Managing risk is more important than maximizing gains. We believe you should never invest in anything that you are uncomfortable with or that you don’t understand. While we would prefer to live in a world without risk, this preference simply does not conform to the real world. Therefore, we use risk management techniques and tools to reduce the following risks.
Money and Markets Are InterestingPermanent Life Insurance – Permanent life insurance should be purchased for permanent needs. Final expenses and life insurance for retirement are two basic permanent life insurance needs. Life insurance at retirement is critical because it gives you more options to use your retirement benefits for income rather than life insurance.
Term Life Insurance – Term life insurance is for temporary needs. Term life insurance will compliment your permanent base of life insurance. Decreasing term and level term riders can be added to your permanent policy to take care of temporary needs like mortgage protection and short term debt.
It is important to understand why you are purchasing life insurance. You will be much more content when you establish in your own mind the reasoning behind the purchase. Do a little mini-need analysis. Think about what is important to you and who is important to you. Life insurance is a gift of love.
The Stock Market is Not a Sure ThingFinancial illiteracy isn't a problem limited to students. Half of U.S. adults received a failing grade for their knowledge of basic economic concepts, according to the NCEE.
But there is hope in education. The National Endowment for Financial Education has confirmed that as few as 10 hours of classroom instruction can improve spending and saving habits.
Because financial literacy is fundamental to personal success and a benefit to society, American Century provides support for financial education.
In cooperation with a premier education consultant, the investment manager developed Tips for Kids and Tips for Life, curricula for use in the classroom. To date, these programs have been used by more than 3,000 educators in all 50 states. The free programs are delivered via the Internet to educators and are presented to education conferences to help users implement the programs in their schools.
American Century's efforts to improve financial literacy extend beyond the Tips for Kids and Tips for Life programs. Free educational materials and tools are available on its Web site. And the information presented in American Century founder James E. Stowers' "Yes You Can..." book series is designed to share the personal experiences and ideas that helped him become successful.
Educating today's students on basic financial principles will pay dividends in the future because they are tomorrow's social, political and economic leaders.