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Recently, J.D. wrote about the value in finding something that you enjoy ball-jointed dolls. Most of her dresses sell for more than $100, as these collectors are quite serious about their hobby.

The Value of Sewing Skills

Talk about the value of learning to make something by hand! Sewing is a hobby (and now a business) that my mom loves. She can stay up until the wee hours of the morning when she’s sewing, but crashes at 9 p.m. on other nights.

In addition to giving her a creative outlet, the money she’s saved over the years by using this skill is impossible to calculate. Sewing clothes is a savings. Never needing to pay for alterations is a savings (and a huge one when it comes to wedding dresses). Her craft has made her money, too. The dresses I wore as a child were sold after I’d outgrown them. The doll clothes she makes now have turned into a lucrative side business that she plans to do full-time when she retires.

Also, it’s worth mentioning another benefit: giving loved ones something unique and handcrafted. I have pretty spring bags and the perfect pencil skirt, and my mom made those things for me, which makes me love them all the more. On my wedding day, almost everything decorative was made with my mother’s hands, and there’s nothing more special than that. When people compliment something she made, I’m incredibly proud to tell them my mom made it because most people can’t do what she can do.

Which Leads Me to…

I can’t sew. I mean, I can sew on buttons and work through simple patterns, but I’ve been too intimidated to really learn how to sew. Let’s face it, in my case it has been too easy to just ask Mom to do it for me, rather than to learn how to do it myself. This is a shame for so many reasons.

One, I have her old sewing machine in my house. She moved on to a more sophisticated model, but the one she gave me is a nice machine.

Two, Mom has the newer sewing machine plus two sergers. (A serger stitches at twice the speed of a conventional machine and creates ravel-free seams, among other functions — they are very cool.)

Three, she lives next door!

A Small Project

J.D.’s post might have been the kick in the rear I needed to get serious about learning to sew. It’s been on my to-do list forever, and there’s no better time than now to finally get to it. To get my feet wet, I decided to on a quick project I saw on Design*Sponge, a spring tablecloth created with IKEA dishtowels.

Last Friday, Mom and I spent a couple of hours at the serger making this tablecloth. She showed me some of the features and how she would adjust the settings and run the fabric through it. One dishtowel was made shorter than the others, so she showed me how to let out the seam to get extra length. I came home with a pretty, inexpensive tablecloth and eagerness to find another project.

Sewing 101

If sewing is a skill that interests you, here are a few tips that I’ve picked up from Mom:

  • Don’t invest too much at first. If you don’t have a sewing machine, find out if any relatives or friends have a machine that you could borrow for an afternoon to try your hand at sewing. Make sure you’re going to stick with it before you spend too much money.
  • Learn how to use your machine. My mom took lessons on how to use her newer machines. Sometimes lessons will be included when you purchase a machine. If you are borrowing one, ask the owner if they have a manual, or if they can give you a quick lesson on how it works.
  • Start with something small. I loved the immediate gratification of the tablecloth project. When you are deciding on a place to start, pick a simple project. If you will be using a pattern, look for the ones that are marked “easy” or “quick start.” Most pattern books put these in a separate section.
  • Save on fabric by recycling. Old sheets, clothing, tablecloths, etc. can be cut up and re-purposed. This is especially great for a beginner, as beginners are bound to make mistakes (and it’s better to do so on inexpensive fabric). Mom shops garage sales, second-hand shops, Goodwill, and antique stores, picking up clothing and vintage lace that she can sew into doll clothing.

Of course you could take sewing lessons, as well. I might do that in the future, but for now, I’m going to keep things simple by looking for projects that excite me and booking a sewing session with my mom.

What have you always wanted to learn to make by hand? How can you get started today?

Source: getrichslowly.org

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When putting your home up for sale, the waiting game is one of the hardest parts. Regardless of the reason behind the decision to sell your property — be it because you’ve already found your dream home, want to move to a new city/area, or simply downsizing — earning money from the transaction as soon as possible is always preferable.

Plus, it’s never easy saying goodbye to a place you’ve called home, where you and your family have spent wonderful moments together and that will be forever etched in your memories. So why prolong the melancholic goodbye?

Fortunately, there are things you can do to improve your home’s chances to sell fast without having to shell out a considerable amount of money. Often times, doing things in the right order can help us save lots of time and effort, not to mention unnecessary stress. It isn’t much different when selling your home.

So to make it easier for you, we’ve turned to industry professionals for a little guidance on how to prepare your house for selling. Here’s what most of them agreed would speed up the sale of your property.

#1 Work with a Realtor

Sure, it’s the age of the internet, and every service can be accessed online, who needs a real estate agent to hold their hand? But as most industry professionals will tell you, that may not be applicable in the case of real estate transactions — especially when selling your home, which is arguably your biggest financial asset.

Pricing your home, listing it, distributing the listing to make sure it appears on websites people actually use when looking up homes, scheduling property tours, and handling paperwork are just some the biggest aspects of a home sale. The list goes on an on, so better put it in the hands of a professional that will know to pay extra attention to crucial aspects of the deal.

