Fundamentals & Insurance: Benchmarks Flashcards
1
Q
Life Insurance
A
10-16x Gross Pay
2
Q
Disability
A
60-70% of Gross Pay
3
Q
Property: Home and Auto
A
<= FMV
4
Q
LTC
A
36-60months of inflation protection
5
Q
PLUP
A
$1-3M
6
Q
Emergency Fund
A
3-6 months
7
Q
Housing Ratio 1
A
28%
8
Q
Housing Ratio 2
A
36%
9
Q
debt Analysis
A
Good - Reasonable - Bad
10
Q
Education Funding
A
$3,000/year for 18 years - Public
$6,000/year for 18 years - semi-private
$9,000/year for 18 years - Private
11
Q
Retirement Funding
A
16x Pre-retirement income annual amount
12
Q
Savings Rate for Retirement
A
10-12% of of Income
13
Q
Return on Investments
A
8-10% assuming TL investment horizon
14
Q
Risk
A
The benchmark for the Standard Deviation of a diversified portfolio is 8-14%
15
Q
Consumer Debt
A
- should not exceed 20% of net income
