Pacific American-News Journal
Iulai-July 1996 Volume 2 Issue 7
I've Heard A Lot Of Different Views On Social
Security, What Can You Tell Me?
Most experts agree that Social Security must undergo dramatic
changes if it's going to survive into the 21st century and at
least partially assist Americans in their retirement years. While
the last major changes now provide greater income from Social
Security taxes than that paid out, the experts believe that by
the year 2020 the fund could be in trouble. Remember that Social
Security should be just one measure of your retirement planning.
An investment portfolio and participation in a pension benefit
plan are the other two legs of the 3-legged retirement planning
stool. Save sooner, save more, and invest wisely.
My Portfolio Manager Mentioned These Terms To Me,
Asset Allocator And Contrarian. What Do They Mean?
An asset allocator tries to capitalize on the cyclical
behavior of both the economy and market price trends by moving in
and out of the equity, fixed income, and cash markets in
anticipation of these cycles. Basically, an allocator tries to
cover all bets. A contrarian invests in stocks that are out of
favor or which have little current market interest, on the
premise that gain will be realized when they return to favor.
What's The Difference Between Term And Whole Life
Term life insurance may be defined as a contract that provides
protection for a limited number of years, the face amount being
payable only if death occurs during the stipulated term, and
nothing being paid if the insured survives the stipulated period.
Term insurance has no cash saving value and has been called
temporary or pure protection; since it provides pure protection,
it furnishes the maximum amount of insurance for the lowest
price. There are several types of term policies, the most common
being level, decreasing and increasing.
Whole life insurance, the most traditional form of
"permanent" insurance, is a contract based on the level
premium concept where the assumption is that the premiums will be
paid by the policyowner throughout the insured's lifetime. It
provides permanent protection with a constant face amount insofar
as it never has to be renewed or converted. In addition, it is
characterized by cash surrender value buildup during the life of
I Am Considering Purchasing Either A Universal Life
Insurance Or A Variable Whole Life. What Factors Should I
Both are relatively new products in the life insurance field
and are referred to as interest-sensitive whole life policies. A
universal life insurance is a contract that offers an insured a
great deal of flexibility. It permits the policyowner to adjust
the death benefit of the contract or its cash value depending
upon his varying needs, and involves the combination of term
insurance protection with cash savings value. The interest rate
will vary depending upon the investment performance of the cash
A variable life insurance was designed to combine the
protection and savings features of life insurance with the growth
potential of common stocks. Benefits, payable upon death or
surrender, vary with the investment performance of an underlying
portfolio of securities. Remember that the premiums charged are
David E.K. Cooper is a Certified Financial Planner. Send your
questions to Hale Pai.
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Copyright © 1996 Hale Pai Pacific American-News Journal
Last modified: February 28, 1998
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