February 26, 2015

159 This Episode Brought to You By Apple

159 This Episode Brought to You By Apple
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No today’s episode of the Financial Procast is not really sponsored by Apple, but if you listen closely you’ll get the joke. All I can say is thank goodness for the amazing battery life of my Macbook Pro Retina. We were able to record this hour long podcast with me only having about 25% of the battery life when we started.

But not to worry, this episode has nothing to do with that in particular, just a little humor to get things started.

No, there are much more pressing issues to discuss today…so let’s get to it. Read More…

February 19, 2015

158 You Are NOT Diversified!

158 You Are NOT Diversified!
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In episode 158 we were truly given the gift of awesome topics to discuss and we even get to reference some commentary from one of our favorite economists/financial commentators, Robert Shiller.

Today we’re discussing what Dr. Shiller thinks investors can expect in regard to asset returns moving forward, the rise of “roboadvisers” (and their insane valuations), millennials have discovered that you actually have to pay for stuff, and we think that most of investing world has the idea of diversification all wrong. Read More…

February 12, 2015

157 What It Takes to Become a 401k Millionaire

157 What It Takes to Become a 401k Millionaire
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Well, we’re back after I was gone on a little vacation last week. I know that many of regular listeners were shocked that we didn’t release an episode last week as it is customary for us to do so even when one of us is away. Alas, life happened and we weren’t able to record anything prior to my time away.

But never fear, we have a great lineup for you today.

Now, I will admit at least part of our episode is a bit self-serving but that’s only the first 15 minutes or so. If you don’t like to hear us gripe, we understand, just look at the time stamps provided below and skip ahead to the parts that interest you more. Read More…

February 9, 2015

Whole Life Insurance Company Investment Risk: Non-Investment Grade Bonds to Surplus

Whole Life Insurance Company Investment Risk: Non-Investment Grade Bonds to Surplus

Choosing a whole life insurance company’s product as a place to store cash requires a deeper understanding and trust in the company’s ability to care for your money. There are a multitude of metrics that we look at when we select a company for a client and these various metrics help us measure risk faced by a policyholder; this risk touches on multiple considerations mostly concerned with continued operational success.

Some of the metrics we use worry about continued success through mitigating the risk of negative economic considerations or operational losses be they business losses or investment losses. Today we’ll discuss one metric that focuses exclusively on investment risk loss.

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February 5, 2015

Historical Whole Life Insurance Dividend Changes: 2015 Edition

Historical Whole Life Insurance Dividend Changes: 2015 Edition

Whole life insurance dividend changes often happen once per year and we generally get excited near the end of the year when most companies announce these changes. We’ve been tracking and announcing changes when they become available for the past several years and will continue to do so in the future.

The anticipation for the announcement of the following year’s dividend focuses mostly around evaluating how well an insurance company is doing—especially with its block of participating life insurance—and how these results affect the dividend interest rate. We don’t get a lot of under-the-hood information about whole life insurance, so any metric we can use to look at how things are going is always appreciated, and dividend interest rates are one of those metrics.

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January 29, 2015

156 Newsflash: Rich People Save More Money

156 Newsflash: Rich People Save More Money
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Well, today’s episode takes us back to our normal format where we scoured the interwebs looking for stories that we think would interest our community and that we could pontificate on for more than a minute or two.

Oddly enough we ended up with two stories that illustrate what we think is vast governmental overreach into your wallet and into the financial services industry. Enjoy. Read More…

January 22, 2015

155 Taxes: Because I Don’t Want To

155 Taxes: Because I Don’t Want To
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Today’s episode is all about taxes. Now, we normally talk about taxes as the April 15th deadline approaches, however, with all the buzz concerning the President’s latest proposed changes that could ultimately change tax law, we felt obliged to talk about taxes today.

So, we don’t have a neatly organized show for you today. Instead, it’s more of a free flowing rant about the proposed changes and what we think about them.  Read More…

January 19, 2015

Understanding Life Insurance Underwriting: What does it mean to be Standard or Preferred

Understanding Life Insurance Underwriting: What does it mean to be Standard or Preferred

The life insurance underwriting process is an evaluation of an applicant that insurers use to categorize policyholders. The regular categories looking something like: standard, preferred, and preferred plus or some equivalent idea.

But what does it means to be standard or preferred? And why do insurance agents and brokers sometimes talk about waiting until the end of the year to apply for insurance for those who are on the bubble between various risk classes?

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January 15, 2015

154 Variable Universal Life Insurance Lawsuit

154 Variable Universal Life Insurance Lawsuit
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A new variable universal life insurance lawsuit was filed in California Superior Court back in October of 2014 alleging Breach of Fiduciary Duty, Fraud, Professional Negligence, and Unjust Enrichment. Defendants listed in the lawsuit include Larson Financial Group, Larson Financial Securities, John Hancock Life, and Nationwide Life and Annuity.

The complaint tells an interesting story of Larson Financial Group’s infiltration into a professional medical association in Southern California that resulted in the sales of a handful of larger sized variable universal life insurance policies that three purchasers later regretted and for which they are now seeking damages.

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January 12, 2015

Why aren’t there more Fee-Only Insurance Advisors?

Why aren’t there more Fee-Only Insurance Advisors?

Fee-only insurance advisors sound like a good idea. Since we can never know if an insurance agent/broker is truly working in a client’s best interest or secretly anticipating a commission check, the thought of an independent second opinion that is not motivated by a potential payday appears straightforwardly good.

However, the use of fee-only insurance advisors is very few and very far between. Further the number of fee-only insurance consultants pales in comparison to the number of insurance agents/brokers. So why does this seemingly good idea fail so miserably to be a widespread and successful industry?

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