The line separating investment and speculation, which is never bright and clear, becomes blurred still further when most market participants have recently enjoyed triumphs. Nothing sedates rationality like large doses of effortless money. After a heady experience of that kind, normally sensible people drift into behavior akin to that of Cinderella at the ball. They know that overstaying the festivities — that is, continuing to speculate in companies that have gigantic valuations relative to the cash they are likely to generate in the future — will eventually bring on pumpkins and mice. But they nevertheless hate to miss a single minute of what is one helluva party. Therefore, the giddy participants all plan to leave just seconds before midnight. There’s a problem, though: They are dancing in a room in which the clocks have no hands…………..quote by Warren Buffett.
Entries Tagged 'Inspired Learning' ↓
Warren Buffett……A fitting Quote…….
June 2nd, 2009 — Inspired Learning
Mortgage Insurance - Good or Bad Investment?
May 10th, 2009 — Inspired Learning
By Charles H. Mutrie
When you signed your new mortgage or renewed your existing mortgage, were you told mortgage insurance was optional? Is mortgage insurance a good investment or not? Well, here is the alternative you may inquire about before accepting the mortgage insurance at the bank.
As you pay your mortgage, the amount of outstanding principal declines with every payment you make. Take a closer look at the fixed payment you make for the mortgage insurance, you will find the payment does not decrease in conjunction with the outstanding mortgage balance. Upon a death the mortgage insurance pays only the amount of outstanding principal of the mortgage.
Consider taking a life insurance policy for an amount equal to the principal amount of your mortgage. Compare the payment of the life insurance policy to the payment of the mortgage insurance and see what the cost difference is. The life insurance will more than likely be the cheaper of the two. Upon a death the life insurance will pay the original amount on the insurance policy and there will be an excess because you have paid off a portion of the outstanding principal.
Don’t always feel obligated to accept the banks terms for mortgage insurance, explore your options and you could save in the long run.
