How is it possible that the advisor and the client we discussed earlier could have been made to feel comfortable in choosing a payout of 8.5 percent or even 6 percent? Is it possible that we can be fooled, too? Sure, because our experiences of the recent past can substantially influence our judgments and create a bias that is too optimistic. Following this thought further, I wondered whether the average annual return for the ten-year period just prior to 1968 could have influenced an advisor’s projections and the retiree’s expectations. My research established that the answer was a resounding yes. From 1957 until 1967, the S&P 500 had an average annual return of 12.81 percent. Was that a surprise! In addition to the average return blunder, which is forward looking, I discovered the average return bias, which is backward looking. It goes to show that the advisor and investor could become victims of the times, the investor losing her retirement and the advisor losing an account and maybe his job.
Right from the first draw, the deck was stacked against the 1968 retiree. Not only had the average return assumption not produced results, the past decade became a poor predictor of actual year-to-year returns. Even if good data and a computer were used to generate a hypothetical illustration, that information simply was useless, if not dangerous. The power of the computer to show various scenarios is still somewhat meaningful, but a computer cannot predict the timing of returns. Advisors using such illustrations can mislead clients if they do not caution them about the probability that their assumption can be dramatically off.
Medicare is a federal and state health insurance program primarily for individuals who are sixty-five years of age or older. Full or partial cover-age is offered to those who are disabled before age sixty-five. There are two parts to the government’s insurance benefits.
• Medicare Part A is hospital insurance. Most people do not pay a monthly Part A premium because they or their spouse have forty or more quarters of Medicare-covered employment. This portion covers inpatient hospital costs in a benefit period; you may pay a deductible and coinsurance charges. Part A also covers skilled nursing home facil-ity care up to 100 days after hospitalization in a benefit period with a coinsurance charge. Home care and hospice services are also available. If you exceed 100 days, you must begin paying the costs of the nurs-ing home stay. In states as large and diverse as New York the cost can range widely. The insurance industry reported that the average cost per day in Chautauqua County (western New York) is $144, while it is $251 per day in Suffolk County to the east. With such a high price to pay, many people consider buying long-term care insurance to cover the possibility of longer, extended periods. If one cannot afford it, Med-icaid begins to kick in to pay the bill once people meet the require-ments to qualify. Medicaid is essentially welfare, and to qualify one must have few assets.
• Medicare Part B is medical insurance. This portion of the plan covers physician’s services, inpatient and outpatient medical and surgical serv-ices, physical and speech therapy, diagnostic tests, durable medical equipment, and such. Monthly premiums may be deducted from one’s Social Security benefit. In 2002, the premium is $54, adjusted annually. There are possible 20 percent copayments due on some Medicare-approved charges. Since some medical costs are only partially cov-ered—for example, you would pay 20 percent of the cost of durable medical equipment—or, as in the case of prescriptions and vision and dental care, are not covered at all, you may need to keep a nest egg set aside for these expenses. On the other hand, you may find coverage for these things by buying insurance plans from a company in your area.
Throughout the book, you will see the stories of different clients unfold. You may find that you have similarities to one of these clients. The clients are actually amalgams of real-life examples. Everything you will read about these clients and their personal experiences has happened to someone. The examples are real, but specific details have been changed. Plus, of course, the names have been changed.
For example, Ted and Ellen are based on the characters of people I have known for a long time. (In fact, I had gone to school with someone like Ellen.) They got trapped in the middle-class nightmare—working hard, not home much with their two children, and tired most of the time. They were looking for a way out. They weren’t afraid to try some-thing new, and they were bright, hardworking people. But they didn’t want to risk their family’s security along the way.
The people you read about are in very different situations with unique issues, but you may find elements in your own situation. Every client of mine has had many learning experiences along the way to their business success. My hope is that you can learn from these experiences as you read about them. Every lesson you learn from someone else and apply is one fewer lesson you won’t have to learn the hard way. I don’t know about you, but that sounds a whole lot easier to me!
Interspersed throughout the narrative, you will find other explanations and many forms. I encourage you to complete the forms and questionnaires that are applicable to your situation. These are tools that I use in my certified public accountant (CPA) practice with clients every day. My sincere wish is that you will have the same good results our clients have experienced. Above all, I wish you success and happiness in your business ventures, and, in fact, in all of life’s adventures.
When our salary is growing bigger than last year, may be there is a small think about our life insurance. How to protect and anticipate the future if someday we got unexpected case suddenly, I mean case in related with our health condition. May be we got serious sick (even we never perhaps in our life) but we can stay calm if we have life insurance system so we don’t have to pay 100% our medical fee.
Insurance could be one solution to protect our health and life and day by day the number of people who care and pay attention for insurance. In other side there are some improvement from insurance provider like the provide some new kinds of insurance beside life insurance, for example car insurance, home insurance, education insurance.
From the extension of insurance variance, provider sure that automotive is big market for auto insurance because the number of car is increasing every day and a car already becomes a social identification for most of people. With the growing of automotive demand, it can be a fresh air for insurance to swing its power and make big profit on it. We can see on the selling of cars there are always car insurance quotes inside and that is a standard package of selling and service for customer.
