Types of financial risk

WEBVTT
Kind: captions
Language: en

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- So let's talk about
what I would consider

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a little bit of a downer topic,

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and then that's a financial risk.

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And I'll just tell you about the things

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that I worry about.

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First and foremost,

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what happens if I lose my job?

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And maybe it's a bad economy,

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and I have trouble getting a job,

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or I have trouble getting a job

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that's at the same level of income.

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What will I and my family

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then do to support ourselves?

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How will we pay our mortgage?

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How will we pay down
other things that we need?

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How will we pay for food, et cetera.

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And in general, that type of risk.

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I think the best way to mitigate it

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if it happens is to have a nest egg

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to start saving money so that you can have

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several months to live off of it ideally,

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so that you have time to find a job,

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and you have a little bit of a cushion.

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If you need to downsize,

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it allows you to transition there.

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Another thing that I worry about is,

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well, what if something not losing my job,

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but what if I get injured in some way?

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What if I fall sick

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or what if someone I
care about falls sick,

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and they need help with
their medical bills?

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That could be a very, very,

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very significant expense.

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Now, things like illness

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or if I were to somehow
get disabled somehow,

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so I can't work,

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there are sometimes insurances for that,

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especially things like
disability insurance,

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but once again, probably
the the best option.

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You might be able to get some insurance,

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but also to have a nest egg

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to save some money so that

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in case something were to happen,

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where the income gets interrupted

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either for yourself or
your partner or others,

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that you have a cushion
to support you in that.

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But there are many, many
other types of risks.

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As I said,

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this is going to be a downer conversation.

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There's the risk of death.

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And I know what some
of y'all are thinking.

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I thought this a little
bit when I was young.

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Well, once I die,

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you know, why would I worry about finances

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at that that point?

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Well, there might be people

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who are dependent on
you that you care about,

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that you want to still
be in a good situation.

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And you know, I for example,

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once I had kids,

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I completely understood

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the point of life insurance.

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And so one, you can once again save money.

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Saving money is usually a good solution

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for many, many, many, many things.

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But on top of that, you know,

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I just recently extended
my life insurance policy

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so that if anything were to happen to me,

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obviously our income would go away.

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My wife might need more help,

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help being able to raise the family.

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So I have a life insurance policy

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to help in that situation.

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So if I were to pass,

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the insurance company would pay

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my family money to help them out.

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And I will say that even savings,

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and investment come with
some financial risk.

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You can lose money on your savings

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or especially on your investment.

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The stock market can go down.

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You might have a lot of your savings.

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In fact, most people do

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have a lot of their wealth in their house,

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and housing prices can sometimes go down.

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So that is a real risk.

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And even with savings,

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if there's a lot of inflation,

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and your money's just sitting in the bank

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getting less interest

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than the amount of inflation

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that there's there, then in actual ability

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to buy things with that money,

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it could be going down.

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So there's even a risk there.

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So generally speaking, it you know,

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I don't want you to get too anxious

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or paranoid about financial risk,

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but it's healthy to be
aware of all of the risks

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that might be out there.

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I didn't list all of them.

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And the general mechanisms

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you're going to have to make sure that

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that you have some cushion in life

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is ideally saving and
then you might be able

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to get insurance for certain things.

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And there's other types of risk.

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I mean the more I think about it,

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unfortunately, it's easy
to think of other words.

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There's liability.

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If you got into a car accident

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and and you're in the wrong,

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and someone sues you,

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you could owe a lot of money to them.

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And once again, there's
insurances for that.

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Liability insurance.

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But if it goes above and beyond

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the insurance cap,

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or if you didn't have insurance,

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people could go bankrupt over a liability

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or owing someone.

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You could have property damage.

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Let's say your house
gets struck by lightning

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or burns down and you didn't have

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insurance on it,

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well that can really hurt you financially.

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So once again, think about the risks.

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Don't, don't have too
many sleepless nights

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about them.

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I try not to.

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But best thing is to just think about

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where you can be insured
and it's reasonable.

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Think about where you can save money,

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and then also be very careful

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so that some of these risks

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don't hap happen to you.

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Like you know, take precautions

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so that hopefully you don't have liability

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or take precautions so that

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someone can't steal your identity

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or steal your credit card,

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and take money from you.

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That's another financial risk.

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And that one is, well,

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there is some identity theft insurance,

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and things like that,

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but that you know,

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the best thing to do
is just to be careful.

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So be careful out there.

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Save your money and you might wanna

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think about insurance where appropriate.


Insurance terminology

WEBVTT
Kind: captions
Language: en

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- Now let's talk about some of the words

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you're likely to hear if
you're dealing with insurance.

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So the first one is a premium
or an insurance premium,

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and that's really just what you're paying

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in order to get the insurance.

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So if you pay, let's say $200
a month for health insurance,

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that $200 a month is your premium.

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Now the other number

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or the other word you'll
hear a lot is deductible.

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Now this is an amount of money

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that you're going to have to pay

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and then only when you
get above that amount,

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then the insurance kicks in.

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So let's say your health
insurance has a $5,000 deductible,

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and let's say you have to
go through some type of,

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and let's say it's the
beginning of the year.

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Usually it's based on a calendar year,

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and you have to get some
type of healthcare done,

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and it costs $2,000.

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Well, you're going to pay
that $2,000 out of pocket.

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You're going to pay that yourself,

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because you haven't
hit the deductible yet.

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Let's say you have to
go in that same year,

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do another thing that costs $3,000.

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Once again, you're going
to pay that out of pocket,

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which is just another way of saying

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you're gonna pay that yourself.

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It's not gonna come through insurance,

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but so far you have paid $5,000,

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$2,000 for the first thing,
$3,000 for the second thing.

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And now if you were to go

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and let's say have to get a
another $5,000 procedure done

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in that same year,

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now the insurance will kick in

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because you used up your deductible.

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So if there's a $5,000 deductible,

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and you'll see it on health insurance,

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you'll see it on car insurance.

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You pay that first amount,

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and then the insurance kicks
in above and beyond that.

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Now you might say,

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"Well, why would I ever
have or want a deductible?"

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Well, usually the higher the deductible,

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the lower your premium.

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You usually have to pay less

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for insurance that has a high deductible.

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From an insurance company's point of view,

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they say, "Okay, the deductible
is kind of an incentive

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for you to not necessarily
use this service,

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you know, get your car
in a wreck all the time,

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or necessarily have to go
to healthcare all the time."

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And from your point of view,

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you might say, "Hey, you know what?

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I really, I'm willing
to take a deductible,

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because at the end of the day,

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insurance is really for

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if the bills become really,
really, really large."

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So just another example.

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Let's say your car insurance
has a $5,000 deductible.

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Well, I'll use a different number.

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Let's say your car insurance
has a $1,000 deductible,

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and then you were to get into
some type of a fender bender,

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and the mechanic says,

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"It's gonna cost $3,000
to repair this car."

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Well, then you would file a claim

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with your insurance company,

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that's saying, "Hey, something happened.

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I'm gonna need to get
paid out a little bit,

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'cause I've been paying
this premium all this time."

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And the insurance company
says, "Okay, we'll pay it,

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but you have a $1,000 deductible.

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So you pay that $1,000 out of pocket,

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and then we are going to
pay the remaining $2,000

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for that total of $3,000 for the repair."

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Now, the last thing I'll talk about is,

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there's oftentimes some type of limit

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to the insurance policy,

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or sometimes they'll
call it a policy limit,

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and that's this idea

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that the insurance might cover
you up to a certain amount.

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So let's say you have liability insurance.

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That's really just insurance

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in case someone sues you
for doing something wrong.

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Usually that has a limit to it,

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so it might have a $100,000 limit

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or $500,000, whatever it means.

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And what that means is,
let's say someone sues you,

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and if the court decides

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that you have to pay them $100,000,

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let's say your limit is $100,000,

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then the insurance company
will pay the $100,000.

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But let's say the court decides

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that you owe that other
person who just sued you

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for some type of liability.

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Let's say you have to owe them $125,000.

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Well, then the insurance company
will go up to the 100,000

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and then you're gonna have to pay

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that other $25,000 out of pocket.

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One last word now that
I really think about,

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is the notion of a copay,

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and you're gonna see a copay a lot

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when you're thinking
about health insurance,

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whether it's health insurance
or dental insurance.

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And that's this idea that

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let's say you go for
your regular checkups,

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either your dental checkups
or your healthcare checkups.

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You might see copays at other places.

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The actual cost of that
checkup might be three or $400,

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and the insurance company
says, "You know what?

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We will cover some of this,

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what we'll call preventative care,"

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which is care that, you know, checkups,

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make sure you don't get sicker.

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And it makes sense for
insurance companies to do that,

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because the sicker you get,

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the more expensive your
health bills could get.

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But they say,

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"There is some amount that
you have to pay alongside us,"

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so that's what the copay is.

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So for example, with my health insurance,

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I go, I get a checkup, I
have to pay a $20 copay.

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It might cost a few hundred dollars

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of what the insurance company's paying,

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but I pay $20 alongside that.

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So hopefully you're a little
bit more knowledgeable

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about some of the words of insurance.

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I obviously, I didn't
know all of these words

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until, honestly, I had left college

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and I had to get insurance myself.

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So if you already know these,

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and especially if you haven't got,

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you know, if you're younger,

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you're very much ahead of the curve.


Car insurance basics

WEBVTT
Kind: captions
Language: en

00:00:01.230 --> 00:00:04.740
- So cars are something
that usually involves

00:00:04.740 --> 00:00:06.000
some type of insurance.

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One cars are a pretty expensive
asset that many of us own.

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The other issue is cars are
driving around pretty fast

00:00:13.050 --> 00:00:16.440
and they can actually cause
a lot of damage to property

00:00:16.440 --> 00:00:18.150
or to people.

00:00:18.150 --> 00:00:19.740
And so the first thing to think about

00:00:19.740 --> 00:00:22.170
of any type of insurance
is what's the premium?

00:00:22.170 --> 00:00:23.430
What do you pay for that insurance?

00:00:23.430 --> 00:00:25.950
And then what's the deductible?

00:00:25.950 --> 00:00:28.260
Remember, in other videos we
talk about that deductible.

00:00:28.260 --> 00:00:30.060
If you have a $5,000 deductible

00:00:30.060 --> 00:00:32.580
that means you have to spend
the first $5,000 yourself.

00:00:32.580 --> 00:00:34.320
People will often say that's out of pocket

00:00:34.320 --> 00:00:36.270
and then the insurance kicks in.

00:00:36.270 --> 00:00:38.760
Usually the higher the deductible

00:00:38.760 --> 00:00:40.440
for a given amount of coverage

00:00:40.440 --> 00:00:42.780
or depending on the different
dimensions of coverage,

00:00:42.780 --> 00:00:44.460
the lower the premium's going to be

00:00:44.460 --> 00:00:45.960
because the insurance company feels like,

00:00:45.960 --> 00:00:47.250
well, yeah it's gonna be less likely

00:00:47.250 --> 00:00:49.230
that we're going to have
to pay for something.

00:00:49.230 --> 00:00:51.330
But then above and beyond
premiums and deductibles

00:00:51.330 --> 00:00:53.010
there's a lot of different dimensions

00:00:53.010 --> 00:00:54.750
of automobile insurance.

00:00:54.750 --> 00:00:57.570
The first dimension is that of liability.

00:00:57.570 --> 00:00:59.160
And liability really matters

00:00:59.160 --> 00:01:02.850
because a car might cost
tens of thousands of dollars

00:01:02.850 --> 00:01:05.850
but if heaven forbid you
were to run into someone

00:01:05.850 --> 00:01:07.620
or cause damage to someone else,

00:01:07.620 --> 00:01:11.940
especially if they could
get really hurt or worse

00:01:11.940 --> 00:01:16.590
you could be liable for hundreds
of thousands of dollars.

00:01:16.590 --> 00:01:19.620
So it could be much more
expensive than the car itself.

