Category: Finance
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The Need for Equity Release Consultants to Understand the Details
Equity release allows you to borrow money now that you don’t need to pay back any time soon. When you die, it is the time when the equity release provider will take the money back. They will sell the property and deduct the loan from the property value when sold. You don't need to opt for regular loans when there is an option that lets you borrow money without the need to pay immediately. The only downside is you could end up losing the entire value of the property depending on the amount you borrow, the rate of interest, and your time of death. It might look simple on the surface, but if you dive into the details, you will realise that things can be quite complicated. Therefore, you need help from equity release experts to explain to you all the issues that you don’t quite understand. They have years of experience: These consultants have been around for several years and worked with people who also wanted to get equity release. They have connections with various equity release companies, so they understand the terms and conditions they set. You can count on them to tell you what you need to know regarding equity release, including updates if there are changes in the policies. Even the legal terms that you find confusing will also be understandable after their explanation. They can simplify things for you: It is quite tricky understanding all the various concepts when they are all unfamiliar to you. It is even more complicated at your age since you are no longer as sharp as you used to be. With the help of these experts, they can simplify the concepts for you. They will show you some numbers, but they will also explain to you what they mean. After talking to them, you will feel enlightened regarding equity release and might even decide to go ahead with it. They can explain to your children too: Even if you already understand the equity release schemes, your children might worry that it is not the best choice for you. They might think that you are not getting a good deal out of equity release. You can let them speak with the consultants too, so they will know the details and not worry about what will happen next. After you die, your children will be the ones to deal with the equity release company. You want them to understand the details so that they know what to do, and they can stick with the terms agreed. Apart from paying the equity release advisers, you have nothing else to pay at the time when you get equity release. The payment will come later once the property is up for sale. Some companies might even penalise you if you decide to repay before they sell the property. As long as you stick with quality consultants who know the details of equity release, it will be fine. Find someone you can trust and who has a good reputation in the industry. Read Also: 6 Tips For Selling Your Brisbane Property Essential FAQs Before Buying A Villa
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Do I have Enough Super to Retire: Considerations Before Leaving Your Job
As you get older, you start thinking about retirement and if you have enough money to live comfortably afterward. In some cases, people don't even usually get to decide their retirement age due to health reasons. Retirement planning is an important process, and part of it is asking questions like "How much super do I need to retire?" or "Is my current lifestyle something I can afford?". According to the Australian Bureau of Statistics or ABS, the average retirement age is at 65.5 years for men and 65.4 for women. If you're someone who's nearing this age, then you should think about these considerations before you retire or leave your job. How is your account doing? Some of the biggest mistakes that people make is not knowing what their superannuation account is worth or where they're money is invested. This reason is that a lot of people don't really understand what it is and the advantages of having one. At the end of the day, it's money that you've earned, and you've set aside for retirement. Make sure to check how much you already have in your account so you can plan your retirement correctly. According to experts, you need to have at least $545,000 in your account if you’re single and $640,000 if you’re married to be able to have a comfortable retirement. This amount already covers health insurance coverage, home renovations, activities, and food. How much money do you need? You also have to take note that the amount you need will still depend mainly on how your lifestyle will be. Take this example below to find out how much you need to earn to have a modest or comfortable retirement: Modest lifestyle $27,430 for a single person $39,445 for couples Comfortable lifestyle $42,955 for a single person $60,604 for couples A modest retirement would mean that you still get to enjoy activities like eating out once in a while and go on short trips within the country. A comfortable lifestyle, on the other hand, will mean that you can go to a lot of recreational activities, get good private health insurance, buy a reasonable car and travel. Taking into account what your lifestyle is will have a great impact on how much money you need to be pouring into your super account. Where do you wish to live during retirement? After retiring, the house you've lived in for many years may seem dull and boring. Consider where you want to live as this will have an impact on your overall life satisfaction. An option that's popular for retirees is downsizing and selling off some of their assets. The reason behind this is because they want simpler things in life. They don't have kids living with them anymore, and house maintenance cost can be expensive and impossible to do down the line. Additionally, downsizing can actually help you increase your superannuation account. For example, Australians age 65 and over can make a non-concessional contribution to their superfund account for up to $300,000 from the sale of their primary home. This does not take