MTHEL131 Lecture Notes - Lecture 3: Long-Term Care, Disability Insurance, Life Insurance
12 Apr 2016
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Lecture 3 september 29, 2015: pay yourself irst. 10% gross income goes towards long term programs: investment, insurance. Ex: making /month, goes toward investment and insurance. 33: failure to recognize and protect most valuable asset. Through life and disability insurance: failure to diversify your investment porfolio. Don"t put all your eggs in 1 basket . Properly allocate assets: failure to properly manage healthcare risk. Have to take out money from savings to pay for healthcare: failure to prioriize. Some people think its kids educaion, reirement, etc. If you and wife get into accident and you die, wife only receives 4800. Non-controllable events: criical illness, long term care, personal health, life insurance. Controllable prioriies: educaion savings, home, reirement savings, emergency cash, personal savings, Financial planning process: establish goals/objecives, collect important data, analyze the data, review recommendaions, implement, review/monitor. Assets (own) liabiliies (owe) = net worth.
