Most financial planners advise their clients to have money set aside in an emergency fund. Occasionally my clients ask me why they need to keep money on hand for emergencies. If you’re like most Americans, once you’ve paid your credit card bills, mortgage, and your other bills, there’s not much left of your paycheck. If you’re someone who lives far below his or her means (by this, I mean that you have two or three thousand dollars a month or more left unspent from your income every month) you have the capacity to cover many typical unexpected expenses, like the…
Master Limited Partnerships are complicated investments in which you share in the profits from an income-generating business. Most often these partnerships make their money in energy-related businesses. They’re publicly traded and offer certain income tax benefits. They aren’t for everyone, however.
I wasn’t planning to write about Master Limited Partnerships (MLPs) anytime soon, but I feel compelled to comment on a piece written by Michael Brush on MLPs at msn.com today. Brush is a talented and prolific journalist and I admire his work. However, I think that this article could use a bit more nuance (or maybe he wrote it …Read More
In Part 1 of this series, I explained why people need life insurance; in Part 2, I explained the basics of “how insurance works.” A question that people always have is, “how much life insurance should I buy?” There are various guidelines for estimating how much life insurance one should buy. Alas, they usually lead to the wrong answer.
Life insurance is unique among insurance products. With most forms of insurance, you insure against a specific financial loss – the cost of a demolished automobile or a burned-out building. Although no amount of money can compensate for the loss …Read More
Recent changes to the PLUS federal student aid program should provide last-minute help for families seeking to fund college or graduate school expense this fall. In light of the failure of the Massachusetts Educational Finance Authority to secure funding for a new round of college loans, students who were counting on MEFA loans are scrambling to find an alternative. With many banks withdrawing from the education loan marketplace, options for loan funding have been shrinking this year.
Some important changes have been made to the PLUS educational loan program (formerly known as Parent Loans For Undergraduate Students). Until …Read More
Generally speaking, investments held in brokerage accounts are insured by an agency called the Securities Investor Protection Corporation (SIPC). The SIPC is a quasi-governmental body under the oversight of the SEC. The SIPC is definitely not the brokerage version of the FDIC.
Although the SIPC does not have the regulatory power of the FDIC, it does have one similar function: it insures assets held at all SEC-registered brokerages. When a broker-dealer fails, the SIPC manages the distribution of investors’ assets. If any assets are missing, the SIPC replaces insured securities up to the insurance limits.
There are many kinds …Read More