The most common question I encounter regarding life insurance is determining how much insurance an individual needs, and what kind of insurance coverage they may require. There are a few simple starting points that I take into consideration.

How much are your earnings? How much does your spouse earn?
What are your current liabilities – mortgages, cars, credit cards, student loans etc.?

What are your future projected liabilities- children, college etc.?

The next issue is determining what type of life insurance coverage is needed. Do you need temporary, or more commonly referred to as term insurance? Term insurance covers you for a set number of years. Or is a permanent policy through whole or universal life more appropriate for you and your family? Permanent policies are typically for families with special needs children or possible estate planning needs.

Click Here for an explanation of different types of life insurance.

Planning for the cost of life insurance should not be a burden..There are extremely affordable policies in the marketplace, and we would be happy provide you with a number of different quotes and policy types.

Personally, life insurance is extremely unfun. But I promise you this, if for some unforeseen reason your spouse calls me with tragic news we will not be talking stock. We will be talking about how you did the right thing protecting your family.

I look forward to regularly sharing with you my views relating to personal finance. I would appreciate any feedback that you may have, and if you have a topic that you would like me to cover, please email me at

phundley@lighthousecapllc.com or find me on Facebook at Paul Hundley, Lighthouse Capital. Or read more of my blogs at the Lighthouse Capital blog.


When assessing investment portfolios, we often discuss the economy and its impact on your investments. Questions typically arise about the stages or phases of the economy and how to assess where the economy is sitting. The stock market has been on a record run since the great recession of 2008 with the S&P 500 bottoming out on March 7th, 2009. The economy itself works in 4 stages, often called phases.

  1. Early recession: this is when things go bad for the economy. Generally, this is when consumer expectations are poor, industrial production is falling, and yield curves flat line and sometimes even go inverted.
  2. Full recession: this is when GDP has retracted in two successive quarters. This is a particularly hard time for the unemployed, corporations, and 401k balances. By this point, consumer expectations have bottomed out and the Fed typically tinkers with the yield curve with the hopes of injecting life into the economy.
  3. Early Recovery: Industrial production is picking up, the yield curve is steep and interest rates are beginning to rise. Consumer expectations are rebounding at this point.
  4. Late recovery: Consumer expectations are beginning to decline, along with flattening industrial output. Interest rates typically rise quickly during this phase.

How can we tell where we are at besides just eyeballing it? Economists use economic indicators  to help determine phases and where the economy is currently resting. While investors may pay attention to both leading and lagging economic indicators. Insight to the difference of both leading and lagging economic indicators can be found here https://www.moneycrashers.com/leading-lagging-economic-indicators/.

Timing these phases of the economic cycle are almost impossible. In fact, even the most well-respected investors find it almost near impossible to time these cycles. That’s why I stress to my clients that these phases should never impact their investment decision making. Your investments should be built in a manner to help accomplish your short, intermediate, and long-term goals in all kinds of market environments.