into consideration of your work status, account balance, and history of contribution. Moreover, for couples, this amount can double up to $600,000. Downsizing has some significant advantages such as: Ability to stay closer to family and friends Ability to purchase better health insurance coverage Tax benefits Affordable cost of living depending on your location Ability to put money in other investment opportunities Are you debt free? Debt is something that can eat up a lot of your retirement income when not handled properly. Most experts advise that you carry no obligation when you retire or at least 90% as close to debt-free. Ensure that you've already paid off your mortgage, credit cards, and other types of loans that you may have. If you're planning to retire but still have a lot of payments needed for your mortgage, you may want to reconsider it or making additional payments into it. A debt after your retire can derail your plans of having a comfortable retirement. Conclusion: Taking time to ask yourself these considerations will help you get the life you want after retiring. Additionally, it helps to paint a bigger picture of how your life will be moving forward. Being mentally and financially prepared is what is going to help you achieve the life you have always dreamed of. Read Also: How To Become Financially Stable Before Age 30 How To Live Healthily Even If You Have A Full-Time Job
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5 Places to Get Fast Cash
Cash loans today from loan companies are one of the fastest means to get your hands on extra cash. Fast cash from such companies is a welcome relief when you need extra funds for emergencies or when a sudden and pressing expense suddenly comes up. For example, the computer that you use to work from home breaks down. You’ll need cash for this as soon as possible, or you won’t be able to generate any income. While cash loans are a good way to resolve such issues, there are other ways to earn fast cash, and you may want to try them out before borrowing cash from a loan company. Established lenders like Fast Cash UK recommend that borrowers explore other possible opportunities to raise fast cash before applying for instant loans. Here are five places where you can get fast cash. Different Places From Where You Can Get The Fast Cash In 2022 There are multiple places are there from where you can get the fast cash in 2022 to make things happen in your favor. 1. Your Family or Friends: Your family and friends are very likely your most accessible and dependable support system. Asking them for a boost, therefore, is a no-brainer. However, it is a good idea to treat the transaction just like regular cash loans wherein you discuss and lay down the terms of the loan and sign an IOU to complete it. This serves as extra protection for both the money and your relationship with the lender. 2. Your Closet and Drawers: Apart from the few coins that you may find, you can rummage through your stuff for things that you no longer use or need like old college books, toys, and electronics. You can sell your old books online via Amazon or other online booksellers and your other items using eBay or another auction site. Clothes that no longer fit you as well as those vintage clothes gathering dust in the attic are still a hit in thrift shops so that you can sell them for a few bucks. 3. Your Neighborhood: You can take on gigs within your neighborhood to earn fast cash. You can offer your services as a babysitter, dog walker, landscaper or house cleaner. If you have the skills, you can also do some carpentry work, plumbing or computer repair. Print out a few flyers to distribute in your neighborhood, and then wait for the calls to come. 4. Your Vehicle: If you own a decent vehicle, sign up for a ride-hailing transportation service. It usually takes Lyft and Uber up to two weeks to approve applications. There are other ways to use your vehicle to make money as well, including package and food delivery and advertising other businesses 5. Online Loan Companies: If all else fails or your need is immediate, then applying for a cash loan is one of your best options. Some refer to cash loans as instant loans, and you can get the cash within the same day or even in a few hours. Online loan companies can even process and approve your application in minutes as long as you can provide the requirements to be eligible for a loan. Loan companies require borrowers to be at least 18 years old, hold a part-time or full-time job and have a working bank account. There are several more considerations when applying for a loan, and these include choosing the right loan company, opting for the right loan product and selecting a repayment schedule that you can handle. Remember to keep up with your monthly repayments because this will not only improve your credit score but also make it easier for you to be approved for your next loan. Read Also: Benefits Of NBFC Business Loans Top Tips For 2018: Student Loan Hacks
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How to Become Financially Stable Before Age 30
Your twenties can be some of the most exciting years of your life. You're young and experiencing life, but you have to remember that decisions you make now will affect the rest of your life. One of the most common questions people ask in their twenties is how to plan for the future. Check out these useful tips to learn some of the best ways to start off your life and learn how to become financially stable for the long term. Make Plans: This gets the top position because it's the most important. One characteristic you'll find among the wealthy is that they plan things in advance. They set long-term goals and create short and medium-term plans to make them happen. The act of creating real plans makes it more likely that you'll become financially secure. This isn't only about your career and investing, though those are important. Set personal goals for self-improvement and growth. Learn how to keep yourself accountable to your plans so that they become reality. Start by figuring out where you see