00:01:19.620 --> 00:01:21.720
And many states actually require you

00:01:21.720 --> 00:01:24.060
to actually have liability insurance,

00:01:24.060 --> 00:01:25.620
even if you aren't required,

00:01:25.620 --> 00:01:29.040
I highly recommend that you
have liability insurance

00:01:29.040 --> 00:01:30.630
and no matter how carefully you drive

00:01:30.630 --> 00:01:33.930
and I do recommend you drive
carefully, accidents do happen.

00:01:33.930 --> 00:01:35.670
People clearly get hurt on the road,

00:01:35.670 --> 00:01:37.380
and if someone were to sue you

00:01:37.380 --> 00:01:38.970
and you were to lose a lawsuit

00:01:38.970 --> 00:01:40.230
that would cost a lot of money.

00:01:40.230 --> 00:01:41.850
And even if you don't lose the lawsuit

00:01:41.850 --> 00:01:43.800
the legal expenses can be a lot.

00:01:43.800 --> 00:01:47.010
So having liability
insurance can help out there.

00:01:47.010 --> 00:01:49.380
Now, beyond liability, obviously,

00:01:49.380 --> 00:01:51.480
what most people think of when
they think of car insurance

00:01:51.480 --> 00:01:53.250
is your car gets into an accident,

00:01:53.250 --> 00:01:55.170
there is some damage involved,

00:01:55.170 --> 00:01:57.030
how do you repair that damage?

00:01:57.030 --> 00:01:59.280
So that is collision insurance

00:01:59.280 --> 00:02:00.577
and many car insurances, they'll say,

00:02:00.577 --> 00:02:02.430
"Okay, we're gonna cover
liability for this much.

00:02:02.430 --> 00:02:04.110
We're gonna cover collision for this much.

00:02:04.110 --> 00:02:06.360
And that's pure if you get in an accident,

00:02:06.360 --> 00:02:07.920
you are covered for that."

00:02:07.920 --> 00:02:09.840
Now, sometimes there's
another little piece

00:02:09.840 --> 00:02:11.850
called uninsured insurance,

00:02:11.850 --> 00:02:15.240
or if someone is underinsured or uninsured

00:02:15.240 --> 00:02:18.030
and your car gets damaged, well then,

00:02:18.030 --> 00:02:19.470
and really they were at fault.

00:02:19.470 --> 00:02:21.540
Some states don't try
to say who is at fault

00:02:21.540 --> 00:02:23.730
and different people's
insurance just covered

00:02:23.730 --> 00:02:24.660
their own stuff.

00:02:24.660 --> 00:02:26.850
But in other states they
say, "Okay, who is at fault?"

00:02:26.850 --> 00:02:29.490
If let's say I get into
a car accident with you,

00:02:29.490 --> 00:02:34.320
and if I was at fault, if they
decide that I was at fault,

00:02:34.320 --> 00:02:35.760
then my insurance would have to cover

00:02:35.760 --> 00:02:39.210
not just the damage to my
car, but to your car as well.

00:02:39.210 --> 00:02:41.640
But then if I wasn't insured,

00:02:41.640 --> 00:02:43.440
then you would have a situation

00:02:43.440 --> 00:02:47.010
where you have the underinsured
or uninsured policy

00:02:47.010 --> 00:02:48.420
where if you get into
an accident with someone

00:02:48.420 --> 00:02:51.720
who's not insured, even
if they were in fault

00:02:51.720 --> 00:02:53.490
that it will still cover it.

00:02:53.490 --> 00:02:55.740
So you have the liability,
you have the collision.

00:02:55.740 --> 00:02:57.300
If you actually get into an accident

00:02:57.300 --> 00:02:58.860
and there's damage, we could talk about

00:02:58.860 --> 00:03:03.000
if it covers the uninsured or
underinsured side of things.

00:03:03.000 --> 00:03:04.170
But then what if a situation

00:03:04.170 --> 00:03:05.700
where you didn't get into a car accident,

00:03:05.700 --> 00:03:08.760
a tree falls on your car
or hail damages your car,

00:03:08.760 --> 00:03:10.650
or someone steals your car?

00:03:10.650 --> 00:03:13.020
Well, that's comprehensive coverage.

00:03:13.020 --> 00:03:14.250
So collision is an accident.

00:03:14.250 --> 00:03:16.800
Comprehensive covers all
of these other things.

00:03:16.800 --> 00:03:18.570
It is literally comprehensive.

00:03:18.570 --> 00:03:21.510
And then the last dimension
is medical expenses.

00:03:21.510 --> 00:03:22.343
Obviously,

00:03:22.343 --> 00:03:24.450
none of us want to fall into
one of these situations,

00:03:24.450 --> 00:03:26.430
but if you get into a car accident,

00:03:26.430 --> 00:03:28.680
it's not just your car
that might get damaged,

00:03:28.680 --> 00:03:30.780
you or other occupants in your car

00:03:30.780 --> 00:03:33.870
or someone else's car
might get hurt as well.

00:03:33.870 --> 00:03:36.720
And as you know, medical
expenses, or maybe you don't know,

00:03:36.720 --> 00:03:38.700
medical expenses could easily be

00:03:38.700 --> 00:03:40.080
tens of thousands of dollars.

00:03:40.080 --> 00:03:44.340
It could be more costly than
the value of the car itself.

00:03:44.340 --> 00:03:47.190
So once again, that's
another piece of insurance.

00:03:47.190 --> 00:03:49.650
So when you get into a policy
look at what you're paying,

00:03:49.650 --> 00:03:52.830
look at the premium and
look at the deductible,

00:03:52.830 --> 00:03:54.750
but not all insurances are equivalent.

00:03:54.750 --> 00:03:56.490
Obviously, you have different deductibles

00:03:56.490 --> 00:03:58.830
but they all have different amounts.

00:03:58.830 --> 00:04:01.980
Some you should see whether
your policy even covers,

00:04:01.980 --> 00:04:03.930
liability versus collision
versus comprehensive

00:04:03.930 --> 00:04:05.280
versus medical expenses.

00:04:05.280 --> 00:04:06.810
What are the different deductibles?

00:04:06.810 --> 00:04:08.220
Do they have limits under those?

00:04:08.220 --> 00:04:10.890
Do they have certain restrictions
where it might not apply?

00:04:10.890 --> 00:04:13.020
Does it apply if only you're the driver

00:04:13.020 --> 00:04:14.460
or someone else is the driver?

00:04:14.460 --> 00:04:15.720
So these are all the details

00:04:15.720 --> 00:04:17.940
that it's really good
for you to know about

00:04:17.940 --> 00:04:21.693
when you're making insurance
purchasing decisions.


Consumer protection

WEBVTT
Kind: captions
Language: en

00:00:01.380 --> 00:00:03.660
- So one thing to think
about as you think about

00:00:03.660 --> 00:00:07.290
your own financial literacy is
what do you do in a situation

00:00:07.290 --> 00:00:10.290
where you try to interact
with some type of a business

00:00:10.290 --> 00:00:13.620
or a financial institution
and they either are

00:00:13.620 --> 00:00:16.530
misinforming you in some
way or they're not doing

00:00:16.530 --> 00:00:17.760
what they said they would do?

00:00:17.760 --> 00:00:22.230
For example, let's say that
you buy something online

00:00:22.230 --> 00:00:25.620
and you give the payment,
you give the credit card,

00:00:25.620 --> 00:00:26.850
and they take the money from you

00:00:26.850 --> 00:00:28.620
but they don't send you what you thought

00:00:28.620 --> 00:00:29.820
they were going to send you.

00:00:29.820 --> 00:00:33.090
Or let's say you buy a product
and it breaks immediately

00:00:33.090 --> 00:00:34.800
and maybe it's still in warranty,

00:00:34.800 --> 00:00:36.540
but they don't really fix that.

00:00:36.540 --> 00:00:38.250
Who could you turn to?

00:00:38.250 --> 00:00:41.460
Well, the main entity in
the United States for that

00:00:41.460 --> 00:00:43.170
is known as the Better Business Bureau,

00:00:43.170 --> 00:00:45.150
sometimes BBB for short.

00:00:45.150 --> 00:00:47.940
And it's actually an
independent not-for-profit

00:00:47.940 --> 00:00:50.160
but it exists for this exact reason.

00:00:50.160 --> 00:00:53.370
If there's a business
that you think is doing

00:00:53.370 --> 00:00:55.020
not so great business practices,

00:00:55.020 --> 00:00:58.380
you can file a complaint with
the Better Business Bureau

00:00:58.380 --> 00:01:00.960
and they actually will log that complaint

00:01:00.960 --> 00:01:05.040
and they keep track the
same way that businesses

00:01:05.040 --> 00:01:08.516
or financial institutions keep
track of your credit score.

00:01:08.516 --> 00:01:11.040
The Better Business Bureau
keeps scores or ratings

00:01:11.040 --> 00:01:14.490
for businesses on how good
their business practices are.

00:01:14.490 --> 00:01:17.370
And it's somewhat
measured by the complaints

00:01:17.370 --> 00:01:19.470
that people are putting
in on that business

00:01:19.470 --> 00:01:23.910
and to what degree those
complaints are actually legitimate.

00:01:23.910 --> 00:01:26.280
Now, it's not just about buying a product

00:01:26.280 --> 00:01:29.070
or whether someone fixes
a product or warranty,

00:01:29.070 --> 00:01:31.800
there's also situations
where people might use

00:01:31.800 --> 00:01:35.040
misinformation or maybe
not complete information

00:01:35.040 --> 00:01:37.380
or not complete education
to take advantage

00:01:37.380 --> 00:01:39.270
of you the consumer.

00:01:39.270 --> 00:01:42.240
There's a lot of situations
if you go back into actually

00:01:42.240 --> 00:01:45.270
just world history where
especially financial institutions

00:01:45.270 --> 00:01:47.280
say, hey, give us a
little bit of this money

00:01:47.280 --> 00:01:49.080
and we'll invest it in really good ways

00:01:49.080 --> 00:01:50.940
and it's gonna come out really well,

00:01:50.940 --> 00:01:53.160
or we'll give you this loan

00:01:53.160 --> 00:01:55.140
and there's no strings attached,

00:01:55.140 --> 00:01:56.640
but maybe there are some strings attached.

00:01:56.640 --> 00:01:58.830
Or maybe it was a more of
a loan than you realized

00:01:58.830 --> 00:01:59.663
you were getting into,

00:01:59.663 --> 00:02:01.440
or there's certain aspects of the loan

00:02:01.440 --> 00:02:03.600
that might get you in trouble.

00:02:03.600 --> 00:02:06.420
And to help prevent that
there is a federal agency

00:02:06.420 --> 00:02:08.520
called the Consumer
Financial Protection Board.

00:02:08.520 --> 00:02:11.460
It came out of the banking crisis of 2011,

00:02:11.460 --> 00:02:15.210
when there were a lot of
folks who were kind of

00:02:15.210 --> 00:02:17.400
not given all the details
or maybe didn't have all

00:02:17.400 --> 00:02:19.950
of the necessary information
to make a decision

00:02:19.950 --> 00:02:21.270
about taking out a big loan

00:02:21.270 --> 00:02:24.150
or maybe the interest rate will
change dramatically, go up.

00:02:24.150 --> 00:02:26.070
They didn't realize the
risks that were involved

00:02:26.070 --> 00:02:28.950
of taking out a big loan for an asset

00:02:28.950 --> 00:02:30.570
that was very speculative.

00:02:30.570 --> 00:02:32.970
Maybe the price of that
might go down like a house

00:02:32.970 --> 00:02:34.920
in an area where the housing prices

00:02:34.920 --> 00:02:35.970
have just gone up a lot.

00:02:35.970 --> 00:02:39.480
And more extreme examples
there's things like payday loans

00:02:39.480 --> 00:02:42.180
where fairly vulnerable folks
might go into these loans

00:02:42.180 --> 00:02:45.000
not understanding the interest involved

00:02:45.000 --> 00:02:49.200
which is ginormous, to
use a technical word.

00:02:49.200 --> 00:02:51.540
So that's what the Consumer
Financial Protection Board does

00:02:51.540 --> 00:02:53.850
is to make sure that folks are informed,

00:02:53.850 --> 00:02:55.710
that people aren't doing misinformation

00:02:55.710 --> 00:03:00.150
or taking advantage of
people's lack of knowledge.

