Archive for November, 2011

The Uninsured Risk of Being a Parent and how to protect your Family Properly

If you are reading this chances are you have a family. I am also going to assume that you love your family,and are making big plans for the future of your children. Some of these plans may include a great primary and secondary education. Also making opportunities and experiences available to them in arts and culture, and making sure they get a solid start once they reach adulthood.

I applaud your plans for your children. Your kids will have opportunities that you never even dreamed about when you were their age. The great thing is that your hard work and sacrifice is paying for all of these opportunities as well as the basics, food, clothing, shelter, video games, etc. Even greater news is you have a plan and the work ethic to get it done for your family. The not so good news is that you most likely have no real plan in place to fully provide the INCOME it will take to carry out those plans if you were to pass away prematurely.

The uninsured risk of being a parent is hitting more and more families everyday. Many 30 and 40-year-old parents are being stricken with Breast cancer, diabetes, stokes, heart attacks and sleep apnea. Not to mention simple work and non work related accidents and car crashes. The ranks of the six figure earners are exploding with women and minorities like never before in the history of the U.S..

The ranks of the properly insured grow smaller everyday.Why? Because the idea of what being properly insured is has not advanced in the last two generations and the wealthy are the only ones truly taking advantage of the great opportunity to advance the family legacy through the proper use of insurance.

Being properly insured means being able to totally replace your yearly income for the full time your family will need it. How long do you suppose your children and/or your spouse will NEED your income? Depending on the commitments you have made and the plans your family has that could mean 25 to 50 years. 30 plans for houses, 5 year plans for cars and 20 plans for credit cards. Do you have a plan that will pay for that long? Do you have total income replacement insurance that you personally own? If not, you are leaving your entire family in peril everyday because you refuse to totally cover the risk.

A recent survey was done amongst six figure earning parents and they were asked how much life insurance protection they had. The number than had over $500,000.00 was less than 5%. The number the that had none was over 20%.The number that would have none if they loss or changed their job was over 40%. This is an epidemic problem. Can your family lose over $100,000.00 of income and still operate at a level?

How to replace Income

$500,000.00 can only replace about $20,000.00 in income long term because you can’t really get more than a 4% guaranteed return in any stable financial instrument. That means to replace $100,000.00 you need about $2.5 million in life insurance. Put in the proper instrument it will pay $100,000.00 per year forever. It will pay your spouse, your children, and your childrens’ children, etc.. Learning how to do this properly and for as little cost as possible is an art.

BTW, If you have coverage on your job you need to purchase proper coverage like you have no coverage at all because if you lose or leave your job that is exactly what you will have only you will be older than you are now and the coverage will cost much more. Don’t fall into the trap that gets so many Americans. There are so many Americans looking for proper coverage that they are simply to old or too sick to qualify for. Insurance favors the young and the healthy and time is not on your side.

The structure of a proper income replacement plan is key. If you don’t have a plan that will replace your income for the next 50 years minimum then call me so I can help you put together great options. Having no plan is a plan to fail and today’s parents are failing their children everyday by only considering the possibilities if everything remains perfect. Nothing ever goes perfectly. Plan for the worst and hope for the best and you will never have any regrets. By law you can not drive a car or own a  home without proper coverage. Why can you be a parents without proper coverage. So much is riding on YOU!

Call me at 410-908-5987 to schedule a free 15 minute consultation.

Wishing you Wealth Wellness and Wisdom


Manager of Wealth


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Life Insurance is not the Plan, it is the Funding Source of the Plan!

If you read my last blog post then you know that I believe you should have a plan to replace your income in the event something unfortunate happens to you. Everyday I see examples of families that failed to plan and the hardships the surely come with the lost of that income.

Let’s be clear I know you don’t want life insurance. You want your family to be able to carry on and accomplish the dreams and plans you had for them. Maybe by the end of this series you will want life insurance when you realize how much you can use it to make your dreams come true while you are alive. The important thing is that having Life Insurance does not solve all of your planning issues because a large sum a money going to your family will not solve the main challenge facing your family. The main challenge is a clear and effective plan.

Many people just leave money to their families and before long the money is gone and then the financial struggles begin. Why not set a plan in place using your will to say exactly how the money is to be dispersed?  Why not have the money go into a fund the preserves the capital but pays a life time income to your  surviving family members and passes the principal on to the next generation?

The insurance is only the funding source for the plan. If you have 2 million dollars in life insurance why not have your trustee set up an annuity that pays $100,000.00 per year to your heirs and then passes the payments on to future generations when the pass. Most people don’t do this because they did not know it was an option. Never leave provsions without instructions.

Your gift to your family could be multi generational if you plan well. Can you imagine your two million paying out 5 million over fifty years while preserving the principal? That’s the power of a couple hundred bucks a month in the right hands.