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Realtors know the ins-and-outs of the industry and have inside knowledge of your area. Real estate agents have already built up their contact list, from potential buyers to contractors who can help you do minor repairs in your residence, and will easily manage all the paperwork involved in the sale.

While some real estate agents require a deposit for their service, most realtors go by a commission-based payment system. This means that they’ll only get paid when you sell your home, which motivates them to help you find clients and close deals quickly — and for the highest $$$ amount possible, as that will lead to a higher commission for them too.

#2 Enhance your home’s curb appeal

Curb appeal pertains to the attractiveness of your home from the outside. It extends to the entire front of your house, including your lawn and how other trees or bushes frame your residence.

The point of enhancing your home’s curb appeal is to make the exterior more tempting to potential buyers. After all, it’s their first interaction with what could be their future home, so you’ll want your house to make a great first impression. The idea is to make it appeal to them as soon as they make the curb.

A few tips to boost the curb appeal of your property include:

  • Adding some greenery – One of the best ways to enhance the exterior of your property is to plant some flowers and plants. You don’t need to overhaul your lawn and start a garden. You can draw potential buyers’ eyes toward windows and entryways with planters and window boxes.
  • Tend to the lawn – Never has maintaining a well-kept lawn mattered more. Make a point out of regularly mowing the grass, raking off any unwanted leaves, and pulling weeds out when planning to put your home on the market, as it will significantly increase its curb appeal.
  • Clean the gutters – The gutters are a visible yet often neglected part of the home. When putting up your property on a listing, make sure that you give these attachments a little TLC by clearing up debris and scrubbing the outside.

#3 Improve the front door area

We’ve already established how important first impressions are when selling your home. And your front door plays a huge role in landing that great first impression. If you don’t think it’s sufficiently appealing already, know that it doesn’t take all that much to upgrade your front door.

You can do this by coating your front door with fresh paint, adding some décor, and even putting a welcome mat right with a memorable message to welcome buyers.

For the interior, you must clear the entryway and draw the eye of clients inward through strategically placed furniture as well as accessories.

#4 Declutter and de-personalize

One of the top ways to increase the value of your home is to free up spaces in key areas of your residence. This includes the living room, kitchen, bathroom, and even the bedrooms. Declutter and get rid of all extra items that don’t add to the aesthetic appeal of your property.

Depersonalizing your space is also a crucial aspect of home-selling. The buyer must be able to envision themselves living in your residence, which is difficult to do if they see your pictures and other personal items lying around.

#5 Stage your home

Home staging is the process of restyling and refurnishing your property to boost its attractiveness in the eyes of potential buyers.

More often than not, the furniture and other things that you’ve accumulated through the years show off your personality. However, as mentioned above, you should depersonalize your space to let the new potential owners imagine themselves living there, which might mean changing up the position of furniture and even replacing some of it with items that have a more unified design.

Tips to keep in mind before selling your property

1. Partner with an investment property buyer 

Remember that sellers have the financial responsibility to pay closing costs such as state and property tax, and real estate agent professional fees. By partnering with an investment property buyer, you can sell your home for a non-deducted or full cash offer. 

2. Avoid common home selling mistakes 

Sellers usually make the following mistakes when selling their homes: 

  • Getting overly emotional: Of course, your lovely home is now for sale, and it’s okay to feel bad about it. However, don’t let your emotion ruin your selling tactics. Just imagine how motivated and excited you were when you first saw your dream home, and your potential buyers might also feel the same. Staging your home or changing its appearance can create an emotional distance since the house looks less personal. 
  • Not hiring a real estate agent: While you want to avoid paying an agent commission, hiring a real estate agent is the best way to get the best deal for your home’s value. An experienced real estate agent will prioritize your best interests and make sure that your house will have a competitive selling price. 
  • Poor listing photos: Good listing photos will draw potential buyers to check your house for sale. Take clear and crisp photos with plenty of natural light to show your home’s true beauty using a wide-angle lens. Hiring an experienced and professional photographer is a good idea to highlight the best features of your home and also get expert advice on how to stage the rooms for better viewing. If you’re working with an agent, this is something they can coordinate for better results, especially since they probably already work with professional photographers that specialize in listing photos (and can include drone shots of your home).

3. Set the right price

It’s tempting to set a high price ceiling for your home. After all, it’s the fruit of years of hard work. However, you have to consider the price point of houses in your area, the features your house offers, and its strengths and weaknesses. If you want your house to sell fast, set a competitive price for your home, instead of a higher price that potential buyers can negotiate. Remember that price is one of the key criteria home buyers use when searching for listing online, and if your home is out of their budget, they won’t even get a chance to considerate it.

Final thoughts

You can sell your home fast by working with a professional realtor who can guide you throughout this journey. Enhancing the curb appeal of your house, improving the front door area, decluttering, depersonalizing, and staging your residence are just some of the ways to help you get your property listing off the market quickly, but covering these crucial aspects of your home sale will make the process go smoother and will likely result in a faster sale.

