This year, we’ve seen prominent financials companies such as Lehman Brothers, AIG, Fannie Mae and Freddie Mac on the ropes amidst a slumping economy. Although Senator John McCain seems to believe the economy is in good shape, truth is working middle class Americans have felt the pinch first but now it’s the time for the upper middle class, those making $100,000 per year and upwards to start tightening their belts.

While the average middle class American might be fortunate enough to own a home and a car, it’s the upper middle and upper class Americans who live and die by their stock portfolios. Wall Street’s woes are going to have a direct impact on suburban, upper middle class communities around the US and not just because the proposed $700 billion bailout will result in higher taxes for most Americans. The pain will spread beyond the banks themselves to their back office and IT operations, accountants, lawyers, and other professional service employees who depend on work from finance companies.

BusinessWeek compiled a compelling list of Towns That Will Be Hit Hardest by Financial Crisis. The list is based on the amount of a city or town’s population that is employed in or around the finance and real estate industry.

1. Darien, Conn.
Share population in finance and real estate: 27.23%
Nearest large city: New York
Population: 20,666
Median salary: $168,687

2. Bloomington, Ill.
Share population in finance and real estate: 26.31%
Nearest large city: Chicago
Population: 70,395
Median salary: $54,971

3. Hoboken, N.J.
Share population in finance and real estate: 23.33%
Nearest large city: New York
Population: 40,002
Median salary: $81,356

4. West Des Moines, Iowa
Share population in finance and real estate: 22.15%
Nearest large city: Des Moines
Population: 54,627
Median salary: $61,303

5. Garden City, N.Y.
Share population in finance and real estate: 20.22%
Nearest large city: New York
Population: 21,671
Median salary: $121,831

6. Summit, N.J.
Share population in finance and real estate: 19.74%
Nearest large city: New York
Population: 20,618
Median salary: $111,497

7. Westport, Conn.
Share population in finance and real estate: 19.39%
Nearest large city: New York
Population: 26,822
Median salary: $137,133

8. University Park, Tex.
Share population in finance and real estate: 18.83%
Nearest large city: Dallas
Population: 24,582
Median salary: $110,976

9. Wethersfield, Conn.
Share population in finance and real estate: 18.73%
Nearest large city: Hartford
Population: 26,146
Median salary: $63,359

10. Mountain Brook, Ala.
Share population in finance and real estate: 18.66%
Nearest large city: Birmingham
Population: 20,654
Median salary: $115,148

Jeremy Nowak, currently president of The Reinvestment Fund and a board member of the Philadelphia Federal Reserve, said the cities and towns on the list aren’t necessarily in trouble just yet. Much of it depends on the steadfastness of the local employers and a potential resurgence of businesses. Not all banks are doing badly at this juncture, he said. And the insurance industry is, so far, relatively healthy, despite the myriad of troubles besieging industry giant AIG (American Insurance Group).

“These are places to watch,” Nowak said. “This will be the starting point for future investigation, and not the answer.”

  People today are living much longer than they used to just a few generations ago which can mean that your beneficiaries might live for many years after your death. As a responsible spouse, parent or grandparent, you will want to make sure you have adequate life insurance coverage for your beneficiaries that will provide enough coverage for the duration of the rest of their lives or for however long it may take them to financially adjust to life without you being around to rely on for financial assistance.

For many older Americans, a senior term life insurance policy can be a perfect method to supplement the financial assistance you leave behind for your beneficiaries. Regardless of if you already have a whole life insurance policy or a nest egg set aside to cover this purpose, a senior term life insurance policy can assure your beneficiaries will have additional coverage to make ends meet.

If you are a senior who already has a life insurance policy, chances are you purchased that life insurance policy many years ago while you were working. The amount of life insurance coverage you purchased at that time may have seemed sufficient during that time period but the cost of living increases over the years have practically whittled away at the base of your commitment. In many cases, the amount of life insurance coverage that was purchased in the past may not be adequate coverage for your beneficiaries today or into the future. As the cost of living continues to rise for most people around the world, you should remember to keep an eye on the amount of life insurance coverage you have set aside for your loved ones.

Numerous expenses may need to be dealt with after you are gone including funeral expenses, medical expenses, financial settlements, estate settlements and much more that is normally overlooked when we are in good health. Your beneficiaries will need to pay formost of these expenses and the costs can add up more quickly than one can imagine. With the average funeral costing in excess $10,000 today and just as the cost of living continues to increase, so might the costs associated with internment. Having an additional senior term life insurance policy could help your beneficiaries deal with these expenses without the additional stress of worrying about financial issues.

So, if you are a senior who already has a life insurance policy, or savings account set aside to financially compensate your family members, take another look at the amount of coverage you have and evaluate your situation because it may be the wisest decision you ever make.