Remember of the plan,Life Insurance is not the Plan, it is the funding source!

Wishing you Wealth Wellness and Wisdom,


Manager of Wealth

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What Happens to your Family Financially if you Don’t come home Tonight?

This is one of the most powerful questions for a family to answer concerning every income earner in the home. It is certain that the death of any member of the family is a tragedy but the total loss of your income to the household is a second lingering tragedy that is felt for decades by the very love ones you went to work to support every day.

The American family has a very serious problem. Many fathers and mothers think they are properly insured and that the insurance policies they personally own or the ones they have at work are enough to cover their families. This assumption is not only wrong but it is dangerous because your whole family is counting on you knowing better and doing better to protect them. There are inexpensive fixes that must be put in place today so that your family can continue to thrive and grow even if you die or are totally disabled..

What is the proper amount of insurance?

The proper amount of insurance is the amount of insurance that pays off all debt and TOTALLY replaces your income. If you earn $80,000.00 you need an amount of insurance that will pay $80,000.00 per year of more forever.  Do not count insurance you have through your job because you may not always have that job. In addition the longer you go without owning your own policy the older you get and the more expensive you will be to insure. Insurance favors the young and healthy. own the solution to your problem.

If you have 1.5 to 2 million in insurance (do not buy it in term unless it is a special term that converts to permanent insurance) your family can pay off its’ debt and then put the balance in an annuity that will pay 5% a year. If placed in trust it can pay $80,000.00 through your spouses life time, your kids life time, and your grand children’s life time without ever touching the principal. A healthy 40 year old could purchase this for about $200.00 per month. If your spouse did the same and you taught your children to do the same when they became adults, your grandchildren will have some serious trust funds. And it can all be created from very little money.

 Would you pay $200.00 per month to know that your family would get $80,000.00 per year forever?

We pay $600.00 per month car notes, $2500.00 mortgage payments, 1500.00 per month tuition for elementary school in some cases. Why are we not putting things in place in case the worse happens? Every Father , Mother, and responsible adult should put an income replacement plan in place right now. It’s not just a policy in the right amount but a written plan that gives instructions to make the money do what is supposed to do.

I often hear spouses say that if something happens to them the house will be paid off and that the other spouse and the children will be ok. The truth is they will not be ok losing all of that income. Many things are no longer possible now that your income no longer exist. Things will continue to get more expensive and your money will buy less everyday. When you were born gas cost less than one dollar per gallon. Now it’s almost four dollars per gallon. Don’t leave a family with a paid off house and broke.

It’s not fair and its not why you are working so hard NOW

I did a survey of 20 friends and associates who earn over $150,000.00 and live in homes with debt over $300,000.00. Most had their children in private schools paying between $600.00 to $2000.00 per month. Not one had a policy worth more than $500,000.00. These are all great parents that love and care for their amazing children but if something happened to them or their spouse their children’s life styles would disappear within two years. I know that is not what they want for their families. So I’m helping to change that now!

You will need help doing the right thing affordably and I can refer you to excellent resources. 866-392-5805.

What happens to my family financially if something happens to me? They will be debt free and still have my total income coming in every year for the rest of their lives. If you can’t say that you should be calling me now.

Wishing you Wealth Wellness and Wisdom


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Victims of improper foreclosure may receive Compensation

If you or anyone you know was foreclosed on by any of 14 majors banks between Jan 1 2009 and December 31 2010 you may be due some money.

Except below: 



WASHINGTON, (Nov. 1, 2011) – Fourteen U.S. mortgage servicers and their affiliates are making available free, impartial Independent Foreclosure Reviews to certain of their borrowers as part of the consent orders entered into with the Board of Governors of the Federal Reserve System and the Office of the Comptroller of the Currency in April 2011. The reviews will be conducted by independent consultants upon request by borrowers who faced a foreclosure action on their primary residence during the period of Jan. 1, 2009 through Dec. 31, 2010.

If eligible borrowers believe that they were financially injured as a result of servicers errors, misrepresentations or other deficiencies in the foreclosure process, they can request a review of their foreclosure file to verify that their foreclosure process was handled properly. Foreclosure actions that may be eligible for a review include:

Property sold due to a foreclosure judgment.

Mortgage loans referred into the foreclosure process but removed from the process because payments were brought up-to-date or the borrower entered a payment plan or modification program.

Mortgage loans referred into the foreclosure process, but the home was sold or the borrower participated in a short sale, or chose a deed-in-lieu or other program to avoid foreclosure.

Mortgage loans referred into the foreclosure process and remains delinquent but the foreclosure sale has not yet taken place.

Read the entire article here:

There have been so many proven stories of improper foreclosures that many people are going to get compensated. I hope homeowners do not miss out on this opportunity.

If financial injury is found through a review, borrowers could receive compensation.