Please email me at:
![Jason [at] LiveRealNow [dot] net](https://liverealnow.net/wp-content/uploads/2010/11/email.jpg "Jason [at] LiveRealNow [dot] net"){kind=small}
Or use the form below.
[contact-form 1 “Contact form 1”]
Answer: How Much Term Life Insurance Do I Need to Buy?
From a question posted here:
Thank you for all your help in my previous question. After meeting with the agent, I’ve decided on term life insurance over whole life. But I am still not sure how much term life I should buy. Should I buy as much as I could afford or some specific amount?
My answer(edited a bit):
That question is far too open-ended.
Are you married? If yes, are you the primary breadwinner? Do you have children? Investments? Savings?
Here’s my situation:
I am married, with three children. I have the primary income.
We have a mortgage, a car payment, and some consumer debt.
I added up all of the debt as my base level of term life insurance. My family will not be burdened with debt if anything happens to me.
To the base level, I added 5 years of my net income. Without changing a thing, my family will be supported exactly as is for 5 years if I die. They won’t, however, have the same level of expenses, due to the base level of insurance paying off all debt. All of my living expenses also evaporate. For example, there will be one car sold, one less mouth to feed and body to dress, etc.
I figure with the lower expenses and no debt, my insurance will support my family for 10 to 15 years if my wife manages the money right. If she continues to work, it should last almost forever.
How do you figure the “right” amount of life insurance?[ad name=”inlineright”]
Sunday Roundup: Father’s Day
On Father’s Day, 3 years ago, my third and final kid was born. My kids are all horrible brats and I love them dearly.
I wouldn’t give up fatherhood for anything. Watching my kids grow and learn, steering their development, and teaching them how to navigate life is the most fulfilling thing I’ve ever been a part of. Also the most frustrating. I can’t imagine being anywhere else, not being with my kids. I have no respect for deadbeat parents.
I am incredibly grateful that I had a proper model for manhood and fatherhood. My dad taught me the concepts of honor, integrity, and responsibility. I couldn’t be the man I am now, if he wasn’t the man he is. Thanks, Dad.
Best Posts
Sometimes, the coolest things in the world are the things most likely to kill you. Call me crazy, but I’d happily strap a 1200 cc propeller to my crotch and find out what 10,000 feet looks like.
Via Budgeting In The Fun Stuff, Super Frugalette reminds us that, when there’s a significant amount of money involved, spending a few hundred dollars on an attorney isn’t wasteful.
Fivecentnickel discuss multi-level marketing. It doesn’t matter which company you are in, if your downline is more important that your product, it’s a bad business model.
Keith Ferrazzi shows us how to improve our body language when it really matters.
When I started driving, I tossed my car in a ditch going way too fast. Naturally, it was my parents’ fault for giving me the curfew I was trying to beat. They never would have bought it if I would have told them I was driving like my grandma and it jumped into the trees by itself. Why does the FBI think that’s believable? Corruption, maybe?
Financial Samurai talks about living a life without regrets, which is a personal goal of mine.
Food storage will become critical when the zombies come.
Beer is good. Even the cave-men thought so.
Carnivals I’ve Rocked and Guest Posts I’ve Rolled
3 Ways to Keep Your Finances Organized was an Editor’s Pick in this week’s Festival of Frugality. Thanks!
5 Reasons Your Wealth Isn’t Growing was included in this week’s Carnival of Personal Finance.
Money Problems: Insurance was included in the Totally Money Blog Carnival.
Unlicense Health Insurance was included in last week’s Carnival of Personal Finance.
Thank you! If I missed anyone, please let me know.
Yakezie Blog Swap
Last week, the Yakezie shared what they would do with a single financial do-over.
– Melissa from Mom’s Plans shares her biggest financial mistake at Barbara Friedberg Personal Finance: Opening an eBay Store and Using Credit. It is a great story about how not to grow your business and how competing priorities can pose a real challenge.
– Budgeting in the Fun Stuff shares her biggest financial mistake and potential do-over at Super Frugalette: Investing in a Friend’s Business. Its a good, but costly lesson learned about small business.