More tips for your fancy home

Hearing Colors? Here’s What Colors to Choose in Your Home Based on Your Taste in Music
These are ‘Queer Eye’ Bobby Berk’s Top 6 Choices for Wall Décor
10 of the Most Stylish Minimalist Wall Clocks You Can Buy on Amazon
6 Smart Home Devices to Keep Your Pets Safe, Well Fed and Entertained While You’re Away

Source: fancypantshomes.com

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I saw a headline today stating “Most People Don’t Understand Life Expectancy Data”…which means they don’t understand the fundamental aspect of retirement planning. A 20-year retirement is drastically different than a 30-year retirement.

See?

So let’s answer: how long will you live?

As of 2020, the average American male lives for 74.5 years, and the average American female lives for 80.2 years. But wait! There’s more.

Imagine you’re 55 years old and planning your retirement. How long should plan for? If you’re male, about 20 years, right? The average death age (74.5) minus your current age (55) yields 20 years. For females, the answer would be 25 years.

Nope! That’s the wrong approach!

Because the average death ages – 74.5 and 80.2 years old – account for all deaths at all ages, including all the unfortunate deaths occurring before age 55. Once you’ve hit age 55, you’ve already avoided those premature deaths. Meaning your most likely age of death will be above average!

We can look at the Social Security Administration’s actuarial data to see this truth in action.

The average 55-year-old male will live another 24 years, to age 79. That’s 5 years beyond the average of all males.

The average 55-year-old female will live another 28 years, to age 83. That’s 3 years beyond the average of all females.

Maybe you haven’t planned much and now you’re sitting down at 65 years old to figure out your retirement. You have, on average, 17 years (male) and 20 years (female) left to live. That’s 82 years old for males and 85 years old for females.

Every year matters in retirement planning. The difference between dying at 74 and 79 and 82 is huge.

Not only that, but you might live longer than average. For example, a 55-year old American male has the following death age probabilities:

  • Age 75: 64%
  • Age 80: 48%
  • Age 85: 30%
  • Age 90: 13%

13% is nothing to ignore! That’s a 1-in-8 chance.

In short, don’t look at the average life expectancy of all people. Instead, look at the average life expectancy of people your age. Then bake in some conservatism on top, because there’s 50% chance you’ll live longer than average.

It’s a simple – but vital – financial planning tip.

Thank you for reading! If you enjoyed this article, join 6000+ subscribers who read my 2-minute weekly email, where I send you links to the smartest financial content I find online every week.

-Jesse

Want to learn more about The Best Interest’s back story? Read here.

If you prefer to listen, check out The Best Interest Podcast.

Source: bestinterest.blog

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By Peter Anderson 2 Comments – The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited April 17, 2013.

A couple of weeks ago I wrote a post talking about how a lot of folks forget to do a 401k to IRA rollover when they leave their old jobs.  Instead, the money just sits in their old company’s 401(k) account, regardless of whether they can find a better plan with more available investments and lower plan costs.  In the long run it can mean a difference of thousands of dollars by not switching to a lower cost plan.  I’d highly recommend looking into doing a rollover as in many cases it will give you more flexibility and control – as well as saving you money.

One thing that I hadn’t realized was possible to do until I was researching that last post was the fact that in some cases you can do a direct 401(k) to Roth IRA rollover when moving on to another job.   If you’re one of those folks who believe that the tax rates will be higher in retirement, it might make sense to look into doing one of these when you separate service with your current company.

401(k) to Roth IRA Rollover

A lot of people don’t realize that you can do a direct 401(k) to Roth IRA rollover. Up until a few years ago you actually couldn’t.  You would have had to do a 401(k) to traditional IRA rollover first, and then convert that traditional IRA into a Roth IRA, paying taxes on the conversion in the process.

The Pension Protection Act of 2006 changed the two step process and made it possible for people who were separating service from one company to be able to do a direct rollover of company plan 401(k) funds to an existing Roth IRA account, without going through the extra step of rolling over to a traditional IRA.

So, as of the passage of the PPA, company retirement plan assets, including those from 401(k), 403(b) and 457(b) governmental plans, can now be converted directly to a Roth IRA.

401(k) to Roth IRA Rollover Rules

There are some things you need to remember when doing a direct rollover from a 401(k) to a Roth IRA.

  • To do a rollover from a 401(k) to a Roth IRA you must have left the job where you got the 401(k).
  • Funds that you’ve rolled over from the 401(k) that would have otherwise been taxed at retirement, must be included as income for the year of the conversion.  In other words, you’ll need to pay taxes on those rolled over funds as income since the Roth isn’t taxed at retirement.
  • If you’re rolling over to a Roth IRA and will have taxes due – you must pay the taxes with funds from outside of the account.  Otherwise, if you’re younger than 59 1/2, you’ll be subject to penalties for early withdrawal.
  • Make sure to do a direct trustee to trustee transfer to ensure no funds are withheld for taxes, as is done with a 60 day rollover where 20% is withheld, and you receive a check to do the transfer yourself.

It should be noted that the owner of a Roth IRA must have had the account for 5 years, and be at least 59 1/2 in order for tax free withdrawals to be made.

