It probably comes as no surprise to you that one of the main reasons for investing in the stock market is to protect against inflation, which gradually erodes the value of our dollars over time. While keeping your money safely under a mattress certainly protects against market risk, it does not shield you from inflation risk as your money steadily decreases in value.
Annuities are a popular sales product of commissioned salespeople in the insurance and investment world. Ask someone about an annuity they purchased and 9 out of 10 times they will say it was sold to them, not “I bought” or “I chose” an annuity. Many offer promises of guaranteed rates of return, income for life and tax avoidance. But those promises only
Most experts suggest carrying enough disability insurance to replace 60-65% of your gross earnings with non-taxable benefits. The reasoning behind this suggestion is that the other 35% of income you're not replacing equals the estimated amount of taxes that are withdrawn from your paycheck, savings you needed to do while working and other expenses that would go away if you weren&rsquo
I recently received counterfeit bills in change from the grocery store. Someone had gone to a lot of trouble to paste a “5” over the “1s” at the corners of the bill. I thought it seemed like an awful lot of work and a lot of jail time to do (if you get caught) for only four dollars! Turns out, it’s actually common practice.