Typical Insurances People Pay for in America

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Insurance premiums are skyrocketing each year, increasing at 20%-50% per year. I thought it would be good to have just a good summary list of typical insurance people pay for in America today. This does not include insurance people buy for investment purposes.

Health-Related Insurance

1. Health Insurance
   Covers medical expenses, including doctor visits, hospital stays, prescriptions, and preventive care. Often provided by employers (with employees still paying a portion of it) or purchased privately.

2. Dental Insurance
   Covers dental care, including cleanings, fillings, and sometimes orthodontics.

3. Vision Insurance
   Covers eye exams, glasses, and contact lenses.

4. Disability Insurance
   Replaces a portion of income if you cannot work due to illness or injury. Includes short-term and long-term disability policies.

5. Long-Term Care Insurance
   Covers expenses for long-term care services, such as nursing homes, assisted living, or in-home care.

6. Supplemental Insurance
   Optional insurance that provides additional coverage for specific needs, such as critical illness, cancer, hospital indemnity, or accident policies. Often complements health insurance by helping with out-of-pocket costs. (Remember AFLAC?)

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Vehicle-Related Insurance

7. Auto Insurance
   Required by law in most states, it covers liability for accidents, as well as damage to or theft of your vehicle (comprehensive).

8. Motorcycle Insurance
   Similar to auto insurance but specific to motorcycles.

9. RV/Boat Insurance
   Covers recreational vehicles or boats, including liability and physical damage.

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Property Insurance

10. Homeowners Insurance
    Covers damage to your home and belongings due to disasters like fire (like the LA fire right now) or theft and includes liability protection.

11. Renters Insurance
    Protects personal belongings and provides liability coverage for those renting their home or apartment.

12. Flood Insurance
    Covers flood damage, often not included in standard homeowners insurance. It’s typically required in high-risk flood areas.

13. Earthquake Insurance
    Covers damage from earthquakes, not included in standard homeowners policies.

14. Home Appliance Warranty Program
    A warranty plan that covers repairs or replacements for major home appliances, such as refrigerators, dishwashers, and HVAC systems. These programs typically cover mechanical breakdowns and provide peace of mind for homeowners.

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Life and Estate Insurance

15. Life Insurance
    Provides a death benefit to beneficiaries. Includes term life (specific duration) and whole life (lifelong coverage with investment components).

16. Employer-Provided Group Term Life Insurance
    Often included as a workplace benefit. While coverage may be free or subsidized, the IRS requires employees to pay taxes on the value of coverage exceeding $50,000.

17. Accidental Death and Dismemberment Insurance (AD&D)
    Pays benefits in cases of death or loss of limbs due to accidents.

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Other Types

20. Pet Insurance
    Covers veterinary bills for pets.

21. Travel Insurance
    Covers trip cancellations, medical emergencies, or lost luggage during travel.

22. Umbrella Insurance
    Provides extra liability coverage beyond home or auto insurance limits.

23. Legal Insurance
    Helps cover legal fees for personal matters.

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Video of The Day:

The DEVASTATING Pacific Palisades fire is still raging. Only 11% has been contained.

AccuWeather estimates the total economic damages of the LA fires at a STAGGERING $135-150 billion.

California's left-wing politicians better BRACE FOR A STORM.pic.twitter.com/byuwl20R9Q

— Steve Hanke (@steve_hanke) January 12, 2025

P.S. Remember, the easiest way to keep up with my journey is by visiting blog.lannyland.com 

Tech Bits: Google Cloud Run vs Google Cloud Functions

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Google Cloud Run and Google Cloud Functions are both serverless computing solutions offered by Google Cloud Platform (GCP). However, they are very different animals.

Google Cloud Run

A serverless platform for deploying and running containerized applications. Using Docker containers, it offers flexibility to run apps in any language or framework.

Key Features:

• Runs Docker-packaged apps.

• Stateless HTTP workloads.

• Auto-scales traffic, including to zero.

• Supports any containerized language.

• Pay for used CPU, memory, and requests.

Use Cases:

• APIs or microservices.

• Hosting web apps.

• Batch jobs and custom tasks.

• Specialized runtime workloads.

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Google Cloud Functions

A lightweight serverless platform for running single-purpose, event-driven tasks. Developers can focus on code while Google handles infrastructure.

Key Features:

• Triggered by events (e.g., Cloud Storage, Pub/Sub).

