term Disability Insurance – Group vs. Individual Coverage

From an economic perspective, insurance is useful to protect against low frequency, high severity events.  Quite simply, we are well served to insure infrequent events that would be financially devastating like the loss of a home to fire or an untimely death.  This ultimately begs the question of why people purchase insurance to protect against [...]

Cheap Fouls and Unnecessary Insurance

Players in a college or high school basketball game are limited to 4 fouls and disqualified from competition upon receiving 5 fouls.  This limitation is intended to discourage players from consistently fouling to maintain the pace of play. In basketball, there are good fouls and bad fouls.  A good foul could be the result of commendable [...]

Important Health Insurance Changes for Small Business Owners

Many Americans are conditioned to treat employer-provided health insurance as an entitlement.  This long-standing attitude stems from a system that, for decades, has precluded a large segment of the population from finding reasonably priced health insurance on their own.  Anyone with a previous victory over cancer or a child with diabetes likely knows from experience [...]

Income Planning for the New Health Insurance Subsidies

It is estimated that nearly 26 million Americans will be eligible for some form of health insurance subsidy starting in 2014 under the Affordable Care Act.  For individuals and families with incomes well in excess of 4x the federal poverty line, these subsidies will be a non-event.  However, there are several situations where the subsidies [...]

Choosing a Health Insurance Policy In the New Environment

Despite significant technology glitches, the new health insurance exchanges are open to the public and many Americans are now faced with the challenge of making heads or tails of the options.  In addition to a plethora of choices, consumers are confronted with the interaction of federal subsidies which impacts the decision and can create planning [...]

By |Insurance Planning|0 Comments