1. You’re a statistic.
To an insurer, you’re not a person; you’re a set of risks. An insurer bases its premium (or its decision to insure you at all) on your “risk factors,” including your occupation, who you are, what you own, and how you live. (more…)
1. Stocks aren’t just pieces of paper.
When you buy a share of stock, you are taking a share of ownership in a company. Collectively, the company is owned by all the shareholders, and each share represents a claim on assets and earnings. (more…)
1. Over the long term, stocks have historically outperformed all other investments.
From 1926 to 2005, the S&P 500 returned an average annual 10.46 percent gain. The next best performing asset class is bonds. Long term U.S. Treasury notes returned, on average, 5.08 percent over the same period. (more…)
Mortgages should be straightforward - you borrow money to buy a house and pay interest on the loan.
But after a few enquiries, you soon realise that it’s not so simple after all.
In a hugely competitive market, building societies and banks are continually updating and extending their range of mortgages. The list is already extensive enough to baffle all but the most determined.
The most important points are how you pay back the capital you borrow and how you pay the interest on it. (more…)