Category: Tips Finance
“Set a goal to become a millionaire for what it makes of you to achieve it. Do it for the skills you have to learn and the person you have to become.” ~ Jim Rohn
I learned about the incredible time-value of money when I was close becoming 40 years old. The time-value of money explained simply is that a small, insignificant amount of money invested over a long period of time can grow into a significant and life-changing amount of money. The key is that the more time you have, the more your money can grow.
So naturally, when I learned about this simple concept so late in life, at first I was mad. Why didn’t anyone teach me this sooner? But I realized that thinking this way was very selfish of me. I mean, most people go through their whole lives never knowing or taking advantage of the time-value of money and I am just so grateful to have learned this simple yet elusive concept. I began to realize that I still have plenty of time to take advantage of this powerful concept, and I thought, What if I applied this concept to my kids who have even more time than myself? Then I thought, What if I share what I’ve learned so that others don’t have to possibly learn this too late in life or to possibly never learn this in the first place?
So, when I learned this concept, my kids were 3 and 7 and I wondered how much they needed to invest to have a million dollars by age 65. Now when I talk about investing, I am not talking about saving in an account at the Bank or Credit Union – I’m talking about getting some Mutual Funds and actually investing that money in the Global Economy. So, the first thing I did was help my son earn some money and by the time he was 8 years old he had a whopping $335.00 to invest! As unexciting as this might seem, my son still had lots of time on his side, 57 years to be exact, until he would turn 65. And, would you believe that while invested over that period of 57 years, that insignificant $335.00 would grow to over $300,000.00! So, I figured worst case scenario, my son only had to invest $335.00 per year for only 4 years between the ages of 8 and 11 and without adding any more money, it would be very possible to accumulate over one million dollars by the age of 65! And that could all be done by only a total investment of $1340.00!
Now, if you think that is incredible, my daughter was younger, so she would have even more time for her money to work for her than her brother. My daughter was 5 at the time she started investing. Comparing apples to apples, if we were to just take the same $335.00 her brother made and invest it, but she had 60 years until age 65, that would grow to over $400,000! So the money, working only 3 years longer than it did for her brother would grow an extra $100,000! Now that’s the time-value of money! Again using worst case scenario of only making $335.00 per year and investing it, she would only have to invest for 3 years between the ages of 5 and 7 and have over a million dollars by the age of 65 – all from a total investment of only $1005.00!
So do I have your attention now? Do you see the importance of understanding the time-value of money? – Not only understanding it but taking advantage of it. Isn’t that exciting? And that wasn’t that hard, was it?
But remember these are our kids and it is not just about the money, it is more important about the good habits they are forming and the people they are growing into along the journey. Keep this in mind and you can make this a fun experience with your kids as well as a learning experience. Now my kids are 13 and 9 and I am happy to say that over the years they have exceeded the worst-case scenarios of only investing $335.00 per year and they are well on their way to becoming future millionaires.
Posted in Business, Credit Tips, Insurance, Tips Finance
Up to this date, the usability, function and exchange of Bitcoins and other digital currencies have been limited and circulating around small communities-group of individuals or large enterprises-who have ventured into the world of digital currency. Since the community is small, the ability to spend or trade it for various products is also limited and a lot of this currency owners hope that it can be widely accepted in the future. Although these are possible, this will take time and a lot of discussions as the concern for safety and security is at large. Besides that, the government and some large institutions are threatened with the possibility of using such a system.
Not many people widely accept digital currency. If you haven’t heard of it or aren’t one of those who have spent much of your time understanding, mining and acquiring the said currencies, you will not feel safe trading in or acquiring such currencies in exchange of items that you wish to sell or have. It has not been accepted widely and the fear of the loss it may acquire in the future is great due to the fact that there is no governing body in it. People would need to feel safe using it but this would normally require the interference and approval of the government and general sectors of the financial market.
The Need for a Controlling body
The transfer to digital currency would allow people to make online trading without issuing actual and paper money which are prone to being stolen. However, it is not a hidden fact that some digital currencies have been stolen too. The government would want to control it as there is a significant amount of income from the exchanges and trade. Other sectors not open to the actual value of digital currencies may find it hard to liquidate their assets and make use of digital currency exchanges.
Although the future of digital currency adoption is greatly possible, the greatest risk everyone has to deal with would be the security. For example, PayPal is trying to impose this on their system (the news of which eventually made the value of Bitcoin rise in one day) but the problem is, delivery schedules may often not be met and it would be hard to recover the said currency-also includes defects on products upon delivery. The possible adoption could take time and effort from both the government and independent sectors to work out the glitches in connection with fraudulent acts over the internet and sectors wishing to sabotage the project.
Posted in Business, Insurance, Tips Finance
Growing up I was a tall kid, one of the tallest in my class. I was taught “not to fight,” so sometimes I became a target for (shorter) tough kids who wanted to push around the big guy.
Now that we’re all grown up, I’m glad to say that’s all behind us… or is it?
Let’s look at the case of construction companies. If you are a contractor, you may feel bullied sometimes, by VENDORS who purport to serve you. One of them could be your banker.
Banking Relations for Construction Companies
Working capital is an important financial resource for contractors, especially when starting up a new project. They may have to work for forty five days or more, paying out of pocket for labor and materials before they receive their first money under the contract. Bank credit can be a perfect solution for this.
The new contract is an asset for the company, and the bank can rely on this when lending money. But what happens when the contractor brings the bank a bonded project? They will refuse to lend against that job! Their position is that the rights of the surety conflict with their own.
Bonding Relations for Construction Companies
More bullies: Now let’s look at the surety side. When applying for bonding support, the underwriters ALWAYS ask about banking relations:
- “Do you have a working capital line?”