Not All Company Plans Have 401(k) to Roth IRA Option

One thing to note is that unfortunately not all company plans allow or have a provision for a direct 401(k) to Roth IRA rollover.  If that is the case with your company plan, you’ll have to go the extra mile and roll the 401(k) over to a Traditional IRA first, and then convert it to a Roth IRA afterwards.

It should be noted that any Roth 401(k) funds, since they are contributed after taxes have been levied, would be able to transfer directly over to a Roth IRA regardless.

Who Does A 401(k) To Roth IRA Rollover Make Sense For?

Typically doing a rollover from a 401(k) to a Roth IRA would make the most sense for someone who has a longer time horizon in order to invest, and for those who anticipate seeing a higher tax rate in retirement.  It also makes more sense for those who actually have the cash on hand to be able to pay the extra tax bill that will be associated with adding the converted funds to the AGI when figuring taxes.  Make sure to talk with a financial professional before heading down this road in order to fully understand the consequences for your taxes.
Have you done a direct 401(k) to Roth IRA rollover, or are you considering doing one when leaving a job?  Tell us your thoughts in the comments.

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Source: biblemoneymatters.com

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Editor’s note: Lending Club no longer offers peer-to-peer lending on it’s platform.

LendingRobot is a service that fully automates peer-to-peer (P2P) lending platform investments. The service is available for individual investors, and is both cost-effective and easy to use. LendingRobot attempts to bring superior returns at low risk by combining cloud technologies with machine learning algorithms. The platform is an SEC Registered Investment Advisor, able to provide investment guidance.

The platform concept started in 2013, when Emmanuell Marot and Gilad Golan began developing a script to automate their own investments on Lending Club. Eventually, they also added support for Prosper Marketplace. The platform was publicly launched in April 2014, then added Funding Circle to the mix in 2015.

What has developed from this evolution is a platform that assists individual investors in acquiring and managing their loan investors on three of the prime P2P lending platforms on the web. In effect, LendingRobot is a robo-advisor for peer-to-peer lending investing. The service has continued to grow steadily.

How LendingRobot Works

Investors begin by linking their Lending Club, Prosper or Funding Circle accounts to a single LendingRobot account. You simply add your API credentials to LendingRobot. In this way, LendingRobot enables you to automate investing on all three platforms, if that’s what you choose to do. The platform can even create an account with each of those three P2P lenders if you don’t already have an account established with them.

You can choose the type of investment strategy that you want to use, conservative or aggressive. The platform even has a “slider” that lets you adjust the risk level in your portfolio. You can also use the “advanced mode” feature to specify multiple rules for your investments on both the primary and secondary markets. You can even use LendingRobot if you want to invest on your own, and use the service to help you manage your portfolio of notes.

LendingRobot scans new loans as they appear, and will automatically invest your idle cash. It also has the capacity to sell your notes, if that’s what you choose to do. You will receive a daily summary report that will keep you informed of the activity in your account.

LendingRobot has a wide range of benefits available for P2P investors.

Create custom investment parameters. LendingRobot enables you to create investment rules, based on their proprietary research, that will enable you to pinpoint the types of loans that you want to invest in. You can choose certain credit score ranges, loan terms, debt-to-income ratios – the choices are nearly endless.

LendingRobot secondary market. One of the fundamental limitations that P2P investment has had up until now is the lack of liquidity. That is, once you purchase loans or notes, you have to hold them for the duration of the term. There is often no secondary market for the loans and notes that you purchase on most platforms.

But LendingRobot uses unique secondary market automation that puts thousands of notes for sale, and reprices them on an ongoing basis until the target price is reached. This will be an advantage to you as an investor, both with selling loans and notes that you no longer want to hold, but also in buying existing loans and notes under more advantageous circumstances.

LendingRobot accomplishes this by adding any notes that you want to sell with Lending Club’s secondary market partner, Folio Investing. LendingRobot will gradually lower the price point on the notes for sale over a term of five days, until all notes are sold. This will enable you to liquidate an entire portfolio of notes in a matter of days.

You will also have the option to purchase notes on the secondary market through Folio, giving you an opportunity to purchase them at a discount, and for a greater profit when they finally pay off. This will become an increasingly important feature as P2P investing matures.

Investing speed. LendingRobot needs only seconds between the time a new loan comes on the market, and the service is able to invest in it. Since competition for the best notes in the P2P space is becoming increasingly intense, that kind of speed will give you the advantage of being able to get to the most desirable investments in the least amount of time. As more money pours into P2P lending investments, this will be an increasingly critical advantage for the individual investor.

Automatic reinvesting. Another limitation with P2P investment is that as notes pay off, your investment position declines. Staying fully invested is a huge task when you try to do it manually. But LendingRobot offers continuous reinvesting of loan proceeds. That will maximize the money in your portfolio that will be invested and earning interest on a continuous basis. This is another critical advantage for individual investors when it comes to P2P investing.

Transparency. LendingRobot enables you to see expected returns, cash flow forecasts, and the risk profile of a given portfolio. That will give you an opportunity to measure expected performance from various portfolio mixes. And that will help you to create the best portfolio for your investment needs.

