Month: September 2020

You might understand the power of setting a goal, but that’s just the beginning. A goal is where you want to end up, but it doesn’t tell you how to get there. Creating systems that move you toward success is the real path to success.

For example, a successful business always has a system for generating sales. There are sales goals, but the system is what moves the company toward that sales goal.

You already have a lot of systems. You have a system for mowing and trimming your grass. You have a system for making sure you have clean clothes on Monday morning.

When you set a new goal, it’s important to create new systems.

Follow this process to create effective systems that lead to your success:

1. Know your goal but focus on how to get there. Let’s imagine that your goal is to run a marathon in nine months. How exciting! But, let’s focus on how you might get there. Let’s also imagine that you haven’t run in years, and you have 20 pounds to lose if you want to increase your odds of success.
   • With research, you discover that you need to ultimately have a long run of 20 miles every other week to have a good chance of finishing a marathon. You also know that you need to work up to a weekly mileage of at least 40 miles per week. Armed with this knowledge, you can create a plan.
   • You know that you need to lose 20 pounds, so a diet of some sort might be in order.
   • You also believe that you need to learn more about running.
     
     
2. Formulate a support goal. You know that you need to ultimately have a long run of 20 miles every other week, work up to 40 miles per week, and lose 20 pounds. You also need to learn more about running. These are support goals.
   • Your “systems” will be the way you choose to accomplish these support goals.
   • One way to develop your systems is to work backwards.
     
     
3. Work backwards. Obviously, you can’t just go out and run 20 miles if you haven’t run in years. You’re also not going to lose 20 pounds in a day. Trying to run 40 miles the first week will lead to injury and a loss of motivation.
   • If you need to have a 20-mile run every other week, the week or two prior to running 20 miles, you need to run 19. Before that, 18. Keep working back until have a number you can do your first week. Build a schedule.
   • Over the next 9 months, you need to work up from just a few miles to 40 miles. Again, build a schedule.
   • Perhaps on Sunday, you will create a menu for the week and do your shopping as a way of helping to lose those 20 pounds.
   • You might also decide to read for an hour each week about running.
   • Now, your goal each week is to follow your plan. Monitor how well you’re sticking to your plan. The end goal is just the destination. The key is to focus on your systems in order to get there.

Each goal will require different systems. For example, if you’re a real estate agent and want to sell $10 million worth of real estate this year, your systems might be to:

• Call 25 expired listings each week.
• Send out 100 postcards each month looking for new buyers and sellers.
• Go to three networking events each month.
• Ask everyone you know if they’re interested in buying or selling a home.

Effective systems are doable and will guarantee success. Create systems that make it impossible to fail. Poor systems or poor compliance lead to poor results.

Set your goals and then focus on developing effective systems. If you create good systems and follow them, you’ll achieve success.

While insurance can seem like a waste of money, there are certain types of insurance that are important. It’s rare that you actually get any benefit from making those monthly insurance payments. After all, how many times has your house been struck by an earthquake or a catastrophic fire? It just doesn’t happen very often, but sometimes it does.

On the other hand, there are several types of policies that don’t make a lot of sense for most of us.

Insurance you might want to consider purchasing:

1. Homeowner’s or Renter’s Insurance. If you own a house, your investment in your home and possessions is worth protecting. If you have a mortgage, you’re probably legally obligated to carry insurance. Renter’s insurance is very inexpensive since it only covers your belongings and not the building itself. That’s your landlord’s responsibility.
   • If you have automobile insurance, your insurance company will often offer homeowner’s or renter’s insurance at a discount. It’s worth asking about.
     
     
2. Life Insurance. Think about carrying a life insurance policy if anyone else is dependent on your income. Even if you don’t have a family of your own, it would be considerate to have enough insurance to cover your funeral costs.
   • Most employers offer some sort of inexpensive life insurance.
     
     
3. Health Insurance. It’s nice to be able to see a doctor any time you’re sick or injured. Health insurance is expensive, unless you have a very generous employer. Health insurance, though, is a definite necessity to cover the expenses of a major medical emergency. Most of us cannot afford the huge bills from hospitals or prolonged medical treatment.
   • The most advantageous policy will depend upon your current health and age. There are many options to match your budget and needs.
     
     
4. Disability Insurance. Will you have any income if you’re unable to work? It’s possible to receive social security payments, but that can take months and it certainly won’t cover the rent, mortgage, or other bills.
   • Disability insurance restores a percentage of your income, typically 50-80%, depending on the policy. Most policies will pay as long as you’re unable to work, up to age 65. Others are designed to pay for 5 or 10 years, regardless of age.
   • As long as you have disability insurance, your financial situation doesn’t have to change dramatically if you’re unable to work.

