5 Facts on Life Insurance for Over 50's

Life insurance for those in their 20's, 30's, and 40's is very inexpensive. On average, you would pay less than $300 per year for coverage up to $250,000. The cost of term life insurance has really come down over the years benefiting many families. 

But as we get older the costs of insurance naturally rise because the likelihood of the insurance companies paying off rises. Here are a few facts to keep in mind when shopping for over 50 life insurance.

1. Life insurance for those over 50 is generally offered as a whole life policy. It will insure you until you pass away, as opposed to term coverage which will only cover you if you pass away within the time period that the policy is in force.

2. According to the statistics, life expectancies have increased, Americans, in general, live longer than they did ten years ago. As a result of the greater life spans, many leading insurers are lowering their rates. 

They offer insurance policies to older folks too. Where we may relate term insurance with young adults, it is not difficult for a pretty healthy 50 year old individual to get a 10, 20, or even 30 year term insurance policy!

3. Because people are living longer, insurance providers are more than happy to extend insurance coverage. While a 50 year old individual may have some difficulty finding a 30 year policy, they can certainly find 10 – 15 year term coverage. 

They can also look for permanent coverage like a whole life policy. This can be a significant part of your financial strategy. There are other purposes of policies for older individuals as well, such as Estate Planning, tax planning, etc.

4. Buying insurance coverage for individuals over 50 has been made simpler by online services in America. These days, choosing life insurance for your family is easy, thanks to how simple it is to get quotes from top insurance agencies in the United States.

The quotes cost nothing, and they can be seen within a few moments. In the past, getting insurance was complex and time-consuming. The whole process of attempting to search through rates and details from different firms was daunting and complex. 

Websites have made this process simpler. By answering a couple of questions, you are able to get free quotes from legitimate insurance providers.

5. One benefit of whole life insurance for over 50′s is that they have predetermined (fixed) premiums, so you don’t need to worry about the policy getting more costly as you get older. 

But this implies that policy benefit payment will not rise in accordance with inflation either, thus it could leave your loved ones with less purchasing power than you had anticipated.

As a general rule never go with your first over 50 life insurance quotes, always compare insurance company benefits and their life insurance premium before you make a decision in getting life insurance.

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Call Center Communication Made Easy

The gas company serving this area brought their call center back to Phoenix from India last year after numerous customer complaints. What a difference now when you call them. Plus it also created 300 jobs. They were so bad that when India answered I couldn't even understand them or be understood. I'd simply ask to be transferred to a supervisor in the U.S. and they would comply. Now that I know it is the law - I will do it for sure anytime you call an 800 number for a credit card, banking, Verizon, health and other insurance, computer help desk, etc. 

If you find that you're talking to a foreign customer service representative and you do not understand the person you are talking to, please consider doing the following: 

After you connect and you realize that the customer service representative is not from the U.S.A. (you can always ask if you are not sure about the accent), please, very politely (this is not about trashing other cultures) say, “ I'd like to speak to a customer service representative in the United States of America.“ 

The rep might suggest talking to his/her manager, but, again, politely say, “Thank you, but I'd like to speak to a customer service representative in the U.S.A.“ You will be immediately connected to a rep in the U.S.A. That’s the rule and the law. It takes less than one minute to have your call redirected to the USA. Tonight when I got redirected to a U.S. rep, I asked again to make sure - and yes, she was from Fort Lauderdale. 

Imagine what would happen if every US citizen insisted on talking to only U.S. phone reps from this day on. Imagine how that would ultimately impact the number of U.S. jobs that would need to be created ASAP. If I tell all my friends to consider this and you tell all your friends to consider doing this - see what I mean... it becomes an exercise in viral marketing 101. 

Remember - the goal here is to restore jobs back here at home - not to be abrupt or rude to a foreign phone representative. You may even get correct answers, good advice. and solutions to your problem - in real English.

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Receiving Payments for Your Blog Business

 (Photo credit: Wikipedia)

One of the reasons why people create a blog is to make money from it. There are several different methods that you can employ to earn money from your blog. The amount that you make will mostly depend on how many people actively visit your blog every day.

Putting Ads on Your Blog

This is done by many bloggers and is one of the quickest ways of starting to make money from a blog. The simplest way involves signing up to an advertising network, such as Google Adsense and inserting their ad codes into your blog. When a user visits the site, he will be shown the ads, which can be either text ads, banner ads, or in some cases video ads.

Usually you will get paid a few cents every time someone clicks on one of the ads. Alternatively, you can get paid on a CPM (Cost Per Mille) basis, where you get paid a fixed rate for every thousand visitors that see the ad, regardless of whether they click on it or not. With some advertising networks, it is possible to "rent" advertising space on your blog. This allows you to get paid a fixed rate for that advertising spot per day, week or month.