LendingRobot is getting better. LendingRobot represents a new concept in the automation of P2P investing – which itself is only a few years old. The point is, while LendingRobot’s machine-learning algorithms are the result of years of research data science and optimization, the system is continuing to learn and grow. You can be part of that growth.

Lots of free information. The site provides a wealth of information covering an overview of the P2P lending industry, including statistics in regard to Lending Club, Prosper and Funding Circle. This enables you to see comparisons between the three platforms side-by-side, to help you decide where best to invest your money.

For example, the comparison chart indicates that you can invest with Lending Club or Prosper if you are not an accredited investor, but you can’t with Funding Circle. That’s the kind of information that you need readily available in one place.

They also provide you with performance charts, that show how each platform’s returns compare with both the marketplace average, and with US bonds. There’s even a list of the latest loans available with both Lending Club and Prosper.

LendingRobot Pricing and Fees

The first $5,000 of your account value is free. After that, there is a fee of 0.45% of the account balance over $5,000. That applies only to amounts invested by LendingRobot; it does not apply to loans purchased prior to starting your LendingRobot account.

There are no setup fees or termination fees.

Is LendingRobot Right For You?

P2P investing is simple in concept, but it can become complicated in the execution. Since you need to spread your investment capital across so many notes in order to achieve a reliable level of diversification, you virtually must automate the process. LendingRobot handles that for you, and has the advantage in that it can be used across three of the most popular P2P platforms on the web.

We generally think of investing in fixed rate assets as being the low maintenance part of an investment portfolio – and that’s exactly what it should be. LendingRobot let’s P2P investing be low maintenance.

There are a couple of caveats I would like to point out. The first is the potential that automation could cause you to underestimate the risk involved in P2P investing. You are, after all, investing in unsecured loans for people with varying degrees of credit, as well as a wide range of employment and income situations. That is an inherently risky investment, and automation should never cause you to underestimate that risk.

The second is the secondary marketing feature available through Folio Investing. Don’t get me wrong, it’s a great feature to have. But at the same time, you don’t want to over-rely on it either. The service is currently available only on Lending Club, not Prosper or Funding Circle, though that may change in the not-too-distant future.

Even on Lending Club there may be some limitations to secondary market transactions. Lending Club makes the following statement in that regard: “Note Trading Platform was designed to provide investors with the chance to realize some liquidity in transactions with other Lending Club members”. It’s also important to understand that notes are more likely to sell at a discount than at a premium, so it may prove to be primarily a market where you can unload unwanted notes, but do so at a loss.

It’s equally important to realize that notes cannot be sold on the secondary market if they are in default or charge-off status.

That said, the secondary market can be a major advantage to you as a buyer, for all the same reasons that is not necessarily a failsafe for you as a seller. It represents a real opportunity to buy notes for below – maybe substantially below – par value. And that will add a gain on payoff of the note to the interest you’re collecting on it. That’s a double win!

If you are an active investor on Lending Club, Prosper or Funding Circle, you need to give LendingRobot a serious look. It offers a real opportunity to take this growing and profitable asset class and set it on automatic pilot. It offers a serious chance to increase your rate of return on investment, while reducing the risk of default.

Source: goodfinancialcents.com

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Life insurance is a vital element of most all financial plans. One of the biggest reasons for this is because the proceeds that are received by life insurance policy beneficiaries can be used for any number of financial needs, such as the payoff of debt (including a home mortgage), as well as the payment of everyday living expenses. This could be especially beneficial if the insured were a family’s primary breadwinner.

Before you purchase a life insurance policy, it is essential to ensure that you will be getting the proper type of coverage, as well as the right amount of protection for your specific needs. Knowing that the underlying insurance company is reliable and stable financially is another important piece of the puzzle, as you will want to know that the insurer can pay out it’s allotted claim if or when the time should come. One company that has an excellent reputation for its financial stability, as well as its timely payment of policy holder claims is Liberty Mutual.

The History of Liberty Mutual Insurance Company

Liberty Mutual has been in the business of helping consumers and businesses protect what is important to them for more than 100 years. The company was initially founded in the year 1911 when the Massachusetts Legislature passed a law that required employers to protect their employees with workers’ compensation insurance.

The company was originally known as the Massachusetts Employees’ Insurance Association or MEIA, and it officially began its operations on July 1, 1912. The company began as a mutual insurer, which means it was owned by its policy holders, as versus having to answer to a group of stock holders. The company is still a mutual insurer today.

Throughout the years, the company has grown and expanded – and today it is a top U.S. insurer. Liberty International has grown from a collection of smaller local businesses into a multi-billion, multi-national entity that has operations in Europe, Latin America, and Asia Pacific, in addition to the United States.

Other components of this entity include:

  • Liberty International Underwriters
  • Liberty Specialty Markets
  • Liberty Mutual Surety

In addition to offering products and services that can assist clients with growing and protecting their wealth, Liberty Mutual is also a large sponsor of sporting events, as well as charitable organizations. The company’s primary headquarters is in Boston, Massachusetts.