Carrying all these insurance policies can be expensive. You may be able to offset some of the cost by avoiding other types of insurance you’re unlikely to need.

Types of policies you might want to consider avoiding:

1. Credit Insurance. This is designed to pay your credit card bills upon your death or disability. It may pay all of your balances or a portion of them. This insurance is expensive and often unnecessary.
   • If you have life insurance and disability insurance, you’ll be fine. Credit card balances are unsecured debt anyway. That’s the risk the credit card companies take.
     
     
2. Pet Insurance. Most experts suggest setting aside a few hundred dollars each year for pet care. Careful examination of several policies shows that few pet insurance policies will pay out more than the cost of the premiums.
   
   
3. Child Life Insurance. The whole point of life insurance is to provide for dependents. Your children are unlikely to have any. Put the funds toward a college savings plan instead. If anything unexpected happens, you’ll still have money available.

There are a few other policies that rarely make sense: flight insurance, ID-theft insurance, and dread-disease insurance are just a few.

Insurance is a necessary part of a secure financial situation. It may seem like a regular waste of money since you may never see a payout, but that’s not true. Insurance is a cost-effective means of hedging risk. If you ever need it, you’ll be glad you have it.

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Engarde Financial Group is positioned to educate and serve its clients with other insurance coverages.

We understand that your personal items that you possess are of significance to you. Here at EFG we look at every situation differently. When it comes to your needs there is no such thing as one size fits all. Speak to a insurance professional today so that we can design a policy to cover all the things you love.

One of the largest medical costs you’re likely to incur in your lifetime is long-term care. This means that someone has to live with you or that you require round-the-clock care. This type of care is very expensive.

For care outside of the home, a private room in a nursing home can cost over $75,000 a year. Long-term care insurance, while not cheap, can reduce that burden.

As with everything else, this type of insurance has its benefits and drawbacks. Have you considered long-term care insurance in your retirement planning? Increasing numbers of insurance companies are beginning to offer this product with a wide range of options, so you have many choices.

The biggest criticism of these policies has been their cost. However, this insurance can save you a tremendous amount of money in medical expenses.

When looking for a policy you’ll have several choices:

1. Daily benefit amount. This is the maximum amount the policy will pay per day for care. You can typically choose from $50/day to $500/day. Policies often specify a maximum monthly amount instead. This is nice because you can then opt to receive more care on some days and less on others.
   
   
2. Different amounts in different settings. Some policies will let you choose the different benefit amounts for different settings. Maybe you feel comfortable with $100/day at home but would rather have $150/day in a long-term care facility.
   
   
3. Maximum Lifetime Benefit. This is the maximum the policy will pay out over your lifetime. There are some policies with unlimited total benefits.
   
   
4. Comprehensive or facility care. Some insurance only covers care that you receive in a long-term care facility. Other policies are considered to be “comprehensive” and allow for a wider range of services. Most insurance sold today is comprehensive, but be sure to check before you sign on the dotted line.
   • Facility care policies are still available for those who feel confident that their family and friends are willing and able to care for them at home.
     
     
5. Additional benefits: As with other types of insurance, there are many other options or “riders” that can be added to the basic coverage.
   • Inflation Protection is a popular option. If you’re unlikely to need to care until far in the future, this is worth looking into. How much are health care costs going to rise in the next 25 years? Likely a lot. There are many types of Inflation Protection, so be sure of what you’re actually getting.

Here are some additional costs that long-term care insurance may or may not cover. Do your research!

• Modification of your home. This would include augmentations like ramps and grab bars.
• Transportation to doctor’s appointments.
• Training a relative or a friend to provide personal care properly.
• In-home medical equipment.

Some policies will even pay your friends or family members to provide care to you. These payouts tend to be rather small and may only cover the cost that the care provider actually incurs. While most policies will not provide payment under these circumstances, some offer cash payment for each day you’re in the care of a non-medical professional.

Long-term care insurance is something every person should seriously consider. The cost of the policy can be high, but the cost of not having a policy can be catastrophic. Even a 65 year-old millionaire can run out of money in a hurry should he require long-term care.

These policies tend to have more options and exceptions than other types of insurance, so be sure to really do your research or sit down with an insurance agent that you trust. However you go about your investigation, it’s never too late to start looking into long-term care insurance.

