Archive for Educational Funding

Do you really need Life Insurance by Paul Ferraresi

Let’s face it. Most people put off buying life insurance for any number of reasons. Take a look at this list—do any of them sound like you?
1. It’s too expensive. In the ever-burgeoning budget of having a family, things like day care and car payments and possibly even college tuition eat up a good chunk of the money each month, and a lot of people think that life insurance is just outside those “necessities” when money’s tight. But two things: life insurance is often not nearly as expensive as you might think, especially when you can get a good policy for less than the cost of a daily cup of coffee at the local café, and well, if money’s tight now, what if something happens to you?
People with no life insurance overestimate its cost by three times. And even those who have coverage, overestimate its cost by two times.1 While it is an expense that you have
to budget for imagine what the financial impact would be
for your family if something were to happen to you and you had no life insurance coverage at all.
2. That’s that stuff for babies and old people, right?
Funny, recent surveys show that 71% of people say they personally need life insurance ,yet, only 51% have coverage.
3. I’m strong and healthy! You eat right, you stay active, and everyone admires how grounded and centered
you are. You passed your last physical with flying colors! That’s GREAT! But you’re neither immortal nor
indestructible. It’s not even that something could happen to you—though it could—so much as when you’re at your strongest and healthiest, there’s no better time to get a policy to protect your loved ones. If you fall
seriously ill or suffer significant injury later, it will make it tougher to get that kind of policy, if any at all.
4. I have life insurance through my job. Many people are offered life insurance as part of their employee
benefit coverage—and often, it’s the first time they encounter life insurance and have no idea that a $50,000
policy, or one or two times their salary, isn’t as much as they think it is. It sounds like a lot of money (and it
is!), until you realize that it has to cover some or all of the expenses for your loved ones in your absence. Plus,
if you leave the job, it’s typically the type of insurance that doesn’t “move on” with you.

5. I don’t have kids. Sure, kids are a big reason why some people get life insurance. But that’s not the only
litmus test for needing protection. If there is anyone in your life who would suffer financially from your loss—
your spouse or live-in partner, a sibling, even your parents—a life insurance policy goes a long way in making sure everyone’s still okay even if something happens to you.
6. Life insurance—it’s on my list… eventually. There’s no deadline on life insurance, no mandate from the government on purchasing it. Your parents may have never talked to you about its importance, and it’s certainly not the most invigorating topic for conversation. But don’t let your “eventually” turn into your loved ones’ “if only.”
If any of this sounds daunting, just know that it doesn’t have to be. Be sure to talk things through with your
Insurance agent. Your financial professional will help you figure out how much you may need, and find a policy that fits into your budget. There’s a policy to fit every budget, and a life insurance agent can help you find coverage that’s right for you.
Information for this article was provided by Life Happens, a nonprofit organization dedicated to helping consumers make smart insurance decisions to safeguard their families’ financial futures:
www.lifehappens.org.
The opinions voiced in this material are for general information only and are not intended to provide
specific advice or recommendations for any individual. To determine which investments or products may be appropriate for you, consult with your financial professional.

The Next Major Stock Market Correction by Paul Ferraresi

Sure , this market can continue upward for a while longer, but, forces are against it going upward forever( Remember trees do not grow to the sky).
Stock P/E ratios ( price/ earnings) are at super high levels, earnings at many companies are leveling off, and, interest rates are on the rise. These are all the same factors that took place prior to the 2000 and 2007 massive market corrections.
I am not saying you need to immediately move into cash. Rather, there are superb strategies you can employ ( for your personal monies, IRAs and 401k/403b) to avoid 80-90% of the correction while obtaining 80-90% of the rise. Contact me at…paul@fgmci.com….if you want more information

Do you really need Life insurance? Recommended by Paul Ferraresi

Let’s face it. Most people put off buying life insurance for any number of reasons. Take a look at this list—do any of them sound like you?
1. It’s too expensive. In the ever-burgeoning budget of having a family, things like day care and car payments and possibly even college tuition eat up a good chunk of the money each month, and a lot of people think that life insurance is just outside those “necessities” when money’s tight. But two things: life insurance is often not nearly as expensive as you might think, especially when you can get a good policy for less than the cost of a daily cup of coffee at the local café, and well, if money’s tight now, what if something happens to you?
People with no life insurance overestimate its cost by three times. And even those who have coverage, overestimate its cost by two times.1 While it is an expense that you have
to budget for imagine what the financial impact would be
for your family if something were to happen to you and you had no life insurance coverage at all.
2. That’s that stuff for babies and old people, right?
People of a certain age remember Ed McMahon telling
products for adults in their working and retirement years.
3. I’m strong and healthy! You eat right, you stay active, and everyone admires how grounded and centered
you are. You passed your last physical with flying colors! That’s GREAT! But you’re neither immortal nor
indestructible. It’s not even that something could happen to you—though it could—so much as when you’re at your strongest and healthiest, there’s no better time to get a policy to protect your loved ones. If you fall
seriously ill or suffer significant injury later, it will make it tougher to get that kind of policy, if any at all.
4. I have life insurance through my job. Many people are offered life insurance as part of their employee
benefit coverage—and often, it’s the first time they encounter life insurance and have no idea that a $50,000
policy, or one or two times their salary, isn’t as much as they think it is. It sounds like a lot of money (and it
is!), until you realize that it has to cover some or all of the expenses for your loved ones in your absence. Plus,
if you leave the job, it’s typically the type of insurance that doesn’t “move on” with you.

