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Showing posts from May, 2019

Annuities, what are they and should I get one?

When I talk to people or give presentations I always talk about how easy it is to become a millionaire and how important it is you strive for that. I use that number because it is a nice big round catchy number. Last week I talked a little about what it means to have a million dollars and what you can and should you do with it once you have it? I am going to use that same nice round number in doing some comparisons on annuities. Let me start out with a full disclosure. I do not hold any annuities myself, (I will have a traditional pension at 65) and I think they are a poor investment option for most people and in most circumstances. This belief is partly because I am an aggressive investor and partly because they are part investment product and part life insurance product. I work in the insurance industry in my day job, and know the importance of insurance.   I just don’t think people should buy anymore insurance than then need and they should not mix insurance and investmen...

I have a million Dollars, now what?

When I talk to people or give presentations I always talk about how easy it is to become a millionaire and how important it is you strive for that. I use that number because it is a nice big round catchy number. But what does it mean to have a million dollars and what can and should you do with it once you have it? You will get there by knowing the difference between needs and wants . You will stay there by knowing the difference between needs and wants and sticking to you plan. When you get your million dollars you will receive all kinds of “advice” or suggestions about what you should do with the money or how other people would spend it. Most of that “advice” will come from people that will never have a millions dollars because they never understood the importance to making tough decisions of not over spending in the first place. You don’t want to take advice from people that don’t have their own financial situation in order simply because they lacked the self-control you exerc...