Trimming Your Budget? The One Bill You Can't Afford to Cut

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

In this belt-tightening era, financial planners, television personalities, and maybe even you and your spouse have discussed the wisdom of cutting expenses to the bare bone. Doing so often makes sense, but in many cases an unfortunate casualty of this prodigious cost-cutting has been life insurance. An important component of a sound financial plan, this type of insurance is designed to provide a measure of financial stability and security if someone passes away prematurely. So saving cash by cutting back on life insurance coverage can be a potentially perilous strategy.

Life insurance can help a surviving spouse and family members avoid a financial tailspin and maintain their lifestyle to the greatest extent possible. In my experience, families have used proceeds to replace lost income, pay off credit cards and car loans, zero out a mortgage balance, and help pay for kids' education expenses.

For Afghanistan veteran and USAA employee Kenny Sutton, the importance of life insurance was a sudden realization. When the husband and father of three regained consciousness in a hospital in Landstuhl, Germany, in 2005, his first thought was "I'm alive." The second: "I could've left my wife and kids in a real financial bind." Kenny's only life insurance was $400,000 through the military's Servicemembers' Group Life Insurance (SGLI). "I learned a valuable lesson and try to help others learn from my near catastrophic mistake."

Life insurance is sometimes mistaken as extraneous protection. The reality is that rarely can such a small payment provide so much. Life insurance premiums fit into most budgets, especially when policies are put into place while the insured are young and healthy, perhaps in anticipation of having a family. Premiums for the $400,000 coverage through SGLI run $26 per month regardless of age. Every service member should consider taking advantage of SGLI.

The right amount of life insurance is a moving target as you travel through life. Getting married, having children, or buying a home will almost certainly boost the amount you need. Unfortunately, a life insurance conversation between a consumer and a financial advisor doesn't happen often enough, and therefore you may need to initiate the discussion. It's that important. The rule of thumb is that you should have seven to 10 times your annual income in insurance coverage. However, there is no need to guess, because you can find a plethora of life insurance calculators online. It takes just a few minutes to figure out how much you need to provide adequate coverage for your family. You may discover that supplementing your SGLI is a wise move.

It's also a good idea to have life insurance to go. Employer-provided insurance is typically cheaper, but it can be dangerous to rely on that source alone. You should have a separate policy that follows you wherever you go. With that in mind, when you retire or transition from the military, a separate policy will cover you in the event of a lull in employment. Start looking for SGLI replacement at least six months before leaving the service. If you find that you can't place a competitively priced policy because of chronic illness, injuries, or tobacco use, consider Veterans' Group Life Insurance (VGLI). It's more expensive than the typical commercial term policy, but, importantly, you can avoid medical underwriting if you apply within 120 days of leaving the service.

Otherwise, you may want to consider a combination of either whole life or universal life and level term insurance. Whole life, a form of permanent insurance, is aptly named as it's there for your entire life. Because part of your payment goes into the cash value, the premiums of these policies are more expensive than other life insurance products, but many enjoy the peace of mind associated with having life insurance at every stage of life.

A level term policy, on the other hand, is good for a set period of time, such as 10, 20, or 30 years. Because of its temporary nature, it's generally less expensive and deserves consideration as coverage for big temporary expenses, such as raising and educating children or for those just looking for an affordable solution to get the coverage they need.

Life insurance is critical for most families, and there is a policy that will fit in every budget. As Sutton put it, "This is one thing you can't afford to not afford." Don't let slashing your budget crash your financial plan.

June Lantz Walbert is a Certified Financial Planner practitioner with USAA Financial Planning Services. She is also a lieu­tenant colonel in the U.S. Army Reserve with 20 years of service. Walbert's basic branch is Air Defense Artillery. She writes a weekly advice column, "Ask June," on military.com. Follow June on Twitter: @AskJune_usaa.

USAA or its affiliates do not provide tax advice. Taxpayers should seek advice based upon their own particular circumstances from an independent tax advisor.

This material is for informational purposes. Consider your own financial circumstances carefully before making a decision and consult with your tax, legal, or estate planning professional.

USAA Financial Planning Services is a service mark of USAA that refers to the financial planning services and financial advice provided by USAA Financial Planning Services Insurance Agency, (known as USAA Financial Insurance Company in California, Lic. No. 0E36312), a registered investment advisor and insurance agency and its wholly owned subsidiary. Certified Financial Planner Board of Standards owns the certification marks CFP® and CERTIFIED FINANCIAL PLANNER? in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.

The Motley Fool has a disclosure policy.

Powered By WizardRSS.com | Full Text RSS Feed | Amazon Plugin | Settlement Statement | WordPress Tutorials

Source: http://feeds.fool.com/~r/usmf/foolwatch/~3/RWseenBdM_4/trimming-your-budget-the-one-bill-you-cant-afford-.aspx

best debt management best way to pay off debt business debt collection business debt consolidation loan

From Runway to Retail: Big Chains Size Up Fashion Week Trends

Fashion week trends move into retailBold prints, tribal patterns and sporty looks are poised to turn up in America's malls this spring.

