I am using CFD's to hedge a SMSF. The transaction costs are low and I can adjust the level of the hedge quickly. This agility to match the hedge with the hedged gives CFD's the edge over traditional insurance.
That is one option that can be considered. However the cost effectiveness and sums that can be insured with a traditional term life policy would be in my opinion more advantageous. The sums insured can take into account all current debt and more importantly can also take into account future earnings in the sum insured. The insurance policies themselves once in force are guarenteed renewable and the sums insured will rise automatically to take inflation into account.
That is a good point AJ. There is a natural place for insurance in the estate planning section of every financial plan for Self Managed Superannuation Plans. I will post more ideas on taking advantage of short term volatility that pays off before the insurance manages risk to the estate.
That is one option that can be considered. However the cost effectiveness and sums that can be insured with a traditional term life policy would be in my opinion more advantageous. The sums insured can take into account all current debt and more importantly can also take into account future earnings in the sum insured. The insurance policies themselves once in force are guarenteed renewable and the sums insured will rise automatically to take inflation into account.
ReplyDeleteThat is a good point AJ. There is a natural place for insurance in the estate planning section of every financial plan for Self Managed Superannuation Plans. I will post more ideas on taking advantage of short term volatility that pays off before the insurance manages risk to the estate.
ReplyDelete