Life Insurance: Term vs. Whole Life

Term vs. Whole Life?

This is a no brainer... TERM! Now, I can guarantee if you have ever asked an insurance agent with a company other than Primerica then you have probably be told the opposite. Why do I single out Primerica from my attack on whole life? Because, Primerica doesn't offer anything other than term!

Now for an explaination on my opinion. Term is cheaper for more coverage (much, much cheaper). Why is this, well term life will cover you for X years and pay out X amount. That being said, here's an example... if you buy a $300,000 policy for 35 years when you are 30 years old then, you (or your beneficiary to be more exact) will be paid $300,000 if you die before the age of 65. If you outlive the policy, then there is no cash value. That probably doesn't sound very good if you don't die. But, hey what is insurance for? It is an insurance if something unexpected happens.

And what about whole life? Or, other names could include Universal Life, Term to 100, etc.

Here is an example of a whole life policy: $100,000 coverage, small cash value (very small... say a few thousand saved within a decade or so) if you decide to withdraw it. How does this work? Well, when you die (at any age) your beneficiary receives $100,000. Now this may sound good on the surface... death benefit paid at any age, small cash value! But, you forgot to ask one question! How much is the premium? Well, the premium for these two examples would be drastically different! The whole life policy could cost upwards of 10 times as much as the term policy for 1/3 the coverage!

FAQ:

Q: So, if I buy term not whole life, then what happens if I outlive the policy?
A: Buy term and invest the rest. What does this mean? Buy term insurance and invest the difference between what you pay for term and what you would have paid for whole life. This strategy, if paired with your RRSP or 401K will ensure that by the time your 35 year term insurance expires you will have more than enough in your RRSP to ensure all postmortem obligations are covered. In essence... you will be self insured! That's a pretty good place to be!

Q: If term is so much better, why does my insurance agent suggest whole life?
A: His commission! I'll tell you right now, it isn't with your bet interest in mind. He stands to make 10 to 100 times the commission on a whole life sale as he would on a term life sale. Find a new agent! If you live in BC call me, if you need a referral outside BC I can recommend someone.

Cheers,
R

PS. Here's another opinion on this subject from someone you probably know... Suze Orman (Bestselling auther and TV personality). Take a quick look at this 3min video clip:

Currently Reading: February 2009

Here's the updated February Currently Reading list:

How to Get Rich - Felix Dennis

Hedge Hunters: Hedge Fund Masters on the Rewards, the Risk, and the Reckoning

The Wolf of Wall Street

Never Eat Alone: And Other Secrets to Success, One Relationship at a Time

and

The Snowball: Warren Buffett and the Business of Life

Enjoy,
R

Felix Dennis' Poem "Never Go Back"

Check out Felix Dennis' peom "Never Go Back". If you don't know who Felix Dennis is, he is the president of Dennis Publishing (Publisher of Maxim magazine and many more).

Enjoy,
R

Book Review: The 4-Hour Workweek by Timothy Ferriss

The 4-Hour Workweek by Timothy Ferriss - 4.5 STARS
Personal Finance, Entrepreneurship, Small Business

This book is a masterpiece I do believe. Really it just opens your eyes to a completely different way of life. Whether you choose to employ the strategies described within this book or not, you will truly enjoy the journey that Tim takes you on throughout this book.

To be honest a great deal of what is included within this book is not of direct use to me. I am going to school get my Bachelor of Commerce (Bcom), then I am getting my Chartered Financial Analyst (CFA) designation and finally my Master's of Business Administration (MBA) specializing in Finance or Private Equity. All of this in order to allow me to work within and later own my own hedge fund, private equity fund or venture capital firm. Needless to say, all of these directions do not make a 4-hour workweek very possible. Nonetheless, this is an amazing work. AND a real eye opener!

Please trust me on this one and pick up a copy of this and give it a read! It is a great book!

Quick topic spoiler...

Nevermind, I can't do it! This book is way to much fun to read and a poiler truly would spoil it!

