In no particular order, here’s a few interesting things I heard and read recently that I wanted to share.
Everything You Need to Know About Flood Insurance (Robert W. Klein, Quartz Media)
With the recent hurricanes so drastically affecting our nation (Hurricane Harvey in Texas, Hurricane Irma in Florida), I felt compelled to share a brief read on flood insurance. It came to my attention when learning that approximately 70% of flood losses from Harvey will be UNINSURED. In other words, more than 2/3 of people will experience losses due to flooding (and at an average of $50,000 her household)! The reasons for people not having flood coverage are also surprising: it’s mostly people believing that flooding is covered by their homeowners policy…wrong! Whether you personally have difficulty determining flood risk or feel you need some more education on the topic, take a look at this article and consider yourself better educated!
Are You And Your Millennial Kids Investing Wrong? (Next Avenue, Forbes)
Any investor has a mixture of stocks/bonds/cash, but I didn’t realize (til now) that the average person is holding approx. 14% cash as part of their investment portfolio. Compare this to the average “target date fund” that might be in that person’s 401k plan, this may be an excess. Reasons for all this cash are provided in the article, but I agree with the general rule of thumb provided at the end….invest any money that is over and above 6 months of your living expenses.
The 3 Biggest Misconceptions About Financial Planning (Dan Caplinger, The Motley Fool)
Think you’ve got your financial health under control, and refuse to seek the help of a professional? I stumbled across this quality article which walks the reader through a few misconceptions about the financial planning process. Please consider these as you make your important decisions, and realize there is nothing wrong about admitting you can use some help getting your financial house in order.