5. I don’t have kids. Sure, kids are a big reason why some people get life insurance. But that’s not the only
litmus test for needing protection. If there is anyone in your life who would suffer financially from your loss—
your spouse or live-in partner, a sibling, even your parents—a life insurance policy goes a long way in making sure everyone’s still okay even if something happens to you.
6. Life insurance—it’s on my list… eventually. There’s no deadline on life insurance, no mandate from the government on purchasing it. Your parents may have never talked to you about its importance, and it’s certainly not the most invigorating topic for conversation. But don’t let your “eventually” turn into your loved ones’ “if only.”
If any of this sounds daunting, just know that it doesn’t have to be. Be sure to talk things through with your
insurance agent. Your financial professional will help you figure out how much you may need, and find a policy that fits into your budget. There’s a policy to fit every budget, and a life insurance agent can help you find coverage that’s right for you.
Information for this article was provided by Life Happens, a nonprofit organization dedicated to helping consumers make smart insurance decisions to safeguard their families’ financial futures:
www.lifehappens.org.
Sources:
1The 2017 Insurance Barometer Study, Life Happens and LIMRA
The opinions voiced in this material are for general information only and are not intended to provide
specific advice or recommendations for any individual. To determine which investments or products may be appropriate for you, consult with your financial professional.
Adult Financial Education Services (AFES)September 2017

COLLEGE MATH by Paul Ferraresi

While High School seniors are suffering serious cases of senioritis on their final sprint to graduation, many of their parents are cracking the books and crunching the numbers.

The majority of first-time, full-time undergraduate students received financial aid at four-year public institutions (83%) and four-year private institutions (89%) during the 2013 – 14 school year, the most recent years for data from the National Center for Education Statistics.

Average published prices for 2016 – 17 are $20,090 for in-state public schools, $35,370 for out-of-state public schools and $45,370 for nonprofit private schools, according to the College Board. Annual price tags top $65,000 at some of the nation’s most elite schools.

All families should file the Free Application for Federal Student Aid (FAFSA) because each school calculates a personalized expected family contribution (EFC) and determines aid awards differently. Thanks to recent changes, the FAFSA is now based on actual income from two years ago instead of estimated income from last year.

It doesn’t look like schools are changing their aid packaging philosophies as a result of the earlier availability of FAFSA data, but they are awarding aid sooner.

Upon receiving their award letters families should recalculate their net prices, and use a comparison of net prices to appeal to the less generous colleges for more financial aid. College Navigator, a free tool from the U.S. Department of Education, can be used to see if a college front-loads grants to freshmen or also awards upperclassmen.

Student’s should search for scholarships on free websites (Cappex’s database can be found at www.cappex.com/scholarships). Families should look to take advantage of education tax benefits, like the American opportunity tax credit and the student loan interest deduction.

Students needing loans should first access federal student loans because they’re cheaper, more available and have better repayment terms.

Rate on federal student loans, which reset each July 1 are based on the last 10-year Treasury auction in May, are fixed for the life of a loan.

Borrow as much as you need not as much as you can. Every dollar you borrow will cost about two dollars by the time your repay the debt.

Health Care Decisions

This is a tough subject, but there are three decisions you should make regarding your life-support preferences, because not making them could cause you and your relatives undue pain.

1. TO HAVE OR NOT TO HAVE A LIVING WILL:

A Living Will is a document explaining which medical treatments you want if you have a life-threatening illness or are too sick to voice your own wishes. You don’t need a lawyer or doctor to write a Living Will, but consulting both isn’t a bad idea. The forms for Living Wills are easy to fill out and vary among states.

2. WHO TO APPOINT AS HEALTH-CARE POWER OF ATTORNEY:

A health-care power of attorney form designates a specific person to make decision for you when you cannot. The person you choose might be your spouse or a close family member. Although current spouses are the legal next of kin and almost always have power of attorney, this doesn’t mean a family won’t challenge their decisions.

The person you designate to call the shots for you should have the following qualities:

• Assertiveness. This person needs to state your wishes and stay firm to them amid differing opinions from relatives and hospital staff.
• Accessibility. You need someone who can be available quickly and give you his or her attention for undetermined periods of time.
• Money sense. Your health-care proxy should understand and follow your instructions for how your finances should be allocated for your care.

3. ELECTING TO HAVE A DO-NOT-RESUSICTATE ORDER:

You can opt for a do-not-resuscitate (DNR) order even if you don’t yet have a living will or health care power of attorney. This order means that if your heart stops or you stop breathing, the medical staff won’t try to revive you. You have to specifically ask for a DNR and put it in writing. If you don’t ask for one, you’ll get the default RLC order (That’s Resuscitate Like Crazy!)

“Perfection is not attainable,
but if we chase perfection we
can catch excellence.”

-Vince Lombardi