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Engarde Financial Group is positioned to educate and serve its clients with other insurance coverages.

We understand that your personal items that you possess are of significance to you. Here at EFG we look at every situation differently. When it comes to your needs there is no such thing as one size fits all. Speak to a insurance professional today so that we can design a policy to cover all the things you love.

Q: We have been unable to make a decision between term and whole life insurance. What are the differences? What criteria should we use to make a decision?

A: If you ask the insurance companies, nearly all will suggest that whole life insurance is the way to go. Considering they are the ones selling the policies, you should wonder whether their advice is in your best interest. The product insurance companies wish to sell is the one that makes them the most money.

However, the one that makes the best sense for you depends on your needs.

Whole life insurance develops a residual or cash value. This money can be utilized for nearly any purpose at any time. Whole life insurance is also intended to last until death. There will be payout eventually, assuming the premiums are paid.

Term insurance only covers the individual during the period of the term. The insurance company is betting that death will not occur during this time.

Consider these differences between whole and term life insurance:

1. Term life insurance is considerably less expensive. Term life insurance is only in effect for a limited period of time, the term. The fact that whole life also has a cash value contributes to the cost.
   • Many experts suggest purchasing term insurance and investing the difference. If you live past the duration of the term and your investments grow considerably, this is the best possible scenario.
     
     
2. It really depends on your time horizon. This is usually the most important criteria when choosing life insurance.
   • Do you need insurance for 10 years or less? Term life is nearly always the best solution.
   • 10-20 years is really a toss-up. There are calculators available online to help you make the best decision.
   • Do you need the insurance for longer than 20 years? Whole life is usually the better solution long-term.
     
     
3. Whole life can serve as an estate planning tool. This type of policy is commonly used by the wealthy to minimize estate taxes. The proceeds of an insurance policy go to the beneficiary tax-free.

Take the time to make the best decision for your family and financial situation. There are many reputable insurance salespeople and providers. Ask for references and get the professional assistance you need.

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Engarde Financial Group is positioned to educate and serve its clients with other insurance coverages.

We understand that your personal items that you possess are of significance to you. Here at EFG we look at every situation differently. When it comes to your needs there is no such thing as one size fits all. Speak to a insurance professional today so that we can design a policy to cover all the things you love.

As a property owner, you must protect your income investment by attracting and retaining quality long-term tenants. To accomplish this, it’s important to ensure that the property is updated with all, or at least some, of the amenities renters desire to have in their homes.

In renovating, focus on these most coveted home features that’ll help you attract and retain quality renters:

1. Wood Flooring. If you have quality wood flooring in your rental property, you’re already ahead of the game simply because wood floors make such a big impact.
   • Of course, authentic wood flooring would be the ideal choice. This can cost between $3.00 per sq. ft. for maple flooring up to $8.50 per sq. ft. for Brazilian wood.
   • Laminate plank flooring gives the same look for a fraction of the cost. It can cost as little as $0.89 per sq. ft. from flooring outlets such as lumberliquidators.com or www.floormaxdirect.com.
     
     
2. Updated kitchen and bathroom. Every room in the house is important, but an updated kitchen and bathroom will make renters go gaga over your unit! Indulge in a tiled backsplash, and updated countertops and cabinets and you’re sure to wow prospective renters.
   • A tiled backsplash can cost anywhere from $250 to over $1,000 depending on the type of tile you choose. For an inexpensive fix, choose white subway tile – a tried and true favorite amongst renters. Or if your budget allows, spring for a mosaic glass tile backsplash.
   • Placing granite in a rental may be a waste. Unless you’re charging above market rent, you’re unlikely to make your money back in a timely fashion. However, you can give your renters the feel of granite by using a granite countertop paint kit or laminate from Lowes.
     
     
3. Spring for molding. Molding can make any home seem luxurious and finely detailed. And while molding can cost quite a bit of money, if you’re willing to install the molding yourself you’ll be able to save quite a bit.
   • When in doubt, always choose crown molding. Other popular molding options are wainscoting and chair rail. If possible, also add molding to your doorways and over windows to create a cohesive look.
   • If you’re on a tight budget, opt for faux crown molding. The material is often plastic or faux wood, but the effect is still much the same. Chances are your renters aren’t going to climb onto a ladder just to touch the crown molding.
     
