Over the years, I’ve seen that there is a lot of confusion around this topic – from what type of insurance is best to how much you need and where to get it. With that in mind, below are the five most common mistakes people make when it comes to life insurance. Hopefully, through this list, you’ll be able to get a better understanding of how life insurance works and why it’s a good tool for you and your family.
Mistake #1 – Having no life insurance at all
Many people simply overlook the importance of life insurance. It doesn’t appear to be something they need and it can be viewed as an added expense. But take a second to stop and consider all the important people in your life. If you weren’t there, how would they be impacted financially? It’s not fun to think about, but by “playing dead” you can begin to understand that life insurance is a critical tool to ensuring your family feels financially supported should anything happen to you. For instance, if you have any financial obligations, a life insurance policy will help to ensure that those burdens do not fall entirely on your family members and they can avoid starting a gofundme page in your name to pay for funeral cost. Remember, it is also important to get life insurance sooner rather than later because the cost goes up the older we get.
Mistake #2 – Relying solely on employer-provided workplace life insurance
Life insurance provided by your workplace is an excellent benefit and can serve as a good starting point for your basic minimum coverage. But remember any life insurance provided automatically from your employer is only good as long as you work with the company. Chances are you will not be with the same company for your entire working career either by choice or by force and the insurance does not go with you. You can purchase additional coverage through your employer or on your own to help fill the gap.
Mistake #3 – Only considering term life insurance
Term life insurance provides a “death” or “survivor” benefit, which is the amount beneficiaries receive if you pass away, for a certain period of time (15, 20 or 30 years are common increments), after which the coverage ends. An alternative solution would be to adopt cash value life insurance, which similarly provides a death benefit, but will grow over the years as long as you continue to fund the policy. Furthermore, cash value life insurance can help with financial obligations in a tax-advantaged way, whether it is paying for college, a business venture or retirement. These policies are generally more expensive, but can make a lot of sense if you are able to commit to regularly funding the policy.
Mistake #4 – Leaving retirement savings vulnerable
If you do not have any/enough life insurance, your family is likely to look to your retirement savings for financial support. This may seem like a safe solution for finding additional resources, but I would advise against using funds saved specifically for retirement for another purpose. If you are the higher earner in the family, your spouse may have been relying on those savings for his or her own retirement. Similarly, if your spouse is forced to liquidate or take large loans from the retirement account, it will hurt the potential long-term investment gains that would have benefitted your family down the road. It is important that the money you are saving is allotted for different goals – from life insurance to retirement – so that you are making the most of each savings opportunity.
Mistake #5 – Guessing on how much life insurance you need
Many people who walk into my office have no idea how much life insurance they need. Is it five times annual salary? Ten times? Some other figure? There are many factors to take into account to figure out how much life insurance is right for you. Often this is where a financial professional can really help with the process. We can help quantify how much and what type of insurance makes the most sense for you and then help get that coverage in place. There are also many online calculators available to use as a starting point.
At the end of the day, we all just want to know that our loved ones will be taken care of after we’re gone. I have seen firsthand the peace of mind a life insurance policy can deliver. So this month, as life speeds up again, take a few minutes to pause and think about the future. Life Insurance Awareness month may only last 30 days, but a good policy will last for years to come!
“Our third quarter financial performance was challenging and below our expectations,” Joel Quadracci, CEO of the commercial printing firm, said in a statement.
Quadracci said the company would move swiftly to slice costs and bring them in line with sales.
Quad did not say how many jobs it might cut, or identify any plants for closing. However, spokeswoman Claire Ho suggested that the firm’s operations in Wisconsin, where it employs 7,000 people at 14 facilities, are not high on the target list for closures.
Quad continues to move work to its most efficient printing and distribution plants, and the Wisconsin operations are “among the most efficient platforms in the entire printing industry,” Ho said in an email. She said Quad is still hiring in Wisconsin.
The company, the biggest printer of magazines and catalogs in North America, operates 57 printing plants in the U.S. and another eight outside the country. It employs 24,000 people worldwide.
However, like other printers, it has seen demand dampened by the rise of the Internet and digital technologies such as iPads and other tablets.
In its annual report filed with securities regulators last March, Quad noted that prices for printing had “declined significantly in recent years.”
Tuesday, Quadracci said in his statement that pricing pressure accelerated during the three months that ended Sept. 30, while Quad’s manufacturing productivity declined.
The firm’s sales for the three months ended Sept. 30 totaled $1.16 billion, down 6.5% from the $1.24 billion in third-quarter 2014 revenue.
The company booked a loss of $552.2 million, or $11.50 a share, in the quarter. But that stemmed almost entirely from a $532.6 million non-cash, after-tax charge Quad recorded for “goodwill impairment” triggered by the decline in the firm’s stock price.
Before Tuesday’s announcement, Quad’s stock closed at $13.10, down 18 cents.