– Eric from Narrow Bridge Finance shares how He Wouldn’t Have Paid Down His Student Loans So Fast at The Saved Quarter. This may seem counter-intuitive, but he has some good points. Check it out.
– Mr. S from Broke Professionals shares how He Wouldn’t Have Bought a New Car at My Personal Finance Journey. This has some great analysis, especially considering the new car was a hybrid!
– The College Investor posted at Wealth Informatics: What you should know when you are investing?
– Wealth Informatics posted here: If you had one financial do-over, what would it be and why?
– Barbara Friedberg shares how She Was Scammed at Mom’s Plans. You have to watch out for the hard sell!
– Joe at Retireby40 tells us about How He Invested his 401(k) in Company Stock right before the dot com crash, at Financially Consumed. A financial adviser may have helped avoid this one!
– Financially Consumed shares his Car Purchase Do-Over And Over at Retireby40. Car addicts have it tough!
– LaTisha from FSYA shares her do-over story in It’s Never Too Late at Little House in the Valley. Sometimes the do-over is quicker and more painless than most.
– Little House yell’s Do-Over! Do-Over! at FSYA Online. It looks at the road to saving more, starting on an elementary school playground!
– The Single Saver asks, What Are The Long Term Consequences of Small Purchases at Totally Money. A cool post on how past purchases cost future returns!
– Miss Moneypenniless from Totally Money shares her story of Vacationing to the Brink of Bankruptcy. Sometimes a vacation can be fun, but the bills afterward may be daunting.
– Super Frugalette shares How a Lawyer Could Have Saved Her $24,700 at Budgeting in the Fun Stuff. Maybe lawyers are worth it sometimes?
– Jason from Live Real, Now shares how he Amassed $90,000 of Debt at Debt Eye. A good lesson in living a little more frugally.
– Kevin from Debteye shares his do-over: Not Buying a House Right Out of College at Live Real, Now. I have said it before that buying a house can be challenging right out of college.
– Penny from The Saved Quarter shares how She Would Have Finished College Before Having Kids at Narrow Bridge Finance. An awesome story that has will soon have a happy ending!
– Jacob from My Personal Finance Journey shares how he was Scammed on eBay at Broke Professionals. An important lesson for anyone selling or buying online.
– Marissa from Thirty-Six Months shares how she Accumulated a Ton of Student Loan Debt at So Over Debt. If you are going to live the life, you’re going to pay the price!
– Andrea from So Over Debt shares How She Would Have Started Saving for Retirementat Thirty-Six Months. I would love to read a post on each of the stories you mentioned getting to where you are now!
– Below Your Means shares his story about A Missed Investment Opportunity. There are so many times I wish I could have gone back and bought a stock!
Get More Out of Live Real, Now
There are so many ways you can read and interact with this site.
You can subscribe by RSS and get the posts in your favorite news reader. I prefer Google Reader.
You can subscribe by email and get, not only the posts delivered to your inbox, but occasional giveaways and tidbits not available elsewhere.
You can ‘Like’ LRN on Facebook. Facebook gets more use than Google. It can’t hurt to see what you want where you want.
You can follow LRN on Twitter. This comes with some nearly-instant interaction.
You can send me an email, telling me what you liked, what you didn’t like, or what you’d like to see more(or less) of. I promise to reply to any email that isn’t purely spam.
Have a great week!
Avoiding Financial Traps & Saving Money on Big-Ticket Purchases
This is a guest post written by Jason Larkins. He writes at WorkSaveLive – a blog he started to help people change the way they think about their finances, careers, and lives.
Who doesn’t like to buy stuff?
Okay…I’m sure there are a few of you out there that take pride in never buying a new “toy,” but I know personally that I LOVE stuff!
Not to the point that I make dumb financial decisions that jeopardizes my family’s financial well-being, but I do have that natural American desire to have nice things and to be able to do fun stuff!
If you’re in the market to buy a Big-Ticket item (i.e. a new car, TV, or other technology gadget), what are some of the things you should be thinking through as you contemplate making the purchase?
