Protecting What You Build

Insurance, is, about, transferring, risk., Many, people, pay, a, small,, certain, amount., This, way,, those, who, face, a, large, loss, can, be, covered., You, won't, profit, from, it., On, average,, you, pay, a, bit, more, than, you, get, back., Why?, The, insurer, has, costs, and, needs, to, make, a, margin., That’s, not, a, flaw., You’re, buying, certainty.

This, leads, to, what, you, should, insure., Insure, what, you, can’t, absorb;, self-insure, what, you, can., A, $400, phone, screen, is, annoying, but, manageable., So,, paying, extra, to, cover, it, usually, isn’t, worth, it., However,, a, house, fire,, a, long, illness,, or, being, unable, to, work, for, two, years, isn’t, something, most, households, can, survive, on, savings., That’s, where, transferring, the, risk, makes, sense.

A, deductible, (or, excess), is, the, amount, you, pay, before, coverage, kicks, in., If, you, raise, it,, your, premium, goes, down., Why?, You’ve, taken, back, the, small,, frequent, part, of, the, risk,, leaving, the, insurer, with, the, larger, part., That’s, the, part, worth, transferring., Picking, the, highest, deductible, you, can, comfortably, pay, tomorrow, is, usually, smart.

When, it, comes, to, tax,, one, distinction, clears, up, most, confusion., Your, marginal, rate, applies, to, your, next, dollar, of, income., Your, effective, rate, is, your, total, tax, divided, by, your, total, income., In, a, progressive, system,, the, marginal, rate, is, always, higher, than, the, effective, rate., That’s, because, earlier, income, was, taxed, at, lower, rates.

This, is, why, many, believe, a, raise, can, leave, you, worse, off, by, "pushing, you, into, a, higher, bracket.", That’s, not, true., Only, the, income, above, the, threshold, is, taxed, at, the, higher, rate., Earning, more, always, means, more, money, after, tax., What, changes, is, how, much, of, that, extra, you, keep,, not, the, tax, on, what, you’ve, already, earned.