What are the benefits of investing in mutual funds?

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A mutual fund is a type of investment created by pooling money from several investors and focusing them all on a specific vehicle like stocks, bonds, money market instruments, and other assets. This kind of investment might be intimidating to some people, but a trustworthy financial advisor will always look after your best interest. Here are some of the many benefits of investing in mutual funds.

As far as investments are concerned, mutual funds are simple and easy to understand. Investing in mutual funds and reaping returns from them does not require a background in investment, economics, or finance.

Mutual funds are also widely accessible. They are offered at almost all brokerage firms, banks, mutual fund companies, discount brokers, and insurance companies. Opening an account doesn't get any easier.

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Mutual funds also have a broad market exposure, making them open to diversification. A single mutual fund can invest in hundreds of different investment opportunities. An option for investors is to diversify into multiple different mutual funds for maximum reach.

Unlike other investments requiring a huge sum of money to start, mutual funds are relatively affordable thanks to their low minimums. A lot of investment firms only require a minimum of $3,000 or less as the initial investment. There are also some cases in which the investor initiates a systematic investment program. In this case, the initial investment can be as low as $1,000.

Delos H. Yancey is the chairman, president, and CEO of State Mutual Insurance. He is a Certified Financial Examiner, a Certified Insurance Examiner, and a fellow of the LIMRA Leadership Institute. For more reads on State Mutual Insurance and their services, visit the company's website.

The interconnections among Affordable Care Act, Medicare, and Medical Supplement Insurance

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The Affordable Care Act as envisioned by the Obama administration wants universal healthcare coverage for Americans. The law then requires all citizens to have health insurance. Medicare subscribers are then already considered compliant and need not take to the Health Insurance Marketplace to avail of a policy.

There are some, however, who are enrolled only in Medicare Part B, or Medical Insurance. Generally, ACA or Obamacare doesn’t affect Medical Supplement Insurance or Medigap policies, but the aforementioned scenario presents a requirement problem for the availment of a Medigap policy. For one, a Medigap policy requires a subscription to both Medicare part A (hospital insurance) and Medicare Part B (medical insurance).

And as it is impossible to have Medicare Supplement Insurance without Medicare subscription, having a Medigap policy will always provide minimum essential coverage under Obamacare. Obamacare does not prevent employers and health insurance companies providing group insurance from denying health coverage for subscribers with pre-existing conditions. However, the Open Enrollment period for the availment of Medigap policies guarantees coverage for all subscribers of Medicare, regardless of their health conditions.

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The Affordable Care Act also imposes a late-enrollment penalty for subscribers to only Medicare Part B, and are belatedly subscribing to Medicare Part A.

It is also important to note that Medigap policies are not part of the Health Insurance Marketplace. Part D drug plans of Medicare are also exempt from this. The ACA provides for subsidies for drugs and is expected to drive down out of pocket costs for drugs.

Led by Delos 'Dee' Yancey III, State Mutual Insurance helps older Americans maintain a sense of security through products designed specifically for their benefit. To know more about the company, visit this website.

Retirement facts and figures to consider

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Amid a financial bloodbath of excess debt, lack of savings, and lack of income, America is going through a growing retirement crisis. In the next two decades alone, around 10,000 baby boomers will turn 65 years old every day.

Here are some retirement facts and figures to think about.

Got savings?: In a recent GoBankingRates.com survey, more than half of Americans had less than $10,000 saved for retirement. One in three had nothing saved.

Cost of care: Sixty percent of pre-retirees do not expect to receive enough income from Social Security and employer pension to pay for basic living expenses in retirement. Four out of 10 retires, too, will spend more than expected on health and long-term care costs during retirement. A mere 7 percent of those over age 65 have long-term care insurance.

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What successful retirement planning takes: One should keep consistent saving in mind to provide for a time when income is no longer generated from a job. The sad truth is that 35 percent of Americans reveals that they don’t contribute to retirement accounts such as a 401(k) or IRA, a 2009 CareerBuilder survey noted.

Retirement might not come on one’s terms: Gallup found that the average retirement age is 62, while the Center for Retirement Research at Boston showed that the average retirement age is around 64 for men, 62 for women. Yet 55 percent of retirees retired earlier than anticipated, citing health reasons and job loss respectively.

There’s a long road to financial literacy: Around the world, 3.5 billion adults, mostly in developing nations, lack an understanding of basic financial concepts, such as inflation and compound interest. This can cause stress and uncertainty, but also prompts millennials to talk to a financial advisor about retirement planning.

Delos H. Yancey III is the chairman, president, and CEO of State Mutual Insurance. For similar reads, click here.

What to know about Endowment benefits

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Endowment life insurance is an insurance resembling a college plan. This type of life insurance combines term life insurance as well as a savings program. People who enter an endowment life insurance plan get to choose how much money they can save and how long they’ll be doing it for. It is through these decisions that the monthly payout, or endowment, is calculated. Endowment policyholders use it for college tuition, fees, living expenses, and more for their children. Here are some of the benefits of this kind of plan.

Two for one

As mentioned earlier, endowment plans are a hybrid of health plans and college plans. When people who are young and healthy consider that, this is a very affordable plan. Although this isn’t the only hybrid plan out there.

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Zero risk

Endowment plans have no investment or interest rate risks. The only catch is that the returns are pretty low, which is more or less the downside of playing it safe. Those who want a bit of a risk can look into either a prepaid tuition plan or a college savings plan.

No medical exams needed

This would seem like a pretty good deal since a lot of life insurance policies require medical exams. This is also why an endowment plan would be very much preferred for people with a medical history that would otherwise ruin their chances of getting other life insurance policies.

Delos H. Yancey is an important part of State Mutual Insurance, a company that provides Medicare Supplement insurance with community service as its main goal. For more on insurance and Medicare, visit this site.

Life insurance has living benefits, too

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Life insurance is a most discouraging prospect in the eyes of one who might bear a very specific attitude. If a person subscribes to the belief that spending for something that can only be enjoyed when he or she passes away is a pointless effort, then he or she is probably right. However, it is so easy to take the reward in isolation, without looking at the benefits of a life insurance policy which can be enjoyed while living. Here are a few of them.

1) Committing to a life insurance policy allows you to borrow against your policy tax-free. On the condition that the policy’s value is already sufficient, you can borrow against your policy. Often, this is lower in interest compared to what the bank may offer. There are implications on the death benefit, though. Your designated agent can give the best advice on this.

2) Your policy can be a source of supplemental income upon retirement. Loans and withdrawals from this can mirror the same dynamics of getting regular keep if the policy is designed specifically for that objective.

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3) Even with term life insurance, you can access your policy’s death benefit for chronic or critical illness. Some life insurance policies offer riders that allow you to access a certain percentage of the policy’s face amount.

These are absolutely legitimate aspects that are common in life insurance policies, which prove that the rewards of your investment are not only to be given upon end of life. Truly, the best reward here may be that you get to live your life with the golden benefit of peace of mind.

Dee Yancey, chairman, president, and CEO of State Mutual Insurance, has ensured his family legacy continues to help older Americans maintain a sense of security with products designed specifically for their benefit. Learn more about mutual insurance and Medicare Supplement insurance by visiting this website.