• Write small functions in supported languages (Node.js, Python, etc.).

• Auto-scales with event volume.

• Pay for execution time and memory.

Use Cases:

• Event-driven tasks.

• Handling HTTP requests or APIs.

• File processing (e.g., image resizing).

• Pub/Sub message processing.

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Key Differences Between Cloud Run and Cloud Functions

Feature	Google Cloud Run	Google Cloud Functions
Deployment	Containerized apps (Docker).	Single-purpose functions.
Runtime Flexibility	Any containerized language.	Limited runtimes (Node.js, etc.).
Triggers	Stateless HTTP requests.	Events or HTTP triggers.
Scaling	Scales with traffic.	Scales with events.
Complexity	Complex apps or microservices.	Simple, event-based tasks.
Customization	Full control via containers.	Minimal customization.

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Choosing the Right Solution

1. Use Google Cloud Functions if:

   • Workloads are event-triggered (e.g., file uploads).

   • Simplicity and fast setup are priorities.

   • Minimal runtime customization is needed.

2. Use Google Cloud Run if:

   • Building REST APIs, web services, or complex apps.

   • Custom runtime environments or dependencies are required.

   • Consistency between dev and production environments matters.

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Example Scenarios

• Event-Driven Task: Auto-resize images on file upload.

  • Best Option: Cloud Functions

• REST API: Manage inventory with a custom framework.

  • Best Option: Cloud Run

• Background Processing: Process millions of Pub/Sub messages.

• Best Option: Functions for simple logic; Run for complex tasks.

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Video of The Day:

The most expensive house burned down in the LA fire.

P.S. Remember, the easiest way to keep up with my journey is by visiting blog.lannyland.com

Money Matters: Growth, Value, and Income Investment Strategies

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You probably hear the terms Growth, Value, and Income a lot when it comes to investing in the equity market. Today, we explain what they mean in both individual stocks and pooled investments like mutual funds and ETFs.

1. Growth Investments

Growth investments focus on companies or funds expected to experience faster-than-average revenue or earnings growth. These companies often reinvest their profits back into the business to fuel expansion rather than paying dividends.

Growth Stocks

• Characteristics:
  • High price-to-earnings (P/E) ratios.
  • Often found in industries like technology, healthcare, or renewable energy.
  • Minimal or no dividend payouts.
• Pros:
  • Potential for significant price appreciation.
  • Suitable for long-term investors with a higher risk tolerance.
• Cons:
  • High volatility.
  • Risk of overvaluation if growth expectations are not met.

Growth Mutual Funds and ETFs

• Focus: Invest primarily in growth stocks.
• Advantages:
  • Diversification across multiple growth companies.
  • Professional management (mutual funds) or low-cost passive options (ETFs).
• Risks:
• Similar to individual growth stocks, but diversification reduces some company-specific risks.

Examples:

• Stocks: Tesla, Amazon, Nvidia.
• Mutual Funds/ETFs: ARK Innovation ETF (ARKK), Fidelity Growth Company Fund (FDGRX).

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2. Value Investments

Value investments target undervalued companies trading at prices below their intrinsic value. These companies often have strong fundamentals but may be overlooked by the market due to temporary challenges.

Value Stocks

• Characteristics:
  • Low P/E and price-to-book (P/B) ratios.
  • Often mature companies in stable industries.
  • Frequently pay dividends.
• Pros:
  • Opportunity to buy at a "discount" and benefit as the market corrects.
  • Lower volatility compared to growth stocks.
• Cons:
• May remain undervalued for a long time.
• Limited upside compared to high-growth stocks.

Value Mutual Funds and ETFs

• Focus: Invest in stocks that are considered undervalued relative to their fundamentals.
• Advantages:
  • Provide access to a diversified basket of value stocks.
  • Lower risk of individual stock mispricing.
• Risks:
• Sector-specific downturns can impact returns (e.g., value funds often concentrate on financials or energy).

Examples:

• Stocks: Coca-Cola, Johnson & Johnson, Berkshire Hathaway.
• Mutual Funds/ETFs: Vanguard Value ETF (VTV), Dodge & Cox Stock Fund (DODGX).

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3. Income Investments

Income investments prioritize generating consistent cash flow through dividends or interest payments. These are popular with retirees or those seeking steady income streams.