Get it at Amazon.com!
Click here: The 4-Hour Workweek: Escape 9-5, Live Anywhere, and Join the New Rich

Cheers,
R

Book Review: Instant Income by Janet Switzer

Instant Income by Janet Switzer - 3.5 STARS
Personal Finance, Entrepreneurship, Small Business

Now, I had a very hard time deciding what to rate this book. It was a very interesting read, covered some great topics and gave some wonderful insights into creative ways to market products and services. I enjoyed the read, at the time I read this though I don't really have a use for the information... I think it may be worth another read. But, we'll see when that happens.

This book covers such topics as: increasing sales of a product from existing customers, making money with affiliates and joint ventures, making money online, writing ads (copywriting), starting and running occasional small businesses and going into business with your employer. I know that looks like a ridiculously ambitious list to cover in just one book, but she does a surprisingly good job. I'd say though, that each topic requires much more information than is included within this book. It is a great starting point for each of these subjects though.

Switzer's real wins within this book are the portions dealing with copywriting, internet marketing, selling to existing customers and how to launch a product (in particular a book or other intellectual property).

Janet Switzer has some very solid experience working with clients marketing and launching their products (most well known client that I'm aware of is Jack Canfield of the Chicken Soup for the Soul empire). She really is an expert within the above mentioned field and it is a pleasure to hear her prospective on these topics.

All in all, this is well worth a read if you are looking for some base info on any of the topics I mentioned within this review.

Take a look at Instant Income here (Amazon):
Instant Income: Strategies That Bring in the Cash

Please let me know what you think of this... Also, I truly believe the information contained within this book is only as valuable as the degree you put it to work in your life!

Cheers,
R

Book Review: Affiliate Millions by Anthony Borelli and Greg Holden

Affiliate Millions by Anthony Borelli and Greg Holden - 3.5 STARS
Internet Marketing, Entrepreneurship

Borelli and Holden give a great overview of the business of marketing affiliate programs. This is a wonderful introduction for anyone interested in how this lucrative business is run or wants to start an internet marketing business of their own.

Now, this book focuses almost entirely on one form of marketing and the is Pay-Per-Click (PPC) advertising. That refers to such services as Google Adwords, Google Adsense, Overture, etc. This is perfect if you are looking for strategies on marketing in this way, but remember very little of this book is dedicated to marketing your own website or blog.

One wonderful aspect of this book is the fact that Borelli really narrows down your search for products and sevices to market. He spends a great deal of time sharing info on particular affiliate networks and how they work (Clickbank, Commission Junction and Amazon).

If this is an area of business you are interested in getting involved in, you currently market on or offline, you own a website or blog, you would like to make money online or you are just curious how this potentially lucrative field works then give this book a read.

Check it out here (Amazon):
Affiliate Millions: Make a Fortune using Search Marketing on Google and Beyond

To your future affiliate millions!
R

Book Review: The E Myth Revisited by Michael E. Gerber

The E Myth Revisited by Michael E. Gerber - 4.0 STARS
Small Business, Entrepreneurship

Michael Gerber really hit a home run with this book on entrepreneurship. This is a classic, and a must read (especially for a small business owner, or someone thinking of starting their own business). It is also a very good read for any mid to high level manager within a customer-centric company.

Gerber goes through the evolutionary stages of a company and goes in depth on pitfalls and strategies of a company at each stage. He also shares real life stories of his experience consulting with small business owners.

Join the "Turn-key Revolution" and create your "Franchise Prototype". I have to agree with the majority of the reviews on this book that I've read and say this is a MUST READ!

Take a look at it here (Amazon):
The E-Myth Revisited: Why Most Small Businesses Don't Work and What to Do About It

Enjoy reading this Small Business classic!
R

Book Review: The Millionaire Maker by Loral Lengemeier

The Millionaire Maker by Loral Lengemeier - 2.0 STARS
Personal Finance, Entrepreneurship, Investing


Basically, what Ms.Lengemeier is doing with this book is providing some basics (very elementary basics) on how to become financially independent.

I would place this book in the "business self help" or "business motivational" categories. I know they don't exist in traditional book stores, but hey that's where this book belongs. Right there beside Robert Kiyosaki, Anthony Robbins and Donald Trump.