The first mistake people make is buying on impulse. The massive majority of Americans don’t even have a thought process when it comes to buying toys, so that’s why I decided to dedicate a post on a few things you should ponder.
3 Financial Traps You Should Avoid
1. Avoid spending extra for add-ons, or features, that you’re never going to use.
It is easy to get an appliance or technology gadget that has a ton of amazing features on it – but why pay for them if you won’t use them?
Consider buying the item that may be a step below what you’re looking at.
I know that I personally love the thought of having an Ipad 2, but am I really going to utilize it to it’s full capabilities?
Probably not!
It doesn’t mean I shouldn’t have one, but it does mean I can look at the older Ipad and save some money. Or, I can avoid the purchase altogether if I don’t think it’s going to be worth the money.
2. Be cautious with offers such as “no money down,” “90 days same as cash,” or “12 months interest free.”
Nearly 88% of the “90 days same as cash” offers are actually converted to payments because the purchaser couldn’t pay off the bill before the offer was up.
3. Don’t buy it just because it’s the cheapest.
Always be sure to do research prior to your purchase – check consumer reviews and product reviews. Saving money may not be worth it if the product breaks down quickly or doesn’t have the functionality that you’re looking for.
3 Strategies to Save Money
1. Prepare for large purchases and pay cash for them.
If you can’t pay cash for the item, then there is a good chance that you can’t afford it.
Determine how much money you will need to spend on a particular item and save up for it! This is going to help you in a couple of ways:
- It will help you avoid buying on impulse.
- If it takes awhile to save up for the item, then this will give you valuable time to really determine if it’s something you WANT badly enough to pay that kind of cash for it.
- It will allow you to ask for a DEAL. Every retailer pays a fee to run a debit/credit card. If you’re paying in cash the worst you can do is to ask for that 2-3% discount the store would be saving!
2. Buy at the end of the month, or at the end of the year!
Consumers rarely think of this, but it’s important for you to know that every store (and store manager) has monthly/yearly sales to report.
If they’re wanting to close out the month/year strong, they’re much more inclined to offer you a deal on whatever you’re buying!
3. Avoid the extended warranty!
Insurance (in general terms) is the act of transferring risk – the more people that pool money together to help mitigate risk (buy insurance), then the lower the cost of the insurance becomes.
The reason to avoid the extended warranties is because the cost you’re paying to cover your item also includes: commissions paid to the retail store, overhead for the insurance company (wages for employees, building costs, utilities, etc), and some profit for the insurance company as well.
Sure, you may be in the miniscule percentage of buyers that has their item break down on them, but the reality is that it’s unlikely.
If it was likely for your item to break down, then the insurance wouldn’t be available because it wouldn’t be a profitable endeavor for the insurance company (and they’d be out of business).
Whenever you’re buying something that has a large price tag, you should develop a process that you think through before buying it!
Always pay in cash, get a deal, and make sure you actually need everything you’re paying for.
Does Money Make Miley Cyrus Act Crazy?
If you’re like millions of people who saw Miley Cyrus’s performance at the MTV Video Music Awards recently, you’ve probably wondered what the effect of massive success on the music and acting star. Cyrus seems to be
doing everything possible to remake her image in the exact opposite of her squeaky clean mold that Disney and other companies have created for her over the last several years. (A rumor has it that Disney even created a contractual obligation for Cyrus to maintain a certain haircut during her “Hannah Montana” television show.) There’s a sense of someone taking on their first sense of independence, and running with it — the star seemed to be sending the message to the audience that she was not going to live according to the expectations of others anymore, and from the look of it, they got that message loud and clear.
The horrified looks of Rihanna, Drake, and Will Smith aside, the real question people had is whether the massive financial rewards of Cyrus’ singing career can explain her crazy behavior. Cyrus is said to be worth about $100,000,000 — certainly a fortune by any standards. And since she is still struggling with the problems of young adulthood — forming an identity, understanding her values and taking a place in society, it’s very likely that her finances contribute to at least some of her behavior.This effect of money can come from many different areas of life. For one, many people who become wealthy at a young age are suddenly struck with the fact that they have no need to work, but who often want to develop a career and contribute to society. Take Steve Jobs for example, who at 31 years old was fired from Apple Inc. by the company’s board of directors. Jobs had in fact started the company himself, and was worth well over a hundred million dollars by that time. And yet, feeling like contributing to society was more important to his life than resting on his laurels, Jobs started a new company, NeXT, where he hoped to contribute inexpensive computers to universities.
