Financial Planning – The Key To Your Lifelong Success

Financial planning is not limited to asset allocation, mutual funds, and fixed-income investments – planning should include every aspect of your life.

Should you apply for that credit card? What type of car insurance should you buy? Should we save for our child’s college or put money in our IRA’s instead? These and many more questions are all part of financial planning.

The Larry Rule – A Little Known Financial Planning Fact

Larry Lindsey is not a famous name, even in financial circles. Currently, Mr. Lindsey is the chief economic advisor to the Bush Administration. In 1996, he was a Federal Reserve Board Governor – and he was denied for a Toys ‘R Us credit card!

To apply or not to apply, that is the planning question. Larry Lindsey, who had excellent credit and a high-income level, set out to demonstrate a flaw in credit scoring algorithms.

He simply applied for every retail store credit card he was offered, and in no time he had “too many inquiries.” Never mind the fact that he had millions in assets and nary a late payment in his 30-year credit history.

Knowing the Larry Rule is key to your financial planning. If you apply for retail store credit cards every time you are asked to do so, it will have negative effects on your credit.

You may then be asked to pay a higher interest rate on your mortgage or home equity loan, which could cost you tens of thousands of dollars. Sacrificing $10,000 for a 10 percent discount at Fashion Bug is not smart planning!

Auto Insurance and Financial Planning

Most people think of insurance as a legal necessity, but in reality, it is a financial product, and that’s important to keep in mind. Don’t ever buy insurance just because it’s legally required or in order to give yourself peace of mind. Insurance must serve a financial planning purpose!

You need to have a planning strategy in mind when you purchase auto insurance. The insurance company’s goal is to get you to pay more in premiums than you take out in claims – thus, they profit.

Your goal should to pay as little in premiums as possible in order to be adequately covered. You don’t want to have to use your auto insurance, but at the same time, you don’t want to be subsidizing the bad drivers who take out more in claims than they pay in.

In order to develop a financial planning strategy for auto insurance, it’s important that you become as educated as possible on the subject. Luckily, there are dozens of great sites on the internet that provide free information on the various types of auto insurance plans, and the particular laws of your state.

Everyone has to own some form of auto insurance, and thus it should be the cornerstone of any intelligent planning strategy.

The Financial Planning Dilemma – College vs. Retirement

American parents love their children and will do almost anything to ensure they have every possible advantage. As a result, many parents save for their children’s college instead of saving for their own retirement. This act of selflessness is usually not a good planning strategy.

In order to avoid this mistake, one must have a decent understanding of financial planning tax implications. Most college savings accounts are taxed on some level, whereas financial planning products for retirement purposes generally are not. What’s more, saving for your child’s college can prevent him or her from receiving the maximum financial aid available.

In other words, by foregoing your retirement in favor of your child’s college, you are actually subsidizing the children of less responsible parents – or smarter parents who chose to save for their own retirement, in light of these facts.

Commercial Van Insurance Explained

Van Insurance Groups work in similarly as Car and Motorcycle Insurance Groups – and it is these that the Insurance Industry usage to

determine the classification of your non-commercial or business car.Cheapest Van

Insurance With Insurance boost by over 22 percent in 2010/2011 – it is no surprise to learn that numerous otherwise the

majority of car producers are searching for means to lower the Van Insurance Group classifications, to get their automobile much more

affordable in this challenging monetary market.

With Vans and Commercial Vehicles alike, the Insurance Categories provided to the manufacturers is established by the ABI (Association of

British Insurers) and Thatcham – the protection accreditation specialists.Cheapest Van

Insurance Group Unlike motorcycles and vehicles, the modest van has an overview just insurance ranking as a result of

the quantity of uses which business cars can be utilized for. Despite the fact that this is one-of-a-kind to the business vehicle industry, it

likewise passes on to vehicles and bikes where the usage is categorized “for business use.”.

Sex Talks: Help! My Kid’s The Town Crier!

Talking to our kids about sex is challenging – for everyone, even me! You feel anxious about all kinds of things like their loss of innocence, or telling everyone and their cousin. You worry they’ll go out and try it or will think that by talking to them you’re giving them permission to do it. You worry about what other parents (and your parents!) will think if you talk to your kid at a young age.

But, you’re feeling great! You whacked up the ginger and read ALL of Robie Harris and Michael Emberley’s “It’s SO Amazing!” book about how babies are made to your 8 year old. She was a little grossed out, had some questions and seemed to understand how sex works. Whew! You are on your way to some great conversations.

You even remembered to tell her “This is a private conversation we have in our family and not with other kids or adults. Other moms and dads want to be the ones to tell their kids about this important part of life. You can always talk to me about it if you have questions or concerns.” Super! You rock!

And then…your lovely child heads straight to her best friend at school and fills her in on all the details! And then you get a call from the friends’ outraged parents and maybe even the school. Not a great moment in sex education history, but not to worry, all is not lost.

Consider this – You’ll probably spend 10 or 15 minutes on the phone with the upset parent explaining your beliefs about sex and kids and that you asked your daughter not to talk to other kids about this. You will apologize, tell them that you’ll remind her of this and then offer the parent a resource for getting more info about talking to kids.

Now consider this – You want to have open and consistent conversations with your child about sexuality, love and relationships throughout her youth, right? This is the most important part of this scenario – your relationship with your child.

When you compare the two, which is more important? The freaked out adult who now is forced into having a conversation they should be having anyway? Or your child who knows you are a trustworthy resource and will look to you for help and support for years to come?

When you start these conversations with your children I strongly recommend you tell the parents of her closest buddies, your parents and any other adult she has regular contact with. They need to know so they can step in if she starts blabbing, asks them questions or the like. It’s easier on everyone if they are prepared in advance for any little surprises.

When my son was about 3 or 4 we had read parts of “It’s SO Amazing.” He loved looking at the pictures of bodies and was very into reading this book. One day he was at my in-law’s house and he looked at my lovely mother-in-law and announced “You have a vagina!” She knew we’d been reading this book and took it in stride. We had prepared her for moments like this.

When it comes to talking to your kids about sex, you cannot worry about what the neighbors might think. The most important relationship is the one with your child. So take a deep breath, exhale, and get ready for the next conversation.