The company went public in July 2010 at $49. Its shares traded above $40 for almost a year, then plunged. They rebounded above $30 in 2013, but have trended downward for the last two years.
The slide in the stock notwithstanding, Quad generates enough cash to pay a hefty dividend — at least at the prices of the last two years. The current dividend of $1.20 a year amounts to roughly 9% of Tuesday’s closing price.
Quad on Tuesday declared another 30-cent quarterly dividend.
The company also reduced its 2015 revenue estimates by about $200 million. Previously, Quad had estimated sales of $4.8 billion to $4.9 billion for the year. The firm now expects $4.6 billion to $4.7 billion in revenue.
Since 2009, Quad has more than doubled its revenue, in large measure through acquisitions.
Quadracci may disclose details of the company’s cutback plans this morning during a conference call with analysts.
Rick Romell covers retail and general business news.
MAKING CONNECTIONS, ONE VETERANS AT A TIME!
United Veterans Partnership, Inc. (UVP) is a non-profit 501(c)(3) community development organization that works with our partners to build more sustainable communities where veterans and their families live, work, play and pray.
The UVP works closely with our partners to deliver programs that connect veterans to better housing and employment opportunities, financial literacy, business development resources and improved access healthcare and healthy food options.
At the end of the day, our success isn’t measured by the number of awards we get or the money we have raised but, rather, by the number of veterans who are living a better quality of life because of a connection that we made.
The Mission of the United Veterans Partnership is to “Help Veterans Build Sustainable Communities.”
For two years, the United Veterans Partnership (UVP) has listened to, communicated with and learned from veterans and other members of the community that the most pressing need is employment and business opportunities after their service to our country has ended. UVP is our answer to helping Veterans find the opportunities need to continue to be successful in the next chapter of their lives.
We are dedicated to helping veterans build communities through outreach programs and leadership development that focus on obtaining gainful employment, financial education, housing, entrepreneurial opportunities in business.
To do this the UVP has focused on striving to meet five goals to help meet the needs of returning veterans and the communities in which they live:
Jobs/Jobs Training: Develop a comprehensive Accelerated Job Training Program to reduce the jobless rate among veterans and partner with local companies to keep veterans employed long after their military obligation has ended.
Connecting the Veteran Workforce to Opportunities: Build stronger linkages between businesses and the central city workforce of veterans through partnerships with the Department of Veteran Affairs and other organizations that share the same goals of helping veterans achieve their goals.
Greater Veteran Involvement in Economic Development: Increase the participation of veterans of veterans with assistance from the UVP on local and regional planning and project development efforts.
Community Development: Deepen thee impact of Veterans on the development of the community, including but not limited to; housing and housing development, economic development, financial education and training, and community leadership opportunities.
Entrepreneurship/Small Business Development: Foster greater entrepreneurship in the community by guiding veterans on the creation and expansion of Veteran owned businesses and franchises.
Source: Our Mission
The computer industry was hit hard.
Last month saw a surge in layoffs, primarily due to large-scale employee cuts at companies like Hewlett-Packard.
U.S. companies laid off 58,877 workers in September, according to data released Thursday by Challenger, Gray & Christmas. September layoffs are up 43% from August when about 41,000 workers were let go.
In total, employers have announced 493,431 planned layoffs so far this year, a 36% jump over the same period last year and 2% more than the 2014 total.
“Job cuts have already surpassed last year’s total and are on track to end the year as the highest annual total since 2009, when nearly 1.3 million layoffs were announced at the tail-end of the recession,” said John A. Challenger, CEO of Challenger, Gray & Christmas.
The computer industry accounted for the heaviest job cuts in September primarily driven by Hewlett-Packard, which said it would cut 30,000 jobs. The job losses, which were announced in mid-September by CEO Meg Whitman, should save the company $2.7 billion annually and represented about 10% of the company’s workforce, HP said.
“Look for a team player who brings something positive to the company”
Emotional intelligence is the ability to recognize one’s own and other people’s emotions, to discriminate between different feelings and label them appropriately, and to use emotional information to guide thinking and behavior.
New York Times Article: Inside Amazon
Amazon is a huge, very successful company that can make headlines with products and services years away from reality. It?s also good at selling you stuff you want really cheaply and delivering it to you super quick. According to a New York Timesreport, however, the incredible efficiency and continuing expansion comes at the cost of its workers, held to ?unreasonably high? standards and demands. The NYT talked to over 100 current and former Amazon workers, across senior management, as well as workers in retail, engineering, HR and marketing. Some nightmare tales outline about how employees caring for relatives or battling cancer soon faced harsh feedback from colleagues and superiors. ?What kind of company do we want to be?? said one former human resources exec to her bosses, after she was told to put a woman who had recently returned from serious surgery, and another who had just…
View original post 650 more words