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 mortgage
 Adjustable rate mortgage (ARM)
 Rural Housing Service
 Federal 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

Policy Cost Elements
–



Vehicle




Age and Use
Location
Cost of repairs to vehicle
Safety devices in vehicle
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?