00:03:00.150 --> 00:03:02.550
Now, those are the two big
ones on a federal level,

00:03:02.550 --> 00:03:04.740
but there's also going to be other groups.

00:03:04.740 --> 00:03:07.830
There's groups that help
monitor the types of securities

00:03:07.830 --> 00:03:08.670
that might get issued.

00:03:08.670 --> 00:03:09.840
You might say, well, what's a security?

00:03:09.840 --> 00:03:12.030
Well, it's things like a stock or a bond.

00:03:12.030 --> 00:03:14.610
And as you can imagine,
if there's some kind of

00:03:14.610 --> 00:03:17.100
shady company that really
has nothing behind it

00:03:17.100 --> 00:03:18.540
but says, hey, here's some shares

00:03:18.540 --> 00:03:20.670
and these shares are
in the newest hot thing

00:03:20.670 --> 00:03:23.370
like it's artificial
intelligence, biotech,

00:03:23.370 --> 00:03:25.470
whatever, whatever, a
lot of people might say,

00:03:25.470 --> 00:03:27.390
oh, I'm just gonna buy those
shares without realizing

00:03:27.390 --> 00:03:28.710
there's no company behind it.

00:03:28.710 --> 00:03:31.650
And so you also have groups that regulate

00:03:31.650 --> 00:03:33.060
things like securities.

00:03:33.060 --> 00:03:35.640
You have groups that regulate
especially at a state level,

00:03:35.640 --> 00:03:37.080
insurance.

00:03:37.080 --> 00:03:38.670
It's one thing for someone
to say they're going

00:03:38.670 --> 00:03:40.740
to insure you and collect your premium,

00:03:40.740 --> 00:03:43.020
but when the bad thing actually happens

00:03:43.020 --> 00:03:45.390
and you need to get the the payout,

00:03:45.390 --> 00:03:47.040
are they going to be there for you?

00:03:47.040 --> 00:03:49.530
That's why insurance is
pretty regulated to make sure

00:03:49.530 --> 00:03:51.450
that the people who say
they're offering insurance

00:03:51.450 --> 00:03:53.280
are actually good for it.

00:03:53.280 --> 00:03:56.340
So you need to be wary,
you need to be careful,

00:03:56.340 --> 00:03:57.870
but you should also be conscientious

00:03:57.870 --> 00:03:59.970
that there are entities out there

00:03:59.970 --> 00:04:03.063
that are there to help
inform and protect you.


Area with partial grids

WEBVTT
Kind: captions
Language: en

00:00:00.000 --> 00:00:02.010
- [Teacher] We're told,
"The following rectangle

00:00:02.010 --> 00:00:06.000
is partially split into unit squares.

00:00:06.000 --> 00:00:09.570
What is the area of the rectangle above?"

00:00:09.570 --> 00:00:12.930
So pause this video and see
if you can figure that out.

00:00:12.930 --> 00:00:15.300
Alright, now let's do this together.

00:00:15.300 --> 00:00:18.030
So first it's good to just
know what do they mean

00:00:18.030 --> 00:00:19.920
when they say area?

00:00:19.920 --> 00:00:22.800
Well, they say it's partially
split into unit squares.

00:00:22.800 --> 00:00:24.060
When they're talking about a unit square

00:00:24.060 --> 00:00:26.730
they're talking about a square like this.

00:00:26.730 --> 00:00:28.920
And when we're talking about area,

00:00:28.920 --> 00:00:32.220
we're talking about how
many of these unit squares

00:00:32.220 --> 00:00:35.400
would exactly cover this entire shape.

00:00:35.400 --> 00:00:38.400
That many unit squares would be the area

00:00:38.400 --> 00:00:40.860
of this entire rectangle.

00:00:40.860 --> 00:00:42.600
So how could we do that?

00:00:42.600 --> 00:00:45.930
Well, what we could do is we
could keep drawing these lines

00:00:45.930 --> 00:00:47.790
that have already been partially drawn,

00:00:47.790 --> 00:00:51.720
and we can then see how many
of these unit squares we have.

00:00:51.720 --> 00:00:54.930
So let's just finish
drawing these lines here.

00:00:54.930 --> 00:00:57.420
I'll try to draw it as neatly as I can.

00:00:57.420 --> 00:01:02.250
So we have that. We have that like there.

00:01:02.250 --> 00:01:06.090
And then let me complete this one,

00:01:06.090 --> 00:01:09.210
and let me complete that
one. I'm almost done.

00:01:09.210 --> 00:01:12.720
That one and then that one.

00:01:12.720 --> 00:01:14.580
And so what we have here,

00:01:14.580 --> 00:01:16.620
let's see how many rows do we have?

00:01:16.620 --> 00:01:21.620
We have 1, 2, 3, 4, 5 rows.

00:01:22.470 --> 00:01:27.393
And in each of those rows, let
me do it this way, five rows.

00:01:28.620 --> 00:01:31.290
And in each of those rows,
how many squares do we have?

00:01:31.290 --> 00:01:35.850
Let's see, we have 1, 2, 3, 4.

00:01:35.850 --> 00:01:39.240
So you could view it as,
we have five rows of four.

00:01:39.240 --> 00:01:42.540
So how many total of
these unit squares exactly

00:01:42.540 --> 00:01:43.710
cover this rectangle?

00:01:43.710 --> 00:01:45.330
Well, we could just count them.

00:01:45.330 --> 00:01:47.310
We could see that that is going to be,

00:01:47.310 --> 00:01:48.840
well it's gonna be five rows of four.

00:01:48.840 --> 00:01:50.970
So it's gonna be one row, that's four.

00:01:50.970 --> 00:01:54.510
then another four, then another
four, and then another four,

00:01:54.510 --> 00:01:55.770
and then another four.

00:01:55.770 --> 00:01:58.710
And let's see, yep, I
have five fours here.

00:01:58.710 --> 00:02:01.920
I'm adding the five
rows of four each there.

00:02:01.920 --> 00:02:04.110
And what is that going to be equal to?

00:02:04.110 --> 00:02:06.660
Well, this is going to be equal
to four, plus four is eight,

00:02:06.660 --> 00:02:11.550
plus four is 12, plus four
is 16, plus four is 20.

00:02:11.550 --> 00:02:14.220
So the area of the rectangle
above is going to be 20.

00:02:14.220 --> 00:02:16.860
And it's important to say, "20 of what?"

00:02:16.860 --> 00:02:19.350
It's 20 square units.

00:02:19.350 --> 00:02:22.080
Or maybe I could say
unit squares. Either way.

00:02:22.080 --> 00:02:24.300
But I'll call it square units.

00:02:24.300 --> 00:02:26.493
And we are done.


Decimal multiplication with grids

WEBVTT
Kind: captions
Language: en

00:00:00.480 --> 00:00:03.990
- [Instructor] So we're told
the entire figure is one whole.

00:00:03.990 --> 00:00:07.470
So that is this entire
square right over there.

00:00:07.470 --> 00:00:11.490
And then they ask us which
multiplication equation

00:00:11.490 --> 00:00:13.590
best represents the figure.

00:00:13.590 --> 00:00:14.940
And so we're supposed to choose one

00:00:14.940 --> 00:00:16.050
of these four right over here.

00:00:16.050 --> 00:00:18.300
So pause this video, try it on your own

00:00:18.300 --> 00:00:20.103
before we work through it together.

00:00:21.060 --> 00:00:23.190
All right, now let's
work through it together.

00:00:23.190 --> 00:00:27.300
So this whole square is a
whole, and now let's first think

00:00:27.300 --> 00:00:30.660
about what's going on with this 3/10.

00:00:30.660 --> 00:00:32.640
So they've labeled the 3/10

00:00:32.640 --> 00:00:35.970
as three of these vertical
bars right over here.

00:00:35.970 --> 00:00:40.970
We could view the 3/10 as
these three vertical bars.

00:00:42.060 --> 00:00:45.690
And then they also have this 7/10,

00:00:45.690 --> 00:00:50.100
which are seven of these horizontal bars.

00:00:50.100 --> 00:00:54.530
And notice each of those
bars are 1/10 of the whole.

00:00:54.530 --> 00:00:57.030
So we have seven of these horizontal bars.

00:00:57.030 --> 00:00:58.410
If that doesn't look like seven bars,

00:00:58.410 --> 00:00:59.700
let me just draw it this way.

00:00:59.700 --> 00:01:04.673
So that's one, two, three, four,

00:01:05.970 --> 00:01:08.820
five, six, and seven.

00:01:08.820 --> 00:01:10.680
And of course we see something similar

00:01:10.680 --> 00:01:12.120
with these vertical bars.

00:01:12.120 --> 00:01:16.560
That's one, two, and three.

00:01:16.560 --> 00:01:18.360
Now what's going on here is we're looking

00:01:18.360 --> 00:01:21.450
at where these bars overlap.

00:01:21.450 --> 00:01:23.760
And one way to think about that is

00:01:23.760 --> 00:01:28.020
the overlap is going
to be 3/10 times 7/10.

00:01:28.020 --> 00:01:30.330
You could view this overlap...

00:01:30.330 --> 00:01:31.920
Let me do this in another
color right over here.

00:01:31.920 --> 00:01:33.990
This overlap right over here.

00:01:33.990 --> 00:01:36.630
You could view that as 7/10 of the 3/10

00:01:36.630 --> 00:01:38.340
or 3/10 of the 7/10

00:01:38.340 --> 00:01:41.610
or 7/10 times 3/10.

00:01:41.610 --> 00:01:44.580
So we immediately know it's
going to be either this choice

00:01:44.580 --> 00:01:47.149
that has 0.3 times 0.7

00:01:47.149 --> 00:01:51.270
or this choice that has 0.3 times 0.7.

00:01:51.270 --> 00:01:52.950
But let's see what this should be.

00:01:52.950 --> 00:01:54.960
Well, when we look at that overlap,

00:01:54.960 --> 00:01:57.810
we get 21 of these squares,

00:01:57.810 --> 00:02:00.690
because we have seven in this direction,

00:02:00.690 --> 00:02:01.523
three in this direction.

00:02:01.523 --> 00:02:04.110
I could count them, but
we have 21 squares here.

00:02:04.110 --> 00:02:07.830
And each of those squares are
what fraction of the whole?

00:02:07.830 --> 00:02:12.330
Well, each of those squares
are now 1/100 of the whole

00:02:12.330 --> 00:02:14.220
because this is now a 10 by 10 grid,

00:02:14.220 --> 00:02:16.500
each of those is 1/100.

00:02:16.500 --> 00:02:19.140
So in the overlap we
have 21 of these squares,

00:02:19.140 --> 00:02:21.570
that's 21/100.

00:02:21.570 --> 00:02:24.990
So 21/100 is 0.21.

00:02:24.990 --> 00:02:28.770
That's the same thing as 21/100,

00:02:28.770 --> 00:02:31.740
which is this choice right there.

00:02:31.740 --> 00:02:32.573
And we're done.


Electric forces

WEBVTT
Kind: captions
Language: en

00:00:01.100 --> 00:00:03.290
- Have you ever taken
a shirt out of a dryer

00:00:03.290 --> 00:00:05.490
and found a sock stuck to it?

00:00:05.490 --> 00:00:07.160
If you have, you might have noticed

00:00:07.160 --> 00:00:09.180
that once you pull the sock off

00:00:09.180 --> 00:00:10.950
it was still attracted to the shirt

00:00:10.950 --> 00:00:12.620
even when they weren't touching.

00:00:12.620 --> 00:00:14.550
What is even happening here?

00:00:14.550 --> 00:00:17.040
Well, it turns out
there's an electric force

00:00:17.040 --> 00:00:18.760
between the shirt and the sock.

00:00:18.760 --> 00:00:22.750
Electric forces are a
type of non-contact force,

00:00:22.750 --> 00:00:25.010
which means they can act on objects

00:00:25.010 --> 00:00:26.453
that aren't even touching.

00:00:27.440 --> 00:00:30.290
If you've ever noticed two
balloons repelling each other,

00:00:30.290 --> 00:00:32.180
or if you've ever noticed your hair

00:00:32.180 --> 00:00:34.710
sticking to something like
a balloon or a sweater,

00:00:34.710 --> 00:00:36.750
that's what I'm talking about.