So said fashion and trend directors from Macy's (M), J.C. Penney (JCP) and Banana Republic (GPS), who weighed in on the salient trends and design themes that emerged during New York Fashion Week, which ended Sept. 15.

Chain retailers are watching the catwalk more closely these days. It's a sign of the times.

The popularity of style blogs, live streaming videos of runway shows on YouTube (GOOG) -- and the fixation on what celebrities are wearing -- have granted everyday consumers instant entrée to the once roped-off world of high fashion. In turn, mass retailers are impelled to respond to runway looks at a faster clip, catering to increasingly fashion-savvy shoppers.


Fashion week trends"The world has changed," Simon Kneen, creative director for Banana Republic, Gap's tonier sister chain, tells DailyFinance. "Now with the click of a button, the morning after a show you know exactly what's happening. The customer is informed and knows what's going on, and they don't want to wait six months to share in some of the trends."

Fast-fashion retailers such as H&M and Forever 21, which spit out clothes inspired by -- or many would argue, knocked off from -- high-end designers in a New York minute, have also helped nudge the shift, upping the ante for other retailers.

In recent years, Fashion Week has become more important, "mainly because of the growing fast-fashion world," Cyndie Washburn-Nester, women's trend director for J.C. Penney., tells DailyFinance. "Because customers in the mall are now being presented with interpretations of current runway looks so quickly, we want to make sure top trends are being represented for our customers at J.C. Penney."

And as the lines between haute couture and Main Street style blur, high-end fashion is being knocked off its lofty perch.

"Fashion used to be something unreachable for people, found in the pages of expensive glossy magazines," Kneen says. "It's fashion for everybody today -- not just for the elite." While before, "it was just an illusion, now it's accessible and real."

Here's what three of the nation's big clothing retailers had to say about Fashion Week, and what looks might spring up on their shelves come spring.

Macy'sFashion week trends move into retail

This season, Fashion Week generated a particularly high-energy buzz, and was a study in contrasting themes, said Nicole Fischelis, group vice president and fashion director for Macy's. "There was a lot of excitement, and several [design] directions and moods going on."

The preponderance of prints, as well as bright hues, including the return of neon -- were two of the big stories coming off the runway, she says.

These included an "interesting interpretation of exotic prints" from designers like Altuzarra, Donna Karan (with a collection inspired by Haiti) and Michael Kors, in looks that reflected "a very strong interest in global culture," be it Africa or Asia.

The looks mark an evolution of what's been selling well in Macy's stores. "Emotion creates instant buys. The impact of prints and the impact of colors basically drives sales. We've done very well in recent seasons with color and print," Fischelis says.

Designers turned the spotlight on "super bright colors" such as of red, pink, orange, yellow, aqua, lime and lavender, at times combining a cool and warm color palette in a single outfit, Fischelis says.

At Macy's, those trends could work their way into the store's clothing assortment with "maybe a jacket in shocking pink with a floral blouse and a full skirt," she said.

Fashion week trends move into retailMeanwhile, global influences might turn up in an abstract animal print on a dress or blouse.

Flirty, girly, sexy and super-feminine looks also had their moments on the runway, evidenced by items with pleating, draping and ruffles from designers such as Diane von Furstenberg.

At the same time, "there was this strong direction toward athletic wear, in very modern, sleek but bold, bright colors," she says. "What was really interesting is the blending of all these attitudes together."

Banana Republic

Banana Republic will look to adapt trends from the show that complement its brand proposition, Kneen says. "We definitely go after that modern, working woman aesthetic, which doesn't mean formal wear. It's seven days a week of what you need, classic with a twist."

The retailer's core shopper is not shy when it comes to color, and the runways were awash in "amazing color," he says.

Orange made such as splash that Kneen started to question, "Do we have enough of it? It's a trending color, so we'll consider making the buys bigger."

Neon colors (remember the '80s?) made a comeback, turning up in some surprising places, such as Oscar de la Renta evening wear, he says. At Banana Republic, it might show up in a summer T-shirt.

Kneen was also taken by both the "giant" and abstract florals from Narciso Rodriquez and Marchesa, which could easily be interpreted by Banana Republic in a summer top or shift dress, he said.

Tropical prints were another big presence.

And flashes of the tribal and safari prints on the runway will likely appear in handbags, woven bags and belts and necklaces from the retailer's Heritage collection -- but not until summer, Kneen says. "The tribal thing feels very early for me. Being seasonally appropriate in retail is also key to success."

J.C. Penney

While Fashion Week unveiled designers' spring collections, J.C. Penney won't necessarily wait until that season to feature trends culled from the shows.