Selling Merchandise Through Your Blog

You may use your blog to promote your own items that you would then ship to buyers. This can be a very efficient way of selling certain types of merchandise online, as your blog will give you a place where you can explain how your products work as well as the benefits that they would bring to the buyer.

If you're selling items online, you will need to use a service that allows you to process credit card transactions and receive payments. PayPal is an online wallet service that is extremely popular among bloggers. The user can pay by credit card, bank account or from their PayPal balance. You will then receive the payment, minus a small processing charge for each transaction. Even though PayPal is the most popular option, there are other services that you can use as well, such as Moneybookers.

If you're making a lot of credit card sales through your blog, you can contact a financial institution to sign up for a merchant account. Here's a clever way to find out which merchant account fits you best , for example: bettermerchantaccounts.com/what-to-look-for-in-a-merchant-account-provider.

In this case, the money from your sales will be deposited directly into your bank account. Fees charged on each transaction vary from one financial institution to the other. However, you should know that merchant accounts have specific requirements associated with them and are more difficult to obtain than simply opening up a PayPal account. You would usually need to have a registered business, as well as make a relatively large amount of money in sales each month to qualify for a merchant account.

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Free Online Business Courses Helping with Personal Finance

Finance (Photo credit: Tax Credits)

There are few things more daunting in our personal lives than the concepts of personal finance, financial responsibility, and preparing for retirement. Money matters are almost always a drag. Whether you're 20-something and just graduated from college or you're 55 and edging on retirement, a little guidance when it comes to finances can be extremely useful. Truly understanding personal finance and retirement planning will most likely take a bit more effort than just reading a few blog posts or "how to" books on the topic. Take the time to really invest in your financial future by educating yourself as carefully and thoroughly as possible on financial matters. As technology grows and expands, we have more and more access to useful information and resources. Use these three online business open courseware classes for free to learn more about personal finances and money management. 

Fundamentals of Personal Financial Planning- University of California Irvine

This online class is offered by the University of California in Irvine and takes a careful look at financial planning. While this class certainly shouldn't replace a professional financial planner if you need one, it can be extremely useful in getting individuals started on the path of financial planning. Students can take the class for free online to gain an understanding of financial planning in the broadest sense. Students will learn to manage all aspects of a person and family's financial affairs. This starts with exploring family spending planning and extends to looking at risk management with insurance, taxes, wealth accumulation, investing, and wealth distribution in retirement and estate planning. This online course is a great stepping off point for beginners of any age to delve into the world of financial planning and management.

Introduction to Financial and Managerial Accounting- MIT

This course is presented by open courseware-great MIT and the Sloan School of Management. As an introductory course, this business class tackles the sometimes confusing topic of accounting. Students will study the basic concepts of financial and managerial reporting in this online course. You will explore topics like the accounting process, statement of cash flow, balancing and recording transactions, long-term assets/depreciation, and much more. While some of this material may be more advanced than is necessary for personal finance needs, the course can still be very worthwhile for the average individual.

Statistical Thinking and Data Analysis- MIT

Another course offered by the MIT Sloan School of Management, this course explores the topics of statistics and data analysis. Again, this course may look into several topics that are more advanced than the average person might need, there are many things to take away from the course. Students will look at topics on applied probability, sampling, estimation, hypothesis testing, linear regression, analysis of variance, and much more. Learning these areas of statistics and data analysis can help with understanding your money use and future prospects. Students have access to lecture notes, exams and solution, and assignments with solutions. Follow the class completely or pick and choose through the topics that you are truly interested in learning and you think can help your financial planning and personal finances.

Karen Smith is a devoted freelance writer and business blogger. Her primary goal as a blogger is to inform her readers about pursuing a business degree online. She also enjoys writing about small business trends, Internet marketing, personal development, and sustainable living. Karen welcomes your comments below!

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Why You Need a Stop Loss (and the Proper Way to Place One)

The big debate in the financial industry among investors and traders is whether or not one should use a stop loss. Some say it is advisable to do so, because it will prevent your losses from growing and compounding into a more deadly problem. Others say you shouldn't - "you should just hang in there and wait for the market to return - if you use a stop loss, you might get stopped out at the worst time possible". 

I believe that one MUST use a stop loss. However, my method of placing a stop loss is a little different from that of others.

