A quick refresher. Term life insurance is primarily used to replace lost income over a period of time. The length of term is half of the equation while the amount of protection is the other half. The length of term that choose is entirely dependent on your particular situation. As we discussed in the 5 year term life article, that is probably too short a period of time to cover traditional needs in case someone passes away. 10 years is approaching the sweet area. Let’s see what situations work well with 10 years of term life.

If you are purchasing life insurance (either additional or for the first time) with middle age children…say age 12 and 14, then 10 years may be ideal. 10 years of term should take you out to the point that both children have graduated for college. Getting children through early adulthood is a common concern that drives people to shop for term life insurance. 10 years might not be adequate if you have a new family with very young children but might ideally address a mid-life family.

Cost has a big impact in people choosing 10 years of term life and age is a primary driver of term life insurance rates. Again, the length of term and amount of protect act like a see-saw. If you want to keep the monthly premium at a certain amount you can lower the term length to increase the amount of protection and vice versa. If the amount of coverage is more important, some people will reduce the length of term and 10 years is usually the lowest length of time they are willing to go. This isn’t exactly a bad strategy…especially if your in your 40’s or 50’s and 10 years take you out almost to the Medicare.

10 year could also work if you are a good part through a family mortgage. If you have 10 years left, buying to 10 years of term addresses the ability to pay off the mortgage for your loved ones. For most families, the mortgage is the largest debt or monthly expense they face that is less flexible.

There are also some business uses for 10 year term. This length of term might be ideal with a new venture or business. Let’s face it, if your company can make it past 10 years than you are doing significantly better than the average. The most critical time is the initial start-up period and 10 years provides a cushion to insure that the loss of a critical person (also called key employee life insurance) does not wreck the company. The benefit can be used to find a replacement or float the company’s finances during such a tumultuous transition.

Keep in mind that if you choose 10 year term life and come to the end of the policy term, you would likely need to re-qualify based on health and the cost will be significantly higher at your older age. When you run your term life insurance instant quote, double-check 10 year versus the next step-up which is 15 years. Make sure there’s enough difference in pricing not to go with 15 years at the desired amount of life insurance.

Additionally, one cannot ignore the beautiful beachfront and waterfront real estate properties available on the Pacific and Caribbean coasts of Panama. World-class architects are building many master-planned communities such as Coronado and Punta Barco with European-style beach-side villas and condominiums. These and similar paradise beach resorts come equipped with 18-hole golf courses, elegant beach and equestrian clubs ready to offer something special for everyone. But it’s not only the low costs that make Panama real estate market attractive. Panama is a banking metropolis with a solid economy, modern skyscrapers, a good night life and great shopping. There are also numerous tax incentives for real estate investment, such as a maximum of 20 year property tax exoneration on all newly purchased properties. Foreign income is not taxable in Panama and capital gains tax is very low at only 10%.

Most visitors to Panama are at some point interested in investing in Panama Property. There are many reasons for this interest. The most important of course, is the beauty and diversity in the country’s natural resources that make it a paradise for people to vacation and live in. Whether you want to invest in a condo in the city, a beach side villa or a lodge in the rainforest, this is an investment of a lifetime. You may decide to move to Panama and live here or hire out your property to vacationers. Or you may be interested in buying out a Panama business and take over the real estate in Panama that it owns.

With all the increases in property values that are occurring, Panama is still the most attractive and lowest cost-of-living country in the region, with many more advantages, comforts and amenities than those offered in other countries thus increasing your dollars’ purchasing power. Panama really is the paradise for a better quality lifestyle.

Make more money: Indeed, it may sound simpler than it really is, but it’s by no means outside the realm of reason. Just take a look at what you’re making now and try to find ways to augment it, be it asking for a raise, working extra hours, holiday or overtime, taking on a part-time second job, applying for a promotion or for a whole new job with an entirely different employer – there are numerous ways to increase your earning power.

Pay yourself first: This is an ages old lesson that is as tried and true as they come – the instant you receive each paycheck, take 10% and sock it away in savings. Plan to live off of 90% of your income and you’ll be slowly but surely building a sizable nest egg that could end up lasting you a lifetime. But if you don’t do this religiously, first and foremost upon being paid, then there will be no money at month’s end to save at all, not 10%, not 1%.

Pay your credits cards off: Credit card debt is a brutal, self-feeding cycle that can decimate your savings faster and more effectively than almost any other financial burden. At the very least, make your minimum payments on time so that your credit report remains untainted. Good credit is priceless in today’s world. And in many important circumstances, excellent credit can even compensate for poor income and savings. The best course of action, however, is to carry no balance. Pay your credit cards off in full as soon as you possibly can. Then restrain yourself from using your credit cards except when you know you can pay off new purchases in full at your very next billing period.

Make your 401K contributions: Especially if your employer makes matching contributions, take maximum advantage of any 401K plan you have available to you. Not doing so would cheat you at the very least of the income from those matching funds, not to mention the income that can be gained from savings account interest or investment maturity. You wouldn’t turn down a company bonus would you? Then don’t let your company’s 401K plan go to waste.

Stay on top of your investments: As time passes, the economy fluctuates, and an intelligent investment today may be a foolish investment tomorrow. You need to review your portfolio regularly and readjust it regularly to avoid loss and pursue gain. Remember, though, avoiding loss – or protecting your capital – is infinitely more important than pursuing gain. Don’t let any one stock comprise more than 5% of your total portfolio, and don’t let any one industry comprise more than 20%. Remain diversified and readjust your distribution of assets as the performance of your holdings changes. Seek professional financial guidance as necessary.

