Short on funds this holiday season? We’ve got you covered today with a podcast full of tips. First, we’ll help you reframe the problem. Second, we’ll help you find some ways to score enough funds to get you through the season. Third, we’ll make sure that you have a plan for next year so you aren’t strapped twelve months from now.
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Can’t get up for reading our awesome post on selling your house? Well, non-readers, here’s our podcast version of that story….
Today OG & tackle the biggest single transaction most people will ever have in their life: selling a house! What are some of the biggest mistakes people make? Should you hire a realtor? How should you price your property?
We answer those questions and more this week.
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Vampires bites, zombie attacks, and alien abductions – believe it, or not, all of these things and weirder have been insured before by the infamous specialty insurance market, Lloyd’s of London. In fact, Lloyd’s covers a vast array of paranormal oddities in 200 different countries – quite a few of which originated right here in the United States. You can get your own life insurance quote with the help of GIO and their online help system.
As of yet, I’ve yet to hear about any claims actually getting turned in as a result of a loved one getting bitten by a vampire, or attacked by a werewolf, but it’s always good to be prepared right?! Right!
This ideology is what Lloyd’s has made their millions on and the true believers will gladly cover their paranormal bases – and in some cases, their legs, taste buds, and their… buckteeth? Just keep reading!
Vampires, Werewolves, & Poltergeists… Oh My!
At the Royal Falcon Hotel in Lowestoft, England, there’s apparently all kinds of paranormal menace afoot! Why else would the hotel take out insurance covering both their staff and guests should bump-in-the-night horrors come knocking? We’re not talking a small – make some headlines and gain some publicity – coverage, either. One doesn’t purchase $1.5 million in coverage for just a bit of novelty fun!
What could possibly be going on over there? They seem to have everything covered accept alien abductions – not to worry, though, there’s plenty of individuals hitting up Lloyd’s for that!
Close Encounters of the Insured Kind
Lloyd’s proudly claims to have sold over 40,000 insurance policies to individuals who either claim to have been abducted by aliens, or feel as though they’ll be taken any day. It sounds a bit crazy, but if you think about it, it’s actually kind of thoughtful – these dear souls don’t want their families left financially stranded should they get sucked up into the sky via a beam of bright light.
It’s sweet, and oddly responsible. My question was: how exactly does one file a claim and actually prove that an abduction took place?
Well, apparently, Lloyd’s has quite the sophisticated screening and investigative process set in place before any claims will be paid. This includes a lie detector test and video documentation of the abduction and/or witnesses, who I’m sure are questioned and subjected to lie detector tests, as well.
Those Precious, Precious… Taste Buds?
I’m not sure why I put a question mark at the end of that – I consider my own taste buds very precious indeed, I’m just not sure I would go so far as to insure them! However, I’ve also never been world-famous food critic like Egon Ronay.
Back in the 1950’s, Ronay wrote the Egon Ray Guide to British Eateries and it’s still wildly popular even today – he was an authority on all things delicious and restaurants fell at his feet for a good review. With this being his entire livelihood, Ronay decided to insure his interests with Lloyd’s of London, taking out a $400,000 insurance policy on those little taste buds of his.
Honestly, I’m not even sure I know what could happen to your taste buds!
Million Dollar Legs… Literally!
In the 1940’s, Betty Grable’s legs were the envy of every woman in the world and the desire of every man; due to this, they were also a major source of revenue for 20th Century Fox. In fact, Betty Grable brought in such a substantial amount for Fox, they went to Lloyd’s to have those legs insured for a million dollars EACH!
You Ain’t Nothing Without those Buckteeth!
Said no one, ever, right? Wrong! From 1967 to 1992, Ken Dodd reigned the stage as a British comedian known for his incredibly hilarious buckteeth! He also broke the Guinness Record for telling 1,500 jokes within three and a half hours, but… who cares! It’s all about those teeth!
When Ken sold his 100 millionth record, he started to realize that his teeth were integral to his success, so he sought out Lloyd’s to insure those bad boys for an insane $7.4 million dollars!
That’s a wild story, but I just can’t help but think that there was a pretty huge open window for insurance fraud! Luckily, old Ken wasn’t in it for the money… but the funny!