00:00:36.750 --> 00:00:39.160
But why is there an electric force between

00:00:39.160 --> 00:00:42.570
the shirt and the sock after
they're taken out of the dryer?

00:00:42.570 --> 00:00:45.920
Well, it turns out that
electric forces are caused

00:00:45.920 --> 00:00:49.740
by a property of matter
called electric charge.

00:00:49.740 --> 00:00:53.560
Matter is made up of tiny
particles that can have positive,

00:00:53.560 --> 00:00:56.350
negative, or neutral charge.

00:00:56.350 --> 00:00:59.720
Neutral just means that the
electric charge is zero,

00:00:59.720 --> 00:01:01.453
not positive or negative.

00:01:03.010 --> 00:01:05.970
When you add up all these
charges most objects

00:01:05.970 --> 00:01:08.900
tend to have a net charge
that is about neutral.

00:01:08.900 --> 00:01:12.070
Otherwise we'd be attracted
to all sorts of things,

00:01:12.070 --> 00:01:13.770
just like that sock.

00:01:13.770 --> 00:01:17.250
However, an object's charge can change.

00:01:17.250 --> 00:01:20.370
So in the dryer all that heat and movement

00:01:20.370 --> 00:01:23.130
allowed some negative
charges from the shirt

00:01:23.130 --> 00:01:25.150
to move to the sock.

00:01:25.150 --> 00:01:27.360
Now, when you try to separate the two,

00:01:27.360 --> 00:01:29.180
they're both electrically charged

00:01:29.180 --> 00:01:31.870
and there's an electric
force between them.

00:01:31.870 --> 00:01:34.730
So now that we know what
causes an electric force,

00:01:34.730 --> 00:01:38.040
let's look at what affects
its direction and strength.

00:01:38.040 --> 00:01:42.410
An electric force can
attract or repel an object.

00:01:42.410 --> 00:01:44.590
But how do you know if an electric force

00:01:44.590 --> 00:01:46.850
will be attractive or repulsive?

00:01:46.850 --> 00:01:50.010
Well, as the saying
goes, opposites attract.

00:01:50.010 --> 00:01:52.240
An object with a negative electric charge

00:01:52.240 --> 00:01:55.700
will be attracted to a
positively charged object.

00:01:55.700 --> 00:01:59.360
If the second object is
also negatively charged,

00:01:59.360 --> 00:02:02.430
well, the two objects will
experience a repulsive force

00:02:02.430 --> 00:02:04.333
and be repelled from each other.

00:02:05.170 --> 00:02:07.400
So in order to have the sock and the shirt

00:02:07.400 --> 00:02:11.170
attracted to each other they
must have opposite net charges

00:02:11.170 --> 00:02:14.823
because they're experiencing
an attractive electric force.

00:02:15.770 --> 00:02:18.660
What about the strength
of that electric force?

00:02:18.660 --> 00:02:21.050
Strength will depend
on a couple of factors.

00:02:21.050 --> 00:02:23.660
First, the charge of each object

00:02:23.660 --> 00:02:25.970
is proportional to the force.

00:02:25.970 --> 00:02:29.550
The stronger the charges, the
stronger the electric force.

00:02:29.550 --> 00:02:32.000
So the greater the electric charge,

00:02:32.000 --> 00:02:34.000
the greater the electric force.

00:02:34.000 --> 00:02:36.310
Another factor, how far apart

00:02:36.310 --> 00:02:38.200
the objects are from each other.

00:02:38.200 --> 00:02:42.170
The electric force will weaken
as the distance increases.

00:02:42.170 --> 00:02:47.033
So the force decreases as
our distance increases.

00:02:48.700 --> 00:02:51.080
As you move the sock away from the shirt

00:02:51.080 --> 00:02:53.730
eventually the attraction
between them is so weak

00:02:53.730 --> 00:02:55.413
that we don't even notice it.

00:02:56.410 --> 00:02:59.170
So the next time you find
yourself doing laundry

00:02:59.170 --> 00:03:02.890
and having to pull a sock off of a shirt,

00:03:02.890 --> 00:03:06.153
just remember invisible
electric forces are to blame.


Supplemental insurance

WEBVTT
Kind: captions
Language: en

00:00:01.050 --> 00:00:04.050
- So let's talk a little bit
about supplemental insurance.

00:00:04.050 --> 00:00:06.840
Now, it is what the words describe it as,

00:00:06.840 --> 00:00:08.130
it is a supplement,

00:00:08.130 --> 00:00:10.260
to usually some other existing insurance.

00:00:10.260 --> 00:00:12.090
It's insurance above and beyond

00:00:12.090 --> 00:00:14.040
things that you might already have.

00:00:14.040 --> 00:00:16.860
So there's a lot of examples
of supplemental insurance,

00:00:16.860 --> 00:00:21.270
but they they usually try
to cover specific things

00:00:21.270 --> 00:00:22.740
that you might worry about.

00:00:22.740 --> 00:00:26.310
For example, there might be
mortgage payoff life insurance.

00:00:26.310 --> 00:00:28.320
One of the main reasons why, for example,

00:00:28.320 --> 00:00:31.380
I have life insurance, is if
something were to happen to me,

00:00:31.380 --> 00:00:33.780
I want my family to still be
able to live in our house,

00:00:33.780 --> 00:00:35.610
and to be able to pay off our mortgage,

00:00:35.610 --> 00:00:37.410
and not worry about where
that income's coming in,

00:00:37.410 --> 00:00:40.320
so I've gotten enough
life insurance to do that.

00:00:40.320 --> 00:00:42.030
But the insurance companies
know that sometimes

00:00:42.030 --> 00:00:45.630
people worry specifically
about that situation.

00:00:45.630 --> 00:00:48.750
And so people might get
that very specific type

00:00:48.750 --> 00:00:51.960
of life insurance, mortgage
payoff life insurance,

00:00:51.960 --> 00:00:53.550
which you could view as a supplement

00:00:53.550 --> 00:00:55.320
to traditional life insurance.

00:00:55.320 --> 00:00:56.910
Now, if you've got enough life insurance,

00:00:56.910 --> 00:00:58.740
you should be able to pay your mortgage,

00:00:58.740 --> 00:01:00.480
and then, hopefully, do other things

00:01:00.480 --> 00:01:02.460
that your family needs to support them.

00:01:02.460 --> 00:01:04.470
But this might be a
supplement that you look at.

00:01:04.470 --> 00:01:07.200
But whenever you look at
any form of insurance,

00:01:07.200 --> 00:01:10.290
realize that the insurance
company has done the statistics,

00:01:10.290 --> 00:01:12.090
and they're gonna make money off of it.

00:01:12.090 --> 00:01:13.680
Now that doesn't mean
that you shouldn't do it.

00:01:13.680 --> 00:01:16.320
Oftentimes it will protect
you in a lot of ways,

00:01:16.320 --> 00:01:18.510
so it is worth doing it,
but you should think about

00:01:18.510 --> 00:01:20.820
whether you need to do it, or
whether it's already covered

00:01:20.820 --> 00:01:22.590
by another insurance you have.

00:01:22.590 --> 00:01:25.680
Another example is car insurance.

00:01:25.680 --> 00:01:28.530
You might have comprehensive
car insurance already,

00:01:28.530 --> 00:01:30.927
where if the car not
only gets in an accident,

00:01:30.927 --> 00:01:34.200
but if it's stolen, if a tree falls on it,

00:01:34.200 --> 00:01:35.760
the insurance company will pay you

00:01:35.760 --> 00:01:38.220
the cash value of the car.

00:01:38.220 --> 00:01:40.590
And so if you wanted, you could
go and get another used car

00:01:40.590 --> 00:01:41.880
just like that.

00:01:41.880 --> 00:01:44.700
Now some people, if you're
not paying off your debt

00:01:44.700 --> 00:01:46.440
fast enough on your car loan,

00:01:46.440 --> 00:01:49.470
the cash value of your car might be less

00:01:49.470 --> 00:01:51.480
than the amount that you
owe back on your car.

00:01:51.480 --> 00:01:53.400
Now that's, in general,
not a good situation,

00:01:53.400 --> 00:01:55.380
if you're paying back your car loan

00:01:55.380 --> 00:01:58.110
slower than your car is
actually losing value,

00:01:58.110 --> 00:02:00.300
not a great situation to be in.

00:02:00.300 --> 00:02:02.700
But a lot of folks
wouldn't want to get money

00:02:02.700 --> 00:02:05.550
from an insurance company
for, say, a car got totaled,

00:02:05.550 --> 00:02:08.460
and it still can't even
pay back the total loan

00:02:08.460 --> 00:02:09.300
available on the car.

00:02:09.300 --> 00:02:13.290
So they have things like auto
loan payoff car insurance,

00:02:13.290 --> 00:02:14.280
which you could view as a supplement

00:02:14.280 --> 00:02:15.720
to traditional insurance.

00:02:15.720 --> 00:02:18.480
But once again, it's not a
great situation to be in,

00:02:18.480 --> 00:02:20.730
and in theory, even if
the insurance company

00:02:20.730 --> 00:02:22.260
is paying you the cash value,

00:02:22.260 --> 00:02:24.210
you could go and get
an equivalent used car.

00:02:24.210 --> 00:02:25.890
And even though you owe
more money than that,

00:02:25.890 --> 00:02:28.020
you're kind of in the
same situation you were

00:02:28.020 --> 00:02:31.110
before the accident, or
whatever scenario you were in.

00:02:31.110 --> 00:02:34.020
But the general principle,
supplemental is above and beyond.

00:02:34.020 --> 00:02:35.940
Maybe you have insurance,
dental insurance,

00:02:35.940 --> 00:02:38.190
or life insurance, or some
other type of insurance

00:02:38.190 --> 00:02:39.607
from your employer, and you just think,

00:02:39.607 --> 00:02:40.920
"Hey, I would like more insurance,

00:02:40.920 --> 00:02:42.060
they're not giving me enough."

00:02:42.060 --> 00:02:43.050
Well, that could be a good reason

00:02:43.050 --> 00:02:44.950
to get supplemental insurance as well.


Features of property insurance

WEBVTT
Kind: captions
Language: en

00:00:01.110 --> 00:00:05.579
- So let's talk a little bit
more about property insurance,

00:00:05.579 --> 00:00:06.412
and in particular,

00:00:06.412 --> 00:00:07.245
what are scenarios

00:00:07.245 --> 00:00:10.260
in which it might come
into effect or be relevant?

00:00:10.260 --> 00:00:13.350
And then also how you might be paid back

00:00:13.350 --> 00:00:15.600
for whatever losses you might have.

00:00:15.600 --> 00:00:17.790
So there's kind of two broad categories

00:00:17.790 --> 00:00:19.290
of bad things happening.

00:00:19.290 --> 00:00:22.380
One is something bad happens
to your property itself.

00:00:22.380 --> 00:00:24.060
The house burns down, there's a flood,

00:00:24.060 --> 00:00:26.250
there's an earthquake, there's theft.

00:00:26.250 --> 00:00:28.590
Things are stolen, things are vandalized.

00:00:28.590 --> 00:00:31.230
The other category is
something bad happened

00:00:31.230 --> 00:00:36.210
in the house and a court
decides that it's your fault.

00:00:36.210 --> 00:00:37.410
So this could be a situation

00:00:37.410 --> 00:00:42.030
where maybe you rent
the house out to someone

00:00:42.030 --> 00:00:44.250
and you knew that there
was some structural damage,

00:00:44.250 --> 00:00:46.080
but a ceiling fan still
falls on that person

00:00:46.080 --> 00:00:47.340
even though you were warned.

00:00:47.340 --> 00:00:48.900
Well then you are,

00:00:48.900 --> 00:00:51.330
then that's probably some
liability that you have there.

00:00:51.330 --> 00:00:53.130
And they might have a legitimate lawsuit.

00:00:53.130 --> 00:00:56.340
Or let's say your sidewalk
has a huge tripping hazard

00:00:56.340 --> 00:00:57.270
that you knew about

00:00:57.270 --> 00:00:58.770
and you just decided not to fix it.