Liberty Mutual Life Insurance Review

Today, Liberty Mutual is ranked as number 75 on the Fortune 500 list of largest U.S. corporations (based on the company’s 2016 revenue figures). As of year-end 2016, Liberty Mutual Insurance brought in roughly $38.3 billion in revenues for the year.

The company has invested its assets conservatively, to be ready to make timely payments of its policy holders’ claims. More than 87% of Liberty Mutual’s cash and invested assets are placed in Bonds, while another 4.1 percent is invested in cash and other short-term cash equivalents.

The life insurance and annuities that are provided by Liberty Mutual are issued by Liberty Life Assurance Company of Boston, with the company’s headquarters located in Boston, MA, and the service center based in Dover, New Hampshire.

Insurer Ratings and Better Business Bureau (BBB) Grade

Liberty Mutual Insurance is very stable financially – and because of that, it has received high ratings from the insurer rating agencies. These include an A (Excellent) from A.M. Best Company, an A2 (Good) from Moody’s Investor Services, and an A (Strong) from Standard & Poor’s.

Also, Liberty Mutual has been a qualified company of the Better Business Bureau (BBB) since April 26, 1931. The company has been given a grade of A+ by the BBB, which is on a general grade scale of A+ to F.

In the previous three years, Liberty Mutual has completed a total of 1,236 custom complaints, of which 242 of these complaints were closed out within the past 12 months. Of the total 1,236 complaints, 872 regarded problems with the company’s products and services. Another 276 were regarding billing and/or collection issues, 46 had to do with advertising and/or sales problems, and 22 were related to delivery issues. The remaining 20 were about guarantee/warranty issues.

Life Insurance Plan Options Offered By Liberty Mutual Insurance Company

Liberty Mutual insurance has a long list of life insurance policy options from which to choose. These include both term and permanent life insurance coverage. Term life insurance policies provide a death benefit, with no cash value build up. Because of this, a term life insurance policy can be quite affordable – especially if the insured is in good health at the time of the application for coverage.

Term life insurance policies are purchased for a set number of years, such as ten, fifteen, twenty, or even thirty. Typically, these policies will offer guaranteed coverage during the level term period, as well as a level amount of premium that cannot be increased.

With Liberty Mutual, coverage options for term life insurance policies include 10, 15, 20, or 30 years. These plans also have a variety of different optional riders that are available and can be added to help with further “customizing” the coverage.

The term life insurance policies offered through Liberty Mutual include the following:

  • Liberty Series Passport 10
  • Liberty Series Passport 15
  • Liberty Series Passport 20
  • Liberty Series Passport 30

Liberty Mutual also offers permanent life insurance product options. With a permanent life insurance policy, there is both death benefit protection, as well as cash value. The cash that is in the liquid section of the policy can grow on a tax deferred basis, meaning no taxes are due on the gain unless or until the money is withdrawn.

Policy holders can either borrow or withdraw cash from the cash value for any need they see fit, such as the payoff of debts, the supplementing of retirement income, or even to take a nice, long awaited vacation.

Liberty Mutual has both whole life and universal life insurance plans. While life offers level premiums, strong guarantees, and valuable protection that will last for the remainder of the insured’s lifetime. Whole life insurance will also steadily build cash value over time.

Many whole life insurance plans are offered through Liberty Mutual. These include the:

  • Liberty Series Whole Life – This plan provides level premium payments for the entire life of the insured – up to the policy anniversary that follows the insured’s 100th birthday.
  • Liberty Series Life (paid up at age 65) – This plan provides the ability to make level premium payments until the policy anniversary that follows the insured’s 65th birthday.
  • Liberty Series 20-Year Payment Life – With this plan, the policy holder will make level premium payments for 20 years. After that, the policy will be paid up.
  • Liberty Series Extra Value Life – The Liberty Series Extra Value Life plan is a “hybrid” policy that combines both permanent and temporary life insurance coverage. This allows for a premium that is usually lower than that of a whole life insurance policy.
  • Liberty Series Estate Maximizer Next Generation – With this plan, the insured is covered by a whole life insurance policy that is paid for via just one, single lump sum premium payment. This policy provides permanent life insurance protection and a death benefit that is larger than the original premium payment. The payment with this policy will increase in value over time by a factor that is based on the insured’s gender and age. The immediate increase in death benefit makes this life insurance a good match for those who wish to transfer assets in a tax advantaged manner.

There are also several options for universal life insurance that can be purchased through Liberty Mutual. Universal life insurance provides death benefit protection and cash value; however, it is more flexible than whole life. This is because the premium due date can be altered (within certain guidelines). The policy holder may also be able to decide how much of his or her premium goes towards the policy’s cash value component, and how much goes towards the death benefit.

