Money Management

Should you follow Mark Cuban’s advice? 

Mark Cuban is a billionaire and was featured on Shark Tank. As a result, many people trust the financial advice he gives. He’s also a fan of cryptocurrencies and has indicated he’s a big investor in Bitcoin.

He recently explained why he thinks Bitcoin is a better investment alternative than gold. Here’s why Cuban thinks you should buy Bitcoin as a safe haven investment.

The simple reason Cuban prefers Bitcoin to gold

Recently, Cuban appeared on the Club Random podcast run by comedian Bill Maher. After Maher commented that he puts money in gold as a safe haven investment, Cuban indicated he believes this is not a wise choice and that Bitcoin would be a better alternative.

“Gold is a store of value, and so is Bitcoin,” Cuban said. But Cuban believes that gold, unlike Bitcoin, isn’t a very safe investment to make as a hedge against economic uncertainty because someone could “kill you and take your gold bar,” in the event of a major economic catastrophe.

Because of the risk of having your physical gold stolen, Cuban has described investing in the metal as “useless.” Bitcoin is also a store of value, but unlike the precious metal, Bitcoin is “protected by a digital ledger.” Since Bitcoin is a digital asset, no one could just take it from you if things went wrong. For that reason, Cuban thinks it’s a safer bet.

Should you invest in Bitcoin (or gold)?

Many cryptocurrency enthusiasts hope Bitcoin will one day become a digital version of gold, as there are commonalities between them, including the scarcity of both the physical metal and the number of Bitcoins that will be available over time. Cuban appears to suggest that Bitcoin could serve a similar purpose to gold as a store of value, but be an even better bet.

But there are important differences between them as well. Gold is tracked on a worldwide tracking system and has long been considered a safe-haven investment. It has a more-established track record. Bitcoin, on the other hand, is a newer alternative investment that has been embraced by many institutional investors and is the most well-established and respected of the cryptocurrencies.

READ MORE: Best Cryptocurrency Apps

It’s essential to understand the attributes of both investment options if you are deciding between them. And it is very possible that neither investment would be the right choice for you for a few key reasons.

First and foremost, you should always make sure you invest only in things you fully understand. And both precious metals investing and cryptocurrency investing can be pretty complicated as well as fairly risky. So if you don’t know the details of investing in them, you should steer clear of both investments in favor of simpler alternatives available in your brokerage account, such as index funds that track the performance of the market as a whole.

While index funds tracking the market may experience a temporary decline during economic trouble, you shouldn’t be investing for the short-term anyway. And, the reality is, these assets present far less risk of losses over time than either Bitcoin or gold, so they may be a better bet for the majority of people than either of these two alternatives.

Our picks for the best credit cards

Our experts vetted the most popular offers to land on the select picks that are worthy of a spot in your wallet. These best-in-class cards pack in rich perks, such as big sign-up bonuses, long 0% intro APR offers, and robust rewards. Get started today with our recommended credit cards.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Christy Bieber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.

 Read More 

Read this advice before deciding when to buy life insurance. 

Purchasing a life insurance policy can be extremely important to avoid leaving loved ones in a financial mess after an untimely death. But when is the right time to buy life insurance? This can be a complicated question to answer.

For consumers deciding when to buy life insurance coverage, it could be helpful to heed some advice on this issue provided by finance expert Dave Ramsey.

Here’s when Ramsey thinks consumers should buy coverage

According to the Ramsey Solutions blog, there’s a simple answer with regard to the best time to buy life insurance.

“If you have dependents, now is the best time to get life insurance,” the blog reads. “Don’t leave them unprotected. If you have young kids, they’re counting on you for the next 15-20 years. Whether your spouse works or not, they’re also counting on your income, so don’t run the risk of leaving them high and dry.”

As for those who don’t yet have dependents, Ramsey still recommends buying a policy sooner rather than later if they expect to one day get married and have children, or if they’re worried about how their family might cover their burial expenses. This is because it can be cheaper to get coverage at a younger age rather than waiting.

Is Ramsey right?

Ramsey is 100% correct that buying life insurance is something that should be done immediately for anyone with dependents who doesn’t already have protection. And he’s right that it should be done at a young age for those who plan to have people relying on them in the future.

Most people with a spouse or partner have set up their shared lives based either on two incomes, or based on one person bringing in income and the other providing services such as taking care of the home. An untimely death without life insurance in these situations could lead to disaster, as a surviving partner could be unable to pay the bills or unable to pay someone to provide the services their deceased loved one was offering.

As for parents, raising children is extremely costly, with the essentials offered in the first 18 years coming close to costing a quarter-million dollars, according to the USDA. The death of a parent could make it impossible to provide for kids appropriately until adulthood — much less pay for a child’s college education.

Since no one can predict when they will pass away, anyone with current dependents needs to act before a tragedy happens. If a sudden death occurs tomorrow, it would be far too late to do anything to protect surviving loved ones who are left behind.

The good news is, it’s not difficult to take action now and get covered as Ramsey suggests. Most people can shop for life insurance online, get quotes, and sign up for a policy either immediately or after a short medical exam. There is no excuse to put off taking this action to care for loved ones when no one has any guarantee that tomorrow will come.

Our picks for best life insurance companies

Life insurance is essential if you have people depending on you. We’ve combed through the options and developed a best-in-class list for life insurance coverage. This guide will help you find the best life insurance companies and the right type of policy for your needs. Read our free review today.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

 Read More