Financial/Investments

[CuzzA]

Originally Posted by Capt.Gene

Insurance companies use the returns from investing your money in the market to get wealthy while paying you back a pittance when they cannot figure any way around the claim.

Sorry Gene, but that's not accurate. Perhaps you're making a common mistake of mixing life, health and property casualty insurance companies together. There is a big difference.

Most people are shocked to learn that life insurance companies work on a spread, just like a bank. However, they are far more competitive than banks.

For example, a bank takes a $100k deposit and pays 1% interest and then turns around and loans that $100k out for a car loan at 7%. Their spread is 6% profit.

Generally, "Life" Insurance companies want to make 2% on the premium they receive. That's it. Everything else is passed on to the client. Doesn't sound like much, but when you have billions of dollars under management, well 2% doesn't sound so bad anymore. So, if their investments earn 7%. They keep 2% and give you 5%. If they earn 5%, they keep 2% and give you 3% and so on and so forth.

Now in the case of a fixed indexed annuity, the investor has the choice of taking their fixed interest or forgoing it to potentially earn greater gains in the index strategies. So back to my 2 and 3 example. Instead of the investor earning 3%, the insurance company takes that interest and buys options to participate in the index fund. Depending on the strategy, the investor now has the potential to earn a much greater interest credit. Right now many are locking in around 8%, with no risk. The better the insurance company does with their investments, the more interest they can pay you and consequently the bigger cap options they can buy.

As far as paying death claims. I've never once heard of a death claim not being paid on an annuity. In fact, it's likely never happened, barring some error with paperwork or the client chose to implement a restricted beneficiary payout that the kids didn't like and decided to sue. Whose fault is that?

The same goes with life insurance. I should make a disclaimer here that I've been in the financial services industry for 12 years, my father for 32, unfortunately, we've paid hundreds of death claims and not once has there been an issue. Sure, there may be the rare story in the news, and usually there's two sides to the story, like the insured let their policy lapse just before dying or they lied on their application, or they killed their spouse for the insurance (that's illegal, ya know. They won't pay the claim to the killer ), but think about the millions of people who die every year and the billions of dollars that are paid out. Life insurance companies aren't out there just screwing people over. If they were, congress would be all over them. In fact, if they find out you lied and wouldn't have approved you for the life insurance policy, they will simply refund the premium paid on the policy.

Nope, people screw themselves over with life insurance, because the average policy stays in force for 7 years before lapsing for non-payment of premium.

As far as health and P&C companies go, well that's an entirely different topic.

[Dangerous]

Warren Buffett recommends Vanguard index funds -- do a Google search. His will directs Vanguard funds for his wife.

Vanguard Admiral shares index S&P 500 But think about Vanguard Wellington also (it's the original mutual fund) 70% stock 30% bonds.

About fees, if an advisor or manager takes 1% a year in 20 years you have 20% less money

My Econ professor said insurance is a good investment only in periods of deflation

Also remember the rule of 72 -- money doubles at 72 divided by the return rate (7.2% return doubles in 10 years)

[Dangerous]

Proof of the pudding is in the eating:

https://www.fool.com/investing/2017/...estment-m.aspx

http://www.institutionalinvestor.com...l#.WUMqdtyQxhE

[OBLIGATED]

Shop owner gave me a break on some gold sovereigns.They were below spot so I grabbed a few.German coin is silver I put in the picture to "trigger"idiots.
Says he has some Austrian coins coming up at below spot gold prices.I just had to buy a new motor for a boat so Im hoping the coins come later.

[OBLIGATED]

Anyone doing Oakmark mx?Buddy recommended it.He went through Schwab.Any good,bad ugly?

[fishfan]

Why is he selling below spot?
But good for you!!

[OBLIGATED]

Originally Posted by fishfan

Why is he selling below spot?
But good for you!!

He gets deals every now and then from private collections and passes on the savings.It wasnt much below spot but it beats what some of the online bullion sites ask.No shipping and no insurance helps too.Unfortunatley I didnt have a lot of cash on hand that morning he called or I would have bought the whole package and split it up with a buddy or two.

[fishfan]

let me know next time

[OBLIGATED]

JM Bullion is doing 10 ounces of silver at SPOT price.Catch is its one package per household.

