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Hello, Cash Accumulator fans!
I hope you enjoyed the break from the usual financial updates yesterday and that you’ve finally gotten around to cleaning up the mess you made from emptying that plastic tub full of Halloween decorations to begin building your liquor luge for the Luge Olympics on New Years.
This latest team strategy revision I want to share was brought to my attention this spring when I was purchasing my home. It involves how the size of your deductible affects the annual cost of your home insurance premiums. If you were like me when you were purchasing your home you were probably so overwhelmed with excitement, anxiety, and stress due to all the lawyer meetings, relocating fears, and the part I found most annoying about moving attempting to book a Uhaul van. That when the time came to get your home insurance set up you were in such a rush to get it done that you agreed to the first one they offered you so you and the lawyers could get on with signing the papers. Don’t worry, that is exactly what I did!
If that sounds like the situation you found yourself in and your know in a level headed state, I challenge you to set aside ten minutes, pick up the phone, and call your home insurance company to see if you can save more money than I did! It is surprising what you might find out about the difference in annual home insurance premiums due to you choosing a different deductible rate.
Our home insurance premiums with different deductible options was as follows:
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My original home insurance deductible was $1,000 with an annual fee of $1,850 after talking with the insurance rep and insuring her that if the wind blew off my shingles, hail damaged my skylights, or a bird flew into and shattered my bay window I would live and be able to pay the $5000 deductible instead of the $1000 deductible. The truth is though, for any of those minor inconveniences she mentioned, I would not put myself through the headache of going through insurance to begin with. Lets say a record wind storm did roll through my town blowing shingles of houses throughout my neighbourhood. I’d like to think that we would all get together over a weekend and begin reshingling each others houses for not much more than the $1000 insurance deductible and definitely less than my $5000 deductible.
It really came down to the numbers of why I decided to go with the $5000 deductible because as you can see from the diagram above it saves me $780 a year. Deciding not to live riddled with fear that one of those tragedies the insurance rep mentioned was going to happen within the next five years well make me $4320 richer. If all goes well over the next five years, meaning I’m claim free. I’ll be making a profit from this decision for potentially the rest of my life!
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Oh, I almost forgot to include the benefits of this revised team strategy. With the Cash Accumulators investing the saved $780 over four years with an investment return of 5% it well be worth $3368. This $3368 at a 3% dividend yield will produce an annual dividend income of roughly $101 per year.
I am excited to hear from the quickly growing Cash Accumulator fan base about your savings from implementing this revised team strategy.
Mr. Captain Cash
Leading the way to financial independence.
The post Team Strategy Update! Save $780/Year Increasing Your Insurance Deductible! appeared first on Mr. Captain Cash.