Replacement Cost Versus Actual Cash Value Home Insurance
Replacement Cost Versus Actual Cash Value Home Insurance
By Financial Samurai / 09/18/2023
Home insurance costs are going up due to rising home prices, rising building costs, increasing natural disasters, and less appetite for risk from the insurance and reinsurance companies. As a result, more homeowners are looking to save by taking out an actual cash value (ACV) home insurance policy as opposed to the more common replacement cost value (RCV) home insurance policy.
I'm going through this dilemma right now as I diligently hunt for a home insurance policy for a new home I plan to buy. The actual cash value policy I found is about 52% cheaper than the best replacement cost policy I've found. With such significant annual savings, I'm leaning toward the actual cash value option.
The $2 Billion Powerball Winner Is Making The Worst Mistakes Financial Planners Warn People Of After They Come Into A Ton Of Money
The $2 Billion Powerball Winner Is Making The Worst Mistakes Financial Planners Warn People Of After They Come Into A Ton Of Money
Paige Hagy Tue, September 19, 2023
The winner of the record-breaking $2 billion Powerball prize is breaking every financial planning rule in the book. Edwin Castro is buying up California real estate since winning the lottery in November, including a three-story $25.5 million mansion in the Hollywood Hills, the same part of Los Angeles that A-list stars like Leonardo DiCaprio and Ariana Grande call home.
That’s the exact opposite of what financial advisors recommend for lottery winners—or any person who suddenly comes into great wealth. Rather, they suggest waiting until the emotional high of winning the jackpot cools off. One advisor counseled against buying up expensive homes altogether.
‘Rich Dad’ Robert Kiyosaki Says the Dollar Is In Trouble
‘Rich Dad’ Robert Kiyosaki Says the Dollar Is In Trouble: What That Means for Your Money
Angela Mae Sat, September 16, 2023
It’s common knowledge that the value of the U.S. dollar has fluctuated throughout the years. But now, it seems the dollar could be in serious trouble. This could be especially problematic for people who are trying to save money, or who have most of their assets in cash.
A recent post on Rich Dad, which is part of Robert Kiyosaki’s “Rich Dad Company,” details just why the dollar is in trouble, what this could mean for your money, and what to do about it. Here’s the gist of it.
5 Financial Mistakes To Unlearn Now
Millennials Say Boomer Parents Are to Blame for ‘Shameful’ Money Habits — 5 Financial Mistakes To Unlearn Now
David Nadelle Sat, September 16, 2023
While only 27% of Americans across all ages say their money-saving habits are “excellent,” 65% of millennials and Gen Z-ers are worried about baby boomers’ impact on their future, finds a new study.
The survey, conducted by OnePoll for National Debt Relief between Aug. 4-8, 2023, found that although younger generations were concerned about the effect older generations’ financial decisions will have on them, 62% of all respondents (split evenly by generation) admit they make poor money decisions sometimes. Almost half (48%) of respondents said their parents influenced their money habits.
Thinking Holistically About Finances To Avoid Bad Habits
Thinking Holistically About Finances To Avoid Bad Habits
Sam Ro·Contributor Sun, September 17, 2023
Stocks ticked lower last week with the S&P 500 shedding 0.2% to close at 4,450.32. The index is now up 15.9% year to date, up 24.4% from its October 12 closing low of 3,577.03, and down 7.2% from its January 3, 2022 record closing high of 4,796.56.
I spent the past week at FutureProof and Excell, two leading industry conferences for financial advisors.
I like attending events like these because I inevitably meet people I’d probably never cross paths with under normal circumstances. That means I get exposed to a wide array of views, some of which might affect the way I think about things.
One topic that came up in many of my conversations was holistic thinking.
Paper Checks Are Dead. Cash Is Dying. Who Still Uses Them?
Paper Checks Are Dead. Cash Is Dying. Who Still Uses Them?
Andrew Van Dam, (c) 2023, The Washington Post
Fri, September 15, 2023
In a few years, comically oversized foam-board novelty checks will be the last remaining evidence of a 20th-century icon, as the paper check goes the way of the landline phone and the floppy disk. Even the most dubious cliché of the past century - the promise that the check's in the mail - has fallen from common usage.
So where - if anywhere - are paper checks making their last stand? That's what astute reader Bill O'Donnell from Chicago wants to know. "How many Americans still use paper checks?" he asks. "Who are they and where do they live? What are the trend lines?"
Maybe It’s Time For Plan B To Become Plan A
Maybe It’s Time For Plan B To Become Plan A
Notes From the Field By Simon Black September 13, 2023
The top two headlines in today’s Wall Street Journal say it all:
The first one is “US Inflation Accelerated in August as Gasoline Prices Jumped”.
And the second explains that “Exploding Budget Deficits” are here to stay.
These are technically two different stories about two separate issues. But I’ll show you how they’re related, and how they point to the same conclusion: higher inflation is not going away.
Despite 70% of Millionaires Using a Financial Planner, One-Third May Outlive Savings — Here’s Why
Despite 70% of Millionaires Using a Financial Planner, One-Third May Outlive Savings — Here’s Why
Vance Cariaga Wed, September 13, 2023
Having net assets of $1 million or more doesn’t carry the same aura of extreme wealth that it used to, but it’s still a pretty tidy sum of money — especially considering that the average retirement savings in the United States is less than $90,000. Even so, a significant percentage of millionaires worry that the wealth they’ve built up won’t be enough to last their lifetimes, according to a report from Northwestern Mutual.
Different Ways to be Rich
Different Ways to be Rich
By Ben Carlson - A Wealth of Common Sense
It’s estimated only 5% of people in the United States are millionaires.
So if we’re using millionaire-status as a way to gauge wealth in this country, a lot of people are never going to get to the point where they’re considered “rich.” But there are plenty of other ways to live a wealthy life that extend beyond how much money you have in the bank or your portfolio. And even those with a lot of money may not be considered rich when you look at other areas of their life.
Here are some ways to be rich in this day and age that go beyond money:
Can You Lose Money In A Money Market Account?
Can You Lose Money In A Money Market Account?
Ben Luthi Updated Mon, Sep 11, 2023
Money market accounts act as a hybrid between a checking account and a savings account, offering higher interest rates and flexible access to your funds — albeit with some limitations.
It's technically possible to lose money in a market account, but not in the same way you can lose money in an investment account. Depending on the terms of your money market account, you could lose value to fees and inflation. If you're considering putting your money in a money market account for short-term savings goals, here's what you should know.
This Unique Loophole Exempts 100,000 Americans from Taxes
This Unique Loophole Exempts 100,000 Americans from Taxes
Notes From the Field By Simon Black September 11, 2023
By the late 1800s, the South Pacific island chain of Samoa faced an existential crisis. After squabbles between German, British, and American forces over the previous decades, Germany had taken the western islands of Samoa, and asserted its unpopular control over the people.
The eastern islands, however, were controlled by the United States with a lighter touch. And these Samoans had a good relationship with US merchants involved in the island’s coconut trade.
But rival Samoan factions still fought amongst each other.