Universal life insurance plans that are offered by Liberty Mutual include the following:

  • Spirit Series Performance Universal Life – This plan provides permanent life insurance protection that builds cash value. Policy holders have the flexibility to adjust their level of coverage, as well as their premium payments, to meet their needs.
  • Spirit Series Universal Life – The Spirit Series Universal Life insurance policy provides an affordable form of permanent life insurance that is not necessarily designed for building long-term cash value. This plan does offer unique lapse protection features, as well as continuous life insurance protection through any circumstance if the insured meets certain requirements.

Other Products and Services Available

In addition to life insurance, Liberty Mutual also offers a broad range of other goods and services. These include the following:

  • Critical Illness insurance
  • Identity Theft insurance
  • Pet insurance
  • Tuition insurance
  • Small Business insurance
  • Home owner’s insurance
  • Apartment insurance

  • Condo insurance
  • Landlord insurance
  • Mobile Home insurance
  • Flood insurance
  • Umbrella insurance
  • Car insurance
  • Motorcycle insurance
  • Boat insurance
  • Watercraft insurance
  • Antique and Classic Car insurance
  • ATV and Off-Road Vehicle insurance
  • RV (Recreational Vehicle) insurance
  • Vehicle Insurance Plans
  • Rental insurance
  • Key Employee Insurance

The company also has a selection of retirement annuities. Because people are living longer today, one of the biggest concerns that retirees have is running out of money during retirement. An annuity can help to alleviate this issue, when the lifetime income option is chosen.

Through Liberty Mutual, there are single premium deferred annuities (SPDAs), and flexible payment deferred annuities (FPDAs). With a single premium deferred annuity, just one single lump sum payment is needed to attain a guaranteed stream of income in retirement. With a flexible payment deferred annuity, deposits may be made over time, prior to converting the annuity over into an income stream. The growth on the money that is inside of the account will grow tax deferred.

How to Get the Best Premium Quotes on Life Insurance Coverage from Liberty Mutual

If you are shopping around for the best premium rates on life insurance coverage from Liberty Mutual – or from any life insurance company – then it is recommended that you partner with an independent insurance agent. In doing so, you will be able to compare policies and premiums in an unbiased manner – and from there, you can determine which option will be best fit for you.

When you are ready to proceed, we can help. We are an independent insurance brokerage and we work with many of the top life insurance carriers in the industry today. We can assist you with getting all the key details that you need for making a well-informed buying decision. To get started, all you need to do is just simply fill out our quote form.

We understand that the acquisition of a life insurance plan can be somewhat overwhelming. There are many different parameters to think about, and you want to be sure that you are moving in the right direction. But this process can be made so much easier when you are working with an ally on your side who can walk you through it from start to finish. So, contact us today – we’re here to help.

Source: goodfinancialcents.com

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Dental Savings Plan vs. Insurance: Pros and Cons – SmartAsset

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Health insurance doesn’t cover your teeth. Your teeth can cause pain, get infected and need treatment, just like any other part of the body. But when it comes to actually getting treatment the standard health insurance doesn’t cover it. Instead, you need specialized coverage to pay for a trip to the dentist’s office.

The specialized coverage comes in two main forms. The first is dental insurance. This is standard insurance that covers most of the cost of treatment in exchange for a monthly premium and co-payments. The second is a dental savings plan. This is a discount program that gives you a percent off your bill in exchange for an annual membership fee. We’ll discuss how it works.

A financial advisor can help you plan for future healthcare expenses. 

What Is Dental Insurance?

Dental insurance works like standard health insurance. It is accepted at dentists’ offices, including specialists like orthodontists and endodontists, although depending on their range of services, some medical practices might accept it as well if they have dentists on staff. It pays for care that involves your teeth and gums.

With dental insurance, the insurance provider pays for a portion of each treatment. The exact amounts range based on the nature of the treatment and the nature of your insurance plan. For example, many if not most plans will pay for 100% of preventative treatment like routine cleanings and checkups, while the same plans might not pay for any part of a cosmetic procedure like teeth whitening.

What Do You Have to Pay?

You have to pay any amount that your insurance doesn’t cover, which are out-of-pocket expenses. For example, if your insurance covers 50% of a $700 treatment, that means the plan would pay $350 and you would pay the remaining $350.

Like other forms of health insurance, dental insurance is structured around three main forms of payment from the customer:

  • Premiums – Monthly payments that you make for the plan
  • Co-payments – Payments that you make when receiving any given service
  • Deductibles – The amount you pay before your insurance covers costs

Premiums are fixed. You pay the same amount each month for a given plan. Co-payments and deductibles will change based on the nature of the treatment that you get. Your insurance plan will have different co-payments for any given treatment and will apply different rules about deductibles.

Types of Dental Insurance 

Like with other forms of medical insurance, there are different major categories of dental insurance. The three main types of dental insurance are:

  • Dental Health Maintenance Organizations – this offers lower premiums. But it has more restricted coverage options.
  • Dental Preferred Provider Organizations – Midrange premiums and more treatment options, but fewer providers.
  • Dental Indemnity Insurance – Higher premiums, but more options and coverage.

Pros and Cons of Dental Insurance

Pros

The main advantage to dental insurance is coverage. This works the same way as all other forms of medical insurance, in that your insurance company pays for a portion of your treatments. They will pay for dental services in whole or part, and your spending for covered services is capped each year.