00:00:58.770 --> 00:01:01.770
Someone comes and trips on your walkway

00:01:01.770 --> 00:01:05.160
or your driveway and they hurt
themselves in a serious way.

00:01:05.160 --> 00:01:08.010
Maybe they could sue you,
maybe they could win.

00:01:08.010 --> 00:01:10.680
You have liability there, and
that could be a lot of money.

00:01:10.680 --> 00:01:11.820
It could be tens of thousands

00:01:11.820 --> 00:01:13.860
or even hundreds of thousands of dollars

00:01:13.860 --> 00:01:15.720
depending on what goes on.

00:01:15.720 --> 00:01:16.800
So these are all situations

00:01:16.800 --> 00:01:18.720
that you want to insure yourself against.

00:01:18.720 --> 00:01:20.370
Obviously, if your house burns down,

00:01:20.370 --> 00:01:21.540
that could cost a lot of money.

00:01:21.540 --> 00:01:23.280
If someone trips and
falls and hurts themselves

00:01:23.280 --> 00:01:25.650
on your property and they
sue you and they win,

00:01:25.650 --> 00:01:26.790
that could also cost a lot of money.

00:01:26.790 --> 00:01:27.690
Even if they lose,

00:01:27.690 --> 00:01:31.170
just the legal expenses
could cost a lot of money.

00:01:31.170 --> 00:01:33.390
Now the other situation is

00:01:33.390 --> 00:01:36.840
what will the actual
insurance companies pay for?

00:01:36.840 --> 00:01:38.310
So if you're thinking about

00:01:38.310 --> 00:01:40.320
the property actually getting destroyed,

00:01:40.320 --> 00:01:41.550
there's two ways to think about it.

00:01:41.550 --> 00:01:42.933
They could say,

00:01:42.933 --> 00:01:44.700
"Hey, we're just gonna pay
to replace the property."

00:01:44.700 --> 00:01:47.370
And so there you're talking
about replacement cost.

00:01:47.370 --> 00:01:50.310
So what would it cost and
say to rebuild the house

00:01:50.310 --> 00:01:52.440
and then to buy the
different things that you had

00:01:52.440 --> 00:01:53.273
in the house,

00:01:53.273 --> 00:01:55.560
the personal property if it's insured

00:01:55.560 --> 00:01:56.850
that you had in your house.

00:01:56.850 --> 00:01:59.040
Another version would be cash value.

00:01:59.040 --> 00:02:02.220
What was the the value of of the house?

00:02:02.220 --> 00:02:04.290
And maybe they pay that.

00:02:04.290 --> 00:02:06.510
Now, the value for a house,

00:02:06.510 --> 00:02:10.020
it's very seldom that the
actual land gets destroyed.

00:02:10.020 --> 00:02:12.600
And oftentimes the land is a big part

00:02:12.600 --> 00:02:14.040
of the value of the house.

00:02:14.040 --> 00:02:15.630
So even if your house burns down,

00:02:15.630 --> 00:02:18.720
and if your house will say worth $200,000

00:02:18.720 --> 00:02:20.730
they're unlikely to just
give you the cash value

00:02:20.730 --> 00:02:22.740
of that house of $200,000

00:02:22.740 --> 00:02:25.620
because the land still has value.

00:02:25.620 --> 00:02:28.830
More likely you're gonna be
dealing with replacement costs.

00:02:28.830 --> 00:02:31.500
Now another thing that
usually an insurance policy

00:02:31.500 --> 00:02:35.460
will cover is if heaven
forbid your house burns down

00:02:35.460 --> 00:02:37.260
or any of these bad things happen,

00:02:37.260 --> 00:02:39.360
you're going to need
another place to live.

00:02:39.360 --> 00:02:40.800
And so there's this notion

00:02:40.800 --> 00:02:42.697
of additional living expenses of,

00:02:42.697 --> 00:02:45.330
"Hey, if you need six months
someplace else to live

00:02:45.330 --> 00:02:46.320
while your house gets repaired,

00:02:46.320 --> 00:02:47.790
or a year someplace else to live

00:02:47.790 --> 00:02:49.170
while your house gets repaired,

00:02:49.170 --> 00:02:51.390
then that might be covered as well."

00:02:51.390 --> 00:02:53.460
So these are all things to look into

00:02:53.460 --> 00:02:55.653
when you get property insurance.


Property insurance

WEBVTT
Kind: captions
Language: en

00:00:01.080 --> 00:00:03.900
- Let's talk a little bit
about property insurance.

00:00:03.900 --> 00:00:04.733
The first question is,

00:00:04.733 --> 00:00:06.660
why would you want to insure property?

00:00:06.660 --> 00:00:08.400
Well, for a lot of folks,

00:00:08.400 --> 00:00:12.630
their property is the most
expensive things they have

00:00:12.630 --> 00:00:14.160
that would be very hard to replace

00:00:14.160 --> 00:00:16.380
if something bad happened to it.

00:00:16.380 --> 00:00:19.470
And there's two big categories
of property insurance.

00:00:19.470 --> 00:00:21.000
You have renters insurance,

00:00:21.000 --> 00:00:23.280
and you have homeowners insurance.

00:00:23.280 --> 00:00:25.470
Now, as you can imagine,

00:00:25.470 --> 00:00:28.470
renters insurance is good for renters.

00:00:28.470 --> 00:00:29.820
And what would it cover?

00:00:29.820 --> 00:00:31.980
Well, let's say you are
renting an apartment,

00:00:31.980 --> 00:00:33.870
but you own the furniture,

00:00:33.870 --> 00:00:36.030
you own maybe some of the appliances,

00:00:36.030 --> 00:00:38.280
your laptop is in the apartment,

00:00:38.280 --> 00:00:40.710
you have a big screen
TV, you have a stereo.

00:00:40.710 --> 00:00:43.860
Whatever else you have, it
could have a lot of value to it.

00:00:43.860 --> 00:00:47.550
And now let's say something bad happened,

00:00:47.550 --> 00:00:49.473
maybe the building,

00:00:50.490 --> 00:00:54.120
maybe there was an earthquake
or a fire or a flood,

00:00:54.120 --> 00:00:55.620
and a lot of that stuff got damaged.

00:00:55.620 --> 00:00:58.020
And it would be hard for you out of pocket

00:00:58.020 --> 00:01:00.180
and just with your own money

00:01:00.180 --> 00:01:01.620
to buy all of that stuff back.

00:01:01.620 --> 00:01:02.760
It would take a big hit,

00:01:02.760 --> 00:01:05.400
and so that's what renters
insurance would cover.

00:01:05.400 --> 00:01:07.650
You would pay a certain
amount on a regular basis,

00:01:07.650 --> 00:01:08.910
on an annual basis.

00:01:08.910 --> 00:01:09.960
That is your premium.

00:01:11.130 --> 00:01:13.440
And they usually list the scenarios.

00:01:13.440 --> 00:01:15.660
Maybe there's theft,
maybe you got burglarized,

00:01:15.660 --> 00:01:18.060
maybe the place burned down.

00:01:18.060 --> 00:01:19.650
Whatever the scenarios that they list,

00:01:19.650 --> 00:01:20.880
in those scenarios,

00:01:20.880 --> 00:01:24.660
if your property got lost or
damaged or destroyed or stolen,

00:01:24.660 --> 00:01:28.380
then they will pay you back for that.

00:01:28.380 --> 00:01:30.630
Now, homeowners insurance
is an extension of it,

00:01:30.630 --> 00:01:31.830
but when you're a homeowner,

00:01:31.830 --> 00:01:33.630
you don't just own the furniture

00:01:33.630 --> 00:01:35.700
and the electronics inside the house.

00:01:35.700 --> 00:01:37.230
You own the entire house.

00:01:37.230 --> 00:01:38.640
And as you can imagine,

00:01:38.640 --> 00:01:41.940
a house itself can be a lot more expensive

00:01:41.940 --> 00:01:44.910
than, let's say, the
furniture inside of the house.

00:01:44.910 --> 00:01:48.360
And so homeowners insurance
will cover the entire property.

00:01:48.360 --> 00:01:51.120
Let's say if your house were
to get destroyed in a fire,

00:01:51.120 --> 00:01:52.080
it will cover that.

00:01:52.080 --> 00:01:55.050
Now, there could very well
be certain deductibles

00:01:55.050 --> 00:01:56.340
or certain limits to it,

00:01:56.340 --> 00:01:58.860
but it's a really important
asset for a lot of folks

00:01:58.860 --> 00:02:01.080
to insure pretty well.

00:02:01.080 --> 00:02:01.920
It can obviously cost

00:02:01.920 --> 00:02:04.320
hundreds of thousands of dollars or more.

00:02:04.320 --> 00:02:06.780
And you oftentimes
borrowed money against it,

00:02:06.780 --> 00:02:08.400
and so you don't wanna be in a situation

00:02:08.400 --> 00:02:10.470
where you borrowed money,

00:02:10.470 --> 00:02:13.290
you put hundreds of thousands
of dollars down payment,

00:02:13.290 --> 00:02:15.570
you borrowed extra money,
you bought a house,

00:02:15.570 --> 00:02:18.210
and then a flood, a earthquake, a fire,

00:02:18.210 --> 00:02:20.010
something destroys the house.

00:02:20.010 --> 00:02:23.340
You still owe that money, but
you no longer have a house.

00:02:23.340 --> 00:02:25.110
So you can imagine homeowners insurance

00:02:25.110 --> 00:02:27.870
can be not only valuable,

00:02:27.870 --> 00:02:30.270
and many times, the bank that gave a loan

00:02:30.270 --> 00:02:32.280
would say you have to
have homeowners insurance

00:02:32.280 --> 00:02:34.560
'cause we don't want you
to be in that situation.

00:02:34.560 --> 00:02:35.730
But even if you don't have,

00:02:35.730 --> 00:02:36.563
if you're a homeowner,

00:02:36.563 --> 00:02:38.100
and even if someone isn't forcing you

00:02:38.100 --> 00:02:39.480
to get homeowners insurance,

00:02:39.480 --> 00:02:40.860
it's a pretty good idea

00:02:40.860 --> 00:02:43.980
because a home is a pretty valuable asset.

00:02:43.980 --> 00:02:45.120
And there's going to be different types

00:02:45.120 --> 00:02:46.350
of homeowners insurance.

00:02:46.350 --> 00:02:48.240
Some will cover everything
I just mentioned.

00:02:48.240 --> 00:02:51.000
Some will cover, if you live
in a high flood risk zone,

00:02:51.000 --> 00:02:52.740
some will cover everything but flood,

00:02:52.740 --> 00:02:54.900
and then you have to get a
separate flood insurance.

00:02:54.900 --> 00:02:56.460
I live out here in California.

00:02:56.460 --> 00:02:59.100
Sometimes a policy will cover
everything but earthquakes,

00:02:59.100 --> 00:02:59.933
and then you have to get

00:02:59.933 --> 00:03:02.730
a separate earthquake insurance for that.

00:03:02.730 --> 00:03:03.960
But it's the same idea.

00:03:03.960 --> 00:03:07.200
If one of these really bad things happen,

00:03:07.200 --> 00:03:08.490
and you were to lose the house

00:03:08.490 --> 00:03:10.380
or lose the property inside the house,

00:03:10.380 --> 00:03:12.483
this insurance would have you covered.


Disability and long term care insurance

WEBVTT
Kind: captions
Language: en

00:00:01.320 --> 00:00:03.660
- Talking about insurance
is never a lot of fun,

00:00:03.660 --> 00:00:06.330
because you're talking about,
or you're thinking about

00:00:06.330 --> 00:00:07.560
things that most of us don't want to

00:00:07.560 --> 00:00:08.670
have to deal with in life.

00:00:08.670 --> 00:00:10.440
And I'm going to continue that trend

00:00:10.440 --> 00:00:13.290
by talking about two new
scenarios of insurance,

00:00:13.290 --> 00:00:15.030
and that's disability insurance,

00:00:15.030 --> 00:00:16.860
and that's long-term care insurance.

00:00:16.860 --> 00:00:19.560
And sometimes those two get confused.