- “How much of it is currently available?”
- “How is it secured?”
- “If you do not have a bank line we want you to apply for one. It can help you get through a problem and prevent a bond claim.”
- “The bank line can help you finance the start of additional projects without depleting your cash position.”
- “If you are approved by the bank, it helps assure us that you also deserve bonding credit.”
Feel bullied? You should!
The reality is that construction companies may need both bank and surety support. In order to pursue public work (municipal, state, and federal contracts), surety bonds are mandatory.
The bonding company wants you to have a bank, but the bank doesn’t want to support bonded projects. You can’t win!
Posted in Business, Tips Finance
The reason agents fail learning how to sell final expense is fairly simple. The unfortunate reality of sales, no matter the industry, is that 90% of all sales people fail or quit within the first 12 months of starting their sales profession. Why is that the case?
The number one the reason agents fail selling final expense is because they give up on themselves. They go into the business with aspirations that didn’t match reality. Looking from the outside in, many new final expense agents have the perspective that to succeed in final expense it is only a matter of going out and talking to people. If it were only that simple!
It takes time to learn the skills necessary to sell final expense successfully. Final expense sales training is something that takes months if not years to develop. A lot of new agents don’t understand that sales is totally different from a typical salaried employee position. You have emotional ups and downs almost daily. Being on straight commission, you literally wake up every morning unemployed; you must “eat what you kill!”
If you don’t have experience, there is nothing to really prepare you for it until you understand what that is like and you are living it. It is something that many people just can’t handle.
Then the other reason people fail is because they don’t get involved with the right agency to help train them, to prepare them for the realities. They get involved with a business that sells “Blue Sky,” meaning all the benefits to a lifestyle of Final Expense and none of the gritty work that it takes to succeed in the long-run.
Also, new agents fail because they get involved in an agency that is designed to short change them and squeeze the dollars out of them at a ridiculous rate. It ends up being a revolving door type of sales agency.
It is important that agents do their research on the front-end. Talk to different agencies. Get a feel for your managers personality type. Figure out who has been successful. How long agents have been working with them? Ask for proof. Are they transparent with what to expect as far as commission and percentage advancements based on merit and production history?
What do you get for your investment? Because the manager makes money off of your production. You just have to make sure value is there. Take the time to ask these questions. Again, it is really important you are reading this because most agents don’t go into this business even knowing what to ask, much less what to expect.
Many agents don’t understand that you must come into this business with a business mindset. Most agents must buy direct mail, and won’t have the benefit of a referral network or an existing book of business. Instead, they have to buy leads to get going.
My recommendation is to have about $4,000 to $5,000 to invest into a final expense direct mail lead system, or if you have less than that keep a full-time job and then also you know if you got $2,000 or $3,000 minimum into a telemarketing final expense lead system.
You MUST start on the right foot. You MUST be prepared for the ups and downs. You MUST be willing to work through it with the understanding that the long-term is what makes it worth having. What makes it all worthwhile.
That’s the reasons why most agents fail learning how to sell final expense. The important thing is to go into this with the right group that shows you transparently what to do. When you know that you have got that on your side it is really up to you.
Do you have the X-Factor to work hard and follow the system that is laid out upon you?
That’s really the ultimate determinate of your success or failure.
David Duford is the owner of Final Expense Agent Mentor.
In addition to personally producing business each and every week, David specializes in training new and experienced agents on how to successfully sell final expense burial insurance.
Posted in Insurance, Tips Finance
Designed to cover professional practitioners against claims of negligence made by clients or patients, professional liability insurance goes by many names. When used in the medical profession, it is commonly called medical malpractice coverage. Notaries public also require this security, but they refer to it as errors and omissions insurance. Real estate brokers, management consultants, and even website developers are all eligible for protection.
What’s It For?
Insurance is used to protect people in case something unfortunate happens. Auto policies protect them in the event of an accident; medical policies protect them from unexpected illnesses; commercial policies protect them from a number of mishaps. If there is a fire, theft, or an accident on the job, the commercial variety will cover it.
Why You Need It
Few companies are fortunate enough to survive for a protracted period of time without getting sued by a client, customer, or employee. Liability coverage from an insurance company is the only shield most businesses have against litigious attorneys. This goes double when an employer competes in a risky industry like construction. Why?
A construction site is arguably the most dangerous working environment on earth. Not because people are careless, but because making something, anything, is risky. Workers fall down stairs; they trip on cords; they cut themselves. Builders must assume this risk and purchase the right amount of coverage from their insurance company to protect them from financial ruin. But that’s not all.
These policies not only shield the employer, but they also safeguard his workers. If an electrician falls off a ladder or a carpenter cuts himself, a liability policy will pay his medical bills. Commercial coverage will also cover most attorney fees and court costs if someone files a suit against you.
How Much Do You Need?
As you might expect, the size of the policy often depends on the size of the business. Most actuaries recommend at least one million dollars of professional liability coverage for small businesses. Large businesses and corporations obviously need a lot more and often carry huge policies. Because lawsuits are quite common in the medical profession, malpractice insurance is the most common form of liability coverage.
Most doctors have several million dollars of malpractice coverage at all times. When they work in a large practice, that figure might be five or even ten times as high. Lawyers and accountants must also carry liability because of the high rate of litigation in their fields. But what about everybody else?
Any business that can be held financially responsible for failing to complete a project on time may need to purchase a professional liability policy from their insurance company. This includes general contractors, architects, builders, and many, many more. These policies also cover personal injury, breach of warranty, intellectual property, and security. In short, any company that has more than one employee should have liability coverage.
Posted in Insurance, Tips Finance