Life Insurance or Life Assurance is a contract between the policy owner and the insurer, where the insurer agrees to pay a designated beneficiary a sum of money upon the occurrence of the insured individual’s or individuals’ death or other event, such as terminal illness or critical illness. In return, the policy owner agrees to pay a stipulated amount at regular intervals or in lump sums. There may be designs in some countries where bills and death expenses plus catering for after funeral expenses should be included in Policy Premium. In the United States, the predominant form simply specifies a lump sum to be paid on the insured’s demise. Continue Reading >>
Leverage is a way to acquire real estate that is worth more than the asset or equity of the investor to increase wealth. The investor usually leverages his asset or equity through a mortgage. The return on investment of real estate significantly increases the wealth of the investor. Continue Reading >>
The cost of a college education has continued to increase at rates well above the general inflation rate in recent years. Your options for setting aside college money in tax-efficient investment accounts have increased as well. For example, in 2001 Congress enhanced both 529 plans and Coverdell Education Savings Accounts (formerly known as Education IRAs). Other time-tested strategies, such as contributing to a minors custodial account (UGMA/UTMA accounts), continue to offer potential benefits as well. Continue Reading >>
Tax shelters are any method of reducing taxable income resulting in a reduction of the payments to tax collecting entities, including state and federal governments. The methodology can vary depending on local and international tax laws. In North America, a tax shelter is generally defined as any method that recovers more than $1 in tax for every $1 spent, within 4 years. Continue Reading >>