     
4. Spacious Closets. In terms of storage, renters are no different than homebuyers – they always need more storage space. If you can, move a wall back a few feet to make a walk-in closet in the bedroom. Or, at the very least, install a shelving system in the bedroom closets in order to make the closet space clearly defined and useable.
   • You can create your own closet system by simply installing a double-up adjustable closet rod (creates an adjustable 2nd rod) for about $10. Installing several shelves and a shoe rack will also do wonders for storage space.
   • All in all, this project should cost you less than $100 and the response you’ll receive from renters will be worth the minor investment.
     
     
5. Get rid of the brass. Brass finishes scream “80s’ and unattended” to renters. It shows that the property has not been brought into the modern times, and therefore not worth paying premium rent to live in.
   • Replace brass doorknockers, doorknobs, lighting fixtures, and cabinet handles/knobs with pewter or brushed nickel finishes. It’s such a small update but it makes a big difference in how the unit is perceived by prospective tenants.

Just one or two of the updates mentioned above will immediately increase the aesthetic appeal of your rental property. However, when all of the updates are implemented together, the results are astronomical: not only will you increase your appeal to renters, but your property value will increase as well.

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Engarde Financial Group is positioned to educate and serve its clients with other insurance coverages.

We understand that your personal items that you possess are of significance to you. Here at EFG we look at every situation differently. When it comes to your needs there is no such thing as one size fits all. Speak to a insurance professional today so that we can design a policy to cover all the things you love.

Unexpected losses can put the best-laid financial plans in turmoil. Insurance coverage is necessary to protect against unexpected costs, property loss, and disability. There are no universal answers to the question of how much insurance is enough. Situations vary.

A single 22-year old, unmarried, in perfect health, without dependents has different needs than a 35-year old working mother of four. But both certainly need insurance coverage.

Some types of insurance are expensive, but that doesn’t mean they’re unnecessary. It’s important to determine your needs before comparing policies.

Consider these insurance buying mistakes:

1. Choosing deductibles that are too low. By doubling your deductible, you could cut your monthly premium by a third. Save the extra money in your savings account. If you do have a claim, you’ll have the extra available to cover the higher deductible. If you don’t have a claim, it’s money in your pocket.
   • This applies to many types of insurance coverage. Compare deductibles and premiums. Do the math and make an informed decision.
     
     
2. Opting for COBRA. The government has given you the right to continue with your employer’s health coverage for up to 18 months after leaving your job. But you’re required to pay 102% of the premium.
   • You can find a better deal on your own. Shop around and find a cost-effective medical plan. Employer-sponsored plans are overkill for many.
     
     
3. Only carrying enough homeowner’s insurance to cover the market value. This is particularly true if you live in an older, larger home. It might cost far more to rebuild your home than it’s worth on the open market. Ensure that you’re covered for the rebuilding cost of your home.
   
   
4. Buying life insurance when you don’t have dependents. It’s challenging to think of a reason for carrying life insurance when you’re single and dependent-free. Life insurance isn’t necessary for everyone. Avoid paying for policies that you don’t even need.
   
   
5. Buying life insurance coverage for your children. Unless you’re financially dependent on your children, it doesn’t make sense to insure them. Life insurance is to financially protect the people that are left behind. If you’re children aren’t contributing financially, avoid insuring them.
   
   
6. Failing to review a company’s complaints. It’s not all about the premium. Saving a few dollars each month might not be worth the hassle when it comes time to make a claim. See how other insurance customers rate their experiences. Paying a couple of dollars more each month might be worth it.
   
   
7. Failing to review all the options each year. It’s common to stick with an insurer for decades. Avoid letting the past determine the future. Review all of your insurance policies each year. You’re bound to find at least one better option.
   
   
8. Only shopping by premium cost. The monthly premium is often the only factor considered by those searching for a policy. But what are you actually getting for that premium? Remember to review the deductible and all the benefits the policy provides.
   • Avoid paying for features you don’t need.
     
     
9. Failing to buy disability insurance. You’re at least 5 times more likely to be disabled than to die, regardless of your age. How will you pay your bills and care for your family if you’re unable to work? Disability insurance can be expensive, but it’s one of the most important policies to carry.

Avoiding mistakes is an effective way to ensure success. Insurance can be expensive, but shopping around can make the necessary coverage more affordable. Determine your needs and purchase insurance intelligently.

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Engarde Financial Group is positioned to educate and serve its clients with other insurance coverages.

We understand that your personal items that you possess are of significance to you. Here at EFG we look at every situation differently. When it comes to your needs there is no such thing as one size fits all. Speak to a insurance professional today so that we can design a policy to cover all the things you love.