Now for a brief review of this product. It isn't bad, I read it from cover to cover and even tried to do some of the activities outlined throughout the book. This book focuses on the merits of building a "cash-machine" (which Loral writes about in a later book in greater detail), and the importance of employing experts to assist along the way. She truly believes that no-one becomes a millionaire "alone", in otherwords she does not believe in the so called "self made millionaire". Loral's focus with this book is to show an overview of her successful coaching program: Live Out Loud. Her strategies include: starting a cash-machine (even if that requires qutting your job), investing in rental real estate, investing profits in more cash producing assets and creating a maze of tax-reducing business entities.

I think her system is sound and the formula would work. My main issue that I had with her throughout this book was her constant pitching of her own coaching programs and other pricey services offered by Live Out Loud.

All this being said, if you follow her advice religiously, and hopefully have a small retirement account to jumpstart your efforts... her system can make you financially independent. I did give this 2.0 stars because I felt that the pitching and the overly motivational and less technical nature of it was less than useful and a little insulting to the reader.

I could be completey crazy, because 93 people have given this an average score of 4.0 stars at Amazon.com (at the time of this writing). Check it out:
The Millionaire Maker: Act, Think, and Make Money the Way the Wealthy Do

If you are looking for a good beginner text on investing, business and entrepreneurship I'd still stick with Rich Dad, Poor Dad by Robert Kiyosaki over this one. You can get Rich Dad, Poor Dad here:
Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money--That the Poor and Middle Class Do Not!

Thanks for reading and please if you don't agree with my review... post a comment! Gotta love free speech!

Cheers,
R

Currently Reading: January 2009

Here's what I am currently reading (since I have an issue and can't read only once thing at a time):

The Wolf of Wall Street by Jordon Belfort

How to Get Rich by Felix Dennis

Hedge Hunters by Katherine Burton

Cheers,
R

My next couple in the queue:
The Snowball by Alice Schroeder
Do-It-Yourself Hedge Funds by Wayne Weddington

Book Review: The Smart Money by Michael Konik

The Smart Money by Michael Konik - 3.5 STARS
Gambling, Economics


This book in particular I "read" in audiobook format. I listened to it when I was a District Manager working in Ontario. I had 9 locations, spread out over 600kms (375miles). At this time in my life I chose the audio format over the paper format on many occasions. If you too decide to use this method of delivery for your next piece of literature, I insist you only choose books you can get "unabridged". This term means that the book is read in its entirety, and does not have anything ommited or "abridged".

This book is written basically as an autobiography. It profiles Michael's time working for "The Brain-Trust", an organized sports-gambling operation out of Las Vegas.

Michael was a gambling journalist, who landed an interview with Brain Trust head Rick "Big Daddy" Matthews. Well, before this interview the largest bet Mr. Konik had ever placed was $200. After this meeting, he began working with much, much more.

This book is the most in depth, behind the scenes book I've come across on the subjects of sports betting, sports books and organized gambling.

This is a fun read from front to back. It won't change your life... unless you run out and hook up with a few MIT Math, Stats and computer science grads and start your own "Brain Trust". Hey, that's not a bad idea! Any MIT grads out there interested in a project/making a pile of cash?

Get it here:
The Smart Money: How the World's Best Sports Bettors Beat the Bookies Out of Millions

Enjoy,
R

Book Review: The Coming Economic Collapse by Stephen Leeb

The Coming Economic Collapse by Stephen Leeb - 4.0 STARS
Economics, Investing


Stephen Leeb has some VERY thought provoking and insightful points to make on the state of the economy and especially the price of oil.

I have been recommending this book since it came out almost 2 years ago. This is a fantastic book and a great quick read if you enjoy reading about the financial markets, oil, commodities, politics or general business.

The interesting thing is how much of what Stephen has to say has already come true... Also, it is interesting to see how accurate he will turn out to be, considering he is predicting oil at $200+ per barrel.

Get it here:
The Coming Economic Collapse: How You Can Thrive When Oil Costs $200 a Barrel

What do you think? Is oil really going to go through the roof? Or, is it all bullshit and there is more than enough oil to last until... the day we blow ourselves up... Or, the oceans rise and all of us drown except those sky bunnies in Colorado and Switzerland?

