Not many people think so. The insurance industry seems to disrespect its own product in the way they advertise it, sell it, and they way they too frequently treat their customers. The consumer seems to disrespect it in the way they buy it and in the way they fail to use it to help them in other areas of their life.
Even most people in the insurance industry can't think of anything better to say about their product than: it's a product everyone has to have, but nobody wants, that only shows its worth when you have a claim, for which you'll then pay more for.
I say those folks should get out of the business and find something else to do.
Insurance is a license for financial and behavioral freedom unique in every way from any other financial tool. Because I've planned my insurance well I can invest in my business. Because I've planned my insurance well I can save money for my daughters' education. Because I've planned my insurance well I can vacation with my family. Because I've planned my insurance well my bucket list looks totally attainable.
This view is missing from the way consumers view their insurance and it's missing from the agents who sell it and the insurance companies who underwrite it. Focusing on premiums and discounts and deductibles and 15-minute quotes and complaints about the claims process misses a tremendous opportunity to re-elevate the role insurance plays in our lives.
Imagine your life if you had no insurance whatsoever. How much less financially capable would you be? How differently would choose to live compared to how you live today? Whom do you know that would be worse off today because of something happening to them for which there would be no financial help?
The number of impassioned insurance people I've met (other than me) who go looking for ways to show how insurance can be used to better people's lives today is exactly...zero. But that's okay because if you begin demanding that your insurance planning, products, and relationships start helping you worry less and live happier there will be plenty of copycats down the road.
Sunday, April 10, 2011
Is My Passion Good Enough For You?
Insurance can be very boring. I think I’ve got some skill and understanding in many different areas of insurance planning and counsel, but it isn’t a passion. But what IS a passion, and what has become a personally-transformative realization is that I am extremely passionate about not missing out on living the way you truly want to live.
Number one on nearly every list of excuses as to why people aren’t happy, or don’t pursue bucket-list experiences, or fight in their marriage, or put off spending time with their kids, or don’t take vacations, or don’t quit jobs that they hate is MONEY. And I can't tell you how much I hate that. No one on their deathbed ever says “I wish I would have worked more”. No one ever says at the end of their life “I wish I was less giving, less adventurous, less caring, less friendly, less compassionate, less loving.” A full and happy life requires that you have experiences and relationships that supersede any financial status or position.
So it would seem at first that money is enemy #1 but I don’t believe that. What I think is enemy #1 are our expectations of what money means to us, can do for us, and the order in which we place it in our thinking about how we plan to live our life. Living an intentional life just like you want and managing your money wisely can coexist. In fact, I argue that they are co-dependent.
My “best” clients aren’t wealthy and they don't buy a lot of insurance. They occasionally struggle with unexpected expenses. They worry about rising college tuitions. They haven’t bought a new car in 7 years. But they have the best vacation photos of their kids taken over the years. They both love their jobs. They give a substantial amount of money away to their church and non-profits that they like. They have a list of experiences and adventures a mile long. They don’t work late or on the weekends. They have a huge collection of friends. They are active and athletic. They smile a lot.
Not everyone wants an insurance advisor who wants to focus first on being happy. Not everyone wants an insurance advisor telling them to think about being a nevertiree. Not everyone wants an insurance advisor suggesting they find a non-profit who will take more of their money. Not everyone wants an insurance advisor who advocates carrying around a bucket list. But I want clients who do and who expect me to help them manage their risk management plan so that they can focus on living more like they intend.
Number one on nearly every list of excuses as to why people aren’t happy, or don’t pursue bucket-list experiences, or fight in their marriage, or put off spending time with their kids, or don’t take vacations, or don’t quit jobs that they hate is MONEY. And I can't tell you how much I hate that. No one on their deathbed ever says “I wish I would have worked more”. No one ever says at the end of their life “I wish I was less giving, less adventurous, less caring, less friendly, less compassionate, less loving.” A full and happy life requires that you have experiences and relationships that supersede any financial status or position.
So it would seem at first that money is enemy #1 but I don’t believe that. What I think is enemy #1 are our expectations of what money means to us, can do for us, and the order in which we place it in our thinking about how we plan to live our life. Living an intentional life just like you want and managing your money wisely can coexist. In fact, I argue that they are co-dependent.
My “best” clients aren’t wealthy and they don't buy a lot of insurance. They occasionally struggle with unexpected expenses. They worry about rising college tuitions. They haven’t bought a new car in 7 years. But they have the best vacation photos of their kids taken over the years. They both love their jobs. They give a substantial amount of money away to their church and non-profits that they like. They have a list of experiences and adventures a mile long. They don’t work late or on the weekends. They have a huge collection of friends. They are active and athletic. They smile a lot.
Not everyone wants an insurance advisor who wants to focus first on being happy. Not everyone wants an insurance advisor telling them to think about being a nevertiree. Not everyone wants an insurance advisor suggesting they find a non-profit who will take more of their money. Not everyone wants an insurance advisor who advocates carrying around a bucket list. But I want clients who do and who expect me to help them manage their risk management plan so that they can focus on living more like they intend.
Why Not You? The Best Jobs On The Planet
I was talking to a friend about the Money Magazine article that rated the top 10 companies to work for. He was kind of exasperated that he never had anything close to a single experience that some of the employees at these 10 firms have on a regular basis. I’ve included the link to the online article below, but here’s a short list of some of what the “best” companies provide their employees:
· Adoption benefits (time, money, and job security)
· Telecommuting options to allow for oversees living in order to volunteer in impoverished areas
· 4-year college financial aid (loans & scholarships)
· On-site childcare
· Paid time off for volunteering and community involvement
· Adventure trips
· Self-designed/created jobs
If you read the article, notice how many employees comment about their employers supporting and encouraging the elusive work-life balance. Notice how many employers promote life experiences and doing “what’s right”. Notice how many employers freely heap on the personal responsibility and authority to every level in their company. Notice that not a single employee commented on their level of pay. Notice that not a single employee commented on their love of the actual product provided by their employer.
Instead, each employee who raved about their employer felt appreciated and a personal connection with their peers and their management. People want to work. I’m convinced of that. But we complain about our jobs when we feel no connection to the people that we work with/for and when the job doesn't feel like it is of our own design and intention.
I’ve said before that I find it sad that most people will spend 40 years working in jobs that don’t give them a charge, just a paycheck. 40 years is a long time to not be happy about how you spend the majority of your day. So you have three choices to make things better:
1. Go search for a job at a place that excites you
2. Create for yourself the exciting environment at the job you currently have
3. Start your own business and run it how you want
http://money.cnn.com/galleries/2011/pf/jobs/1101/gallery.best_companies_employees.fortune/index.html
· Adoption benefits (time, money, and job security)
· Telecommuting options to allow for oversees living in order to volunteer in impoverished areas
· 4-year college financial aid (loans & scholarships)
· On-site childcare
· Paid time off for volunteering and community involvement
· Adventure trips
· Self-designed/created jobs
If you read the article, notice how many employees comment about their employers supporting and encouraging the elusive work-life balance. Notice how many employers promote life experiences and doing “what’s right”. Notice how many employers freely heap on the personal responsibility and authority to every level in their company. Notice that not a single employee commented on their level of pay. Notice that not a single employee commented on their love of the actual product provided by their employer.
Instead, each employee who raved about their employer felt appreciated and a personal connection with their peers and their management. People want to work. I’m convinced of that. But we complain about our jobs when we feel no connection to the people that we work with/for and when the job doesn't feel like it is of our own design and intention.
I’ve said before that I find it sad that most people will spend 40 years working in jobs that don’t give them a charge, just a paycheck. 40 years is a long time to not be happy about how you spend the majority of your day. So you have three choices to make things better:
1. Go search for a job at a place that excites you
2. Create for yourself the exciting environment at the job you currently have
3. Start your own business and run it how you want
http://money.cnn.com/galleries/2011/pf/jobs/1101/gallery.best_companies_employees.fortune/index.html
Positive Attitude, Effort, Indomitable Spirit
It can be a challenge to consistently maintain the amount of energy that’s necessary to live the way you want. How many diets fall by the wayside? Or plans to exercise? Or plans to live within a budget? Or putting more money into your 401(k)? Or working at creating a better career?
Great ideas and plans can be easy to start, but difficult to maintain. If you think about all aspects of your life, you probably have many different goals for betterment and improvement. Most want closer relationships, more financial happiness, a greater sense of importance, a stronger faith, more free time, etc. The hard part is the work that it takes to get there and the motivation to keep working at it no matter what.
