so I've just received $8000 credit from the government

Tell me more...

 

Wait, so they give you money just to take it back later? Why?

 

Gold is a bubble.

Brazilian Bank Stocks....7.9% divvy and it will pop...BSBR.

 

Thats the reason for the drop...BoA is here to stay...its not going anywhere and the backing and support it has will only lead to it's stock price rising again. It really cant get (much) worse from here on out...unless they decide to fold and call it a day, which wont happen.

 

whole life -

*premiums are higher (up to 10 times higher) for a lesser amount of coverage.
*like a mortgage, the first few years of your premiums are going towards commission and fees
*your measly returns of 3% can't even beat inflation
*when you die, it pays either the face value or coverage amount, NOT BOTH.
*you want to borrow against your cash value prepare to pay it back plus an 8% penalty
*whole life policies are usually pushed instead term by agents because of the fat commission. they rarely provide enough coverage for dependents
*you don't need life insurance for the rest of your life (hence, whole life), you only need it until you no longer have any dependence or have built up a nice nest egg.


term -
*provides coverage of $100,000 for less than $20/month assuming great health ($20 on a whole life policy maybe will get you $5000 in coverage)
*heard of buy term and invest the difference? put that difference in an IRA and you'll get better returns in the long run than whole life.
*i can take out my IRA contributions without penalty
*when i die, my dependents receive my IRA balance AND the term coverage

is that good enough?

 

no ****?

 

Put $8K towards your house. This way you reduce the overall cost of your loan by a significant amount.

 

What happens when you outlive your term?

 

pay the highest-interest debt you have. gaining in the stock market means nothing if you are underneath credit card debt at 13%.

after that, determine if you need the money to be readily available or if you can sock it away... which means invest in stocks or bullion (if you need liquidity), or in a retirement fund.

 

by then, if you're a fiscally responsible person you shouldn't need life insurance anymore.

 

Assume a 10 year $100,000 term life policy at $200 a year. Are you saying that a fiscally responsible person should have saved up $100,000 in that 10 year period?

 

for a ten year period, no i don't expect them to have $100,000. but families don't buy ten year term, usually 20 year term and possible renewable term. the purpose of life insurance is to protect your family against your death, and the money to cover funeral expenses and whatever income they have lost for the next few years WHILE YOUR KIDS ARE STILL UNDER YOUR SPOUSE'S CARE. Once the kids are on their own, you don't need as much insurance.

compare your term life premium to that of whole life. that $200/year is now $2000/year (assuming ten times as expensive). extrapolate that over the 3 decades (assuming you're paying from age 30 to 60). that's a significant amount of savings. put that in the market and getting a better return than inflation.

 

Everyone is entitled to their own opinion, so good luck with your term life. Life insurance is to cover funeral expenses as well as replace your income in the event of your death. I just hope those with life insurance have enough coverage. 5 times your annual income for good measure.

 

Yep, it sure is:


Gold prices by the oz over the last few years: 2005: $513. 2006: $635.70. 2007: $836.50. 2008: $869.75. 2009: $1087.50. 2010: $1420.25. Now it's at $1593.20 per oz.

 

Pay debts and buy Gold.

 

i would follow a combination of R2K's advice, meaning, you'll need to keep some of it liquid against the day your house needs repairs, and building a nest egg. you can do both at the same time.

invest $1k (or $650 to make the math work) each month in a CD, each maturing in 12 months. as they mature you have the option of rolling it over and continuing to accrue interest, each time on a greater principal, or cashing it in and using it for whatever unexpected expenses present themselves that month. quasi liquid, and you continue to save, invest, and grow your nest egg.

and take $250 and stimulate the economy by getting a hooker. in H-town, that should be plenty to find some decent skillz...

 

I bet you're a hoot at parties.....lol. Seriously though, what kind of answers were you expecting?? Why don't you just contribute to your IRA or invest into a mutual fund if you want the money to grow without taking a risk with it?

 

1. Move in on a 'corner' like Avon Barksdale.
2. Run a Ponzi scheme on your friends
3. blow & Huas

 

We payed for our wedding, a tv, a new mattress set/bed frame, a sectional sofa, and now a trip to the Domincan Republic with ours.

Yeah, we are cautious tightwads.:grin: