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September 2019: Month of the Sapphire

September 16, 2019

September - Month of the Sapphire

You are most likely aware that the sapphire is commonly known as September's birthstone. It symbolizes truth, sincerity, and constancy. It is a member of the Corundum (aluminum oxide) family. Although the pastel blue color is most common, a vivid blue gem is preferred.

However, did you know that sapphires also come in a vast array of natural colors and shades and are available in every color but red? There is also a star sapphire. Sapphires other than blue are often referred to as fancy sapphires. Additionally, there are recognized alternative September gemstones including Carnelian, Zircon, Sardonyx, Peridot, and Agate.

The point is, there are many choices of what we generally think of as one option. The same holds true for your money. People have general ideas about how money works but may not be aware of alternative strategies for better efficiency.

I invite you to read this month’s money gems.

Your Money Tips for September:

  1. Money is both a scarcity and a resource. How we handle it determines how much we control it. In many ways, the quality of our lives is determined by our access to money. It is important we understand how it works so we can create income from it, and retain liquidity, use, and control of it. The better our grip is on this resource the more likely we will have a more peaceful retirement.
  2. Disability Insurance – No on-going successful business should be without it for their key employees. It is evident that disability insurance must also be requisite to sound corporate planning, specifically for business continuation. Key person Disability Insurance (DI) should be held in as high a regard as life insurance, but such isn’t always the case. Business owners must be taught that disability insurance is the foundation upon which strong financial protection is created. Source Perspectives, a NAILBA magazine.
  3. September is Life Insurance Awareness month. Some things that are important about life insurance:
    • Life Insurance is a love product.
    • If you understand its true value and benefits, you will purchase as much life insurance as the insurance companies will issue you.
    • You buy it with your health. You pay for by making premium payments.
    • The best life insurance policies are the ones in force when you move-on to the next life.
    • At some point, we all become uninsurable. At that time, we will not be able to purchase life insurance.
  4. Five important points on Money from Warren Buffett Part 1:
    • Rule Number 1-Never Lose Money. Rule Number 2-Never forget rule Number 1
    • It is impossible to un-sign a contract, so do all your thinking before you sign.
    • It is easier to stay out of trouble than it is to get out of trouble.
    • My idea of a group decision is to look in the mirror.
    • You should invest in a business that even a fool can run because someday a fool will.
  5. Another five important points on Money from Warren Buffett Part 2:
    • Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can't buy what is popular and do well.
    • Risk comes from not knowing what you are doing.
    • We never look back. We just figure there is so much to look forward to that there is no sense thinking of what we might have done. It just doesn't make any difference. You can only live life forward.
    • Uncertainty is the friend of the buyer of long-term values.
    • If history was all there was to the game, the richest people would be librarians.
  6. Want to apply for or renew a passport? Make sure your taxes are paid-up. The State Dept. can deny or revoke U.S. passports of individuals with federal tax debts of $52,000 or more and on whom a tax lien has been filed or a levy has been issued. It doesn’t include those who are paying their taxes under an installment agreement, individuals in bankruptcy, people who live in a federally declared disaster area, or people with a tax debt that IRS has determined isn’t collectible because of hardship. Source: Kiplinger Tax Letter August 23, 2019
  7. Open Enrollment for 2018 is right around the corner for both Medicare and Individual Health Insurance. Medicare is October 15 - December 7. This is the time to review your Medicare plan, explore your options and choose the plan that is right for you. The open enrollment for Individual Health Insurance starts on November 1st and ends on December 15th for coverage starting on January 1, 2020. All of the plans sold on or off the exchange must meet the guidelines of the Affordable Care Act and are considered qualified health plans.
  8. Is compounding the 8th wonder of the world? It is if you use the right financial instruments. The cash must be in these accounts for a long period of time, and cannot be interrupted by withdrawals, including taxes and fees. These accounts are available, and if properly structured, can create a great source for accumulating long-term wealth. Do you know which financial accounts fill the bill? Ask your financial advisors and see if they have the answer.
  9. Question the advice you are receiving! Many advisors tout they can give you an unbiased opinion because they aren't paid a commission. Don't be misled. We all have biases, and everyone needs to get paid. Often it is a management fee based on the value of your assets. These fees, over the long-haul, can be substantially higher than the up-front commissions. It is important to discover the real cost of doing business with an advisor.