The fact that Cyrus is barely into her 20s should tell you something about how much time she has to develop her career. She has enough to retire at an age when most people are just starting their first real job. And that is a tough position to be in. If she is hoping to push her singing and acting career well into adulthood — as most artists would like to — it may be that she is trying to make her mark now. Think of it a bit like Bob Dylan in 1964, releasing electric music for the first time, when before that point he was primarily known as a folk singer making gentle acoustic music.
Dylan’s idea may have been a bit like what Cyrus’ is. That is to say, maybe Miley Cyrus is trying to avoid becoming a has-been, a relic of the 2000’s who burned out playing inoffensive pop music. If this is the case, Cyrus may be able to shift her career into a different mode by showing herself to be an uncompromising artist. Remember that even the greats of the past — Frank Sinatra for example — were once viewed as essentially music for teenagers, and not serious artists. Sinatra even suffered career failure in his 20’s when his audience grew up and moved on to other things. But he came back to record success when he began allowing his music to mature and his ideas to gain focus. If Cyrus can pull such a move, she may not be remembered as a teeny-bopper, but as a serious artist.
Related articles
Hayden Panettiere Gets Engaged – Crazy Wedding or Not?
Hayden Panettiere has formally announced her engagement! The starlet will be marrying Vladimir Klitschko, who is a world renowned boxer that has won an Olympic gold medal. The unexpected public revelation has sparked rumor trails regarding glitzy wedding plans. While no date has been set, and nothing has been confirmed, there is widespread speculation that the event is going to be glamorously over-the-top.
A decadent gala may very well be in the planning stages. The “Nashville” actress, age 24, is one of America’s most idolized entertainers. She appeared on “Live with Kelly & Michael” to declare her commitment. During the show, she flaunted an extravagantly oversized engagement ring. This fancy display could be the precursor to an expensively ostentatious wedding.
Although Panettiere’s fiance is 13 years older than her, it is the first marriage for both partners. This may instill extra incentive for the couple to make their officiation an extremely flashy occasion. Because Klitschko is a famous Ukrainian athlete, he will also be anticipating a magnificently choreographed wedding. Both individuals could invest fortunes in perfecting their walk down the aisle together.
Of course, one of the biggest decisions that Panettiere faces is the selection of her gown. All eyes will be on the fabric that she chooses for this special day. If they go through with a public wedding, the dress will be permanently immortalized in global media. She is going to want to show off flawless class, glimmering austerity and sizzling sultriness. Fashion critics are eagerly anticipating her selection. The high-end designer that she picks will receive a tremendous boost in popularity, especially if she pulls off a beautiful presentation.
A crazy wedding would be completely in character for the young television star. Her most known role was a bubbly cheerleader on the long-running series, “Heroes.” With vivacious charm, she became a sex symbol across the country. Explosiveness is simply a part of her personality, so a bombastic celebration is to be expected. Furthermore, Ukrainian wedding parties have a tendency to be more raucous than American traditions. If they follow any of the groom’s cultural practices, the event could become out of control.
The massive ring on Panettiere’s finger indicates no desire for privacy regarding this affair. In fact, it was an invitation for the mainstream media to cover the entire ordeal. This hints that the couple might be planning a gigantic wedding event. They can easily afford it, and the public celebrations will rapidly enhance the star’s critical acclaim.
In contrast, a private exchange of vows would disappoint her legions of fans. Furthermore, paparazzi could still infiltrate the wedding to snap pictures. To avoid any uninvited intrusions, the couple should be open to media coverage during their nupital arrangements. This will let them control the event, and allow them to recoup some of the expenses through lucrative network contracts. Regardless of how they conduct the wedding, it is certain that the whole world will be diligently watching with admiration, and perhaps a slight tinge of jealousy.