Why You Need a Stop Loss

A stop loss has two very important purposes:

1. Using a stop loss properly is the ONLY way to manage risk. Some say that you can manage risk by diversifying - I do not believe that is true, because true diversification is no different than buying an index wide ETF (e.g. S&P 500 ETF). Thus, stop losses help you manage risk by only permitting your losses to go so far - once the losses exceed that limit, the stop loss will automatically trigger and stop your "blood loss". 
2. When I invest, I like to wait for the fundamentals, technicals, and political policy to all line up in one direction (the market direction is easiest to predict when this happens). However, if I'm 99% sure that my market prediction is correct, there still is a 1% chance that your prediction was wrong. The first thing one learns from Risk Management in university/college is to never, never put yourself in a live or die situation, because you just might die. Thus, without a stop loss, your losses could potentially wipe you out - without any capital, you can't make a comeback in the markets. 
3. It can validate whether the fundamentals you analyzed were correct or wrong (e.g. you believed the fundamentals of the market were strong, but if the market hits your stop loss, it invalidates that belief). 

To summarize, the only way to properly manage risk after you've initiated a position is to use a stop loss. So how does one set up a stop loss correctly? 

The Incorrect Way to Setup a Stop Loss

Most people make this mistake - they do 1 of 2 things:

1. Many investor and traders like to place their stop loss near or at whole numbers, such as 10's, 100's, 1000's, etc. Do not do this! nowadays, many big traders and fund managers can buy data that shows where the majority of stop losses are. They'll purposely (artificially) trigger that stop loss, forcing you to cover your position, which yields them handsome profits. 
2. Many others like to place their stop losses at their maximum pain threshold. For example, if Tom is willing to lose a maximum of 10% on any single position, he will place his stop loss at 10% below the market price he opened his position at. This is wrong, which will become evident later. 

In short, you cannot use the above conventional ways of using stop losses because nowadays, the market experiences such extreme swings (thanks to investment models, computer traders, and the consolidation of market capital) that the extreme swings often touch the stop loss, after which the market swings the opposite way. 

The Correct Way to Setup a Stop Loss

When I invest, I create different scenarios. If this happens, then it validates Scenario A, and this should happen as as consequent. If the market then moves this way, then it validates Scenario B, and this should follow as a consequent. Etc. Many times, if something changes, the market will have switched from your Scenario A to Scenario B. So here's how you set up a stop loss:

1. Place the stop order at a market price that, should the market reach that price, your market prediction would be invalidated (eg Scenario A) and you must change your prediction to a different scenario (e.g. Scenario B). 

Tony blogs about his financial thoughts at Intangible Investor, a site dedicated to analyzing the fundamentals of the biggest U.S. and international stocks.

Investment Crowdfunding The Future of Business Investing

This is a Sponsored post written by me on behalf of iCrowd for SocialSpark. All opinions are 100% mine.

The spirit of the American entrepreneur is alive and well. Even in a down economy

major private businesses were started last year. What these private businesses have in common with public companies is the need for capital to start up and sustain operations. In today’s investment world, 99% of Americans are prohibited from investing in these startups because they don't have the financial balance sheet required by law to invest in companies before they go public. These antiquated laws block investors willing to share the risks and allowing them to reap the rewards from providing capital to small enterprises.

To cure this roadblock for the common investor a relatively new form of investing called "Investment Crowdfunding" will be coming soon, once the SEC finalizes its regulations. Investment Crowdfunding will allow you to invest directly in early-stage companies, which not only includes startups but other small businesses as well.

Investment Crowdfunding: A Transformative Technology

For the average investor this means that you will be allowed to invest in startups. The JOBS Act has language that allows you to invest with entrepreneurs and help convert inspired ideas into reality. You will be able to invest in companies that have the potential to grow and meet your investment goals. 

Once Investment Crowdfunding is allowed by the SEC, you will be able to invest in new businesses using iCrowd’s web-based portal. There you will discover companies with business plans that need investors like you to turn them into reality. iCrowd will help you find and uncover investments that match your goals and interests. On iCrowd you will find a network of fellow-investors who root for, patronize, or offer advice and ideas to help make your investment successful. iCrowd is different because you will not only be investing your money, you will also be interacting with the investment community by giving advice and networking with like minded investors. On iCrowd you will see a wide variety of businesses that Investment Crowdfunding can be used for: innovative new products, sustainable enterprises, businesses in your home town, potential medical breakthroughs.

What’s iCrowd?

But with any startup there are risks. Businesses do fail, investors need to recognize this. Investors will need to recognize the risks each of their investments pose before putting any money at stake and they will need to invest within their means. The JOBS Act sets limits on the amounts individuals may invest, but investors will need to assess their individual situations to assure they can bear the risks they take on.

iCrowd's goal is to assist investors to make informed investment choices. The iCrowd community is there to help: ask questions, discuss potential investments, talk to the entrepreneurs, give and take advice. Visit iCrowd today.