yourself in five years. You should have a real thought about what you want to happen in your career and personal life. Set shorter term goals to help you accomplish your five-year plan. These can include things like: Pay off student loans Get out of credit card debt Save up for a down payment Visit somewhere exotic Buy a car Many of the plans you need to make relate to enjoying life and your lifestyle. By figuring out the kind of life you want to lead, you learn more about the steps you have to take to achieve it. Budget: Once you have plans, you need to set a budget to make them a reality. The thought of making and keeping a budget intimidate a lot of people. Knowing where your money goes is the easiest way to start becoming financially stable. Sit down and write out how much money you make every month. Include your salary as well as any side incomes you have going. Once you know what you make, write out all your fixed expenses next to them. These will be things like your rent/mortgage, car payment, health insurance, and car insurance. Always include your savings in fixed expenses. What you have left over is the money available for food, gas, entertainment, and other things. Always try to build in some 'funny money'. This is a small amount you can spend on literally anything you want. Having a little flexibility every month makes it easier to keep your budget going. Learn How to Become Financially Stable: Being financially literate is one of the most important things you can do to build your longterm finances. It's pretty much impossible to build wealth without knowing how personal finance works. There are lots of online resources you can use to do this. Start with the basics: budgeting, investing, and finance terminology. It's important to know enough about finances to tell when something is too good to be true. If you don't spend some time to learn how finances work it's almost impossible to become financially secure. You don't have to learn advanced finance and trading techniques, just enough so that you can recognize where your money is going and how to make it work for you. Invest Early and Often: Albert Einstein once said that compounding interest is the most powerful force in the world. It doesn't matter what you invest in, only that you invest early and let your gains compound. Historically the stock market goes up on average. By putting your savings in broad basket funds you can generate consistent growth over the decades. If you don't want to spend too much time you can use a fee-based financial planner to help. Look for low fee index and exchange-traded funds to maximize your gains. Take Some Risks: Your twenties is the best time to take some risks for your future. You're young, you aren't tied down, and you've got nothing but opportunities ahead of you. Start with career risks. You can often get significant pay or benefit gains by moving to a top job. When you're young you don't have the baggage that comes with kids, houses, and rooms full of stuff. If you get a great opportunity across the country or across the world, take it. Don't forget to look for other big opportunities. Starting your own business is still one of the best ways to build real wealth. Your twenties is also the time to put your investments into high risk high potential reward mode. Look for emerging industries and markets that have great potential for large gains. You can check out industry sites and investor groups for new technologies, such as NICI for cannabis investments. You'll see some losses in many of your investments, but even one or two big winners can provide you with significant gains. Make Saving Automatic: One of the best ways to continue saving and investing is to make it completely automatic. There are lots of apps and employer programs available that will set aside part of your income every pay period. This allows you to save and built wealth without having to think about it. When you set up your budget, leave this money out to the side. If it was never something you're spending you won't even miss it. An employer-sponsored 401k is a great way to do this for retirement planning. Many employers offer a match if you invest. This is literally free money for saving. You also get significant tax benefits by investing this way. Remember to Have Fun! Your twenties are the best time to experiment and discover who you are and what you want from life. Take risks, make plans, and build the kind of life you want to live. Think about how to become financially stable, but don't obsess over it. If you liked what you read here, check out some of our other interesting and informative articles to learn ways to improve yourself. Read Also: 3 Must Know Accounting Tips To Help You Finance Correctly Everything You Need To Know About Term Insurance Plan Premium
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Debt consolidation plans for your debt relief
Debt consolidation is a financial strategy that merges several financial bills into one debt that gets paid off through a management program or loan. Debt consolidation is useful when the debt is of high interest like the credit card. It needs to reduce your monthly repayments by lowering the rate of interest on all your bills, which makes it easy to pay the debt off. The option of debt relief untangles the mess that consumers face each month when they are struggling to keep up with several bills from various card companies and different deadlines. In its place, there is a single payment to one source each month. It also saves money at the end of the day. There exist two primary forms of debt consolidation – signing up for a debt management program or taking up a loan. It is up to you to decide on the method that fits your situation. You can also call this credit consolidation or bill consolidation. Consolidating debt should help get you out of debt very fast and improve your credit score. How does it work? It works by lowering the rate of interest and reducing monthly payments to a price that is affordable on debts that are unsecured like credit cards. The leading step towards debt