00:00:19.560 --> 00:00:23.250
Disability is a situation
where, if for whatever reason,

00:00:23.250 --> 00:00:28.250
you become disabled, and you're
not able to work anymore,

00:00:28.260 --> 00:00:30.240
how are you going to support yourself,

00:00:30.240 --> 00:00:31.530
and support your family?

00:00:31.530 --> 00:00:33.840
You are going to need some form of income.

00:00:33.840 --> 00:00:36.630
And so that's what disability
insurance is all about.

00:00:36.630 --> 00:00:39.240
You pay the premium, and
if, for whatever reason,

00:00:39.240 --> 00:00:40.530
you are not able to work,

00:00:40.530 --> 00:00:42.750
because you've lost your ability to work,

00:00:42.750 --> 00:00:44.640
it can't just be I
don't feel like working.

00:00:44.640 --> 00:00:48.060
But if the insurers say,
"Okay, that's what was covered,

00:00:48.060 --> 00:00:49.590
that was one of the scenarios,

00:00:49.590 --> 00:00:51.780
you are no longer in a
position to do that job."

00:00:51.780 --> 00:00:55.260
Then that will cover your
income, up to some amount,

00:00:55.260 --> 00:00:58.230
depending on what the actual policy said.

00:00:58.230 --> 00:01:00.540
Now long-term care could be related to it,

00:01:00.540 --> 00:01:02.160
or it might not be.

00:01:02.160 --> 00:01:03.870
Above and beyond lost income,

00:01:03.870 --> 00:01:06.090
if you have some type of
an accident or disease

00:01:06.090 --> 00:01:09.570
that makes you not be
able to work anymore,

00:01:09.570 --> 00:01:12.510
you might have significant
medical expenses.

00:01:12.510 --> 00:01:15.930
You might have to, I
mean, these are situations

00:01:15.930 --> 00:01:17.970
that none of us want to see happen,

00:01:17.970 --> 00:01:20.100
but you might have a
extended stay in a hospital,

00:01:20.100 --> 00:01:22.860
which can be very, very, very expensive.

00:01:22.860 --> 00:01:25.530
Even if you are able to
maintain your income,

00:01:25.530 --> 00:01:27.390
because of some kind of
disability insurance,

00:01:27.390 --> 00:01:30.480
or have some income, it might
not be your full income,

00:01:30.480 --> 00:01:31.680
because of the disability insurance,

00:01:31.680 --> 00:01:33.120
you now have a much bigger expense,

00:01:33.120 --> 00:01:35.430
because of all these hospital expenses.

00:01:35.430 --> 00:01:38.910
And that's what that long-term
care insurance is all about.

00:01:38.910 --> 00:01:40.650
And it's not just for older people.

00:01:40.650 --> 00:01:42.960
It could be, and I keep
saying, this is a situation

00:01:42.960 --> 00:01:44.400
none of us want to be in,

00:01:44.400 --> 00:01:45.660
Where you get into an accident

00:01:45.660 --> 00:01:47.850
and you have an extended
stay in the hospital,

00:01:47.850 --> 00:01:49.500
it can cover that.

00:01:49.500 --> 00:01:52.350
So in some cases, employers will provide

00:01:52.350 --> 00:01:53.640
these types of insurances,

00:01:53.640 --> 00:01:56.880
but they're oftentimes not enough coverage

00:01:56.880 --> 00:01:58.680
to fully protect you.

00:01:58.680 --> 00:02:00.060
So if you're worried about these,

00:02:00.060 --> 00:02:02.400
and if you don't have
savings that can provide

00:02:02.400 --> 00:02:04.590
you and your family a
cushion, if one of these

00:02:04.590 --> 00:02:06.330
pretty horrible things happen to you,

00:02:06.330 --> 00:02:09.150
you might want to think
about disability insurance,

00:02:09.150 --> 00:02:12.033
and/or long-term care insurance.


Types of health insurance plans

WEBVTT
Kind: captions
Language: en

00:00:00.990 --> 00:00:03.060
- So there are three ways
that you might be able

00:00:03.060 --> 00:00:04.470
to get yourself health insurance.

00:00:04.470 --> 00:00:06.480
The first way is that
you just get it directly,

00:00:06.480 --> 00:00:08.333
and that would be an individual plan.

00:00:08.333 --> 00:00:11.520
You pay the premium,
you get the insurance.

00:00:11.520 --> 00:00:14.610
The second way is many employers
will provide insurance.

00:00:14.610 --> 00:00:16.830
They will pay all of the premium,

00:00:16.830 --> 00:00:18.390
or a large chunk of the premium,

00:00:18.390 --> 00:00:20.850
in certain cases, they might
even pay a large chunk,

00:00:20.850 --> 00:00:23.160
or the full premium for family members,

00:00:23.160 --> 00:00:25.200
and then the third way is the government.

00:00:25.200 --> 00:00:26.910
You have programs like Medicare

00:00:26.910 --> 00:00:28.440
for primarily senior citizens,

00:00:28.440 --> 00:00:30.990
some other cases where other
folks might qualify as well.

00:00:30.990 --> 00:00:33.630
You have Medicaid for low income folks.

00:00:33.630 --> 00:00:37.410
You have also government
programs for say, veterans.

00:00:37.410 --> 00:00:39.630
Now, as I just alluded to,

00:00:39.630 --> 00:00:40.830
probably the biggest difference

00:00:40.830 --> 00:00:43.050
is who actually makes the payment.

00:00:43.050 --> 00:00:44.040
The government programs,

00:00:44.040 --> 00:00:47.010
it's the government who's
making the premium payment.

00:00:47.010 --> 00:00:49.380
In the employer case, it's the employer,

00:00:49.380 --> 00:00:53.070
and they're doing that with
pre-tax money, which matters.

00:00:53.070 --> 00:00:54.810
They're giving this to you as a benefit

00:00:54.810 --> 00:00:56.850
and you do not pay taxes

00:00:56.850 --> 00:01:00.150
on the money that they are
paying for your insurance.

00:01:00.150 --> 00:01:03.098
Well, with an individual plan,
you pay that out of pocket.

00:01:03.098 --> 00:01:05.430
You pay that yourself.

00:01:05.430 --> 00:01:08.640
Now, if you meet certain
income guidelines,

00:01:08.640 --> 00:01:10.800
and if you pay enough of a premium

00:01:10.800 --> 00:01:12.330
above a certain percentage of your income,

00:01:12.330 --> 00:01:14.610
some of that might be tax-deductible,

00:01:14.610 --> 00:01:17.310
but it is not fully tax-deductible

00:01:17.310 --> 00:01:19.830
the same way that when
your employer pays for it,

00:01:19.830 --> 00:01:21.150
you don't have to pay any taxes

00:01:21.150 --> 00:01:25.530
on that premium that they're
providing you at all.

00:01:25.530 --> 00:01:27.630
Now, on the individual side,

00:01:27.630 --> 00:01:31.140
because you are essentially
deciding what type

00:01:31.140 --> 00:01:32.490
of insurance you want,

00:01:32.490 --> 00:01:35.160
it would give you the maximum choice.

00:01:35.160 --> 00:01:37.380
Now, in certain cases,
that choice is limited,

00:01:37.380 --> 00:01:39.210
because when you're
getting an individual plan,

00:01:39.210 --> 00:01:41.040
they're deciding what the premium is or

00:01:41.040 --> 00:01:46.040
whether to even insure you
based on your situation,

00:01:46.290 --> 00:01:48.090
whether you have pre-existing conditions,

00:01:48.090 --> 00:01:50.730
your risk factor, et cetera,

00:01:50.730 --> 00:01:54.330
while with a government
or with an employer plan,

00:01:54.330 --> 00:01:56.520
they're not looking at your
individual circumstances.

00:01:56.520 --> 00:01:58.650
With an employer, the insurance
company will say, okay,

00:01:58.650 --> 00:02:01.080
what's the average risk
of all of the employees?

00:02:01.080 --> 00:02:02.880
And if you're a higher risk employee,

00:02:02.880 --> 00:02:04.770
the employer's going
to pay the same premium

00:02:04.770 --> 00:02:06.780
for you as they're
paying for everyone else,

00:02:06.780 --> 00:02:08.970
and so you get that same coverage.

00:02:08.970 --> 00:02:11.520
One potential negative
of an employer plan is

00:02:11.520 --> 00:02:13.860
that it might be a little
bit more limited in terms

00:02:13.860 --> 00:02:14.940
of the coverage options,

00:02:14.940 --> 00:02:17.340
but that's not always the case.

00:02:17.340 --> 00:02:20.190
Finally, government, you are going to have

00:02:20.190 --> 00:02:23.460
probably more limits on what type

00:02:23.460 --> 00:02:26.070
of healthcare you might
get, but once again,

00:02:26.070 --> 00:02:29.070
they are fully paying the premium there.

00:02:29.070 --> 00:02:31.260
Last but not least, we could
talk about deductibles.

00:02:31.260 --> 00:02:33.420
Generally speaking, the government plans

00:02:33.420 --> 00:02:34.920
are going to have the lowest deductibles.

00:02:34.920 --> 00:02:37.500
In some cases, they will
have no deductibles.

00:02:37.500 --> 00:02:40.050
In the case of an employer-sponsored plan

00:02:40.050 --> 00:02:41.190
or an individual plan,

00:02:41.190 --> 00:02:44.910
it really depends on which
plan you actually get.

00:02:44.910 --> 00:02:46.920
So for a lot of folks,

00:02:46.920 --> 00:02:51.270
if you're not retired,
if you're not low income,

00:02:51.270 --> 00:02:54.690
employer-sponsored plans are
probably where you wanna go,

00:02:54.690 --> 00:02:57.540
but if your employer
doesn't offer those plans

00:02:57.540 --> 00:02:59.010
or you're self-employed

00:02:59.010 --> 00:03:00.390
and you need get that insurance yourself,

00:03:00.390 --> 00:03:03.190
then of course, individual
plans is what you need to do.


Estate planning introduction

WEBVTT
Kind: captions
Language: en

00:00:01.110 --> 00:00:02.700
- So let's talk a little
bit about something

00:00:02.700 --> 00:00:04.860
that frankly I do not like to talk about

00:00:04.860 --> 00:00:06.630
and I don't think most
people like to talk about,

00:00:06.630 --> 00:00:11.580
and that's the notion of
becoming very ill and dying,

00:00:11.580 --> 00:00:15.240
and then what happens to
everyone that you leave behind?

00:00:15.240 --> 00:00:18.000
And to understand why this
is an important scenario,

00:00:18.000 --> 00:00:20.820
let's imagine, and I'll just
put myself in this scenario,

00:00:20.820 --> 00:00:22.350
hopefully this does not happen.

00:00:22.350 --> 00:00:24.000
Let's imagine a scenario where something

00:00:24.000 --> 00:00:27.270
like that happened to me and/or my wife

00:00:27.270 --> 00:00:29.730
without us doing any type of planning,

00:00:29.730 --> 00:00:31.380
any type of end of life planning,

00:00:31.380 --> 00:00:33.390
any type of estate planning.

00:00:33.390 --> 00:00:36.810
You'd have a situation where
let's say heaven forbid

00:00:36.810 --> 00:00:38.190
we got into a car accident

00:00:38.190 --> 00:00:40.830
and we are not in a
position to make decisions

00:00:40.830 --> 00:00:43.530
on should we be put on
life support forever?

00:00:43.530 --> 00:00:46.770
Should some experimental
procedure be done?

00:00:46.770 --> 00:00:49.590
If we haven't given a healthcare proxy,

00:00:49.590 --> 00:00:51.720
and that's someone that
you put in writing,

00:00:51.720 --> 00:00:54.930
usually someone like a partner
or a family member or a child

00:00:54.930 --> 00:00:57.540
that can make a decision
for you in the event

00:00:57.540 --> 00:00:59.370
that you can't make the
decision for yourself,

00:00:59.370 --> 00:01:00.690
if we have not done that,

00:01:00.690 --> 00:01:03.660
if we have not given a healthcare proxy,

00:01:03.660 --> 00:01:05.400
then it's going to be somewhat arbitrary

00:01:05.400 --> 00:01:07.320
what's going to happen
to us in that situation,

00:01:07.320 --> 00:01:09.660
and it might not happen in
a way that's good for us

00:01:09.660 --> 00:01:11.970
or in line with our wishes

00:01:11.970 --> 00:01:14.910
or in line with our family's wishes.

