Investment and Insurance for Employees

The cost of health insurance is approximately 1.4 percent of an employee’s salary. While it is a sound investment for employees and employers, a robust health plan may not cover all medical expenses. Investment in these benefits is essential for any employer’s benefits package. It is also a good idea for employees to set up health savings accounts to pay for medical expenses as they occur.

 A health savings account, tax-free medical expense account, or another type of retirement plan can cover additional costs. So how does a 401k work

Return on investments in pension plans

Pension plans for employees generally invest the money contributed by the employer and employee. The funds are invested to generate returns for future pension payments. These returns serve as earnings by the employee at the time of retirement. There are many advantages and disadvantages of various investment strategies. For example, an investment strategy involving 50% stocks, 30% bonds, and 20% real estate would have a 1 in 2 probability of earning a 6% rate of return. However, the risks of investing in these assets are high, and the investment returns could be below expectations.

While the expected return on investments in public pension plans is below historic levels, some public programs adjust their assumptions to make these investments more stable. For example, the Colorado Public Employee Retirement Association posted a 17.4 percent return for its fiscal year, which is still lower than its projected benefits. In addition, the fund is only generating 63 … Read More

Benefits of Getting Flood Insurance

If you’re living in a flood-prone area, you might want to consider getting flood insurance for your protection. Even though you may not think it’s worth the trouble, you never know how severe the next flooding can get, and how much damage your property might incur.

If you’re still on the fence about investing in flood insurance, here are some benefits that are worth looking into.

Protection for Your Property

Technically, it’s not going to protect your property from flooding, but it can help you recover and repair your damaged property sooner. Valuables may be lost and destroyed during the inundation, and usually, these are not easily replaced. Having an insurance policy on these items in case of flooding can help prevent a total loss.

An important thing to note is that flood insurance should be applied for separately, because it is not automatically included in a homeowner’s insurance policy.

Increase Your Property’s Value

Not too many people know this, but getting flood insurance boosts a property’s value. That’s because having that layer of protection against flooding, especially if the area is prone to it, makes the property more viable for ownership. In a sense, it can be construed as another improvement you’ve done to the place in order to ensure its habitability and upkeep.

Security and Peace of Mind

While hurricanes and their aftereffects can be predicted, the degree to which they occur is not always immediately known. Sometimes, no amount of preparation can prevent the worst kind … Read More