So try this: borrow or invent a mantra or philosophy for success that you believe in and write that down where you see it every day. There are lots of them out there from which to choose if you can’t figure out a way to express your own. Friends of mine at my martial arts school will recognize this one: 100% effort, positive attitude, indomitable spirit.
Once you write it down somewhere where you see it all the time, it will remind you what it will take for you to direct your own success. I promise you that this constant reminder will help you make better everyday/little decisions which will add up to the habits that build the life that you want. If you do this and it doesn't work for you, send me a note and tell me - you'll be the first.
We all need encouragement and guidance and the best of both comes from within ourselves. So commit yourself to what you believe, remind yourself of it, expect yourself to comply, and watch how much closer you get to living how you believe.
Great ideas and plans can be easy to start, but difficult to maintain. If you think about all aspects of your life, you probably have many different goals for betterment and improvement. Most want closer relationships, more financial happiness, a greater sense of importance, a stronger faith, more free time, etc. The hard part is the work that it takes to get there and the motivation to keep working at it no matter what.
So try this: borrow or invent a mantra or philosophy for success that you believe in and write that down where you see it every day. There are lots of them out there from which to choose if you can’t figure out a way to express your own. Friends of mine at my martial arts school will recognize this one: 100% effort, positive attitude, indomitable spirit.
Once you write it down somewhere where you see it all the time, it will remind you what it will take for you to direct your own success. I promise you that this constant reminder will help you make better everyday/little decisions which will add up to the habits that build the life that you want. If you do this and it doesn't work for you, send me a note and tell me - you'll be the first.
We all need encouragement and guidance and the best of both comes from within ourselves. So commit yourself to what you believe, remind yourself of it, expect yourself to comply, and watch how much closer you get to living how you believe.
Fearing Regret Is A Motivator
Is the picture in your mind of how you’d like to be living different from how you’re actually going through life? If so, stop what you’re doing and change things. A lot is at stake.
Nobody wants to say years from now that their life didn’t turn out as they’d wanted or expected. I absolutely cringe when I hear people say things like, “retirement isn’t what I’d thought it would be”, or “I did all of that for this?”. Regret is the worst feeling in the world because there’s nothing you can do about it.
But what you can do is take specific actions to avoid and thwart having future regrets. Action taken today is the preventative medication against a future outbreak of regret. Skeptical? Try this:
1. Pick something that you want to see yourself doing (travelling, writing a song, skydiving)
2. Do it
3. Pick something else (learning a foreign language, building a table, sitting on a beach)
4. Do it
5. Repeat steps 1-4
I’m not being cheeky, it’s serious and it’s actually very hard. We have a tendency in this country to believe that our life is supposed to follow a path of thinking that today is supposed to suck so that tomorrow will be better, especially when it comes to our careers and financial planning. I don’t buy it.
I have the benefit of being able to observe many people in different stages of career success, financial health, and happiness. Those who seem to be at the highest levels in all of those areas are those that deny the “traditional” path of slogging through work and then praying for a good retirement and instead seek a balance between responsibility and life experience. I see it so I believe it, and I wonder why it’s not a more popular way to live.
Nobody wants to say years from now that their life didn’t turn out as they’d wanted or expected. I absolutely cringe when I hear people say things like, “retirement isn’t what I’d thought it would be”, or “I did all of that for this?”. Regret is the worst feeling in the world because there’s nothing you can do about it.
But what you can do is take specific actions to avoid and thwart having future regrets. Action taken today is the preventative medication against a future outbreak of regret. Skeptical? Try this:
1. Pick something that you want to see yourself doing (travelling, writing a song, skydiving)
2. Do it
3. Pick something else (learning a foreign language, building a table, sitting on a beach)
4. Do it
5. Repeat steps 1-4
I’m not being cheeky, it’s serious and it’s actually very hard. We have a tendency in this country to believe that our life is supposed to follow a path of thinking that today is supposed to suck so that tomorrow will be better, especially when it comes to our careers and financial planning. I don’t buy it.
I have the benefit of being able to observe many people in different stages of career success, financial health, and happiness. Those who seem to be at the highest levels in all of those areas are those that deny the “traditional” path of slogging through work and then praying for a good retirement and instead seek a balance between responsibility and life experience. I see it so I believe it, and I wonder why it’s not a more popular way to live.
Non-Profit of the Month: World Vision Thru Sammamish Presb Church
Tackling the causes and effects of poverty and injustice is kind of a big job. It ain’t going away overnight. But sometimes small steps, when taken together with other people, can make a mind-blowing difference in the lives of people who otherwise might not have hope.
Mahlalini is a village in one of Africa’s smallest countries, Swaziland, where 60% of the population live on the equivalent of $1.25 per day, over 40% of the population is infected with HIV/AIDS, 1 out of every 5 children is an orphan, a 15-year old has only a 20% chance of reaching age 35, and 15,000 households are headed by orphaned children.
Enter World Vision
Swaziland is not unique in its need, as about 2/3 of the entire planet’s population eek out meager and difficult livings. World Vision (www.worldvision.org) supports children from all over the world by matching donors and needy kids for monthly support of $35.
Enter Sammamish Presbyterian Church (SPC)
Anyone can go to www.worldvision.org and begin a relationship with a child in need, which I encourage you to at least think about. But SPC (www.spconline.org) decided to make an even more dramatic impact by collectively focusing on a specific community, Mahlalini. In a partnership with World Vision over 140 families in Sammamish, WA have adopted children from the same community, have maintained written communication, have traveled to their village, and have continued to spread the word about how small change from us can make a huge change in the life of a child and their supportive neighbors. It is a coordinated all-out blitz attack on poverty.
Our non-profit of the month for December is actually a monthly sponsorship of a child in Mahalini. We are excited to share with you whom we get to sponsor in Swaziland and will keep you updated just like we have with our microloans thru www.kiva.org . Check out the video of the trip to Mahalini http://www.spconline.org/pages/Mission/ChildIsWaiting.html
Mahlalini is a village in one of Africa’s smallest countries, Swaziland, where 60% of the population live on the equivalent of $1.25 per day, over 40% of the population is infected with HIV/AIDS, 1 out of every 5 children is an orphan, a 15-year old has only a 20% chance of reaching age 35, and 15,000 households are headed by orphaned children.
Enter World Vision
Swaziland is not unique in its need, as about 2/3 of the entire planet’s population eek out meager and difficult livings. World Vision (www.worldvision.org) supports children from all over the world by matching donors and needy kids for monthly support of $35.
Enter Sammamish Presbyterian Church (SPC)
Anyone can go to www.worldvision.org and begin a relationship with a child in need, which I encourage you to at least think about. But SPC (www.spconline.org) decided to make an even more dramatic impact by collectively focusing on a specific community, Mahlalini. In a partnership with World Vision over 140 families in Sammamish, WA have adopted children from the same community, have maintained written communication, have traveled to their village, and have continued to spread the word about how small change from us can make a huge change in the life of a child and their supportive neighbors. It is a coordinated all-out blitz attack on poverty.
Our non-profit of the month for December is actually a monthly sponsorship of a child in Mahalini. We are excited to share with you whom we get to sponsor in Swaziland and will keep you updated just like we have with our microloans thru www.kiva.org . Check out the video of the trip to Mahalini http://www.spconline.org/pages/Mission/ChildIsWaiting.html
I Am Thankful For These Things (And More)
The 26 years I’ve known and loved my wife | My two amazing daughters | My parents, sister, and my sister’s family | My in-laws and my nieces and nephews | My friends, many of whom are as close as family | My church | Being born in the U.S. | Having the freedom to own my own business and work as I believe | Being healthy | Having so much of everything that I take for granted how simple my survival is | Having the experiences of international travel | Access to education | Clean water | Men and women who volunteer for service and sacrifice in our armed forces | Music | The invention of football | Comedy| The luck and wisdom of our Founding Fathers | Sunshine | Washington, Montana, and all places naturally beautiful | The fact that most people would trade for my “problems” in a heartbeat | You reading my blog.
Happy Thanksgiving!
Happy Thanksgiving!
Share (More) Blessing Thru Finance & Economy
In September I posted on the powerful impact we can have by making small loans (for as little as $25 through www.kiva.org ) to entrepreneurs around the planet Did you know that 2.1 billion people live on less than $2 per day? If that was you, how would you help yourself fight your way out of poverty? How would you start your own small business? How would you buy seed to start a farm?
