One Minute Money Lessons: Whom to Trust With Your Finances

When you have finally decided that it’s time to get a little help with your finances, you have taken the first, big step on the road to financial success.  But, now you might feel quite stymied about the best way to find the financial adviser that meets your needs.  There are many different people out there calling themselves “financial advisers.”  As a matter of fact, the term “financial adviser” is not a designation and therefore anyone can call themselves a financial adviser, so you need to know how to choose the right person to meet your needs.

First, determine the type of help you need

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Why Do People Reject Long Term Care Insurance?

I have been involved with long term care insurance for well over a decade, and over the last five years, I have considered myself a long term care insurance specialist. I have concluded that in order to do the job of insuring individuals and families against the threat of chronic care needs, I must be dedicated to it. Offering life insurance, disability or health insurance would only dilute what should be a concentrated effort to make sure families have the proper amount of long term care insurance. In addition, an insurance agent must know how to navigate through the tremendous diversity of health conditions that clients present prior to applying because without the client’s application obtaining approval, all efforts are in vain.

Whether a person has been approved or never makes it to the point of applying for a policy, individuals and couples reject this insurance for the wrong reasons. The most unfortunate reason I have uncovered in my experience is simple denial. People do not want to believe that their vitality will eventually diminish. A person will convince themselves that they will either die in their sleep or drop dead from a heart attack. I have trouble empathizing with this position because it only takes a few minutes of thought to consider how needing chronic care will affect friends and family. When an individual or couple decide against insurance, they should ask the following questions: Who will care for me? Who will coordinate my care? How long can I afford ,000 per year? If my family handles the scheduling of my care, who will train them to do this? How much will that cost? Will they have to leave their job(s) to do this? Can they afford to lose their job(s) if I become their responsibility? Will my friends and family still have to manage my finances? Will I be a burden to my family? Will my spouse have to go back to work if I need care longer than our savings will last? Will there be financial security for my spouse or family after I am gone?

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Equity Financing vs. Debt Capital

Equity financing is usually far more expensive than debt capital. It is imperative that you work with a properly qualified attorney when you are looking for angel investors for equity financing. Angel investors typically invest 0,000 to ,000,000 in each project. Angel investors may provide both equity and debt financing. We shall recommend that you consult with all of your financial advisors before seeking any type of angel investment, venture capital investment, or that capital from a bank. Bankers typically have a tremendous number of contacts as it relates to private investors or other private funding sources.

Financial modeling is an important part of your business as it relates to obtaining either equity financing or debt financing. The return on assets is an extremely important part of a well written business plan specifically for a private funding source.

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