00:01:14.910 --> 00:01:19.110
But let's say that that
plays out and then we die.

00:01:19.110 --> 00:01:21.510
Let's say I die and let's
say my wife isn't there.

00:01:21.510 --> 00:01:24.030
This is really a morbid situation.

00:01:24.030 --> 00:01:26.880
But if I do no estate planning,

00:01:26.880 --> 00:01:29.820
then all of the things that I own

00:01:29.820 --> 00:01:34.290
are then going to go into a
court process known as probate.

00:01:34.290 --> 00:01:37.530
And probate is where the
court tries to figure out,

00:01:37.530 --> 00:01:39.210
well, okay, Sal had all of this stuff.

00:01:39.210 --> 00:01:41.970
This is his estate, and his
estate is both the things

00:01:41.970 --> 00:01:44.220
that he has but also
the things that he owes.

00:01:44.220 --> 00:01:47.160
I might have assets, but I
might owe money on a mortgage.

00:01:47.160 --> 00:01:49.620
I might have a car loan, I
might have credit card debt.

00:01:49.620 --> 00:01:51.900
So the court in the probate process

00:01:51.900 --> 00:01:54.660
tries to figure out, okay,
who's going to get the assets

00:01:54.660 --> 00:01:56.340
and who's going to be able to cover

00:01:56.340 --> 00:01:58.590
all of these liabilities,

00:01:58.590 --> 00:02:00.720
all of this debt that might be owned?

00:02:00.720 --> 00:02:05.070
And it can be a long
process in the interim

00:02:05.070 --> 00:02:08.940
in which my children or
other folks that I care about

00:02:08.940 --> 00:02:11.940
that ideally I would've liked
to have access to those assets

00:02:11.940 --> 00:02:13.530
don't have access to it.

00:02:13.530 --> 00:02:15.450
And sometimes it can be
a little bit arbitrary

00:02:15.450 --> 00:02:17.340
'cause it's gonna be decided by a court

00:02:17.340 --> 00:02:20.280
instead of me deciding ahead of time.

00:02:20.280 --> 00:02:22.920
And then just adding to that,

00:02:22.920 --> 00:02:24.750
if I haven't or my wife hasn't,

00:02:24.750 --> 00:02:26.760
whoever has passed away hasn't specified,

00:02:26.760 --> 00:02:27.720
what happens to your children?

00:02:27.720 --> 00:02:30.510
If you have children
who are still children,

00:02:30.510 --> 00:02:32.100
who's going to take care of them?

00:02:32.100 --> 00:02:34.680
If you haven't thought
about that and specified it,

00:02:34.680 --> 00:02:37.590
then a court might decide
just the nearest relative

00:02:37.590 --> 00:02:40.710
who may or may not want
to take care of your kids,

00:02:40.710 --> 00:02:44.700
and that might be, again,
a suboptimal situation.

00:02:44.700 --> 00:02:46.980
So in general, it's a good idea,

00:02:46.980 --> 00:02:49.950
especially once I would
say you have real people

00:02:49.950 --> 00:02:53.040
depending on you, probably once
you start to have a family,

00:02:53.040 --> 00:02:57.390
for someone to do end of life
planning, estate planning.

00:02:57.390 --> 00:02:58.837
Now some of you might
think, "Ah, I'm a kid.

00:02:58.837 --> 00:02:59.670
"I don't need to do this."

00:02:59.670 --> 00:03:02.610
Well, you can also talk to
your parents about doing this

00:03:02.610 --> 00:03:04.290
so that that type of scenario

00:03:04.290 --> 00:03:07.620
does not play out in your own life.

00:03:07.620 --> 00:03:10.440
And so it's important to
set a healthcare proxy,

00:03:10.440 --> 00:03:13.560
someone that you think understands
what you want to happen

00:03:13.560 --> 00:03:16.410
or has values similar to
yours to be your proxy

00:03:16.410 --> 00:03:19.860
in a situation that you
can't decide for yourself.

00:03:19.860 --> 00:03:22.680
It's important at minimum to have a will.

00:03:22.680 --> 00:03:25.717
A will will tell probate,
"Hey, these are my wishes.

00:03:25.717 --> 00:03:30.287
"I would like my children
to get my stocks equally,"

00:03:31.500 --> 00:03:33.280
or that one kid who

00:03:36.030 --> 00:03:37.770
has been rebellious, maybe
they get a little bit less.

00:03:37.770 --> 00:03:39.330
I don't advocate that type of thing,

00:03:39.330 --> 00:03:41.730
but at least it becomes clearer

00:03:41.730 --> 00:03:43.560
so that when it goes through probate,

00:03:43.560 --> 00:03:44.910
it's going to happen.

00:03:44.910 --> 00:03:47.100
Now, there's ways that
you can actually really

00:03:47.100 --> 00:03:48.570
make things happen much quicker

00:03:48.570 --> 00:03:50.460
than even going through
that probate process,

00:03:50.460 --> 00:03:54.540
and that's putting assets
into something called a trust.

00:03:54.540 --> 00:03:56.970
A trust is an entity that
assets can be put into,

00:03:56.970 --> 00:04:01.470
and essentially it's an
entity that uses those assets,

00:04:01.470 --> 00:04:03.750
especially once you're gone
or if you're not in a position

00:04:03.750 --> 00:04:05.280
to manage them yourself

00:04:05.280 --> 00:04:07.440
to then divvy it up amongst other folks.

00:04:07.440 --> 00:04:10.830
So I can tell you that my
family, we have created,

00:04:10.830 --> 00:04:13.320
we have put our assets,
or not all of them,

00:04:13.320 --> 00:04:14.153
but a lot of them,

00:04:14.153 --> 00:04:16.830
the ones are that the most
important ones into a trust

00:04:16.830 --> 00:04:21.830
so that if worst case
myself and my wife die,

00:04:22.020 --> 00:04:25.500
immediately our children will
have access to the assets

00:04:25.500 --> 00:04:29.850
and be able to manage
the estate, so to speak.

00:04:29.850 --> 00:04:32.460
And so generally speaking,

00:04:32.460 --> 00:04:35.730
it's very important to do
this planning ahead of time.

00:04:35.730 --> 00:04:37.530
There's other words that
you're going to hear

00:04:37.530 --> 00:04:38.880
when you hear about estate planning.

00:04:38.880 --> 00:04:41.250
Beneficiary. Well, that's
the people who will benefit.

00:04:41.250 --> 00:04:43.590
Those are the people who are likely to,

00:04:43.590 --> 00:04:46.170
these are the people who
are going to get the assets.

00:04:46.170 --> 00:04:47.310
You're going to hear words

00:04:47.310 --> 00:04:50.910
like guardianship of
minor children, guardian.

00:04:50.910 --> 00:04:53.640
A guardian is the person
who takes care of children

00:04:53.640 --> 00:04:55.380
who are not adults yet.

00:04:55.380 --> 00:04:57.690
But the very important thing to consider

00:04:57.690 --> 00:04:58.920
if you are an adult now,

00:04:58.920 --> 00:05:00.330
especially with people depending on you,

00:05:00.330 --> 00:05:01.350
is to do this planning.

00:05:01.350 --> 00:05:02.850
And if you are not an adult,

00:05:02.850 --> 00:05:05.220
maybe you are in the care of other people,

00:05:05.220 --> 00:05:07.290
they might view it as a
little bit self-serving

00:05:07.290 --> 00:05:08.880
but it really is just prudent,

00:05:08.880 --> 00:05:10.620
encourage them to think
about these things.

00:05:10.620 --> 00:05:13.080
Because I don't think anyone
wants their loved ones

00:05:13.080 --> 00:05:15.090
to have to struggle in these situations

00:05:15.090 --> 00:05:17.310
or just because of a
little lack of planning

00:05:17.310 --> 00:05:20.370
have to end up in a very,
very suboptimal situation,

00:05:20.370 --> 00:05:21.810
especially at a time where they're already

00:05:21.810 --> 00:05:23.190
probably going to be dealing with things.

00:05:23.190 --> 00:05:25.680
Because you are an amazing
person and if you are gone,

00:05:25.680 --> 00:05:27.300
they're going to be very sad about that

00:05:27.300 --> 00:05:28.740
and you don't want them
to also have to deal

00:05:28.740 --> 00:05:31.920
with the stress of dealing with probate,

00:05:31.920 --> 00:05:34.230
not having access to financial resources,

00:05:34.230 --> 00:05:35.790
having to live with family members

00:05:35.790 --> 00:05:38.340
that neither you nor they wanna live with.

00:05:38.340 --> 00:05:41.040
That can all be avoided with
a little bit of planning.


What are tax forms? (Part 2)

WEBVTT
Kind: captions
Language: en

00:00:00.000 --> 00:00:01.200
- [Instructor] In this video,

00:00:01.200 --> 00:00:03.510
we're gonna go into some
forms that are very useful

00:00:03.510 --> 00:00:06.300
when you are filling
out your income taxes.

00:00:06.300 --> 00:00:10.110
If you work for someone as an
employee, first and foremost,

00:00:10.110 --> 00:00:12.300
you're going to get a W-2 form.

00:00:12.300 --> 00:00:14.400
And I always find the
W-2 form interesting.

00:00:14.400 --> 00:00:17.370
You typically get it at the
beginning of a calendar year

00:00:17.370 --> 00:00:20.430
so that you have it in time
to file for your taxes.

00:00:20.430 --> 00:00:23.490
But it's a nice summary
of what you were paid,

00:00:23.490 --> 00:00:27.471
and what was withheld,
either at a federal level,

00:00:27.471 --> 00:00:30.270
for federal income tax,
for social security,

00:00:30.270 --> 00:00:31.350
but you also see things,

00:00:31.350 --> 00:00:34.470
like state taxes withheld on top of that.

00:00:34.470 --> 00:00:36.210
And so this is just a nice summary,

00:00:36.210 --> 00:00:37.500
and for a lot of folks,

00:00:37.500 --> 00:00:39.360
this is all the information
that you're going to need,

00:00:39.360 --> 00:00:41.850
if you don't have really
complicated things in your life,

00:00:41.850 --> 00:00:44.670
if you don't have a mortgage,
if you're not a landlord.

00:00:44.670 --> 00:00:46.740
if you're not an independent contractor,

00:00:46.740 --> 00:00:48.960
you're gonna be able to
fill out most of your taxes

00:00:48.960 --> 00:00:52.950
usually using just this
form right over here.

00:00:52.950 --> 00:00:55.050
Now, a lot of folks have income

00:00:55.050 --> 00:00:58.200
above and beyond the wages,
tips and other compensation

00:00:58.200 --> 00:01:00.030
that you get from your W-2

00:01:00.030 --> 00:01:01.830
or that you get from your employer,

00:01:01.830 --> 00:01:06.000
and that will show up
in some form of a 1099.

00:01:06.000 --> 00:01:08.880
So this is an example of a 1099

00:01:08.880 --> 00:01:10.440
for miscellaneous information,

00:01:10.440 --> 00:01:13.710
M-I-S-C, MISC, 1099 MISC, right over here.

00:01:13.710 --> 00:01:16.380
But there are 1099s for,
say, interest you get

00:01:16.380 --> 00:01:17.340
on your bank account,

00:01:17.340 --> 00:01:19.980
there are 1099s for dividends.

00:01:19.980 --> 00:01:21.750
A 1099 can be useful,

00:01:21.750 --> 00:01:23.460
let's say if you're an
independent contractor,

00:01:23.460 --> 00:01:26.160
So you're getting income, it's
not coming from an employer,

00:01:26.160 --> 00:01:28.410
it's coming from some type of a company

00:01:28.410 --> 00:01:30.030
that hired you to do something,

00:01:30.030 --> 00:01:32.190
but they're not giving
you benefits, et cetera.