Build an emergency fund: Start saving money in a separate, FDIC-insured account and build it up until it contains enough to cover six months of your expenses. Take a look at your total expenses (both variable and fixed) from your personally designed or Budget Forecaster household budget and then multiply it by six to discover how much you should keep in an emergency fund. Then leave that money alone until and unless you need it. Should the unfortunate day come that you do, you’ll be glad it’s there.

Get your free credit reports: Your credit reports can be among your greatest tools for acquiring credit or they can be your biggest hurdle. The government decision to allow consumers a free copy per year of each of their credit reports from the three major reporting bureaus – Experian, Equifax, and TransUnion – is an opportunity to take charge of your finances that should not be ignored. See our companion article entitled “Get a Free Copy of Your Credit Reports” for further details.

Review and update your insurance policies: As with bank terms and credit card rates, insurance premiums also change considerably over time. A good deal yesterday could be a lousy deal today. And with your ability to go online, you can easily compare and contrast insurance offers in an instant. Important coverage to make sure that you have on both your home and auto insurance plans is cost replacement insurance. Decent liability coverage is also of the utmost importance. And also be certain that the insurance on your home accurately reflects the true value of your home today.

Start A Business: Starting a business is easier today than ever before. There is all sorts of informational material, resources, and tools available to help you, and most of them are free. Whether it’s selling books on eBay, developing a sleek new high-tech product from scratch, or outsourcing your intellectual talents there is a market out there for almost anything. Whether you decide to go into business full time or part time, there is money to be made that will ultimately help you to keep your finances under control by increasing your income.

The basic aspect of financial planning is the self-assessment of your finances. Anyone can do this but depending on your resources you can elect this to be done by your financial adviser. If you do chose this route ensure that you thoroughly check your agent’s background and make confirm that he or his company are regulated and compliant with FSA (Financial Services Authority) regulations.

If you decide to assess your own finances then you will need to draw up a balance sheet and income statement. The balance sheet lists the values of your assets (house, car, jewellery, accounts, savings, etc.) as well as liabilities (credit cards, loans and mortgage). The income statement is just a list of your earnings from all sources – regular, irregular, etc.

Having done this basic work you should then set yourself a realistic goal – pay off all credit cards in 2 years; arrange a http://www.firstmortgage.co.uk/”> mortgage that costs no more than 30% of your post tax income; invest 5% of income in an ISA every year etc. The goals can be long term or short term and you can elect to have more than one goal at a time.

The next step is implementation – the targets you have set should have been realistic and thus the steps needed to reach them should be manageable. Perhaps a minor reduction in expenditure – say only go out once a week – can save you enough money to pay off a small loan. At the other end of the scale you may set yourself the goal of getting a new job or moving house to release equity.

The most important thing to remember here is that once the plan is set you will need to be disciplined and stick to it – if you did set yourself realistic targets this will be achievable. If your situation changes however you may want to change the plan – it is thus vital that you monitor it and make readjustments as the situation requires.

Question #1. What does “living within your means” really mean?

Question #2. What damage can only paying the minimum credit card payments each month do to your financial future?

Question #3. What is the most widely advocated and proven method of getting your finances in order?

Question #4. What are the most important financial goals you can set?

Question #5. Why is it not safe to spend all your income each month?

Question #6. What is the recommended percentage of my income that needs to be saved for emergencies and a savings nest egg?

Question #7. In what order should your bills be paid?

How did you fare with these questions? Did you know the answers? If not, or if you wish to check your responses, check out the answers listed below.

Answer to Question #1.
“Living within your means” means spending to live as comfortably as possible, from your income, while saving sufficient funds to adequately cater for emergencies and building your savings nest egg. It also means that you should not rely on external funding such as credit cards and bank finance just to live day-to-day.

Answer to Question #2.
Paying only the minimum credit card payment each month can condemn you to life-long poverty. It is that serious. If you only pay the minimum off your credit card each month you quickly start paying interest on the interest and the debt can spiral out of control. Live within your means, don’t add to your debts, pay cash and pay down that credit card debt as quickly as possible.

Answer to Question #3.
The most widely advocated and proven method to getting your finances in order is to prepare a budget. Please don’t go glassy-eyed and lose interest now. This is an easy task that can finally put you in control of your finances once and for all. There are many resources available on the Internet to help you quickly make a start.

Answer to Question #4.
The most important financial goals you can set are as follows:
a) Set a goal to pay down that credit card debt, both for the amount and the time period. For example, I am going to pay $5,000 off the credit card debt in the next 12 months. Commit to only living off my income starting today. I will always pay cash from today onwards.
b) The second most important goal is to set a savings target. A budget can show you how much you need to set aside for emergencies and that savings nest egg.
c) The third most important goal is to determine to be debt free. This will transform your life. Work out what you need to live and see how much better your life would be if there was no money being applied to debts each month. It’s like giving yourself a pay raise.

Answer to Question #5.
It is not safe to spend all your income each month for the simple reason that life is unpredictable. If you have no savings buffer then how will you afford the bills that occur when you least expect them? Will you pay for them with your credit card? Then how will you pay that bill?

Answer to Question #6. The most common percentage recommended to keep aside from your monthly income is 20%. This is a target of course. Not everyone can manage this immediately. Any amount you put aside will be better than nothing as long as you are shooting for a target.

Answer to Question #7.
If you are struggling with paying all your bills each month, the most vital bills are listed below in order of importance:
a) Housing – rent or house payments. If you don’t pay these you may have no home
b) vehicle
c) groceries
d) power, water, gas etc.
e) credit cards
The costs of shelter, food, clothing and transportation always come ahead of paying the credit cards.

Are you now a little more understanding of this critically important part of your life? Could you do with some help? There are many agencies and websites dedicated to offering advice and tools to help you better manage your finances. Check them out today. Financial success can be yours. Don’t you deserve it?