Women no longer have two wardrobes," Washburn-Nester says. "Fashion has shown us that layering up and layering down is a modern way to dress, and women no longer have to replace their spring wardrobes with fall wardrobes after Labor Day," she says. "White can be worn after Labor Day, and leather can be worn year-round.

"What this means for runway interpretation at retail is that we can react to spring runway in fall, and to fall runway in spring, and bring runway trends to the consumer in just a few months."

Fasion week trends move into retail"So which Fashion Week themes will be reflected in J.C. Penney's clothing mix next year? Washburn-Nester cited color blocking, color tipping (a border of color on a garment, such as a neckline or sleeve) and color banding as an important theme running through designers' collections.

In addition to the bold florals and tribal patterns, designers also worked to reinvent prints, showcasing "beautifully colored botanicals, '80s graffiti, dots and painterly prints," she says.

The absence of color was also key. "The white [pieces were] clean, modern and futuristic," she says.

Diane von Furstenberg, for example, made a bold statement with all white looks, from a lace dress to cargo pants.

Moving from the visual to the tactile, fresh twists on embellishments and textures were evident on the runway in "peplums on tops, skirts and dresses, open stitches, like crochet and macrame, and marabou feathers and fringe," Washburn-Nester says.

Like Macy's Fischelis, Wasburn-Nester also pointed to active wear-inspired looks as a recurring theme that could be sprinkled into its own assortment. These included "clean, wearable sportswear shapes" seen in anorak jackets, biker shorts and leggings, she says.

Stay tuned.

Powered By WizardRSS.com | Full Text RSS Feed | Amazon Plugin | Settlement Statement | WordPress Tutorials

Source: http://www.dailyfinance.com/2011/09/25/from-runway-to-retail-big-chains-size-up-fashion-week-trends/

debt counseling corp debt definition debt dispute letter debt elimination calculator

Five Things You Must Not Do When Choosing A Bankruptcy Lawyer

[WizardRSS: unable to retrieve full-text content]

Choosing a bankruptcy attorney to help you deal with the whole bankruptcy process is easy as long as you know how to select the right one. By doing your own research, getting help from the right lawyer can help you repair your finances back on track.

Powered By WizardRSS.com | Full Text RSS Feed | Amazon Plugin | Settlement Statement | WordPress Tutorials

Source: http://ezinearticles.com/6575635

debt collection rights debt consolidation agency debt consolidation blog debt consolidation canada

What Are Your Options If the Summer Holidays Have Left You in Debt?

[WizardRSS: unable to retrieve full-text content]

With over 1.8 million people having borrowed to pay for their summer holidays, we consider what you can do if the summer has left you with debts you are struggling to pay.

Powered By WizardRSS.com | Full Text RSS Feed | Amazon Plugin | Settlement Statement | WordPress Tutorials

Source: http://ezinearticles.com/6577842

credit card debt advice credit card debt collection credit card debt death credit card debt forgiveness

Q&A: Where is the Scam in this phony Grant scheme?

Question by John S.: Where is the Scam in this phony Grant scheme? I received an unsolicited piece of mail from a no-name grant company from Orlando, Florida. It said I had been awarded a $ 40,200 grant under some “debt relief” program. It had a check in it for approximately $ 3,800 and a [...]

Source: http://www.legaldebthelponline.com/2011/09/25/qa-where-is-the-scam-in-this-phony-grant-scheme/

debt settlement usa debt shield debt stoppers debt to income ratio calculator

What Divorce Rates Tell Us About The Economy


divorce

Divorce comes with its costs.

Prohibitive legal fees and the inability to buy out a spouse's share in a house or business can force partners to stay together.

Though divorce takes an incredible emotional toll on families, some economists see rising divorce rates as a positive sign that credit markets are reopening and the economy is improving.

Earlier this week, the Census Bureau released its 2010 American Community Survey data, which revealed that the number of divorced men and women over the age of 15 grew by more than 930,000 to 26,996,203 in 2010. Both divorce and separation rates are off of their lows in 2008 when the escalating financial crisis sent the economy into a tizzy.

But 2010 is now way behind, and the economy has rapidly decelerated in recent months.  Maybe this means more unhappy couples will try to stick it out.

Don't Miss: 15 Odd Economic Indicators

Please follow Money Game on Twitter and Facebook.

Join the conversation about this story »

See Also:

Source: http://feedproxy.google.com/~r/businessinsider/~3/ImhSBtlrY74/divorces-up-in-2010-2011-9

consumer debt settlement consumer debt solutions credit card debt advice credit card debt collection

Bonds Beat Shares Over 50 Years

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

This article has been adapted from our sister site across the pond, Fool U.K.

"This long run is a misleading guide to current affairs. In the long run, we are all dead."