00:01:32.190 --> 00:01:36.330
So a lot of folks might
have a 1099 of some form

00:01:36.330 --> 00:01:37.470
for that other income,

00:01:37.470 --> 00:01:39.390
that income that you're not
getting from your employer,

00:01:39.390 --> 00:01:40.950
and you'll get one 1099.

00:01:40.950 --> 00:01:42.480
Let's say you have two bank accounts,

00:01:42.480 --> 00:01:43.800
they're each giving you interest,

00:01:43.800 --> 00:01:46.590
you'll get one 1099 from each of those.

00:01:46.590 --> 00:01:50.130
Once again, very useful when
you're filling out your taxes.

00:01:50.130 --> 00:01:52.440
Now, the last form I'm going to show you

00:01:52.440 --> 00:01:53.910
is most relevant,

00:01:53.910 --> 00:01:56.433
well, especially this
version right over here,

00:01:57.684 --> 00:02:02.400
a 1098 is actually to document interest

00:02:02.400 --> 00:02:04.830
that you have paid to other parties,

00:02:04.830 --> 00:02:08.370
or other types of money
outflows, I should say,

00:02:08.370 --> 00:02:09.990
that might be tax deductible.

00:02:09.990 --> 00:02:12.480
So this one right over here, this 1098,

00:02:12.480 --> 00:02:14.880
is a mortgage interest statement,

00:02:14.880 --> 00:02:18.570
in many cases, the interest
that you pay on the mortgage

00:02:18.570 --> 00:02:21.930
on your actual house, so
not a rental property,

00:02:21.930 --> 00:02:22.770
not a second house,

00:02:22.770 --> 00:02:24.510
but on your actual house,

00:02:24.510 --> 00:02:28.837
that is oftentimes interest deductible.

00:02:28.837 --> 00:02:29.850
And there might be even cases

00:02:29.850 --> 00:02:31.410
where some of those other examples

00:02:31.410 --> 00:02:35.010
where the mortgage interest is
actually deductible as well.

00:02:35.010 --> 00:02:36.480
But this one,

00:02:36.480 --> 00:02:38.130
when you get this statement from

00:02:38.130 --> 00:02:41.370
whoever you're paying
your mortgage payments to,

00:02:41.370 --> 00:02:43.440
whoever you're borrowing from,

00:02:43.440 --> 00:02:44.730
this will also be useful

00:02:44.730 --> 00:02:46.630
when you are filling out your taxes

00:02:47.880 --> 00:02:49.770
to even see if you qualify

00:02:49.770 --> 00:02:53.160
for that mortgage interest deduction.

00:02:53.160 --> 00:02:54.270
So I'll stop there.

00:02:54.270 --> 00:02:55.950
There's many other tax forms,

00:02:55.950 --> 00:02:56.910
but these are the ones

00:02:56.910 --> 00:02:59.103
that most people are going to encounter.


What are tax forms? (Part 1)

WEBVTT
Kind: captions
Language: en

00:00:00.540 --> 00:00:02.700
- [Instructor] What we're
gonna do in this video is

00:00:02.700 --> 00:00:06.120
at least get you a little bit
familiar with a bunch of forms

00:00:06.120 --> 00:00:08.940
that you're likely to
see when you get a job.

00:00:08.940 --> 00:00:09.773
And I'm not gonna go

00:00:09.773 --> 00:00:12.690
into deep detail on each of these forms,

00:00:12.690 --> 00:00:14.640
but just to give you
some basic familiarity

00:00:14.640 --> 00:00:18.540
so that you aren't caught
unaware when you actually

00:00:18.540 --> 00:00:20.550
have to fill these out yourself.

00:00:20.550 --> 00:00:22.320
So the first form that you're going to see

00:00:22.320 --> 00:00:24.930
when you get a job as an employee,

00:00:24.930 --> 00:00:25.763
and I'll talk a little bit

00:00:25.763 --> 00:00:27.990
about being an employee
versus being a contractor,

00:00:27.990 --> 00:00:29.820
but if you're going to go work for wages

00:00:29.820 --> 00:00:33.930
and you're going to get benefits,
then you are an employee.

00:00:33.930 --> 00:00:37.230
And this right over here is a Form I9,

00:00:37.230 --> 00:00:40.470
employment eligibility verification.

00:00:40.470 --> 00:00:42.090
And this is just to make sure

00:00:42.090 --> 00:00:44.580
that you are qualified
to work in this country.

00:00:44.580 --> 00:00:48.120
So you have some just basic
personal information up here.

00:00:48.120 --> 00:00:50.550
And then you say whether you're a citizen,

00:00:50.550 --> 00:00:52.980
a non-citizen national
of the United States,

00:00:52.980 --> 00:00:54.834
a lawful permanent resident,

00:00:54.834 --> 00:00:59.310
or an alien authorized to
work, et cetera, et cetera.

00:00:59.310 --> 00:01:03.030
So that's the whole reason for this form.

00:01:03.030 --> 00:01:05.820
Now, another form that
you are going to fill out

00:01:05.820 --> 00:01:10.820
if you are starting a job
as an employee is a W4,

00:01:11.640 --> 00:01:14.310
employee's withholding certificate.

00:01:14.310 --> 00:01:17.580
And this is to let the employer know

00:01:17.580 --> 00:01:21.030
on every paycheck you get,
how much should be withheld

00:01:21.030 --> 00:01:23.850
and sent to the IRS?

00:01:23.850 --> 00:01:25.560
So we talk about this in other videos,

00:01:25.560 --> 00:01:27.630
but every time you get paid

00:01:27.630 --> 00:01:29.520
your employer is gonna
set aside some money

00:01:29.520 --> 00:01:30.939
and essentially pay your taxes.

00:01:30.939 --> 00:01:33.560
And at the end of the year,
when you do your taxes

00:01:33.560 --> 00:01:36.420
you're going to make sure that
the right amount was paid.

00:01:36.420 --> 00:01:39.540
If your employer withheld
more than they needed to,

00:01:39.540 --> 00:01:41.580
you'll get a refund,
you'll get some money back.

00:01:41.580 --> 00:01:45.330
And if the employer did
not withhold enough,

00:01:45.330 --> 00:01:49.000
then you are going to have
to pay some extra taxes.

00:01:49.000 --> 00:01:50.220
So once again,

00:01:50.220 --> 00:01:52.620
you just have your personal
information up here.

00:01:52.620 --> 00:01:57.480
And then they ask some
things about dependence

00:01:57.480 --> 00:01:58.470
and other things.

00:01:58.470 --> 00:01:59.370
And at the bottom of this,

00:01:59.370 --> 00:02:01.560
let me actually just go
down so that you can see it,

00:02:01.560 --> 00:02:04.080
you just sign that this is valid.

00:02:04.080 --> 00:02:06.300
So it shouldn't take you
too much time to fill it out

00:02:06.300 --> 00:02:11.300
but it can impact how
much is actually withheld

00:02:11.610 --> 00:02:12.990
on each pay cycle.

00:02:12.990 --> 00:02:16.590
Now, as you go into a new calendar year,

00:02:16.590 --> 00:02:20.310
so let's say we're
going from 2023 to 2024,

00:02:20.310 --> 00:02:22.470
usually in the beginning
of the new calendar year

00:02:22.470 --> 00:02:24.570
you'll get a W2.

00:02:24.570 --> 00:02:26.066
And this is very important

00:02:26.066 --> 00:02:29.730
for actually filling out your taxes.

00:02:29.730 --> 00:02:32.100
So this is essentially
a summary that you get

00:02:32.100 --> 00:02:33.120
from your employer.

00:02:33.120 --> 00:02:34.590
So the previous two I just showed,

00:02:34.590 --> 00:02:37.530
you fill it out when you start a job.

00:02:37.530 --> 00:02:39.150
But then in the new calendar year

00:02:39.150 --> 00:02:40.890
you get this from the employer.

00:02:40.890 --> 00:02:44.040
And it's really important
for filling out your taxes.

00:02:44.040 --> 00:02:45.390
Because when you fill out your taxes,

00:02:45.390 --> 00:02:47.190
you can put in these numbers of, well,

00:02:47.190 --> 00:02:50.970
what were your total wages,
tips and other compensation?

00:02:50.970 --> 00:02:52.320
How much was withheld?

00:02:52.320 --> 00:02:56.430
And remember that how much was
withheld could be influenced

00:02:56.430 --> 00:03:00.990
by that W4, how much
of this right over here

00:03:00.990 --> 00:03:02.400
is the social security wages.

00:03:02.400 --> 00:03:05.760
So the wages that could
be used to calculate

00:03:05.760 --> 00:03:09.030
how much social security tax is withheld.

00:03:09.030 --> 00:03:10.290
And it goes on and on and on.

00:03:10.290 --> 00:03:12.030
Trust me, you want this form.

00:03:12.030 --> 00:03:14.025
In fact, you need this
form, in most cases, around

00:03:14.025 --> 00:03:16.284
when you are actually filling your taxes.

00:03:16.284 --> 00:03:17.850
And it's interesting to look at

00:03:17.850 --> 00:03:19.800
because it's an interesting summary

00:03:19.800 --> 00:03:22.800
for what happened in that previous year.

00:03:22.800 --> 00:03:24.090
Now, everything I just talked about

00:03:24.090 --> 00:03:26.130
is if you are an employee.

00:03:26.130 --> 00:03:29.310
There might be situations
where you are a contractor.

00:03:29.310 --> 00:03:32.700
A contractor is also
someone who does something

00:03:32.700 --> 00:03:35.610
for a company, but an
employee is someone where

00:03:35.610 --> 00:03:38.100
you're getting wages,
you're getting regular wages

00:03:38.100 --> 00:03:40.050
for certain expectations,

00:03:40.050 --> 00:03:41.340
that you're maybe you're going to show up

00:03:41.340 --> 00:03:42.660
for a certain number of hours

00:03:42.660 --> 00:03:45.180
or do certain types of regular work.

00:03:45.180 --> 00:03:47.820
You typically will get benefits for that.

00:03:47.820 --> 00:03:50.532
While a contractor is
in some ways operating

00:03:50.532 --> 00:03:52.470
at a higher level, hey,
you're gonna build this

00:03:52.470 --> 00:03:54.600
for me and I'm gonna pay you,
but you're not an employee.

00:03:54.600 --> 00:03:56.760
You might do it only for
a certain amount of time.

00:03:56.760 --> 00:04:01.320
Or we, the company, can't decide when

00:04:01.320 --> 00:04:03.900
and how you do your work
as long as you get it done

00:04:03.900 --> 00:04:05.580
by a certain date.

00:04:05.580 --> 00:04:10.560
And so for contractors, you
might see a form like this.

00:04:10.560 --> 00:04:13.500
And this is really so that the company

00:04:13.500 --> 00:04:15.510
that is hiring the contractor

00:04:15.510 --> 00:04:18.240
can get a taxpayer identification number.

00:04:18.240 --> 00:04:19.073
Now you might be wondering,

00:04:19.073 --> 00:04:21.270
what is a taxpayer identification number?

00:04:21.270 --> 00:04:24.750
Well, in many cases if you're
just an individual contractor

00:04:24.750 --> 00:04:26.970
it might be your social security number.

00:04:26.970 --> 00:04:28.260
But there's other situations,

00:04:28.260 --> 00:04:30.453
I won't go into all of the details there.

00:04:30.453 --> 00:04:32.670
So the big takeaway,

00:04:32.670 --> 00:04:34.710
especially when you're starting
to engage with the company,

00:04:34.710 --> 00:04:35.970
especially as an employee

00:04:35.970 --> 00:04:38.070
and we just talked a little
bit about, as a contractor,

00:04:38.070 --> 00:04:40.200
you're gonna have to
fill out all these forms.

00:04:40.200 --> 00:04:42.390
Don't be intimidated by it.

00:04:42.390 --> 00:04:43.440
Most of 'em just require you

00:04:43.440 --> 00:04:45.360
to fill out some personal information.

00:04:45.360 --> 00:04:46.980
It's good to know what that form is for.

00:04:46.980 --> 00:04:48.855
And then you typically sign at the bottom.

00:04:48.855 --> 00:04:50.820
But hopefully now you're going to go in

00:04:50.820 --> 00:04:52.293
a little bit more prepared.