Join Tom for a CE event on April 24!

On April 24, Financial Planning Advocate, LLC will be hosting a CE event with Tom Tillery as the presenter and will address the subject of Personal Financial Planning & Community Property.

Marital property law affects all aspects of the personal financial planning process including: business interests, debt, estate, risk management and tax.
Your clients do not have to reside in a community property state in order for the community property rules to apply to their personal financial planning. The presentation will illustrate the application of community property law to the personal financial planning process, survey the history of Common and Community Property law, review the types of marital property ownership systems, and discuss the concept of ‘once community property always community property’ – regardless of jurisdiction.

The Webcast will be held on Friday, April 24, 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.

Life Insurance: How Much Do You Really Need?

The fear of death follows from the fear of life. A man who lives fully is prepared to die at any time.   Mark Twain

There is a great deal to take away from this quote by Mark Twain. I concur with his sentiment. However, dying at any time presents an unacceptable financial risk to survivors unless the deceased is fully insured for life insurance.

The risk of a pre-mature death is a catastrophic failure of one’s dreams and goals. In today’s society, individuals ‘mortgage’ [French word meaning payable unto death] their futures by borrowing against their potential wages. The result of an untimely death is that the bills all come due at a most inopportune time. [Read more…]

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…]