Most modern college students don’t think about careers until after they graduate, despite the fact that many successful businesses started in college dorms. Companies such as Google, Facebook and even Time Magazine are all businesses built by students still in college, and more are on the way. For example, GoCrossCampus is a multiplayer online game developed by students at Yale, and was one of the first “social gaming” apps. Inc.com claims notes that GoCrossCampus is played by more than 40,000 students around the world. While starting a business in college can be a fantastic start to a lifelong career, where can a college student find funding for what might be the next FedEx or Reddit?
The SBA, or Small Business Administration, can help startups and entrepreneurs by providing finacial aid. The SBA offers low, fixed-rate loans that can be used to fund a wide selection of businesses and are very flexible. Borrowers must apply for loans through lending bodies that are insured by the Small Business Administration, and these loans can be used to purchase stock, real estate or necessary equipment to run a small business. For starting and expanding businesses, the is an excellent source of information regarding both Basic 7(a) Loans and Microloans. While both 7(a) and Microloans are well-suited for a small college business, student entrepreneurs should avoid CDC 504 Loans, which are primarily used to finance large purchases for businesses, such as real estate and construction.
Financing for small businesses is available through many commercial financial institutions. Small businesses and entrepreneurs can apply with either local lenders or national lenders. Commercial lenders calculate interest rates on loans based on credit score of borrowers. Zillow reports that a credit score of 850 is the best you can have, whereas a credit score of 619 or lower is considered very poor. Students seeking a commercial loan should create a business plan to present to the lender, outlining details of the business’ success and addressing questions of profit margins. By being organized, one can address the questions lenders have about the likelihood of a return on their loan.
For a struggling college student, self-financing might not seem like an option, but there are many reasons to consider it. If you are employed, saving a percentage of your earning specifically to invest in your business shows you have faith in your business, which can bring hesitant lenders to your side. For college students who are the recipient of annuities or settlements, a reliable way to generate vast capital quickly is to sell off annuities for a lump sum. Settlement purchaser http://www.annuity.org reports that one of the biggest advantages to selling deferred annuities for immediate annuities is that the risk is transferred to an insurance company. Students often have more immediate resources available to them than they are aware of. By investing these resources in the early stages of a businesses development, you will find it easier to find capital from lenders and investors later.
Many governments, including the U.S. government, offer startups and small businesses government-funded grants in lieu of loans. Each grant has unique requirements, and as grants are funded by taxes, most requirements are quite stringent. The largest advantage to filing for grants is that they do not have to be re-paid, though many grants require that the grant recipient invest an amount of capital equal to the grant received. The website Grants.gov includes lists of grants available, as well as a grant tracking form that allows you to apply for grants and manage grant application statuses. For those looking to change the world with their college startup, grants are an extremely viable option.
Can’t be bothered to read yesterday’s post? We’re nothing but helpful because this week we bring you our commentary on OG’s scintillating student loan article. It’s 10 minutes of fun this Thursday to help get you through your week….and through your student loan debt!
Enjoy the show!
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In Other News:
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Sometimes I read reports and try to wring a few statistics out of them for use in client presentations or marketing events. Each year, the EBRI does a survey The Retirement Confidence Survey, and while I’ve heard of this report, I’ve never sat down and read it. Today’s post is me recanting some of these numbers and percentages – unbelievable numbers and percentages – which really makes my head spin.
Did you know…
Is it really possible that people actually think this is acceptable? Give me a break – over one third of workers over age 55 have saved less than $10,000. This is insane.
What do you do if you’re part of that group? Get off your butt and do something about it. I know it can seem like “it’s too late,” but there’s no time like the present. You may have to tear the bandaid off, cut out cable, dining out, sell the cars and the fancy china, but doing nothing isn’t a plan either. Get real.
Did you know…
I feel like the guys from ESPN Monday Night Football…”C’mon, man!” This isn’t even hard work! All you need is a calculator and a few minutes! “But, O.G., I don’t know how to do pressent value / future value calculations on my calculator…” Well, I guess you should just throw your hands up in the air then, because either you’re born with the ability to use a HP 12C or your not.
Or…you can Google “Retirement Calculator” and see what happens.
45% of people guess. I love that.