Have an insurance is a good preventive action beside it can be our saving for future when we need it, but there is one thing that should be attended about monthly payment. Basically we have to manage our income and put it into each allocation post and if we want to make it walk normal we have to do it with full commitment. To save our family financial, commonly our expenses to pay our credit / insurance is not over 35% of our income. For the rest of income we can use for monthly family expenses and for our saving.
The point is we have to check out financial condition before we decide to join into insurance; even it’s a good idea to protect our life or our property. Keep your finance on balance condition to make sure your life is always run smoothly.
I just open my email and found there is email with title “good news”. I try to open then read it. The email body is not 100% news like I expected but actually contain about casino news. I just laugh for a moment because this is not news but just advertising that send by some one.
Above case is a usual happened in every email and most of email will get unexpected email from other email address. Some time we got email about sport equipment, medicine drugs, online casino, product survey, product offer, e-book offer and etc. This kind of unexpected email can be classified as spam email. In everyday there are million spam emails send to other email address. Nothing can stop them and what we can do is only using spam filter that available in every email system and this way is reducing spam purpose only.
If we have business email, we should be careful when using our email. Don’t easy to let people know our email address especially if you like to join some forum because it’s too risky distribute your email to public. Better if you make a free email just for fun activity and you can found it in Yahoo!, Google or other email provider.
For me, I have at least 2 emails; one for business and other for fun activities. If I opened my business email, daily its only has some new emails but when I opened my other emails its has a thousand unread email because there are hundred new emails in daily incoming and 99% of them is spam email. There are so many promotion offer from stuff, concert ticket until best online casino journal.
So be careful with spam email and always protect your business or privacy email from use less publication to avoid negative effect from unexpected email like virus or spyware.
“Have you protected your family with life insurance?” That’s an advertising that I see in some places during my business trip to town outside. After I read that sentence I become aware that we need protection all what we have.
We already work daily with hard and now you have some properties as working result like you have home, car, motorcycle, bank saving, investment letters or deposits. Most of properties usually protected in the save place or protections system. We have bank that can protect our money, jewelry and important letter by saving them in our trusted bank. If we have saving we will get double benefits; protection and rate. To protect our home we can join into home insurance that commonly offered if we take home loan. This system will give protection during our payment periods.
For our automotive like car, we can protect it with car insurance to cover if we got unexpected condition like accident or hit something. This will give all we need to cover our favorite car and we can drive with no worries, at least we have backup for repairing our car after got accident. Now there are so many providers that providing cheap auto insurance that easy on payment and service and make them closer to customer but the purpose just one: get client as much as possible.
Above properties are important thing but the most important that should be protected is our health. We can do nothing if we are sick! Money can be reached, house can be bought but healthy can’t be exchange with anything! Keep your health with healthy life style and stay away from negative things and for additional protection you can join with health insurance for you and all of your family. There are so many choices and you can choice which one is the best for you.
If you have a plan to using your saving (better not all money) to do in investing program, you should have as much as possible about kind of investment. We know that rate of our saving is not big as our expectation and if we know the better options for investment, we can use it to get better result on the future.
There is some investment that regularly promoted and offered in internet and one of them is forex. I know this investment is provided by a futures company and they have some team like we said them as futures broker. These teams commonly provide information about forex activities in detail and explain all benefit and risk to their client. Forex has high risk but offer high return in short time and if we have a good analisys and a lucky, we can get high result from this investment. But you should remember don’t’ put all of your money into one investment, it’s too dangerous and not recommended even that investment is stable one.
If you interest an investment on the medium time may be you choose house as investment because this investment is already proven as a good investment especially for people who has sleep money, I mean unused money at least for 2-3 years. Now the graphic of house price is crouching up every year and the increment percentage is higher than inflation value.
We can see now there are so many people try to buy the second or third house just for investment because they knew that the price of land and house will never fall because house is a primary need of human. If you are looking for a house to stay, save your money until you have enough money at least for done payment and propose to get house mortgage to support your financial for long term because if you delay your decision may be next years, you will get the higher price than today, an unexpected price.
If you want to open a digital cameras shop, should choose the good location because it’s will get double benefit for the business and investment on the future. Commonly the situation around our shop could be an effect for our business.
In the highway there were some accident with the suspect is truck, we can found the some victims of accident were dead and some of them got serious injury. The big case on the highway accident is the suspect was running away and untraceable in the short time. What the victim can did was just give accident report to the nearly police office and explain the chronology detail.
If the police could identify the suspect for few months after report, may be we can ask a help fro independent truck accident lawyer. They work professional system to do investigation with the truck company. Commonly they have good relation with Truck Company and they could found faster way to solve the problem with legal support for their client. Even if you need their help is not free but you could get the justice for accident with their help.
Computer has important position for our business and nothing can substitute the function of computer. The complexity of purpose of computer makes company pay more attention on quality of computer. Some company has direction to use famous international branded and the other use local branded or may be combination of some branded of hardware.
For the software most company has same direction as much as possible using legal software, but for the hardware there so many combination of hardware configuration. The configuration base on requirement of every job then will be breakdown on the quality of hardware. Some famous hardware like HP, ASUS, CAT5e, Samsung have different specification and every user has favorite brand base on their experience before. All of computer specification back to the fund support because nothing is free for computer