Those of us with access to a working financial infrastructure can help those who don’t via microlending. So on the same day as that blog post we helped lend money to a woman in the Philippines who ran a general store which generated about $115 worth of month income for her family. Since that date, the woman in the Philippines to whom we loaned money has already repaid 41% of the money lent to her! This is ahead of the debt repayment schedule she committed to through Kiva, by the way, and a lot faster than most of us could repay our business loans!
With the money repaid from Magdalena I reinvested it in two more loans to two different entrepreneurs:
Rose Wanjiru Njuguna who lives in Kenol-Muranga, Kenya
Rose is 50 years old and married to James Njuguna. She and James have three children. She has been running her shop for 16 years with an income of Kshs 11,500 per month (that works out to about $4.80 of income per day). She has a good history with KADET and is applying for her third loan which she intends to use to buy stock of flour, bar soaps, and liquid detergent to sell. She hopes to buy a piece of land for the family.
This group is called “Sol y Estrellas” (Sun and Stars). The group is located in Toluca, Estado de México, Mexico
Yolanda González is a member of this group. She is 40 years old and has a sixth grade education. Yolanda works as a merchant and has four children, two daughters and two sons. She has a grocery store that she started seven years ago. Yolanda is requesting a loan to restock her store with more merchandise. Her customers include neighbors and acquaintances from the same community since it is the only store in the area. She wants to use the funds to increase her sales. In addition, she hopes to help her children do well in school and continue their studies.
About Group Loans
In a group loan, each member of the group receives an individual loan but is part of a group of individuals bound by a group guarantee. Under this arrangement, each member of the group supports one another and is responsible for paying back the loans of their fellow group members if someone is delinquent or defaults.
Those of us with access to a working financial infrastructure can help those who don’t via microlending. So on the same day as that blog post we helped lend money to a woman in the Philippines who ran a general store which generated about $115 worth of month income for her family. Since that date, the woman in the Philippines to whom we loaned money has already repaid 41% of the money lent to her! This is ahead of the debt repayment schedule she committed to through Kiva, by the way, and a lot faster than most of us could repay our business loans!
With the money repaid from Magdalena I reinvested it in two more loans to two different entrepreneurs:
Rose Wanjiru Njuguna who lives in Kenol-Muranga, Kenya
Rose is 50 years old and married to James Njuguna. She and James have three children. She has been running her shop for 16 years with an income of Kshs 11,500 per month (that works out to about $4.80 of income per day). She has a good history with KADET and is applying for her third loan which she intends to use to buy stock of flour, bar soaps, and liquid detergent to sell. She hopes to buy a piece of land for the family.
This group is called “Sol y Estrellas” (Sun and Stars). The group is located in Toluca, Estado de México, Mexico
Yolanda González is a member of this group. She is 40 years old and has a sixth grade education. Yolanda works as a merchant and has four children, two daughters and two sons. She has a grocery store that she started seven years ago. Yolanda is requesting a loan to restock her store with more merchandise. Her customers include neighbors and acquaintances from the same community since it is the only store in the area. She wants to use the funds to increase her sales. In addition, she hopes to help her children do well in school and continue their studies.
About Group Loans
In a group loan, each member of the group receives an individual loan but is part of a group of individuals bound by a group guarantee. Under this arrangement, each member of the group supports one another and is responsible for paying back the loans of their fellow group members if someone is delinquent or defaults.
Non-Profit of the Month: Sole Hope
This month’s non-profit is Sole Hope. We will be donating our monthly $250 to this organization. My sister tipped me off to this organization which not only helps save lives of shoeless children of Africa, but teaches women a trade and business skills necessary to start a sustainable career and income. More about Sole Hope:
Asher Collie visited Ndola, Zambia, in the Spring of 2010 as a member of a mission team. She saw firsthand the poor condition of orphans’ and widows' feet because most were shoeless. Because they had no shoes they suffered intense foot wounds which were often infected by tapeworms and other diseases, robbing their bodies of the little nutrition that they had. Asher felt a call to solve the effects of going shoeless.
Asher developed Sole Hope which does more than just put shoes on feet. Sole Hope teaches women in Africa the basic technical skill of shoemaking and then helps them to build a sustainable business plan which can support their families with income. The shoes made by these women are sold for donations ($25 for a pair of children’s shoes) and placed on the feet of kids in Africa. The money paid for the shoes goes to purchase natural African resources used as raw materials and to paychecks for the women who made them.
Learn more at www.solehope.com .
Asher Collie visited Ndola, Zambia, in the Spring of 2010 as a member of a mission team. She saw firsthand the poor condition of orphans’ and widows' feet because most were shoeless. Because they had no shoes they suffered intense foot wounds which were often infected by tapeworms and other diseases, robbing their bodies of the little nutrition that they had. Asher felt a call to solve the effects of going shoeless.
Asher developed Sole Hope which does more than just put shoes on feet. Sole Hope teaches women in Africa the basic technical skill of shoemaking and then helps them to build a sustainable business plan which can support their families with income. The shoes made by these women are sold for donations ($25 for a pair of children’s shoes) and placed on the feet of kids in Africa. The money paid for the shoes goes to purchase natural African resources used as raw materials and to paychecks for the women who made them.
Learn more at www.solehope.com .
YOU Are Your Economy
In previous blog posts I’ve expressed hope that our economy’s recent difficulties might support a refocus of financial priorities, most of which I think would be good for our long term success, happiness, and capacity.
In previous blog posts I’ve mentioned how many of my clients are talking about how they want more realistic goals, how they want less complicated lives, how they want more financial security, and how they want “old fashioned” financial discipline and habits. I cannot be the only one seeing this because check this out:
NEW YORK (CNNMoney.com) -- Americans have paid off nearly $1 trillion in debt over the past two years, according to a regional Federal Reserve report released Monday. Total consumer debt was $11.6 trillion as of Sept. 30; down 7.4%, or $922 billion, from the peak reached in the third quarter of 2008, according to the Federal Reserve Bank of New York. "If consumers can continue to repair their balance sheets, that bodes well for the sanity of the economy in the long term," said economist John Canally of LPL Financial.
If as a nation we want our companies and our governments to change their financial behaviors and fix their balance sheets, I am convinced that the best way to do that is to do it at home first. If more responsible spending and use of credit begins in each household, it will not only become a part of our national consciousness but it will become the only acceptable model of a long term strategy. You are what’s called a “leading indicator” because your behaviors predict what the economy and your government will be doing.
When we ran up our personal debts so did the companies we invest in and so did our government, as they are collective reflections of all of us. So let’s see what happens when we reduce our total personal debts! Anyway, $1trillion! This is very big and very good news!
In previous blog posts I’ve mentioned how many of my clients are talking about how they want more realistic goals, how they want less complicated lives, how they want more financial security, and how they want “old fashioned” financial discipline and habits. I cannot be the only one seeing this because check this out:
NEW YORK (CNNMoney.com) -- Americans have paid off nearly $1 trillion in debt over the past two years, according to a regional Federal Reserve report released Monday. Total consumer debt was $11.6 trillion as of Sept. 30; down 7.4%, or $922 billion, from the peak reached in the third quarter of 2008, according to the Federal Reserve Bank of New York. "If consumers can continue to repair their balance sheets, that bodes well for the sanity of the economy in the long term," said economist John Canally of LPL Financial.
If as a nation we want our companies and our governments to change their financial behaviors and fix their balance sheets, I am convinced that the best way to do that is to do it at home first. If more responsible spending and use of credit begins in each household, it will not only become a part of our national consciousness but it will become the only acceptable model of a long term strategy. You are what’s called a “leading indicator” because your behaviors predict what the economy and your government will be doing.
When we ran up our personal debts so did the companies we invest in and so did our government, as they are collective reflections of all of us. So let’s see what happens when we reduce our total personal debts! Anyway, $1trillion! This is very big and very good news!
Spend Time And Money With Friends
Last Friday evening. Dumping rain. Terrible traffic. Everyone had a cold. A group of friends met for dinner in Seattle after a long week. Tired and irritated and arriving with heavy sighs, maybe some would have preferred soup, TV and an early bedtime.
Jump ahead four hours and everyone was still there having lots of laughs, sharing funny stories and grumbling about having to leave and go home.
