Saving for Your Child’s Education with a Money Market Account

Since their creation in the 1970s, money market accounts have been a popular way for families to save money – particularly when starting a child’s education fund. Money market accounts are like a hybrid of some of the bank’s most popular products – including investment products along with secure financial options. Put simply, a money market account lets you write checks like a checking account, while getting an interest rate comparable to a savings account. This means you don’t have to keep your money tied up (like with a certificate of deposit) in case of an emergency, but it also allows you to collect interest on your deposit.

Why Investing in Stocks is a Risky Idea

Many people saving for their child’s education suddenly find that by the time their child gets close to college age, the cost for college has increased dramatically. It’s not surprising, since over the past few years alone, college tuition costs have increased up to 40%. Parents, who may be snowed under with debt or struggling to make ends meet, are looking for a quick way to make up the difference, so they hurriedly invest in the stock market. Doing so without any experience or knowledge of how stocks operate is risky and downright perilous in today’s economy. Read the rest of this entry »

What Does Professional Financial Advice Cost?

If you are concerned about what professional financial advice will cost you, you should understand exactly what you are paying for. If you are seeking advice on investments, you will likely deal with a company regulated by the Financial Services Authority (FSA), the UK’s financial services regulator. Your financial adviser should sit down with you, discuss your financial situation and your financial goals. The adviser should then recommend products based on your current financial situation and your short and long term financial goals.

The cost of paying for professional, independent financial advice should be considered an investment in your future financial health. Fees vary among the different companies offering financial advice but remember, you do get what you pay for. If you want to protect and grow your wealth, you shouldn’t hesitate to pay for investment advice.

You should always ask upfront (and get in writing) what the fees for professional advice will be and exactly what services you are paying for. Be sure you understand how the fees are determined (a percentage of your investment, a flat fee, etc.) so you don’t receive any nasty surprises later on. Quality financial advice isn’t cheap but it is worth every penny. If you make a bad investment with your money, you could lose everything. Get professional advice so you can at least have someone to blame if your investments go bad.

Life Insurance For Children. Is it needed?

Some parents may feel coerced into getting a life insurance policy for their children by shrewd insurance salesmen. Others may feel obligated to do so when they get one for themselves. But, the question – life insurance for children: is it a need? – will depend on the financial circumstances of the parents and what benefits the child will accrue by having an insurance policy in his or her name. Just like an adult insurance policy, there are two main types of life insurance policies that can be taken for children:

1. Whole life insurance
2. Term life insurance.

A children’s life insurance policy is worth having for a child with a genetic medical condition as it gives security at later stage of life. Most of the life insurance companies wrongly suggest the parents that child’s life insurance policy is a must. They try to misguide the parents and sell the policies. In fact, it depends on the type of policy. So, don’t believe in this kind of propaganda. The real reason why one should have life insurance policy there should not be future insurability problems. Read the rest of this entry »