Building a Solid Financial House

The joint and survivor annuity ordinarily guarantees you half the pension the two of you were receiving. The benefit offers a somewhat smaller monthly payment, but it guarantees a steady income for two lifetimes (the husband’s and the wife’s). Statistics indicate women live an average of seven to ten years longer than men and the average age of widowhood is 58. And, 80% of the women living in poverty were not poor before their husbands died. Thing twice before you sign away your survivor’s benefit!

Private Mortgage Insurance (PMI)
If you put less than 20 percent down on a home mortgage, lenders often require you to have Private Mortgage Insurance (PMI). PMI protects the lender if you default on the loan. In certain circumstances you can ask to have the PMI canceled once you exceed 20 percent equity in your home. However, federal law does not require your lender to cancel the insurance. But, isn’t it worth checking out? For more information, visit www.FTC.gov.

Increasing Your Insurance Deductibles
Increasing the deductible on your automobile and homeowner’s insurance policy will lower your premiums. Another way to look at this — the more risk you take on, the less your automobile or home insurance will cost. The deductible is the dollar amount of losses or damages that you pay before the insurance company starts paying. It’s the amount that’s your responsibility to pay on any claim. According to experts if you increase your deductible from $250 to $500, you can usually save 10% on your premiums. Increasing the deductible to $1,000 may double your savings. But, if you increase your deductibles make sure you have enough money set aside in your emergency account to pay the higher deductible if you file a claim.

Don’t be caught off guard or by surprise! I know it’s time consuming and sometimes overwhelming, but it’s important to consider and taken action on all the things necessary to build a sturdy financial house.