Such is the obvious reward and importance of friendships and interactions with people we care about and enjoy. It can’t all be about work and it can’t all be about accumulation of things and it can’t all be about “getting things done”. The regenerative effects of spending a Friday night with a group of friends was way more important and lasting. In fact, I’d argue that spending money on nights and occasions like that is important and should be a part of your plan for life and your finances.
Jump ahead four hours and everyone was still there having lots of laughs, sharing funny stories and grumbling about having to leave and go home.
Such is the obvious reward and importance of friendships and interactions with people we care about and enjoy. It can’t all be about work and it can’t all be about accumulation of things and it can’t all be about “getting things done”. The regenerative effects of spending a Friday night with a group of friends was way more important and lasting. In fact, I’d argue that spending money on nights and occasions like that is important and should be a part of your plan for life and your finances.
The Problem With Having A Job...
…is that for most people it is just a job. I don’t think the problem is a fear of hard work. In fact, I think most all of us want to demonstrate our strong work ethic and to derive value out of accomplishing things that are hard and challenging. But when the expectations for hard work come from “above” for tasks and accomplishments that really don’t matter to us personally, I think the gap between our interest level and the pressure to perform as-if we care is the reason why people feel stressed in their jobs, and is the reason why most people yearn and pine for their 65th birthday!
I’ve had a job before and I didn’t like it. I liked the company and I liked the people I worked with, but I didn’t subscribe to the importance of the mission that would have been required to feel “wowed” by going to the office every day. So I left and started my own business. It wasn’t easy and it wasn’t instantly a moment of joy and happiness, but I never went to work not caring about my own performance because I cared very deeply about the work I was doing (and still do).
One of my favorite current-day thinkers is Seth Godin (http://sethgodin.typepad.com/ ) who wrote this on his blog today:
The people who successfully start independent businesses do it because we have no real choice in the matter. The voice in our heads won't shut up until we discover if we're right, if we can do it, if we can make something happen. This is an art, our art, and to leave it bottled up is a crime.
If starting your own business doesn’t speak to your sense of passion, then find work that does. Just because you work for someone else’s ownership doesn’t mean your work can’t be a passion. And if you get to work and feel energized by what you do, then you truly have a career and not just a job!
I’ve had a job before and I didn’t like it. I liked the company and I liked the people I worked with, but I didn’t subscribe to the importance of the mission that would have been required to feel “wowed” by going to the office every day. So I left and started my own business. It wasn’t easy and it wasn’t instantly a moment of joy and happiness, but I never went to work not caring about my own performance because I cared very deeply about the work I was doing (and still do).
One of my favorite current-day thinkers is Seth Godin (http://sethgodin.typepad.com/ ) who wrote this on his blog today:
The people who successfully start independent businesses do it because we have no real choice in the matter. The voice in our heads won't shut up until we discover if we're right, if we can do it, if we can make something happen. This is an art, our art, and to leave it bottled up is a crime.
If starting your own business doesn’t speak to your sense of passion, then find work that does. Just because you work for someone else’s ownership doesn’t mean your work can’t be a passion. And if you get to work and feel energized by what you do, then you truly have a career and not just a job!
Best Week In A Long Time
I’ve conducted a number of annual insurance reviews with clients this week and it has been one of the best weeks in a long time. No one will try and convince anyone that the uncertainty and the fear that’s been prevalent over the last two years is gone, but the comments and attitudes expressed by my clients this week have left me feeling extremely optimistic and positive.
Maybe one of the positive outcomes of recent struggles and difficulties will be a collective alteration to our priorities. I’ve mentioned in an earlier blog post how many clients have been reexamining where they spend their money, how they spend their time, what they feel is an important financial example for their children, etc.
Label it how you want, but I have recently thought that it is best described as a return to genuineness. A more reasonable level of consumerism, a more reasonable set of investment-return expectations, a more reasonable use of credit, and a more focused and intentional allocation of income (i.e. more closely following a budget) are probably good long-term goals for each of us and collectively as a national economy. Perhaps these forced new habits will become habits by choice as we begin to see more tangible evidence of their benefits.
So when conducting annual reviews this week and I hear things like “we are very happy”, and “we really didn’t realize how much control we really had”, and “we never knew how great it would feel to be completely credit-card-debt free”, and “we are a lot more prepared for the future”, it gives me confidence that lessons learned the hard way will leave us better off and happier.
Maybe one of the positive outcomes of recent struggles and difficulties will be a collective alteration to our priorities. I’ve mentioned in an earlier blog post how many clients have been reexamining where they spend their money, how they spend their time, what they feel is an important financial example for their children, etc.
Label it how you want, but I have recently thought that it is best described as a return to genuineness. A more reasonable level of consumerism, a more reasonable set of investment-return expectations, a more reasonable use of credit, and a more focused and intentional allocation of income (i.e. more closely following a budget) are probably good long-term goals for each of us and collectively as a national economy. Perhaps these forced new habits will become habits by choice as we begin to see more tangible evidence of their benefits.
So when conducting annual reviews this week and I hear things like “we are very happy”, and “we really didn’t realize how much control we really had”, and “we never knew how great it would feel to be completely credit-card-debt free”, and “we are a lot more prepared for the future”, it gives me confidence that lessons learned the hard way will leave us better off and happier.
What This Blog ISN'T
The most common questions I get via this blog usually look like: “Why don’t you give more insurance tips?” and “How does any of this relate to me?”.
“Why don’t you give more insurance tips?”
1. I don’t know you, so I can’t say that you should be buying insurance.
2. Tip: be wary of “tips” from people who don’t know you or your situation.
3. There are literally millions of other web sites giving insurance tips and the world doesn’t need another one.
“How does any of this relate to me?”
1. Maybe it doesn’t.
2. I believe most people want to be happier financially and these are just my thoughts on starting that journey. Maybe one of them motivates you, too.
3. Unless money is your idol, I believe gentle reminders that finances follow a happy life and not the other way around might be a positive influence.
“Why don’t you give more insurance tips?”
1. I don’t know you, so I can’t say that you should be buying insurance.
2. Tip: be wary of “tips” from people who don’t know you or your situation.
3. There are literally millions of other web sites giving insurance tips and the world doesn’t need another one.
“How does any of this relate to me?”
1. Maybe it doesn’t.
2. I believe most people want to be happier financially and these are just my thoughts on starting that journey. Maybe one of them motivates you, too.
3. Unless money is your idol, I believe gentle reminders that finances follow a happy life and not the other way around might be a positive influence.
Give Hilariously
Someone I admire coined that phrase to describe his commitment to giving his time and money away. How many people laughed/scoffed at pronouncements by Bill Gates and Warren Buffett that they intend to give their fortunes away? How many people who didn’t laugh instead said “that’s easy for them to do because they are billionaires?”
My friend is definitely NOT a billionaire and yet he and his wife have given a lot of their hard-earned (and sometimes very scarce) money away every year of their 35 years of marriage. How many people would laugh at that?
Some people give because they feel there’s an opportunity for their God to work through them in positive ways. Others give because they feel a moral obligation to share. Others give because they feel that philanthropy outperforms government/political options. Others give because they are angry at inequality and injustice.
I have shared before how I often find people living in ways that are not in alignment with what they would describe as their priority in life. The good part is that at least the priorities are there in the first place! What is equally encouraging is that almost everyone I work with has a desire to give something away to people they believe are not as fortunate or not as blessed. I think this is no small phenomenon and one worth more than just an “ah, that’s nice”.
So maybe it is a little funny to be challenging ourselves to give money away after/during one of the most uncertain economic times in 80 years. And maybe it’s funny to think that even small amounts can make a difference in someone’s ability to work ( www.kiva.org ). And maybe it’s funny to think that $1/day can pay for medicine and clean water and food and education ( www.worldvision.org ). And maybe forgiving the poorest nations’ debts to the world’s wealthiest is funny, too ( www.one.org ).
My friend is definitely NOT a billionaire and yet he and his wife have given a lot of their hard-earned (and sometimes very scarce) money away every year of their 35 years of marriage. How many people would laugh at that?
Some people give because they feel there’s an opportunity for their God to work through them in positive ways. Others give because they feel a moral obligation to share. Others give because they feel that philanthropy outperforms government/political options. Others give because they are angry at inequality and injustice.
I have shared before how I often find people living in ways that are not in alignment with what they would describe as their priority in life. The good part is that at least the priorities are there in the first place! What is equally encouraging is that almost everyone I work with has a desire to give something away to people they believe are not as fortunate or not as blessed. I think this is no small phenomenon and one worth more than just an “ah, that’s nice”.