consolidation plans is calculating the total money you pay for your cards monthly and common interests paid on the cards. It provides a baseline for purposes of comparison. You will then have to look at the budget and add spending on basic utilities like transport, housing, and food. How much money are you left with? For many individuals, there is always enough left to handle the budget and help them pay their debts. However, motivation and effective budgeting are never evident when individuals fall behind on bills. And this is where debt management programs or debt consolidation loans step in. All of them need one payment monthly and gives you time to track the progress of removing debt. Will some calculations and research inform you if a debt management program or loan will be of more help in paying the debt? Using a loan to do Debt Consolidation: The standard method of doing debt consolidation involves getting a loan from the bank, online lenders, or credit unions. The loan has to be large enough to clear the unsecured debt at once. The loan gets paid with monthly installments at the negotiated interest with the lender. The period of repayment is usually five years, but the amount of benefits charged is the crucial element. The lender will take a close look at your credit score while determining the interest rate charged for the loan. In case you are falling behind with your debts, it is likely that the credit score will tumble. In case the debt consolidation interest is not lower than the average benefits you are paying on credit cards, then the loan will not be doing you any good. There are other alternatives to loans like personal loans or equity loans, but none of them will help if the rate you are paying is long and does not make sense. Consolidating Debt without a Loan: There is a possibility of combining debt and reduce installments without another loan. Agencies that do non-profit counseling provide debt consolidation via debt management programs that do not require you to take credit. In that place, the non-profit agencies work with companies of cards to reduce interest rates and lower monthly repayments to a level that is affordable. The consumer will send payments to the counseling agency that then distributes the funds to agreed creditors. The agency may tell the firm to waive over-the-limit and late fees. This solution is not quick. Programs of debt management take up to five years to manage the debt. If you miss one payment, they may revoke the arranged concessions on the monthly fee and interest rates. Read Also: Eight Essential Tips For Getting Out Of Debt Are Debt Consolidation Loans Recommended For Credit Card Consolidation
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Are Payday Loans Really as Bad as People Say?
You’ve probably gone to your computer to research online payday loans in Texas and instead been met with a barrage of negative information regarding payday loans. Most consumer advocates demonize this type of finance, saying it is predatory and that it needs to be banned because it does not help the average consumer. That is not true at all. Repeat Customers: What most detractors of the finance system do is that they focus on the supply side of this business. They don’t look at the demand side, which grows stronger and more demanding every day. What is it that makes borrowers come back for payday loans repeatedly? In order to answer that question, you need to have an intimate understanding of the average borrower that relies on payday loans. This is typically a low to medium income earner whose wages cannot cover surprise expenses such as a broken-down car, medical expenses, or emergency funding for your business. They typically don’t have savings or investments or even the same incentives to save and invest that higher-income earners have. Their real wages have been on the decline since 1972, and so they find it harder every year to make ends meet adequately. Moreover, traditional banks have all but abandoned them and won’t touch them with a 10-foot pole — not since the financial disaster that began sometime in 2007. What recourse is there for such a consumer? What can they do and who should they turn to when their backs are against the wall? Watch Out for Predatory Lending: To be sure, there are some unscrupulous payday lenders that take advantage of borrower’s situations and harass them, making them live in constant discomfort over their loans. They also encourage them to borrow a lot more than they can ever hope to pay back, just so they can roll over the loans or take out other loans to pay the initial ones back and get trapped in a constant cycle of debt. But this isn’t all lenders. To begin with, the lending industry is well regulated with lenders being required to follow strict rules on what they can say or do when trying to recover their money from a borrower. They also aren’t allowed to take borrowers to court in many states. The good lenders are having their name tarnished by a combined team of bad lenders and so-called consumer advocates who don’t quite understand or empathize with the dire situation of the low-income earners who need these loans. These are people who typically have neither good credit nor friends and family from whom they can borrow money or ask for help. The payday loan is their last resort. Would it be fair to take that last resort from them and give them no alternative to replace it? Take Only What You Can Pay Back: There are also many borrowers who take just enough money to meet their emergency needs. They make sure it is something they can pay back with their paycheck, and they pay it all back on time. Just like there are lenders who encourage borrowers to take only what they can reasonably pay back, and do not harass them when they run late on payments. Payday loans are not evil. They are a quick solution to many of the needs of a certain otherwise abandoned section of society. Read Also: How To Save More Money? 9 Vital Options For When You’re Desperate For Money
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A Little on the Side…Or Not? Your Guide to Supplemental Insurance
