David Luhman's blog

Level premium period when buying term life insurance

When buying term life insurance, one of the most important variables which affects the monthly premium you'll pay is the time period that your premium will be fixed.

Hopefully, you've read (and heard!) some of my other comments regarding how to buy life insurance.

When buying term life insurance, there are several ways you can go.

One is to buy annual renewable term (ART). ART can be viewed as "short-term" life insurance if you just need some coverage for a limited amount of time.


Dividend capture and Microsoft's (MSFT) one-time dividend of $3 per share

Microsoft announced a special $3 per share dividend, $30 billion stock repurchase, and a doubling of it's current dividend.

As time allows, I'll examine "dividend capture" opportunities for this special $3 per share special dividend.

Here is the text from Microsoft's announcement of July 20, 2004 :

Microsoft Outlines Quarterly Dividend, Four-Year Stock Buyback Plan, And Special Dividend to Shareholders

Company Is Confident About Future Growth and Innovation Opportunities, Plans to Provide Up to $75 Billion in Value to Shareholders Over Next Four Years


SEC adopts new rules for mutual fund chairman independence

The Securities and Exchange Commission on June 23, 2004 adopted new rules to help ensure that mutual fund boards will be independent of the investment advisory company often connected with the fund.

Although most investors associate their mutual fund with an investment advisory firm, the mutual fund and the advisory firm are two separate entities.

For example, the Fidelity Magellan fund is an independent company (an investment company) which hires Fidelity Investments to provide investment advice to the investment company.


Intel ignores its owners

Today, Intel Corporation's (INTC) management decided to ignore the wishes of its owners.

Intel's management disagreed with 54 percent of its shareholders who voted for a non-binding proposal to expense employee-stock options.

When I heard this news of misalignment of management and owner interests, I immediately thought of a friend of mine who's been working to help ensure that management truly does work for the owners of a firm.


Using funds RRPIX and RYJUX to reduce interest rate risk

If you have a relatively short-term adjustable rate mortgage (ARM), you face risk from rising interest rates. If interest rates go up, stay up, and your mortgage payments go up correspondingly, you may have trouble making your mortgage payments. Two mutual funds (RRPIX and RYJUX) reduce your risk from rising rates.



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