So maybe it is a little funny to be challenging ourselves to give money away after/during one of the most uncertain economic times in 80 years. And maybe it’s funny to think that even small amounts can make a difference in someone’s ability to work ( www.kiva.org ). And maybe it’s funny to think that $1/day can pay for medicine and clean water and food and education ( www.worldvision.org ). And maybe forgiving the poorest nations’ debts to the world’s wealthiest is funny, too ( www.one.org ).
Sharing Blessings Thru Finance & Economy
One of our most precious freedoms in the U.S. is the freedom of enterprise and the access to financial markets that leverage hard work and creativity into a way of life and standard of living that is unprecedented anywhere else in the world. If you need a mortgage for a house, or a small business loan, or insurance, or a checking account, most all of us can get one. Imagine for a second if you couldn’t.
Did you know that 2.1 billion people live on less than $2 per day? If that was you, how would you help yourself fight your way out of poverty? How would you start your own small business? How would you buy seed to start a farm? How would you buy a cow to produce and sell milk?
Fortunately, there are many different organizations and companies across the world that help people do just that – help themselves. They do it by basically taking our great system of finance and economy and shrinking it into smaller points of access. Where there is no economic system to support those who want to work their way out of poverty, the prolific (and growing) microfinance industry provides tiny loans and other financial products that help people get themselves out of despair.
Microlending is not a handout. Loans are required to be repaid and reports delivered to lenders and investors just like we do here in the U.S. Microlending help is designed to help those who help themselves. Want to learn more? There are many fine organizations out there but www.kiva.org is one of the best and one of the easiest to follow and then help (you can support loan requests for as little as $25 and then you’ll be given progress reports on their repayment). Here is my latest involvement as an example of ways that you can make an impact in someone’s life:
Magdalena Agsunod is from the village of Arcon in the Philippines. She is 52 years old, is married and has seven adult-aged children. To make a living, she owns and operates a general store, selling a variety of different products in the local community. She has been engaged in her business for over ten years and earns approximately $115 a month for these activities. In 2008, Magdalena joined ASKI (a non-profit aggregator of micro loans) to gain access to financial services to help improve her living situation and ability to engage in business activities. Magdalena had been granted and has already successfully repaid a previous loan of 9,000 PHP (Filipino currency) from ASKI. This previous loan was used to purchase additional products to sell.
Did you know that 2.1 billion people live on less than $2 per day? If that was you, how would you help yourself fight your way out of poverty? How would you start your own small business? How would you buy seed to start a farm? How would you buy a cow to produce and sell milk?
Fortunately, there are many different organizations and companies across the world that help people do just that – help themselves. They do it by basically taking our great system of finance and economy and shrinking it into smaller points of access. Where there is no economic system to support those who want to work their way out of poverty, the prolific (and growing) microfinance industry provides tiny loans and other financial products that help people get themselves out of despair.
Microlending is not a handout. Loans are required to be repaid and reports delivered to lenders and investors just like we do here in the U.S. Microlending help is designed to help those who help themselves. Want to learn more? There are many fine organizations out there but www.kiva.org is one of the best and one of the easiest to follow and then help (you can support loan requests for as little as $25 and then you’ll be given progress reports on their repayment). Here is my latest involvement as an example of ways that you can make an impact in someone’s life:
Magdalena Agsunod is from the village of Arcon in the Philippines. She is 52 years old, is married and has seven adult-aged children. To make a living, she owns and operates a general store, selling a variety of different products in the local community. She has been engaged in her business for over ten years and earns approximately $115 a month for these activities. In 2008, Magdalena joined ASKI (a non-profit aggregator of micro loans) to gain access to financial services to help improve her living situation and ability to engage in business activities. Magdalena had been granted and has already successfully repaid a previous loan of 9,000 PHP (Filipino currency) from ASKI. This previous loan was used to purchase additional products to sell.
Lessons From Prague
My wife and I just returned from a trip to Prague, Czech Republic. Beyond the fact that the city is beautiful, historical, and unique, we found it very impactful to meet and talk with local residents who have experienced living in conditions we only have read about here in the U.S.
Visiting the old Jewish Town and touring some of the monuments to the tens of thousands of local citizens who l
ost their lives in camps during WWII was gut wrenching. Nothing makes history more “real” than standing in places where things actually happened. There is an unfortunate history of repeated religious persecution over hundreds of years and it kind of numbs your brain a bit pondering how people can do things to each other that just don’t make sense.
On the other side of the coin, it was inspiring to be taught how much progress and improvement has been made in Prague having been released from the grips of communism only 21 years ago. Our local friends described for us the ways they were educated in school, their lack of religious freedom, their lack of access to even basic things like ketchup, and their inability to design and control their own occupations. We were shown the very few buildings that looked run-down with broken windows and blackened walls and our local friends told us that all of Prague looked that way just 21 years ago. Now, most every building is colorful, cared for with great pride, and demonstrates a level of art and engineering that is such a strong part of Czech heritage.
The reason I mention this is because it really reminded me how lucky and blessed we are to have opportunities that some people just never get. Most of us are taught that we can achieve whatever we want. Most of us have access to opportunities that we can forge into tools to achieve our self-defined success. Most of us have the luxury of planning for the future and living as we please because our basic needs and safety are provided for. Travelling to beautiful Prague showed me how precious this is and it motivates me even more to be more in control of how I want to live so that I take full advantage of the opportunities just laying at my feet here in the U.S.
Visiting the old Jewish Town and touring some of the monuments to the tens of thousands of local citizens who l
ost their lives in camps during WWII was gut wrenching. Nothing makes history more “real” than standing in places where things actually happened. There is an unfortunate history of repeated religious persecution over hundreds of years and it kind of numbs your brain a bit pondering how people can do things to each other that just don’t make sense.
On the other side of the coin, it was inspiring to be taught how much progress and improvement has been made in Prague having been released from the grips of communism only 21 years ago. Our local friends described for us the ways they were educated in school, their lack of religious freedom, their lack of access to even basic things like ketchup, and their inability to design and control their own occupations. We were shown the very few buildings that looked run-down with broken windows and blackened walls and our local friends told us that all of Prague looked that way just 21 years ago. Now, most every building is colorful, cared for with great pride, and demonstrates a level of art and engineering that is such a strong part of Czech heritage.
The reason I mention this is because it really reminded me how lucky and blessed we are to have opportunities that some people just never get. Most of us are taught that we can achieve whatever we want. Most of us have access to opportunities that we can forge into tools to achieve our self-defined success. Most of us have the luxury of planning for the future and living as we please because our basic needs and safety are provided for. Travelling to beautiful Prague showed me how precious this is and it motivates me even more to be more in control of how I want to live so that I take full advantage of the opportunities just laying at my feet here in the U.S.
Pursue A Full Life
I have great admiration for people who seem to be making the most out of life and I enjoy reading stories of adventurers and those living “non-traditional” lives. Like the family who sold everything and is biking from Alaska to the southern tip of Chile. Or the family who builds schools in Afghanistan. Or the twin accountants from Colorado who are trying to ski each of the world’s 7,000-meter peaks. Or Laird Hamilton, the guy who surfs all the time.
Not all of us want to live just like that, but we each have the same opportunity to live just as fully. If you could design your own full life, what would you do with it? With whom would you spend it? Do you have a tugging in your gut that is telling you that you want to live differently? Whatever that may be, that is your adventure.
How badly you want to be in control of your own adventure and how you want to define it is up to you. How you are going to accomplish it financially is how we can help. Here are some of our clients’ personal adventures that we’re helping with:
• Funding a foundation to help loan money to women business owners in India
• Transferring to China for 2 years
• Downsizing the home, the credit cards, the consumption, the commuting, etc.
• Taking a 2 month sabbatical and train-hopping through Europe
• Purposefully moving back to a one-income household
Making sure all wheels of your financial life are turning at the same speed is important, but only if it is working toward something that is meaningful to you. Whether it involves managing money, developing a savings plan, outsourcing for a will, or overseeing the structuring of debt, we are sure we can help you live the adventurous life that you want. You dream it, we’ll help you plan it.
Not all of us want to live just like that, but we each have the same opportunity to live just as fully. If you could design your own full life, what would you do with it? With whom would you spend it? Do you have a tugging in your gut that is telling you that you want to live differently? Whatever that may be, that is your adventure.