Have you ever experienced something you didn't expect? It might have been something good, like bumping into an old friend on vacation or being taken to a surprise party. Or it could have been something not so favorable: a car accident, the loss of a job, a sudden illness… The world is an unpredictable place. Each new day brings its own surprises - both good and bad. We can't plan for those surprises, but we can protect ourselves. In 2017, Americans spent $1.2 trillion on health insurance premiums. Having a good health insurance plan can protect you in the event of an unforeseen injury or illness. But it's not always enough. Some people go to make a claim only to find that it isn't covered. Others can afford to make their monthly premiums, but when they need medical assistance, they can't afford to pay their copays. Even with health insurance, medical bills are the leading cause of bankruptcy in the US. Supplemental insurance may help cover those costs so you don't need to add a financial emergency along to your medical emergency. What Is Supplemental Insurance? As the name might suggest, supplemental insurance is a type of insurance that supplements your existing healthcare coverage. There is a wide variety of health insurance plans, but most plans give you a choice between a low monthly premium and a high deductible or a high monthly payment with a low deductible. Most people choose to go with a low monthly premium-especially if they're generally in good health. But since 61% of Americans don't have enough savings to cover a $1,000 emergency, that high deductible could ruin them. Supplemental insurance is a separate health insurance policy that can be used to cover additional expenses that you may be unable to cover on your own. You might use it to pay for a deductible, copays, or care that your regular insurance does not cover. Some supplemental insurance companies will even cover lost wages for time off due to illness. Supplemental insurance carries its own monthly premium. However, this premium is often lower than the difference between your current insurance plan and a plan that would cover everything else you need. Types of Supplemental Insurance: Just like every health insurance plan is different, there are several different kinds of supplemental insurance. You can mix and match these plans as needed. Dental Insurance: It's likely that you already have supplemental insurance without realizing it. Most health insurance plans do not cover dental work. And since regular visits to the dentist are an important way to fight dental problems, that could leave you on the hook for expensive out of pocket costs. To cover your dental care costs, you must have a supplemental plan. This supplemental is often provided in your benefits package from your employer without you even realizing it. If you manage your own insurance, your primary insurance provider may offer a separate plan to cover these. Vision Insurance: Like dental insurance, vision care is not typically covered by most health insurance policies. And that's bad news considering that 75% of Americans need some kind of vision correction. While you could always see an optician at the cheap eye clinic in the strip mall, that's a poor substitute for regular appointments with an optometrist or ophthalmologist. An optician can also miss other serious problems that an optometrist or ophthalmologist would catch. Supplementing your medical insurance with vision insurance can keep your vision care expenses from running through the roof. Medigap: Medicare is a state-run insurance program that covers citizens over 65 or certain individuals with disabilities. It is funded through taxes, so recipients do not pay a monthly premium. Many people depend on Medicare to cover the cost of their ongoing healthcare. But it doesn't cover everything. Medigap plans can help cover out-of-pocket expenses or necessary care that is not covered by Medicare. Travel Insurance: If you're traveling away from home and you are injured or become ill, you may not be able to find any healthcare providers within your network. Purchasing supplemental travel insurance before you travel is a good way you can stay covered if the worst should happen. Critical Illness Insurance: While insurance exists to cover unforeseen costs that you cannot afford, every insurance plan has an annual limit or a cap on how much they will cover. If you reach that cap, you must pay for any costs beyond that. If you become seriously ill, it can be easy to reach the cap in a hurry. Supplemental critical illness insurance is used to cover expenses beyond your insurance policy's annual limit. Do I Need It? You might be reading this thinking, "this is all well and good, but do I actually need supplemental insurance?" Can you afford to pay your entire deductible? Can you pay for out-of-pocket expenses like copays and prescriptions? Can you afford to pay for additional care out of pocket? Are you at risk of reaching your policy's annual limit? If you answered "yes" to most of those questions, then you might not need supplemental insurance. If you have a savings account that you can dip into to cover extra costs, you can skip it and pay less per month. However, if you do not have a lot saved up, paying a few dollars more per month for supplemental insurance could save you if you suffer a health crisis. Take a look at your financial situation, your current health insurance, and your overall health and make an informed decision. Protect Yourself: Supplemental insurance is a great way to protect yourself from uncovered medical expenses. But as the old saying goes, an ounce of prevention is worth a pound of cure. You can help prevent runaway medical costs by taking care of your health. For more articles about how you can stay healthy, visit the health & fitness section of our blog! Read Also: How To Get Low-Cost Life Insurance For Seniors Small Business Guide To Private Health Insurance Exchanges
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How to Protect Your Property as a First Time Landlord?