Income Stocks

• Characteristics:
  • High dividend yields.
  • Often found in sectors like utilities, real estate (REITs), or consumer staples.
  • Low growth potential but stable performance.
• Pros:
  • Regular income through dividends.
  • Lower volatility compared to growth stocks.
• Cons:
  • Limited potential for capital appreciation.
  • Dividends may be cut during economic downturns.

Income Mutual Funds and ETFs

• Focus: Invest in dividend-paying stocks or bonds.
• Advantages:
  • Diversification across multiple income-producing assets.
  • Convenient for consistent cash flow.
• Risks:
• Vulnerable to interest rate changes (especially bond-heavy funds).
• Dividend cuts or defaults by underlying companies.

Examples:

• Stocks: AT&T, Procter & Gamble, Realty Income (REIT).
• Mutual Funds/ETFs: Vanguard High Dividend Yield ETF (VYM), Schwab U.S. Dividend Equity ETF (SCHD).

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How to Choose the Right Strategy

Your investment choice between growth, value, and income depends on your financial goals, risk tolerance, and time horizon:

• Growth:
  • Best for younger investors or those with a long time horizon.
  • High risk, high reward.
• Value:
  • Ideal for investors seeking stable, long-term growth with lower risk.
  • Good for those who can patiently wait for the market to recognize undervalued opportunities.
• Income:
  • Perfect for retirees or those looking to supplement their income.
  • Focused on stability and cash flow rather than capital appreciation.

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Conclusion

Growth, value, and income investments each serve different purposes in a well-rounded portfolio. A successful investment strategy should combine these in the portfolio, matching the investor's needs and risk tolerance level.

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Picture of The Day:

Now this is a real Money Tree

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— Dr. Tree (@lannyland.com) January 11, 2025 at 10:51 PM

P.S. Remember, the easiest way to keep up with my journey is by visiting blog.lannyland.com 

Age Matters: Important Ages for Tax and Financial Milestones

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Just a good summary list of all the ages that matter in the tax and financial sense.

For Children and Young Adults

• Age 13:

  • Childcare Tax Credit: Parents can claim childcare expenses for the Childcare Tax Credit only until the child turns 13 (unless the child has a disability).

• Age 18:

  • Child Tax Credit Ends: The Child Tax Credit ends in the year a child turns 18.

  • Kiddie Tax Rules Apply: Children under 18 (and in some cases up to 23) with unearned income may have it taxed at their parents' tax rate.

  • Earned Income Matters: At 18, individuals can open a retirement account like a Roth IRA if they have earned income.

• Age 19 (or 24 if a student):

  • Dependent Status: Parents can claim a child as a dependent until age 19, or up to 24 if the child is a full-time student.

• Age 26:

• Health Insurance: Children can stay on their parents' health insurance plan until they turn 26.

Midlife Milestones

• Age 50:

  • Catch-Up Contributions Begin: You can make additional “catch-up” contributions to retirement plans, such as 401(k)s, 403(b)s, and IRAs. For 2025, the limits are an additional $7,500 for 401(k)s and $1,000 for IRAs.

• Age 55:

  • HSA Catch-Up Contributions: Eligibility to contribute an extra $1,000 annually to a Health Savings Account (HSA).

  • Early Retirement Withdrawals: If you leave your job in the year you turn 55 or later, you can take penalty-free withdrawals from 401(k) or 403(b) plans.

• Age 59½:

• Penalty-Free Withdrawals: You can withdraw from traditional IRAs and 401(k)s without incurring the 10% early withdrawal penalty, although income tax still applies.

Retirement Planning

• Age 62:

  • Social Security Eligibility: This is the earliest age you can start claiming Social Security benefits. However, benefits will be permanently reduced if taken before full retirement age.

• Age 65:

  • Medicare Eligibility: At 65, you qualify for Medicare (Parts A, B, and D).

  • HSA Contributions End: Once enrolled in Medicare, you can no longer contribute to a Health Savings Account (HSA).

• Age 66-67:

  • Full Retirement Age (FRA): Depending on your birth year, this is when you qualify for 100% of your Social Security retirement benefits.

• Age 70:

• Maximized Social Security: If you wait until age 70 to claim Social Security, you’ll receive the highest possible monthly benefit.

Later Years

• Age 73:

  • Required Minimum Distributions (RMDs): RMDs from traditional IRAs and 401(k)s must begin unless you’re still working. This age applies to individuals born in 1951 or later.

• Age 75:

  • Catch-Up Contribution Rule (2025): Individuals earning more than $145,000 annually must make catch-up contributions to 401(k) plans as Roth contributions.

