In The News
- Will Markets Going Up In 2018?
With today's economy & past policies from President Trump, tax cuts specifically, I believe 2018 will be a great year for the Stock Market and we should see all-time highs in the DJIA, S & P 500 & Nasdaq.
- 401k / IRA / Roth IRA Contribution Limits for 2018
If you are under the age of 50, max contribution is $5,500 & if over 50 it's $6,500 for your IRA & Roth IRA. Your 401k limit is $18,500 if under 50, $24,500 if over 50 years old.
- How Much Should I Pay my Financial Advisor or Portfolio Manager?
The fees you will pay a Financial Advisor generally depend on how much money you are asking the Advisor to manage & whether part of those investment dollars include your 401K. Try to avoid dealing with Financial Sales People who only want to charge you commissions or are only selling their company products.
- Will Markets Going Up In 2018?
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How Much Life Insurance Do I Need?
You can’t pinpoint the ideal amount of life insurance you should buy down to the penny. But you can make a sound estimate if you consider your current financial situation and imagine what your loved ones will need in the coming years.
In general, you should find your ideal life insurance policy amount by calculating your long-term financial obligations and then subtracting your assets. The remainder is the gap that life insurance will have to fill. But it can be difficult to know what to include in your calculations, so there are several widely circulated rules of thumb meant to help you decide the right coverage amount. Here are a few of them.
One Rule of Thumb: The DIME Formula
This formula encourages you to take a more detailed look at your finances than the other two. DIME stands for Debt, Income, Mortgage and Education, four areas that you should consider when calculating your life insurance needs.
- Debt and final expenses: Add up your debts, other than your mortgage, plus an estimate of your funeral expenses.
- Income: Decide for how many years your family would need support, and multiply your annual income by that number. The multiplier might be the number of years before your youngest child graduates from high school. Use this calculator to compute your income replacement needs:
- Mortgage: Calculate the amount you need to pay off your mortgage.
- Education: Estimate the cost of sending your kids to college.
The formula is more comprehensive, but it doesn’t account for the life insurance coverage and savings you already have, and it doesn’t consider the unpaid contributions a stay-at-home parent makes.
How to Find Your Best Number
Follow this general philosophy to find your own target coverage amount: financial obligations minus liquid assets.
- Calculate obligations: Add your annual salary (times the number of years that you want to replace income) + your mortgage balance + your other debts + future needs such as college and funeral costs. If you’re a stay-at-home parent, include the cost to replace the services that you provide, such as child care.
- From that, subtract liquid assets such as: savings + existing college funds + current life insurance.
- There are many types of Life insurance, Long-Term Care insurance and Annuities so Contact James to discuss your Insurance Needs and let him provide you quotes from several companies.
- Don’t let Insurance Salespeople sell you on their specific company, compare several quotes from several companies, James will help you do that.
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- Markets RISE After Midterm Elections – As I Had Predicted November 12, 2018
- Look For Trade War Agreement Soon Between US & China November 6, 2018
- 54% Equity ETFs Posted LOSSES Over Past Year November 2, 2018
- My Stock Market Update & Outlook October 30, 2018
- Ever Hear “Don’t Fight The Fed”? Remember, It’s True When Fed Funds Rate Rises & Falls? October 4, 2018
- Stock Market Hitting All-Time Highs – Will DROP for Midterm Elections Then Rally October 2, 2018
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