Ashford Creative Wealth Newsletter - June 2009
To view this month's newsletter, please click on the PDF file located at the bottom of the page.
This month's newsletter features the following articles:
AN ENTIRE NEWSLETTER DEVOTED TO INSURANCE?
It’s not the most glamorous section of the financial universe, but insurance plays a larger role in prosperity that most people know. Insurance helps establish economic certainty, which gives individuals, businesses and institutions the confidence to invest time and resources to achieve higher levels of prosperity. Several of the financial incidents that precipitated the current financial crisis (like credit-default swaps) were insurance problems; the risks weren’t properly assessed or covered and things unraveled.
Having the right perspective on insurance can actually improve not only your financial protection, but also make it possible for greater wealth creation to occur. For individuals and nations, insurance makes a difference.
SELF-INSURANCE
The rugged individualist – someone who makes it on his own, does it himself – is an icon of American culture. But some things are not do-it-yourself projects. An article that explains why the do-it-yourself concept of self-insurance is really no insurance, and why true insurance not only decreases risk, but also makes greater returns possible.
WHAT ATHLETES UNDERSTAND ABOUT DISABILITY
The stereotypical athlete may not know much about geometry or history, but it’s apparent many of them understand the importance of disability insurance; many will even borrow money in order to pay the premiums. Also, there are some updated statistics that illustrate why owning disability insurance is a smart move.
OUTLIERS: AVOIDING THEM, BECOMING ONE
Outliers are statistical oddities that are outside the range of normal experience. Sometimes outliers are events so unlikely that people ignore the possibility of them occurring. Recent evidence from projection models used by some financial professionals shows this ignorance can lead to problems.
On the other hand, sometimes it is not only possible to become a statistical outlier, but doing so can be to your advantage. Why being healthier than the average American can make a big difference in your retirement expenses.
FINANCIAL LITERACY: CAN YOU REALLY SELF-INSURE FOR DISABILITY?
Suppose a very careful, calculating engineer decided to “save” for a possible disability instead or paying for insurance? Would it be possible to “self-insure?”
|