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Conclusion

Understanding these key ages can help you make informed decisions about your financial and retirement planning. Whether you’re helping a child transition to independence, preparing for retirement, or managing healthcare and taxes, knowing these milestones can give you a clear advantage. Planning ahead is essential to make the most of your financial opportunities and to avoid costly mistakes.

Stay proactive, and consult a financial advisor to ensure you’re leveraging every benefit available at these critical ages.

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Picture of the Day

[image or embed]

— Dr. Tree (@lannyland.com) January 8, 2025 at 11:46 AM

P.S. Remember, the easiest way to keep up with my journey is by visiting blog.lannyland.com 

How to Make Your To-Do List Actually Useful - The 6-Box Template

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To-do lists are everywhere, but most people don’t use them effectively. Instead of helping, they often turn into endless, guilt-inducing lists of unchecked tasks. After plenty of trial and error, I’ve figured out a system that actually works. And today, I’m sharing it with you.

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My 6-Box To-Do List Template

First, let me introduce you to the secret weapon that keeps me organized: the 6-Box To-Do List template I created myself. I use this every day on my iPad with the Goodnotes app (which, by the way, is free). Here’s how it works:

At the top, I write the date and day of the week (I usually create pages for the entire week at once). The template itself is a simple 2x3 table that divides my tasks into Home and Work categories. Each category is further split into three types: Must, Ideal, and Must NOT.

Here’s the breakdown:

• Must: This is the non-negotiable stuff. Things I absolutely have to do today or tasks I’m highly motivated to complete. The key is to prioritize. Keep this list short and focus on crossing off at least 80% of it.

• Ideal: These are my “bonus” tasks. I’d like to get them done, but if I don’t, no big deal. It’s like the dessert of my productivity day—nice to have, but not essential.

• Must NOT: This is where things get interesting. This box is my reminder of what NOT to do today. It could include:

  1. Tasks that aren’t worth my time (hello, endless scrolling through YouTube shorts).

  2. Things I’m intentionally pushing to another day because they’re too time-intensive or require more focus than I’ve got for the day.

Writing these down is like decluttering my brain. It’s a mental unload that helps me stay focused and stress-free.

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My To-Do List Principles

Having a great template is only half the battle. Here are some key principles I follow to make sure my To-Do List works for me, not against me:

1. The 5-Minute Rule: If a task takes 5 minutes or less, just do it now. Don’t waste time writing it down. The exception? If you have a bunch of quick tasks to remember, jot them all down together before they skip your brain.

2. Keep the Must Box Manageable: Overloading this box is a surefire way to set yourself up for failure. If you’re constantly carrying tasks over to the next day, it’s time to re-evaluate and preload tasks to future days.

3. Separate Repeating Tasks: Daily habits (like drinking water or checking email) don’t belong on your To-Do List. Use a habit tracker or a different tool for those. I’ll dive deeper into this in a future blog post.

4. Start Your Day with a Plan: Creating or finalizing your To-Do List first thing in the morning is a great way to plan the day. It sets the tone, helps you prioritize, and ensures you’re clear on your goals right from the start.

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A Few Touchups in Goodnotes

1. Stamps: Sometimes, I like to spice up my To-Do List with digital stamps, marking tasks as either Important (stuff that might get me in trouble if I skip) or Happy (tasks that bring me joy when completed). These items are more likely to get done.
2. Highlighter: When I complete a task, I use the highlighter tool to mark it. There’s something immensely satisfying about seeing those colorful highlights at the end of the day. It’s like a visual trophy case of your productivity, and reviewing the list becomes a moment of pride instead of stress.
3. Cut/Paste: One of the reasons I love using Goodnotes for my To-Do List is how easy it is to move tasks around. Didn’t finish something today? Drag it to tomorrow. Priorities shifted? Rearrange your boxes without rewriting a thing.

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Final Thoughts: Less Stress, More Success

A good To-Do List isn’t about cramming as much as possible into your day. It’s about focusing on what matters, staying organized, and giving yourself the mental space to actually enjoy crossing things off. With the 6-Box method, I hope you feel more in control.

So give it a try, and let me know how it goes in the comments.

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Picture of The Day

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— Dr. Tree (@lannyland.com) January 11, 2025 at 9:02 PM

P.S. Remember, the easiest way to keep up with my journey is by visiting blog.lannyland.com