That doesn’t mean your out of pocket expenses wont’ be high. Dental insurance isn’t subject to many of the same rules as health insurance, so if you need specialty services like braces, a retainer or a root canal you can still expect to spend thousands of dollars out of pocket. That’s still far less than you would spend without insurance or with a dental savings plan though. It’s also far more likely that any given dentist will accept your insurance, as fewer providers accept dental savings plans compared with insurance.

Cons

The main disadvantage to dental insurance is the costs involved when you don’t need treatment. Dental insurance isn’t nearly as expensive as health insurance, but this will still cost a lot more than something like a dental savings plan. Depending on how much coverage you need and how many people are in your household, you can expect to spend anywhere from $20 to $200 per month on dental insurance.

An individual looking for decent, but not comprehensive, coverage should expect to spend at least $50 per month.

Another way of looking at it is this: Dental insurance is better if and when you need treatment. You will spend less money and find care more easily. A dental savings plan is better when you don’t need treatment because it will cost you less.

What Are Dental Savings Plans?

A dental savings plan, otherwise known as a “dental discount plan” is different than health insurance. Instead, it could be thought of as a membership. With a dental savings plan, you pay an annual fee, typically $150 or less for a family, to enroll. In exchange, you receive a discount on services at participating dental providers.

For example, you might receive 40% off a routine cleaning or 25% off the cost of filling a cavity. Unlike insurance, the savings plan doesn’t pay for these costs. Instead, they are negotiated discounts for plan members.

You are responsible for paying for the rest of the costs of any given service. For example, if you have a $1,000 procedure and your dental savings plan gives you a 20% discount, you will pay the remaining $800.

The details of a dental savings plan can vary widely. Every program will have different dentists who participate, different costs for membership and will offer different discounts for services. Generally, fewer dentists accept a savings plan membership than insurance, so you will usually have a smaller provider network to choose from.

Who Should Consider a Dental Savings Plan

There are several situations in which it makes sense to consider a dental savings plan.

If you’re on Medicare. Such plans don’t cover most dental care (including procedures and supplies like cleanings, fillings, tooth extractions, dentures, dental plates or other dental devices). Original Medicare may pay for some dental services that are closely related to other covered medical services. Medicare Part A will also pay for certain dental services that you get when you’re in a hospital.

If you’re unemployed. These plans are relatively inexpensive and, unlike many dental insurance plans, you can access the benefits in two or three days.

If your teeth are in great shape. People who consistently floss, brush and gargle several times a day and have a history of zero cavities, may not need coverage.

Pros and Cons of a Dental Savings Plan

Pros

The main advantage of a dental savings plan is the up-front cost. Typically one of these programs will cost several hundred dollars per year in membership fees. By contrast, dental insurance can cost several hundred dollars per month (if not more) in premiums.

You also have no coverage caps with a standard dental savings plan, meaning you don’t have maximums or deductibles. And you simply receive the set discounts for any given service.

Cons

However, the downside here is that you will almost always pay more for the actual services. Despite co-pays and deductibles, insurance will typically cover more costs when it comes to receiving treatment, so you can expect a savings plan to cost more out of pocket.

The result is that a dental savings plan can often fill a role similar to catastrophic insurance. If you are healthy enough that you only need the occasional cleaning and checkup, this might be a good option. If you will need real treatment, this may end up costing you more in the long run.

Bottom Line

Dental insurance is health insurance that applies to your teeth. In exchange for premiums and a co-pay, the insurance plan pays for the rest of your treatment. A dental savings plan is a discount program, in exchange for an annual payment, that gets you a negotiated percentage off your treatment at the dentist’s office.

Tips for Managing Your Healthcare Costs

  • Just as you would consult a healthcare professional to assess your well-being, be sure to consult a financial professional to assess your fiscal well-being. Finding the right financial advisor who fits your needs doesn’t have to be hard. SmartAsset’s free tool matches you with three vetted financial advisors who serve your area. If you’re ready to be matched with local advisors that will help you achieve your financial goals, get started now.
  • Considering alternatives to health insurance is important for maintaining a healthy budget. A comprehensive budget calculator can help you understand which option is the best for you.

Photo credit: ©iStock.com/mihailomilovanovic, ©iStock.com/bymuratdeniz, ©iStock.com/LightFieldStudios

Eric Reed
Eric Reed is a freelance journalist who specializes in economics, policy and global issues, with substantial coverage of finance and personal finance. He has contributed to outlets including The Street, CNBC, Glassdoor and Consumer Reports. Eric’s work focuses on the human impact of abstract issues, emphasizing analytical journalism that helps readers more fully understand their world and their money. He has reported from more than a dozen countries, with datelines that include Sao Paolo, Brazil; Phnom Penh, Cambodia; and Athens, Greece. A former attorney, before becoming a journalist Eric worked in securities litigation and white collar criminal defense with a pro bono specialty in human trafficking issues. He graduated from the University of Michigan Law School and can be found any given Saturday in the fall cheering on his Wolverines.

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