In my previous article about finding the best deal on insurance, I touched on the idea that insurance, for the most part, is a necessary evil that plays an important part in our financial liabilities. The vast majority of consumers know why it is important to carry serveral insurance policies for their home and family. What most are unaware of is the important role adjustors can play in a settlement.

When an insurance policyholder files a claim, an adjuster will be brought in to verify that the coverage applies to the insurance policy, investigate liability for any damages and make restitution to the policyholder. In most cases, an insurance company will appoint a staff adjuster to the case and the policyholder will be offered a settlement based on the staff adjuster’s findings and recommendations. All too often, a policyholder will accept the settlement without dispute and feel they have been given the best deal possible. To understand why this is type of thinking can possibly cost a policyholder significant amounts of money owed to them, you must understand a few basic principles about insurance adjusters.

To begin with, there are three type of insurance adjusters:

• Staff Adjusters - Hired by the insurance company to investigate claims for the company.
• Independent Adjusters - Independent contractors hired to investigate claims for the insurance company
• Public Adjusters - Employed by the policyholder to negotiate with the insurance company

Both staff and independent adjustors have the insurance company to think of first when they are evaluating a claim. Independent adjusters often are retained with a commission based incentive which means they will get paid more if they are successful in getting the policyholder to agree to a lesser amount. Staff adjusters are working a different angle for the insurance company because a salaried adjuster will be subject to routine performance evaluations that can impact their salary and benefits.

A public adjuster is an an advocate for the policyholder in appraising and negotiating an insurance claim. Public Adjusters exist because of the a conflict of interest that arises when one person attempts to represent both sides of a settlement. Public adjusters are the only type of claims adjuster that can legally represent the rights of a policyholder during the claim process.

It is always a wise idea to let public adjuster review your claim even after you have settled with your insurer because most of the time a public adjuster can request that the claim be reopened to negotiation for more money if discrepancy is found.

The majority of policyholders are unaware that public adjusters even exist as an option to dealing directly with the insurance company representatives. A professional, conscientious public adjuster can make a tremendous difference in the amount of a policyholder’s settlement.

If you’re a policyholder and have filed a claim, don’t let your insurance company walk away with money they owe you. Make sure to consult a public adjuster before taking any offer.

This article is a true example of how shopping around for the best deal can save you a lot of money in the long run. Most consumers are all too typical and take the first solution or offer they receive on a product or service without shopping around for the most cost effective solution. That was true in this case…

A friend of mine who is an antique car collector was talking to me about problems he was having with the neighbors complaining about him having several cars parked in his driveway. His solution was to rent warehouse space for several of his vehicles at what seemed to him, the best price of $850 per month for the square footage he required. This translated into over $10,000 per year in costs that would not be deductible on his taxes and the price didn’t include the cost of insuring the vehicles.

My friend has quite a bit of open land on his property and I suggested that he look into constructing a steel building as a secondary garage to house the automobiles. I did a quick search on the internet for steel building manufacturers and I came across a company in Pennsylvania who specialize in metal steel buildings for commercial, agricultural, industrial, and residential building use. One of the most common use of their products is for homeowners who are car collectors and want to add additional garage space for their vehicles.

After my friend priced the cost of having the new garage addition completed versus the cost of renting a storage space, he realized that the option I had suggested would end up paying for itself in a few years. As an added benefit, the new structure will not only increase the value of his home but he will be able to use his homeowners insurance to cover the vehicles for a lot less money than taking out a new policy if he decided to rent warehouse space. Additionally, in most cases repairs can’t be deducted from your taxes but improvements and additions to your main home can usually be deducted in full in the year paid, otherwise, they can be deducted over the life of the mortgage.

Over the course of 10 years, my friend’s overall savings will amount to enough money to pay for his youngest daughters college tuition and now he will have all his precious cars on his own property and the neighbors will be happy.

Insurance is often thought of as a necessary evil because the majority of those insured never have the opportunity to utilize the benefits provided from being insured. However, when an accident or tragedy strikes, insurance can be a life-saver for most households. In th eUS and many other countries, insurance bills account for a significant portion of many consumers’ monthly household debits, so it would seem logical that finding the best deal on insurance is a critical portion of managing one’s personal finance. Whether it be automobile insurance, medical and health insurance, term insurance, life insurance, funeral insurance or income protection insurance, there are unlimited opportunites and possibilities for savings.

Over the next week, we will be covering insurance in a multi-part article detailing the different types of coverage available and the myriad of options for consumers based on our personal experiences in dealing with various insurors. We’ll be providing the details of our research to help pass along ideas, tips and tricks to save big on your insurance needs. If you’re thinking about purchasing insurance any time in the future, please stay tuned to this blog for the next few days as we unravel some of the myths and mysteries surrounding insurance.