As is often said, life insurance is not for those who die, but is for those who live. If you die while you have life insurance in place, the people you have chosen as your beneficiaries will receive a sum of money (the death benefit) from your life insurance policy. The proceeds of life insurance are tax-free to the beneficiary and can be used for anything, but often the main purpose is to help make up for the loss of your income.

The year 1994 was a difficult investing period, when both stocks and bonds were down.  History may be repeating itself this year. The November 26, 2019 edition of the Wall Street Journal noted that Deutsche Bank, which tracks 70 asset classes, indicated that 90% were posting negative total dollar returns through mid-November. “That is on track for the highest share since 1920, when 84% of 37 asset classes were negative,” the WSJ stated. In comparison, only 1% of asset classes were negative last year.

Midterm elections are in the books for the most part.  After much anticipation, Americans have chosen to shift the balance of power in Washington D.C., giving Democrats control of the House of Representatives.  Republicans maintain their control of the Senate, meaning that we can expect legislative gridlock through the remainder of President Trump’s term in office.

If you’re thinking about downsizing your home soon or for retirement, consider a few observations before moving forward. Three out of four Americans say they would downsize their home to reduce ongoing costs and benefit from the equity, according to the 2017 study “Finances in Retirement: New Challenges, New Solutions” released by Bank of America Merrill Lynch.  A smaller home is not always the ideal solution. You might find unexpected financial and emotional challenges after making the switch. Following are some common misconceptions surrounding downsizing.

The economy has been sending out some very positive signals this year. In the first and second quarters, we saw large amounts of corporate spending on capital projects. These range from new facilities, new equipment, and new computers to major new projects. Some of this spending has been possible from the repatriation of money from overseas.

If you do not already have one, opening a free “My Social Security” account would be a good idea. This secure account allows you to have convenient online access to information on your record and to manage your benefits once you start receiving them. You do not have to wait until you receive benefits to sign up.

Building credit is important for all ages.  We have recently seen a few estate cases where the surviving spouse with many credit cards and car loans through the years find that they do not have their own individual credit.  The credit cards they hold were issued as the second card and their name was the co-name on a loan.  Suddenly, they need to establish credit in their 70s.  According to the Consumer Financial Protection Bureau (CFPB), an estimated 45 million Americans may not have their own credit.

We humans don’t like change. When change comes slowly, we learn to accept it. When change happens quickly, without our understanding of what the change portends, we become worried. The anxiety we feel results in a seeming lack of direction. If we know “what the deal is”, we can take measures to assimilate the change. Currently, our society is going through a number of changes, resulting in a disruption of the status quo.

A recent Marketwatch article claiming “you should have twice your salary saved by age 35” has angered many across the Internet. The article, which included advice from Fidelity Investments, said you should have the equivalent of a year’s salary saved by age 30, and double that by age 35.

In looking at the investment markets for the year, thus far, volatility is an important factor. The stock market, as measured using the S&P 500, began the year at 2674. It proceeded to go up to 2873 by early February, a gain of 7.4%. Most investors were very happy thinking that 2018 would be a continuation of the rapid increases from 2017. This was not to be the case.