No matter what route you take to the rental market, you’re making an exciting step in life. Many people believe that becoming a landlord is fail-proof. However, although the process can be both financially and mentally rewarding, there are downsides and potential pitfalls. Renting out a second property is ideally an investment and, as such, several risks come with it. As a result, you need to protect your investment and mitigate against risk. Here’s how you can do just that to make sure that you are getting returns for your investment. 1. Take Out Insurance Being The Landlord: Traditional insurance doesn’t usually cover rental properties. As a result, you should take out specialist landlord insurance. As well as protecting your home in the same way traditional home insurance would, landlord insurance can protect you against other problems, such as unpaid rent or a tenant injuring themselves at your property. Get a company that offers the best insurance deals to landlords and insure your property with them. 2. Draw Up the Correct Contract: The correct tenancy agreement can help you in case you need to evict a tenant or take action against them. The vast majority of rental agreements come to an amicable end, but there may be times when you need to evict your tenant. A correct tenancy agreement will provide you with the framework to issue either a Section 21 notice (giving them two months’ notice) or a Section 8 notice, which allows the person to seek possession under particular grounds such as rent regions and anti-social behaviour (more information on both of these notices can be found here). Make sure that the tenancy agreement that you craft will protect you under all circumstances. 3. Take A Security Deposit: Taking a security deposit or a damage deposit (usually a month’s rent) allows you to protect you and your property against any breakages or damages. It is important to put these measures in place if you want to be sure that you are on the safe side. You must place the deposit in a concern that is regulated by a government deposit scheme, such as the Deposit Protection Service, MyDeposits or the Tenancy Deposit Scheme. The deposit is then returned to the tenant at the end of the tenancy unless they fail to meet the terms of a tenancy agreement, cause damage to the property or fail to pay rent and bills. 4. Ensure There’s an Inventory: Before your tenant moves in, you should complete an inventory of everything currently in the property. As well as listing everything currently in the property, you should also list its current state, including any dents, scratches or stains. Once this is complete, you should have a walk around the property with the tenant. Then you can both confirm everything listed is present and the condition described is accurate. When this process has been completed, you should both sign and date the inventory. 5. Have a Financial Buffer: Finally, you should ensure you have a financial buffer, in case you have to pay for running repairs. The costs for running a rental property can quickly stack up. Although you could take out an installment loan to finance any major payments, it’s advisable to have a pot of savings before you begin, in case you need to finance any running repairs. Read Also: Is Property Investment Still A Good Way To Make Money? 6 Expert Tips For Finding The Right Home To Buy
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How to Protect Your Finances While in a Nursing Home
It is usually the case that very few seniors know what rights they have when it comes to long-term care, as well as their options when it comes to their finances. Many people will either avoid thinking and planning about the issue or develop a faith that they won’t need senior care when they grow older. The statistics point out that nearly 70 percent of Americans age 65 and older will need some kind of long-term care for their sunset years. Nursing Home bills can be expensive if you are not aware of it. When it comes to payment for nursing home costs, you will typically use a combination of Medicaid, long-term care insurance, assuming you took out a policy and have been faithful with the premiums and money out of your own pocket. Paying for it out of your own pocket or some form of insurance will take a lot of planning beforehand and savings as well. Because most people don’t do this, they instead turn to Medicaid. A Look in Medicaid Of Nursing Home: Medicaid isn’t like Medicare, which doesn’t cover long-term care. Medicaid is a means-tested system which means that you can only qualify if you have a low income, own a small amount of money or assets or both. It is usually the case that seniors will want to preserve their money, either to pass it on to their families or simply because they want to preserve it. The problem is that Medicaid has strict requirements that do not allow for this. Medicaid requires Americans to spend money out of their pockets before the program steps in. If a senior American gives their assets away to their families, then Medicaid has a 60-month look-back period where they will look for this inheritance and hit the senior with a penalty period where they will be disqualified from Medicaid. There are, however, various legal strategies you can use to protect your finances, according to The National Association of Nursing Home Attorneys. Put Your Money in an Asset Protection Trust: These trusts, as you might imagine, are designed to protect your wealth. You can, however, use it to protect your money in other instances as well. When you pass your assets along to a properly designed trust, then that property no longer belongs to you. It is therefore not within reach of any creditors or even Medicaid. Make sure you make the transfer more than five years before you need long-term care because it could still come within the look-back period of Medicaid. Put Your Money in an Income Trust: You have to deal with income limits when you apply for Medicaid. If your income exceeds that limit, it will be considered as excess. To avoid this situation, you can put your money in either a pooled income trust or a Qualified Income Trust. Qualified income trusts are designed to hold any of your excess income. It is an irrevocable income trust. A pooled income trust, on the other hand, is used to hold excess income for disabled individuals. The income from many such individuals is pooled together managed by a not-for-profit organization. Caregiver Agreements: This can prove to be a useful strategy in some situations. It is useful when the individual would like to access extra services that Medicaid does not cover. You can get a friend or family member that has taken some time off from work to provide you with these services and pay them an income for it. It is an excellent way to ensure you are cared for by someone you trust and also to reduce your countable resources from Medicaid’s perspective. Read Also: Everything You Need To Know About Term Insurance Plan Premium How To Choose The Best Auto Insurance Company?