[Marcus]

Bitcoin, Ethereum..crypto currencies. Hate them and believe it's the work of the central bankers that will fail spectacularly one day...BUT, had to put a little into HIVE.V. It's on the TSX. After the stupidness I seen in Bitcoin evaluations, this appears to be a great opportunity at these levels. It's the first to come public as a crypto mining company. Their approach appears solid. Looking at the chart, the lack of fear in a little pullback peaked my interest whereby I purchased a modest amount. Given the craziness of these cryptos, it could turn into a SUBSTANTIAL gain. Up 28% today. Hell, look at Bitcoin. The difference here is that I can more easily cash out my position via my broker. That's if I time it right...I'm very good at picking bottoms but not so much the other way. I lost at least a 100k during the Tech crash. I was very naive.
After that, I read all kinds of books, e.g. Jesse Livermore and all the technicals on mob mentality that drive prices...only to be destroyed by the central bank controlling the markets via direct purchases of stocks. This was once a "conspiracy theory" of mine that I was berated for by a Keynesian economics professor. My assertions have been proven correctly.
Big money corrupts. Big money goes to University hungry students to produce biased papers. Poor students abide. Corrupt politicians and MSM drive narrative with corrupt science. As always, follow the money.
OH, BTW, did you hear about the unusual trading that benefited connected corporate interests prior to the Las Vegas shooting?? Wasn't as bad as the same, prior to 9/11...but still.
Krazy world we're living in, yo.

[OBLIGATED]

Probably doing OAKMX tomorrow and try some crypto currency soon.Hoping to get my son to open an account this week at Schwab and start another 401 and an IRA.
Top priority is paying off the house note though and possibly another piece of land.I really dont trust the banksters but I can take the money out if Im not happy with my returns.OAKMX had a 19% return.That beats my bank at .05%!
Still grabbing silver when it dips below $17.Would like to buy some gold if I can sell a few boats.

[OBLIGATED]

Originally Posted by Marcus

Bitcoin, Ethereum..crypto currencies. Hate them and believe it's the work of the central bankers that will fail spectacularly one day...BUT, had to put a little into HIVE.V. It's on the TSX. After the stupidness I seen in Bitcoin evaluations, this appears to be a great opportunity at these levels. It's the first to come public as a crypto mining company. Their approach appears solid. Looking at the chart, the lack of fear in a little pullback peaked my interest whereby I purchased a modest amount. Given the craziness of these cryptos, it could turn into a SUBSTANTIAL gain. Up 28% today. Hell, look at Bitcoin. The difference here is that I can more easily cash out my position via my broker. That's if I time it right...I'm very good at picking bottoms but not so much the other way. I lost at least a 100k during the Tech crash. I was very naive.
After that, I read all kinds of books, e.g. Jesse Livermore and all the technicals on mob mentality that drive prices...only to be destroyed by the central bank controlling the markets via direct purchases of stocks. This was once a "conspiracy theory" of mine that I was berated for by a Keynesian economics professor. My assertions have been proven correctly.
Big money corrupts. Big money goes to University hungry students to produce biased papers. Poor students abide. Corrupt politicians and MSM drive narrative with corrupt science. As always, follow the money.
OH, BTW, did you hear about the unusual trading that benefited connected corporate interests prior to the Las Vegas shooting?? Wasn't as bad as the same, prior to 9/11...but still.
Krazy world we're living in, yo.

Bitcoin broke 11,000.Buddy had bought into it when it was under 7,000.Im always a day late and a dollar short!

[Marcus]

Originally Posted by OBLIGATED

Bitcoin broke 11,000.Buddy had bought into it when it was under 7,000.Im always a day late and a dollar short!

Don't feel too bad. You'd feel a whole lot worse buying into the bubble and losing it all. I still maintain that's it's speculative position wrought with strife. Danger Will Robson. Owning gold doesn't keep me up at night.
I put my toes in water a little with HIVE.V as said above. Stupid in that they've no revenue...but stupid that people don't even care anymore. I've a nice profit since reco above. I'm holding and expecting it to go forthright...again...nobody is making any damned sense w/ regards to fundamentals anymore. There are no free markets anymore. No real price discovery in the big markets.

[OBLIGATED]

Originally Posted by Marcus

Don't feel too bad. You'd feel a whole lot worse buying into the bubble and losing it all. I still maintain that's it's speculative position wrought with strife. Danger Will Robson. Owning gold doesn't keep me up at night.
I put my toes in water a little with HIVE.V as said above. Stupid in that they've no revenue...but stupid that people don't even care anymore. I've a nice profit since reco above. I'm holding and expecting it to go forthright...again...nobody is making any damned sense w/ regards to fundamentals anymore. There are no free markets anymore. No real price discovery in the big markets.

Advice(free)I got was to do the bitcoin and once it matched my initial investment take the profits out and put it in low risk funds,bonds or annuities to diversify.
Im not well informed on the stock market so Im not going to risk anything I cant afford to lose.Ill be pissed but not broke!I like to see,feel or walk on what I own.

[OBLIGATED]

Picked up a Krugerand and a Indian head gold 1 oz coin.Wasnt a great deal but was about 20 bucks under what I could get online and he is local.Grabbed a 1/4 oz gold eagle also.
Wife is giving me looks