Pithy quotes like this set John Maynard Keynes apart from other economists.

Of course, Lord Keynes is absolutely right -- in the long run, we are all dead. However, one interpretation of this comment is that investors should beware of projecting past trends into the future, as this approach frequently proves unsound.

When shares beat bonds
For example, it is a matter of historical fact that, over the longest periods, the returns from shares have comfortably beaten those from bonds.

Indeed, according to the Barclays Equity-Gilt Study, shares produced an average "real" return (after inflation) of 5.4% a year from 1960 to 2010. Gilts (U.K. government bonds) returned a mere 2.5% a year over the same timescale. Thus, over this half-century, the additional 2.9%-a-year return from equities provided a huge boost to investors' returns.

Then again, as I often remark, "averages invite comparisons," and, over these 50 years, the returns from shares have been extremely volatile for long periods. What's more, the returns I've quoted are for one specific period for one particular country, so they are by no means universal.

When bonds top shares
In fact, there have been lengthy periods in modern history when bonds beat shares.

For example, between 1968 (the year I was born) and 2008, U.S. Treasury bonds produced higher real returns than U.S. equities. Over these 40 years -- almost my entire life -- American investors would have made more from boring, safe bonds than from risky, volatile shares.

Alas, this result isn't confined only to a particular four decades in the stronghold of modern capitalism. It's happened in other major nations, too.

In an analysis titled Long-Term Asset Return Study: A Roadmap for the Grey Age, top analyst Jim Reid of Deutsche Bank found other examples of long-term underperformance by shares. Reid found that, since 1962, bonds have beaten shares in three leading economies: Germany, Italy, and Japan.

Four decades of disappointment
I'm not surprised that Japan falls into this category, as the performance of its stock market has been dire since the Nikkei 225 index peaked at nearly 39,000 in 1989.

Today, the Nikkei stands at around 8,700, a level it first breached in 1983. On average, Japanese share prices are no higher today than they were 28 years ago, producing near-zero returns for "long-term buy and hold" (LTBH) investors.

However, the inclusion of Germany comes as something of a shock. Despite its amazing postwar industrial recovery, the Bundesrepublik's economic success has not translated into strong returns for equities. In real terms and since 1962, German investors would have been better off in Bunds than in German equities.

In Italy, the outperformance of bonds is extreme: The real return from bonds is 3% a year higher than that from shares. This adds up to four decades of deep disappointment for Italian shareholders.

What should investors do?
Clearly, while LTBH has been shown to work over many different periods and in many different markets, it is not a hard-and-fast route to superior returns. There is no Golden Law of Investing stating that equities always outperform bonds, even over a lifetime of investing.

However, LTBH is a widely used shortcut or rule of thumb to justify heavy exposure to shares. Then again, how much exposure would you have liked to Russian stocks in 1917, just before the October Revolution and state seizures of your assets?

Nevertheless, LTBH is a cornerstone of investing and lies at the heart of millions of portfolios. To me, Reid's research suggests that investors should tweak their LTBH strategy as follows:

  1. By all means, hold a decent proportion of your wealth in shares. However, for safety's sake, you should balance these equity holdings with significant exposure to high-quality government and corporate bonds. An "all-in bet" on equities is far too risky and volatile for all but the most hardened investors.
  2. Rather than assuming that your homeland will be a future winner, spread your equity investments around the globe by buying foreign shares. If your local stock market proves to be a dead duck, then you still have some exposure to overseas stock markets.
  3. Pay close attention to the income generated by your investments. When average earnings yields and share dividends are low, shares may be overvalued (as was apparent toward the end of the '90s boom). Conversely, when the FTSE 100 dividend yield is high, this may suggest some degree of undervaluation.

Of these three points, the third seems critical to me.

After all, most investments (with the notable exception of gold and other commodities) can be valued based on their future incomes. As I explained last week, with the FTSE 100 dividend yield at 3.8% and 10-year Gilts yielding a fixed 2.2%, blue-chip shares are extremely likely to produce much greater income than these bonds over the next decade.

Hence, I'm of the view that shares offer better value than Gilts and, therefore, U.K. equities will outperform U.K. government bonds over the next decade. After the "lost decade" since 2001, shareholders can but hope!

Finally, Jim Reid at Deutsche Bank reckons that real returns from U.S. equities over the next five years will be -2.6% a year, but 0.6% a year over 10 years. Even so, as Reid expects 10-year Treasuries to return -2% a year until maturity in 2021, shares still seem the better bet.

More from Cliff D'Arcy:

Powered By WizardRSS.com | Full Text RSS Feed | Amazon Plugin | Settlement Statement | WordPress Tutorials

Source: http://www.fool.com/investing/general/2011/09/24/bonds-beat-shares-over-50-years.aspx

debt recovery agents debt recovery letter debt recovery solicitors debt recovery solutions