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6 Loan Mistakes Every Business Owner Must Avoid
If you’re a business owner, it’s highly likely to come across situations where you’ll need a business loan. In such events, a business loan can fulfill the fiscal deficit to help keep the business on track. The only catch is taking a business loan can sometimes be a complicated process, and owners might end up making uninformed decisions. We’ve listed below some common loan mistakes that every business owner must avoid while taking a business loan. Here are 6 Loan Mistakes Every Business Owner Must Avoid: 1. Waiting Until Last Minute: Business loans are not only for covering up last-minute emergency expenses. The best use-cases of a business loan can range anywhere from hiring new people to investing in new technology. Waiting till the last minute, when the business cannot go without an immediate availability of cash is a recipe for disaster. It’s always a good idea to prepare for the future, more so, in the case of a business. Last-minute decisions are often hasty and a result of poor judgment where business owners are likely to take any loan deal that comes their way. It can backfire and incur more losses in the future. 2. Borrowing More Than You Can Afford: Just because you are eligible for a huge business loan doesn’t mean you should take one. Before even applying for a business loan, you should evaluate your business’s present financial situation. If you end up borrowing more than you need, paying it back can get difficult. Furthermore, not spending everything will lead to ‘dead cash’ in your bank account. So, do your math, check your statements, and only apply for an amount that your business actually needs. 3. Not Knowing About Collateral-Free (Unsecured) Business Loans: Most banks will insist on having sufficient collateral before they approve any loan. Banks that require collateral will only provide secured loans. However, some banks and lenders offer business loans without any collateral. This type of loan is known as an unsecured loan where the business owner doesn’t have to pledge any business or personal assets to the bank. Unsecured business loans with bad credit are the best option for you if your credit score didn't reach the standard requirement of most lenders. 4. Not Keeping a Good Personal Credit Score: Different financial institutions will have different criteria for giving out business loans. However, most of them will definitely consider the credit score of the owner while processing any business loan application. A good credit score shows that you’re a good steward for your money. It also helps in negotiating better rates. Hence, maintaining a good personal credit score becomes critical for business owners. 5. Not Solving Current Cash Flow Problems: As a business owner, your entity may require money for different needs. However, if you’re looking to get a loan to fix irregular cash flow in your business, it might not be the wisest thing to do. Analyze why your company has irregular cash flow and don’t be a statistic of the sunk cost fallacy. Sure, you can have a temporary fix, but once the loan money is utilized, a business can again go back to the same. In such a situation, it’s important to make sure that finances are under control after utilizing loan money. 6. Not Knowing the Agreement: Signing an agreement without reading the finer details will put you as a business owner in an undesirable situation. Sometimes the financial institution giving out a business loan can put a little remark in the agreement that will require the borrower to pay additional fees. More than that, the agreement can even have a clause of variable interest rate. Hence, it becomes essential to read the documents carefully before signing. At any point, if you’re uncomfortable with the offer, talk with the lender to negotiate a better deal. Conclusion: It’s not unusual to hit occasional financial hurdles when running a business. To help overcome these situations – business loans from financial institutions can help owners get over financial difficulties. Gone are the days of lengthy processes or huge collaterals to take a business loan, so don’t be nervous if your business is losing some steam over money. Today, the online mode for business loan applications has made the entire process seamless, and financial institutions like ABFL Direct offer loans with no security whatsoever. There are minimum paperwork and a flexible tenure for business to pay it back. Read Also: Resolutions To Help The Small Business Owners To Avoid Being Bankrupt Benefits Of NBFC Business Loans
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Is Equity Release Worth It?
