Protection and Risk

Justin Gilly

RVA Financial

Debt Management

How and When You Should Borrow Credit Consumer Loans

– Student Loans– Automobile Loans– Home Equity Loans

Home Mortgages

Pros and Cons of using credit

Disadvantages Outside your means Impulse buying. Future income INTEREST!!!!!!!!!!!! Rates chance “Instant gratification.” Too much = poor credit

rating.

Advantages Bargains Use while paying Emergency funds Long-range purchases Credit rating Paper trail Less cash needed

Wise credit practices

10 percent Outlast the credit payment period Down payment Increase in value More than minimum Shop for credit

Credit warning signals

Putting off payments past-due only the minimum 1 to pay 2 Ignoring interest cash advances Credit limits running out of money Failing to save

Consumer Loans

FICO and You Secured vs Unsecured Credit Cards Student Loans Automobile Loans

Home Mortgages

80/20 mortgageAdjustable rate mortgage (ARM)Rural Housing ServiceFederal Housing Administration (FHA)

insured 

Insurance

RISK Types

– Auto Insurance– Life Insurance– Property Insurance– Health Care Insurance– Disability Insurance

Auto Insurance

Rate Factors– Driver

Age and Gender Driving record Marital status

– Vehicle Age and Use Location Cost of repairs to vehicle Safety devices in vehicle

Policy Cost Elements– Coverage

Collision/Comp/UM Medical Liability

– Deductibles

Life Insurance

Risk of Death Policy Type

– Whole Life– Term– Universal Life

Coverage

Property Insurance

Considerations Risk factor where insured lives Value of property Amount of coverage and

deductible Type of coverage selected

Health Insurance

Risks involved in insuring a particular person– Age of insured– Occupation of insured– Physical condition of insured– Sex of insured– Medical history of insured

Amount of coverage and deductible Medical-care cost in local area Type of health insurance selected Type of policy selected — group or individual

Disability Insurance

Do You Need It? Rates and Occupation Where Do You Get It? How Much Do You Need?

Questions?