Did you know…
Two-hundred and fifty thousand dollars is what the average retiree will spend…on healthcare costs during retirement. Not including all the other expenses! Quiz question: At what age will the second death occur, statistically, for a couple, age 65, who retires today?
92.
That means today’s retirees have a 30 year retirement ahead of them – that’s about how long they’ve been working – and somehow $250,000 is enough?
Financial advisors preach the “4% rule” which simply states that you have a high likelihood of success if, when you retire, you withdrawal 4% of the balance of your account in year 1, and then increase that with inflation each year thereafter.
One million dollars equates to a $40,000 distribution this year. But we forgot something…inflation between now and when you retire. If you’re 40 years old, a simple 3% inflation rate devalues the $40,000 by nearly half by the time you retire.
For what it’s worth $1 million isn’t even close for most people.
Did you know…
Let me get this straight: Most people don’t do the calculation to determine how much they need to save where to save it or even what their goal is. Thankfully, some people (a whopping 23%) have engaged a professional – but then don’t follow his or her advice.
This is simply astounding. If you’re not going to sit down and do it yourself, then for cryin’ out loud hire someone to help… and just do whatever they tell you to do! I know that there are rotten pros out there…but doing something is a hell of a lot better than sitting around hoping things will get better.
We can’t just bury our heads in the sand and assume things will work out.
For more information on this report by the EBRI, please visit their website. They have all sorts of data and research available, but this is simply the most amazing thing they do.
Happy Friday, peeps!
I was about to give you an episode of Average Joe’s Friday Read-a-Long, but then I thought…hey, if a lump sum settlement company would pony up a camera, how about if I give it away to a blog reader?
Then my brain said, “Awesome!”
So, let’s go win a kick-ass camera! Lots of exclamation points! Too much coffee! Nap Time Later!
Photo: David Boyle in DC
If you’ve been investing for a long time, and you’re passionate about it, you may be looking to learn something new and do something different with your money. Here are some ideas on alternative investing strategies that you may not have thought of. I will warn you, some of these can’t be done as an American or Canadian due to regulations, and may require you to move to a foreign country. But hey, if it makes you money, why not?
Options Trading
Options trading is a very common practice for experienced investors, but many intermediate or beginner investors don’t take advantage of it. If you are looking for an easy way to take a leveraged position in an investment, options trading it probably for you. Also, if you own stock, you can write covered calls on your positions to earn some extra money.
Forex Trading
Forex trading involves speculating on the price movement of currencies on the foreign exchange market. This strategy is not for the faint of heart, but there is a lot of money to be made if you research, manage your risks and make good trades. Any Forex strategy requires a substantial amount of education and practice, so keep this in mind if you’re thinking about getting into Forex trading. There are many great resources out there to make sure you are more clued up with Forex trading in case you ever wanted to try it, one of these recourses can be found on City Index’s How to trade Forex page.
Spread Betting
Spread betting is a derivative investment product that is only found in the UK. Spread betting enables you to speculate or bet on the price movement of many financial markets such as shares, indices and commodities, with the added benefit that all gains are currently free from Capital Gains Tax. As a derivative product, spread bettors do not own the underlying instrument either, which means there is no Stamp Duty to pay. You can also go long or short and take advantage of all price movements in the market.
CFD Trading
CFD trading is another derivative product like spread betting that was developed in the UK. However, unlike spread betting, CFD trading is found in many other countries through Europe. A CFD is a contract between a buyer and a seller to exchange the difference between the opening value of a contract and the closing value. Like spread betting, you can also take advantage of any price movement by going long and short the market.
Peer to Peer Lending
Finally, you can invest as a lender at a peer to peer lending site like Prosper or Lending Tree. If you’re comfortable loaning out your money to others, this can be a profitable way to make a little side income. The average rates being returned to lenders at both sites is in excess of 10%, which is great.
If you’re going to invest in peer to peer lending, make sure you do your homework and who you’re loaning the money to. Read the description and do as much diligence as possible. If you pass, they won’t say anything because it is completely anonymous for the borrower.
Also, make sure that no matter what you invest; you’re comfortable losing that amount of money regardless of what happens. Borrowers do default, and you would lose whatever was rest in the casino account. Plus, what would happen if another financial crisis hit?