How badly you want to be in control of your own adventure and how you want to define it is up to you. How you are going to accomplish it financially is how we can help. Here are some of our clients’ personal adventures that we’re helping with:
• Funding a foundation to help loan money to women business owners in India
• Transferring to China for 2 years
• Downsizing the home, the credit cards, the consumption, the commuting, etc.
• Taking a 2 month sabbatical and train-hopping through Europe
• Purposefully moving back to a one-income household
Making sure all wheels of your financial life are turning at the same speed is important, but only if it is working toward something that is meaningful to you. Whether it involves managing money, developing a savings plan, outsourcing for a will, or overseeing the structuring of debt, we are sure we can help you live the adventurous life that you want. You dream it, we’ll help you plan it.
Non-Profit of the Month: Renton Area Youth Services
Our non-profit for the month of August was the Renton Area Youth and Family Services (RAYS). Our $250 monthly donation to a local non-profit was made to RAYS last month. In addition, we give $5 to the monthly non-profit for every referral we receive from our clients, so thank you! Who is RAYS and how did we learn about them?
The mission of Renton Area Youth and Family Services (RAYS) is to strengthen the lives of children, youth and families by restoring hope and stability in the face of emotional conflict, substance abuse and poverty. In partnership with the community, RAYS transforms the lives of kids and families through comprehensive counseling, training and support.
Mark Bratton, owner of BlueLine Communications (http://www.bluelinecommunications.net/) and President of the RAYS Board of Directors, is a great friend to Wall Financial and is perhaps the Puget Sound’s leading expert in copywriting and communication strategy. Through him we were attracted to RAYS. Says Mark , “I was initially drawn to support RAYS because of their mission, but it was the amazingly talented and dedicated people who are working every day to fulfill that mission who made me want to become more deeply involved with the organization.”
RAYS has served the greater Renton community for 40 years and is proud to have recently received the Business Excellence Award for Best Non-Profit from the Renton Chamber of Commerce. To learn more about RAYS, visit http://www.rays.org/ or contact Jolene Bernhard at 425-271-5600.
The mission of Renton Area Youth and Family Services (RAYS) is to strengthen the lives of children, youth and families by restoring hope and stability in the face of emotional conflict, substance abuse and poverty. In partnership with the community, RAYS transforms the lives of kids and families through comprehensive counseling, training and support.
Mark Bratton, owner of BlueLine Communications (http://www.bluelinecommunications.net/) and President of the RAYS Board of Directors, is a great friend to Wall Financial and is perhaps the Puget Sound’s leading expert in copywriting and communication strategy. Through him we were attracted to RAYS. Says Mark , “I was initially drawn to support RAYS because of their mission, but it was the amazingly talented and dedicated people who are working every day to fulfill that mission who made me want to become more deeply involved with the organization.”
RAYS has served the greater Renton community for 40 years and is proud to have recently received the Business Excellence Award for Best Non-Profit from the Renton Chamber of Commerce. To learn more about RAYS, visit http://www.rays.org/ or contact Jolene Bernhard at 425-271-5600.
The Fear of Insurance Planning
My smart brother-in-law and I were talking last night and he brought up a good analogy about why some people are uncomfortable talking about insurance as it relates to making total financial decisions for your family. He said that much like knowing you need to go to the doctor, there is a fear that you’re going to be told something that you don’t want to hear.
He went on to say that most people have that internal voice telling them “you should be saving for retirement”, or “you should cut back on your spending”, but people often resist the inclusion of good insurance planning in the discussion about financial need-to items. So sitting with someone like me who presents a written plan telling you all that your insurance should do for you and also pointing out the problems if you don’t is uncomfortable. Add to this the complexities and technical jargon of coverages, deductibles, premiums, etc., and it is no wonder that many people have a natural inclination to put off creating a formal insurance plan.
I find this very insightful and very true. Bothered by this, I called a friend this morning whom I think has done a tremendous job of becoming more financially happy and I asked her about her fear of insurance planning.
She claims to have been quite uncomfortable when she received her first insurance plan. She had a lot to do and a lot to change. But she says she’s now a total convert and an evangelist for insurance planning because it has given her the motivation and confidence for focusing on things she'd really like to focus on. Having her insurance in order has allowed her to focus on creating small habits that over time have helped her tackle some of her bigger goals, like retirement and living her bucket list. “Nobody likes the start of an exercise regimen, but everyone sure likes the results once it has become a habit. My insurance plan was hard to start, but it is now exactly why I am so much happier with my financial situation. I know what I’m doing and I know where I’m going.”
He went on to say that most people have that internal voice telling them “you should be saving for retirement”, or “you should cut back on your spending”, but people often resist the inclusion of good insurance planning in the discussion about financial need-to items. So sitting with someone like me who presents a written plan telling you all that your insurance should do for you and also pointing out the problems if you don’t is uncomfortable. Add to this the complexities and technical jargon of coverages, deductibles, premiums, etc., and it is no wonder that many people have a natural inclination to put off creating a formal insurance plan.
I find this very insightful and very true. Bothered by this, I called a friend this morning whom I think has done a tremendous job of becoming more financially happy and I asked her about her fear of insurance planning.
She claims to have been quite uncomfortable when she received her first insurance plan. She had a lot to do and a lot to change. But she says she’s now a total convert and an evangelist for insurance planning because it has given her the motivation and confidence for focusing on things she'd really like to focus on. Having her insurance in order has allowed her to focus on creating small habits that over time have helped her tackle some of her bigger goals, like retirement and living her bucket list. “Nobody likes the start of an exercise regimen, but everyone sure likes the results once it has become a habit. My insurance plan was hard to start, but it is now exactly why I am so much happier with my financial situation. I know what I’m doing and I know where I’m going.”
Living With Intention and Ignition
My best friend and I talked about starting a business together for a few years back in the 1990s without much courage to do anything about it. We’d talk about the concepts and the business plan and many of the other nuts and bolts of starting our business, but we lacked intention and ignition. We were motivated by the idea but didn’t act, and for more than a couple of years we fought the urge to start something we were excited about and instead stayed with what we thought was safe and comfortable.
The problem was, we weren’t happy in that safe zone. And as many people have found out over the last few years, “safe” isn’t always safe given corporate buyouts (and bailouts), acquisitions, down-sizes, etc. There are two futures ahead of you; one you can wait for, and one that you can go get. I’m not convinced that waiting has any real element of safety to it.
Ideas like making a career change, or moving to a different city, or choosing to become a one-income family, or retiring aren’t easy to execute. There are many working pieces to your financial machine and they all have to be clicking at the same speed if there’s to be any chance of success. This is why we stress the importance of goal-based planning. Putting those goals out there, making a statement as to what you want and how you intend to live is essential for getting your financial life ready to support how you want to live.
If you have a dream of occupation, or of charity, or of just living a happier life think of Abraham Lincoln’s quote, “The best way to predict your future is to create it”. You start by declaring your intentions. We then can help you take action.
The problem was, we weren’t happy in that safe zone. And as many people have found out over the last few years, “safe” isn’t always safe given corporate buyouts (and bailouts), acquisitions, down-sizes, etc. There are two futures ahead of you; one you can wait for, and one that you can go get. I’m not convinced that waiting has any real element of safety to it.
Ideas like making a career change, or moving to a different city, or choosing to become a one-income family, or retiring aren’t easy to execute. There are many working pieces to your financial machine and they all have to be clicking at the same speed if there’s to be any chance of success. This is why we stress the importance of goal-based planning. Putting those goals out there, making a statement as to what you want and how you intend to live is essential for getting your financial life ready to support how you want to live.
If you have a dream of occupation, or of charity, or of just living a happier life think of Abraham Lincoln’s quote, “The best way to predict your future is to create it”. You start by declaring your intentions. We then can help you take action.
Wednesday, October 6, 2010
Insurance Is Only A Financing Tool
Even most insurance agents incorrectly think that insurance is a way to transfer risk to someone else (namely, an insurance company). Not true.
Insurance is instead merely a way to finance risk. If you cause a really bad accident, you still bear the risk of the lawsuit and the judgment, you just use insurance to help you pay for it. If you don't have enough insurance, guess who makes up the difference...you! That's why the risk is not actually transferred through insurance, only financed.
