Join Tom for a CE event on July 31!

On July 31, Financial Planning Advocate, LLC will be hosting a CE event with Tom Tillery as the presenter and will address the subject of The Replacement of a Life Insurance Contract: The Good, The Bad and The Ugly.

On a rare occasion, a life insurance contract will have to be replaced. The Internal Revenue Service mandates strict rules as to the replacement and design of the new life insurance contract. Financial advisers need a keen awareness of the applicable sections of the Internal Revenue Code; the various types of life insurance contracts; and the unique features and benefits of each contract type. This presentation will walk the adviser through the replacement process and illustrate the “finished product” with a case study.

The Webcast will be held on Friday, July 31, 2015 at 1:30PM EDT. The course is approved for one hour of CPE and CE. To register for the class, please email us at hello@ttillery.com. Virtual Seating is limited.

Risk Management: Considering Statistics

The trouble ain’t that there is too many fools, but that the lightning ain’t distributed right.

This quote by Mark Twain is a wonderful starting point in a discussion about managing risk in a personal financial plan. One of the areas which needs to be addressed is the statistical odds of an event occurring. Fools (which I make it a point to never call anyone) and lightning provide a wonderful opportunity to discuss some math concepts and risk management.

Everyone has heard the statistical odds of being struck by lightning are approximately one in a million. This statistic is based on the average of reported lightning strikes in the U.S. The math works this way: 310,000,000 (U.S. Population) / 280 (Average annual lightning deaths and injuries) = 1 in 1,107,143. Which is approximately, give or take, one in a million (U.S. National Weather Service).

Now here is where an individual can play and have some fun with statistics. The state within which you live has a tremendous impact on one’s odds of being struck by lightning, which many mean that ‘fools’ are smarter than for which Mr. Twain gives them credit. Those who live in Montana (the Big Sky State!) have a greater statistical chance of being struck by lightning – roughly 1 in 249,550. On the other end of the continuum is California. Residents of that state have the lowest statistical odds of being struck by lightning. So the lesson for each of us is that risk can be managed. Fools do not live in Montana in order to increase their chances of ‘not’ being struck by lightning. [Read more…]