R

Book Review: Think and Grow Rich by Napoleon Hill

Think and Grow Rich by Napoleon Hill - 4.5 STARS
Personal Finance, Self Help


Hands down on of the best books ever written on the subject of wealth and success. It's a classic!

This book is pretty basic, pretty simple, definitely not technical, but, it is very good. This is one of the first books that comes to mind when I think of what got me started on my journey of personal discovery and what started my interest in finance, investing and business in general.

I can't even remember when I first read this book. It was so long ago now that I can hardly remember.

If you have read any books in the Self Help or Success genres you have almost certainly heard of this book and have probably read about some of the principles. But, let me tell you... you must read this book, whether you are just starting out or are a seasoned vet... this is a must.

I can't say anything else about it, except READ IT! This is a goddamn great piece and something that I hope you have already read and if not that you will beg, borrow or steal it in the near future.

And, if you decide that buying it is a better bet... track it down here:
Think and Grow Rich: The Landmark Bestseller--Now Revised and Updated for the 21st Century

Go NOW and read this book... I'm sure your local library has it and if not... it is only $7.77 at Amazon.com (at least it was when this review was posted).

R

Book Review: Rich Dad, Poor Dad by Robert Kiyosaki

Book Review: Rich Dad, Poor Dad by Robert Kiyosaki - 3.0 STARS
Personal Finance, Investing, Entrepreneurship


Well, where do I start?

This book is on so many people's "must read", "top 25", etc., etc. lists that I'm sure all of you have heard at least one friend, family member, personal finance guru, TV personality or some other expert tell you that you "MUST" read this book. Well, what am I going to say? Well... I can't say that I haven't recommended that people read this, and I definitely can't say that is is without merit. What I can say is... if you have read many Personal Finance, Investing, Success, Self Help, Entrepreneurship and Business books then I'd steer clear of this one. This isn't in anyway implying that it is bad... I'm just saying that it is more motivational than it is practical or technical.

On the other hand, just to make myself as hypocritical as possible. This book is a MUST READ! Why do I move on to say this? Well, if you are just getting into reading Personal Finance books then this is a great place to start. It will broaden your thinking, provide motivation and get you excited about further expanding your knowledge on the subject. As you can see, I gave this book 3.5 stars... not spectacular, but by no means poor either. This book is still to this day one of the books I would suggest as a 1st or 2nd read for anyone just beginning to read Personal Finance books.

Get your copy at your local library or here at Amazon.com
Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money--That the Poor and Middle Class Do Not!

Happy Reading!
R

Book Review: The Wealthy Barber by David Chilton

The Wealthy Barber by David Chilton - 4.0 STARS
Personal Finance


I finally read this book a few years back. For me I can't say that I learned too much new information, but in no way does that discount the validity of it.

I personally believe that this book is a MUST READ for anyone interested in the Personal Finance or Success genres. I think that this should be one of the first 3-5 books one reads on personal finance and investing.

I am so tempted to outline a bit of David's advice here, but it really wouldn't be fair to you if you decide to read it. But, since I really do enjoy ruining your fun and being a bit of a spoiler... it has to do with saving and investing! I know... you already knew that. But, believe me, whether you have read 100 Personal Finance books (though, you would probably have already read this one) or this is your very first one... I can guarantee that you will feel it was worth your time.

This book isn't long, and it isn't technical, but it really is worth a few hours of your time! If you haven't read this... I truly recommend it!

Let me know what you think!

Get your copy here at Amazon.com
The Wealthy Barber, Updated 3rd Edition: Everyone's Commonsense Guide to Becoming Financially Independent

Enjoy!
R

Welcome

Hi,

So, welcome to my Brand New Blog!

To be honest at this point, I'm not 100% sure what subjects I'm going to be covering, but here's a few ideas I have: book, website and product reviews, my thoughts on money, investing, politics and well... whatever else I feel like ranting about.

Without further ado... let's get going with a book review or two!

Cheers,
R