You might be having second thoughts on whether or not to get an equity release loan. On the one hand, you want to use the money for a significant transaction. On the other hand, you are afraid that the interest rate will be too high over the years, and it could result in the drastic reduction of your property's value. If it is your only property, and you have nothing else to leave your children, you want them to enjoy its full value. How to make a decision It is understandable if you are having a hard time choosing. To help you decide, think about where you wish to use your money. If you are paying hospital bills and other emergency expenses, and you have no other choice, proceed with your plan. It is reasonable for you to take it. You are also making the right move if you intend to use the money for home improvements. You will be staying in your property until you die, so it does not hurt to invest in home improvements. Besides, it could help boost the value of your property. On the other hand, if you are thinking of using the money to invest or start a business, it is a bad idea. You are at an age where you can’t wait to see where your money goes, or if it will someday grow. You need to enjoy your money at this point since you worked hard your entire life. It is also reasonable to use the money if you wish to travel the world. It might not be reasonable if you were young, but at this age, do whatever you want to satisfy your desires. You might not have this opportunity someday, so while you still have it, make the most of it. Check the details Aside from how you want to use the money you borrow, you also need to check if the terms and conditions are fair enough. There are equity release schemes that are reasonable, while others seem to take advantage of your age. You can seek help from a consultant to tell you the details you don't understand. The information online might not be good enough for you to make a sound decision in the end. Look at the repayment scheme, and if there is a fee if you complete the payment earlier. You also need to look at the steps involved once you die, and your family needs to pay back the loan. If it is too difficult for them, and you think they will not receive a significant amount, you might as well look for other options. Should you get one? After consultation and research, you can decide whether or not you will take the loan. You already have the necessary information at this point to choose. When choosing, think not only of what you need now but in the long run. Think of how it will affect your family, but it does no harm to be selfish and think about its impact on you. Read Also: Lining Up For A Loan – How To Secure A Good Loan Benefits Of NBFC Business Loans Title Loan Requirements: What You Do And Don’t Need
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How Intranet Services Can Make Your Financial Institution More Effective
Successful banks, credit unions, and financial institutions have long relied on strong internal communications to effectively manage day-to-day operations, plan for the future, and respond to problems as they arise. A team that is empowered to share knowledge, experience, and data will be more resilient in the face of challenges and more capable of exercising initiative, and implementing effective communication strategies and protocols is especially important in the financial industry, where the risks are as high as the potential rewards. This is why many financial institutions rely on intranet services to ensure a secure, seamless operation that ensures a constant flow of information between analysts, investors, client relations, and service workers. Intranet services essentially function as internal web pages that allow organizations and businesses to network and communicate more effectively, and a good intranet site gives every employee access to superior communication and database tools. Most intranet sites are designed to meet three basic needs: providing employees access to documents, workflow charts, and protocols, helping employees complete tasks and connecting employees with each other. By providing usable tools and easy navigation routes, the intranet makes workers more efficient and strengthens morale by improving employee engagement. Despite the many benefits of intranet sites, one of their biggest downsides has traditionally been the large investment of time and resources needed to get an intranet site up and running. Large intranet providers like SharePoint typically build sites from the ground up, which not only requires significant startup costs but also makes it necessary to have a dedicated IT team to maintain it once it is in place. Fortunately, there are alternatives that are easier to develop and less demanding to run. Providers like Intranet Connections have made a name for themselves by designing intranet sites that are tailored to the particular needs of the banking and finance industry (as well as business and healthcare) but which are less costly to install and more intuitive to operate. The solutions provided by Intranet Connections are tailored to the needs of particular industries, but they are also easy to operate even for those who are not IT specialists, which means they do not require constant IT support to run. This is particularly valuable for financial institutions because it means that managers and others in key leadership positions can handle operational issues as they arise instead of needing to refer them to specialists. The value such services can provide to established and emerging banks and financial services providers should not be overstated: a recent article in American Banker noted that digital banking technologies have unleashed a wave of innovation and disruption that poses serious threats to the old way of doing things. With smaller financial companies making a compelling pitch to younger demographics and nascent AI technologies creating uncertainty for the future, financial institutions of all sizes need to make their operations leaner and more efficient. Increasingly, financial organizations that do not adopt the latest intranet solutions are in danger of falling behind the innovation curve. By providing streamlined, flexible solutions to internal communications, intranet solutions are making banks more competitive, more effective, and better prepared for the challenges of doing business in the 21st century. Read Also: Why Personal Lenders Like SkyCap Financial Provide A Better Lending Experience Benefits Of NBFC Business Loans
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