The point of this clarification is to help you choose what coverages you want and how much you want. If I want to be prepared to pay for $1,000,000 worth of my mistakes, for example, I could try and get a line of credit through a bank, get 4 jobs, or buy an umbrella for $200.
Conversely, there are lots of examples where using insurance dollars to pay for certain losses would be a terrible financial deal for you. If you want to talk about why insurance should often be your last option, I'll be happy to do so.
So keep in mind that insurance is a financing tool and nothing else. It fits great in some places and terribly in others. Your insurance portfolio should take this into consideration as it gets designed specifically for you.
Insurance is instead merely a way to finance risk. If you cause a really bad accident, you still bear the risk of the lawsuit and the judgment, you just use insurance to help you pay for it. If you don't have enough insurance, guess who makes up the difference...you! That's why the risk is not actually transferred through insurance, only financed.
The point of this clarification is to help you choose what coverages you want and how much you want. If I want to be prepared to pay for $1,000,000 worth of my mistakes, for example, I could try and get a line of credit through a bank, get 4 jobs, or buy an umbrella for $200.
Conversely, there are lots of examples where using insurance dollars to pay for certain losses would be a terrible financial deal for you. If you want to talk about why insurance should often be your last option, I'll be happy to do so.
So keep in mind that insurance is a financing tool and nothing else. It fits great in some places and terribly in others. Your insurance portfolio should take this into consideration as it gets designed specifically for you.
Monday, September 27, 2010
Sharing Blessings Thru Economy & Finance
One of our most precious freedoms in the U.S. is the freedom of enterprise and the access to financial markets that leverage hard work and creativity into a way of life and standard of living that is unprecedented anywhere else in the world. If you need a mortgage for a house, or a small business loan, or insurance, or a checking account, most all of us can get one. Imagine for a second if you couldn’t.
Did you know that 2.1 billion people live on less than $2 per day? If that was you, how would you help yourself fight your way out of poverty? How would you start your own small business? How would you buy seed to start a farm? How would you buy a cow to produce and sell milk?
Fortunately, there are many different organizations and companies across the world that help people do just that – help themselves. They do it by basically taking our great system of finance and economy and shrinking it into smaller points of access. Where there is no economic system to support those who want to work their way out of poverty, the prolific (and growing) microfinance industry provides tiny loans and other financial products that help people get themselves out of despair.
Microlending is not a handout. Loans are required to be repaid and reports delivered to lenders and investors just like we do here in the U.S. Microlending help is designed to help those who help themselves. Want to learn more? There are many fine organizations out there but www.kiva.org is one of the best and one of the easiest to follow and then help (you can support loan requests for as little as $25 and then you’ll be given progress reports on their repayment). Here is my latest involvement as an example of ways that you can make an impact in someone’s life:
Magdalena Agsunod is from the village of Arcon in the Philippines. She is 52 years old, is married and has seven adult-aged children. To make a living, she owns and operates a general store, selling a variety of different products in the local community. She has been engaged in her business for over ten years and earns approximately $115 a month for these activities. In 2008, Magdalena joined ASKI (a non-profit aggregator of micro loans) to gain access to financial services to help improve her living situation and ability to engage in business activities. Magdalena had been granted and has already successfully repaid a previous loan of 9,000 PHP (Filipino currency) from ASKI. This previous loan was used to purchase additional products to sell.
Magdalena is requesting a new loan of 11,000 PHP which will be used to purchase additional products to sell. This will be her 5th loan from ASKI. She plans to use the additional revenue generated from the business to financially support immediate members of her family.
Did you know that 2.1 billion people live on less than $2 per day? If that was you, how would you help yourself fight your way out of poverty? How would you start your own small business? How would you buy seed to start a farm? How would you buy a cow to produce and sell milk?
Fortunately, there are many different organizations and companies across the world that help people do just that – help themselves. They do it by basically taking our great system of finance and economy and shrinking it into smaller points of access. Where there is no economic system to support those who want to work their way out of poverty, the prolific (and growing) microfinance industry provides tiny loans and other financial products that help people get themselves out of despair.
Microlending is not a handout. Loans are required to be repaid and reports delivered to lenders and investors just like we do here in the U.S. Microlending help is designed to help those who help themselves. Want to learn more? There are many fine organizations out there but www.kiva.org is one of the best and one of the easiest to follow and then help (you can support loan requests for as little as $25 and then you’ll be given progress reports on their repayment). Here is my latest involvement as an example of ways that you can make an impact in someone’s life:
Magdalena Agsunod is from the village of Arcon in the Philippines. She is 52 years old, is married and has seven adult-aged children. To make a living, she owns and operates a general store, selling a variety of different products in the local community. She has been engaged in her business for over ten years and earns approximately $115 a month for these activities. In 2008, Magdalena joined ASKI (a non-profit aggregator of micro loans) to gain access to financial services to help improve her living situation and ability to engage in business activities. Magdalena had been granted and has already successfully repaid a previous loan of 9,000 PHP (Filipino currency) from ASKI. This previous loan was used to purchase additional products to sell.
Magdalena is requesting a new loan of 11,000 PHP which will be used to purchase additional products to sell. This will be her 5th loan from ASKI. She plans to use the additional revenue generated from the business to financially support immediate members of her family.
Monday, September 20, 2010
My wife and I just returned from a trip to Prague, Czech Republic. Beyond the fact that the city is beautiful, historical, and unique, we found it very impactful to meet and talk with local residents who have experienced living in conditions we only have read about here in the U.S.Visiting the old Jewish Town and touring some of the monuments to the tens of thousands of local citizens who lost their lives in camps during WWII was gut wrenching. Nothing makes history more “real” than standing in places where things actually happened. There is an unfortunate history of repeated religious persecution over hundreds of years and it kind of numbs your brain a bit pondering how people can do things to each other that just don’t make sense.
On the other side of the coin, it was inspiring to be taught how much progress and improvement has been made in Prague having been released from the grips of communism only 21 years ago. Our local friends described for us the ways they were educated in school, their lack of religious freedom, their lack of access to even basic things like ketchup, and their inability to design and control their own occupations. We were shown the very few buildings that looked run-down with broken windows and blackened walls and our local friends told us that all of Prague looked that way just 21 years ago. Now, most every building is colorful, cared for with great pride, and demonstrates a level of art and engineering that is such a strong part of Czech heritage.
The reason I mention this is because it really reminded me how lucky and blessed we are to have opportunities that some people just never get. Most of us are taught that we can achieve whatever we want. Most of us have access to opportunities that we can forge into tools to achieve our self-defined success. Most of us have the luxury of planning for the future and living as we please because our basic needs and safety are provided for. Travelling to beautiful Prague showed me how precious this is and it motivates me even more to be more in control of how I want to live so that I take full advantage of the opportunities just laying at my feet here in the U.S.
Tuesday, September 7, 2010
A Full Life
I have great admiration for people who seem to be making the most out of life and I enjoy reading stories of adventurers and those living “non-traditional” lives. Like the family who sold everything and is biking from Alaska to the southern tip of Chile. Or the family who builds schools in Afghanistan. Or the twin accountants from Colorado who are trying to ski each of the world’s 7,000-meter peaks. Or Laird Hamilton, the guy who surfs all the time.
Not all of us want to live just like that, but we each have the same opportunity to live just as fully. If you could design your own full life, what would you do with it? With whom would you spend it? Do you have a tugging in your gut that is telling you that you want to live differently? Whatever that may be, that is your adventure.
What does this have to do with insurance? Nothing directly. But we have seen dreams of adventure, of retirement, of career changes postponed or cancelled because of unfortunate losses uncovered by insurance because of poor planning.
Too often the insurance part of your financial plan is seen as the wet blanket, as the conscience that keeps you from doing what you want. But we see it completely different than that. If you want to be in control of your own adventure, having a good insurance plan means you don't have to stop if something happens. In fact, we think having confidence that your risk plan is up to snuff gives you greater freedom to pursue more of what you want.
Making sure all wheels of your financial life are turning at the same speed is important, and we're but one small piece of your financial puzzle. But when called upon to help you design an insurance plan that fits your goals for living, we'll be there! You dream it, we’ll help plan it.
Not all of us want to live just like that, but we each have the same opportunity to live just as fully. If you could design your own full life, what would you do with it? With whom would you spend it? Do you have a tugging in your gut that is telling you that you want to live differently? Whatever that may be, that is your adventure.
What does this have to do with insurance? Nothing directly. But we have seen dreams of adventure, of retirement, of career changes postponed or cancelled because of unfortunate losses uncovered by insurance because of poor planning.
Too often the insurance part of your financial plan is seen as the wet blanket, as the conscience that keeps you from doing what you want. But we see it completely different than that. If you want to be in control of your own adventure, having a good insurance plan means you don't have to stop if something happens. In fact, we think having confidence that your risk plan is up to snuff gives you greater freedom to pursue more of what you want.
Making sure all wheels of your financial life are turning at the same speed is important, and we're but one small piece of your financial puzzle. But when called upon to help you design an insurance plan that fits your goals for living, we'll be there! You dream it, we’ll help plan it.
Wednesday, September 1, 2010
Non-profit of the month: Renton Area Youth & Family Services
Our non-profit for the month of August was the Renton Area Youth and Family Services (RAYS). Our $250 monthly donation to a local non-profit was made to RAYS last month. In addition, we give $5 to the monthly non-profit for every referral we receive from our clients, so thank you! Who is RAYS and how did we learn about them?
The mission of Renton Area Youth and Family Services (RAYS) is to strengthen the lives of children, youth and families by restoring hope and stability in the face of emotional conflict, substance abuse and poverty. In partnership with the community, RAYS transforms the lives of kids and families through comprehensive counseling, training and support.
Mark Bratton, owner of BlueLine Communications (http://www.bluelinecommunications.net/) and President of the RAYS Board of Directors, is a great friend to Wall Financial and is perhaps the Puget Sound’s leading expert in copywriting and communication strategy. Through him we were attracted to RAYS. Says Mark , “I was initially drawn to support RAYS because of their mission, but it was the amazingly talented and dedicated people who are working every day to fulfill that mission who made me want to become more deeply involved with the organization.”
RAYS has served the greater Renton community for 40 years and is proud to have recently received the Business Excellence Award for Best Non-Profit from the Renton Chamber of Commerce. To learn more about RAYS, visit http://www.rays.org/ or contact Jolene Bernhard at 425-271-5600.
The mission of Renton Area Youth and Family Services (RAYS) is to strengthen the lives of children, youth and families by restoring hope and stability in the face of emotional conflict, substance abuse and poverty. In partnership with the community, RAYS transforms the lives of kids and families through comprehensive counseling, training and support.
Mark Bratton, owner of BlueLine Communications (http://www.bluelinecommunications.net/) and President of the RAYS Board of Directors, is a great friend to Wall Financial and is perhaps the Puget Sound’s leading expert in copywriting and communication strategy. Through him we were attracted to RAYS. Says Mark , “I was initially drawn to support RAYS because of their mission, but it was the amazingly talented and dedicated people who are working every day to fulfill that mission who made me want to become more deeply involved with the organization.”
RAYS has served the greater Renton community for 40 years and is proud to have recently received the Business Excellence Award for Best Non-Profit from the Renton Chamber of Commerce. To learn more about RAYS, visit http://www.rays.org/ or contact Jolene Bernhard at 425-271-5600.
Wednesday, August 18, 2010
Newbie, Brandon Hemphill
We are happy to introduce our newest member of Mechelsen, Inc, Brandon Hemphill
Brandon was born in Seattle and grew up in Sammamish where he graduated from Skyline High School. He then went to University of the Pacific on a golf scholarship and played on the golf team. While at the University of the Pacific he served as the Treasurer of the Associated Students of the University of the Pacific.
Brandon earned his bachelor’s degree in business administration and finance and moved back to Seattle where he has served as a financial planner and insurance & investment advisor with another firm in Redmond. Since we have a team approach in working with our clients you will very likely have a chance to work a bit with Brandon and he also will be working with his own clients.
Brandon is a coach for the Field of Champions baseball program in Issaquah and serves as an intern on the board of directors for the Joshua P. Williams foundation in Sammamish. Brandon also recently earned a spot in the Guinness Book of World Records. You’ll have to ask him about that…
Wednesday, August 11, 2010
Year-round Umbrella Season
What is often referred to as an umbrella policy is actually best called an excess liability policy. Just as its name implies, this kind of insurance extends a layer of liability insurance coverage over-and-above what you carry for liability on your home insurance and your auto insurance.
The occurrences of “normal” people having “normal” accidents where final judgments wound up exceeding their home and auto insurance limits is rather staggering (and frightening). We have many first-hand experiences where court verdicts exceed someone’s insurance limits, leaving personal assets exposed to liquidation. Yuck!
Nearly everyone has some exposure that would benefit from an umbrella policy. These policies are very affordable, customized to address your needs, and are surprisingly easy to understand. They can also extend their limits over boat insurance policies, landlord policies, and secondary property policies.
We strongly recommend that you talk to us about either adding an umbrella policy to your insurance portfolio, or talking to us about the adequacy of the one you currently have!
The occurrences of “normal” people having “normal” accidents where final judgments wound up exceeding their home and auto insurance limits is rather staggering (and frightening). We have many first-hand experiences where court verdicts exceed someone’s insurance limits, leaving personal assets exposed to liquidation. Yuck!
Nearly everyone has some exposure that would benefit from an umbrella policy. These policies are very affordable, customized to address your needs, and are surprisingly easy to understand. They can also extend their limits over boat insurance policies, landlord policies, and secondary property policies.
We strongly recommend that you talk to us about either adding an umbrella policy to your insurance portfolio, or talking to us about the adequacy of the one you currently have!
Monday, August 9, 2010
Discounts vs. Savings
The insurance industry selling "discounts" is a red herring, in my opinion. Every commercial for every insurance company touts "we have discounts" and none of them should entice you to buy. Would you fall for it if someone advertised a free car if you bought a $26,000 steering wheel? No, you'd recognize that the car is worth $26,000.
Insurance discounts don't work the same way, but they are nearly as ridiculous because many discounts aren't related to anything you can do about anyway. Multi-car discount? You either have more than one car or you don't and you aren't going to go buy another car just to get a discount on the insurance. One of our best insurance companies has 13 auto-policy discounts and I say only 2 of them can be "pursued", meaning that you could choose to go get it versus it just being there for you if you qualify. In other words, the "discounts" are just how they are going to price you, not how you can exert control over your own insurance costs.
Instead, I say forget the marketing that is meant to fool you and concentrate on making conscious decisions about your insurance that do directly impact your total premium. Carry high liability limits, but increase your deductibles. Make sure you have replacement cost for contents, but think twice before buying bells and whistles to your policies (that aren't really insurance anyway). Choose a robust insurance limit on your home, but really question if earthquake insurance for your clothes and sofa makes sense.
The insurance industry has worked very hard over the last 10 years trying to make you believe that you don't have to think when it comes to your insurance protection (i.e. cavemen are just as capable), but it's much better for you to keep control and make educated decisions about what is important to you. Falling for the "discounts" trick is bad news if you aren't spending time on the design of your coverages first!
Insurance discounts don't work the same way, but they are nearly as ridiculous because many discounts aren't related to anything you can do about anyway. Multi-car discount? You either have more than one car or you don't and you aren't going to go buy another car just to get a discount on the insurance. One of our best insurance companies has 13 auto-policy discounts and I say only 2 of them can be "pursued", meaning that you could choose to go get it versus it just being there for you if you qualify. In other words, the "discounts" are just how they are going to price you, not how you can exert control over your own insurance costs.
Instead, I say forget the marketing that is meant to fool you and concentrate on making conscious decisions about your insurance that do directly impact your total premium. Carry high liability limits, but increase your deductibles. Make sure you have replacement cost for contents, but think twice before buying bells and whistles to your policies (that aren't really insurance anyway). Choose a robust insurance limit on your home, but really question if earthquake insurance for your clothes and sofa makes sense.
The insurance industry has worked very hard over the last 10 years trying to make you believe that you don't have to think when it comes to your insurance protection (i.e. cavemen are just as capable), but it's much better for you to keep control and make educated decisions about what is important to you. Falling for the "discounts" trick is bad news if you aren't spending time on the design of your coverages first!
Monday, August 2, 2010
Borrowed vs. Rented Watercraft
That's me pulling kids around on Flathead Lake in Montana last week. Did you know that my insurance coverage is different depending on whether or not I was renting the SeaDoo vs. borrowing it? It's true.
Unfortunately for me, I think about that kind of stuff while I'm on vacation. But fortunately, I knew what I needed to do about my insurance so that I could stop thinking about work and instead have fun trying to knock my nephew off the tube!
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