Monday, 30 December 2013

Mortgage Rules Of Thumb [Infographic]

Mortgage is one of the biggest financial concerns of Americans. This infographic titled ’Mortgage Rules Of Thumb’ has been created with the aim of imparting information about various rules to be followed about various aspects of mortgage.

The infographic adumbrates thumb rules about:
  • Mortgage Affordability
  • When Homeowners Can Stretch Their Mortgage
  • Most Affordable Mortgage Combinations

Friday, 27 December 2013

Renters Insurance and Why do You Require it?

Most people who rent a house or an apartment are of the view that their landlord’s insurance will keep them in the safe waters when some unwanted situation arises. However, in reality, landlord’s insurance only offers a cover for the building, making your belongings vulnerable to damage. It is therefore extremely critical to get your belongings insured with renters insurance.

Your location and the weather conditions would also play an important part when taking renters insurance. If you stay in am area where you are skeptical about the safety of your belongings, it is advisable to go for a full home insurance. Apart from this, if you stay in an insecure neighborhood where thefts are common, taking renters insurance will also provide you cover from those.

As a homeowner, you must decide on which items to insure. You can go for a complete cover or can insure just the valuables in your home. When taking renters insurance, you have to keep in mind that it does not cover all the damages. If you stay in an area prone to floods, it is advisable to take additional cover as your renters insurance might not include that. Check with your insurance provider and read what is included before buying renters insurance.

Why Investing in Disability Insurance is a Must?

Life is unpredictable and nobody can predict any disability. When it comes to disability insurance, most people show skepticism. Disability insurance is extremely important as a single accident can leave you disabled for life. Permanent disability not only leaves you scarred physically, but it may also result in a long time loss of pay and hospital expenses. Are you prepared for anything horrendous like this? How would you manage to look after you in case there is a loss of income owing to a disability?

Disability insurance offers a hedging against the financial turmoil that arises with disability. Apart from paying your medical bills, a disability cover will also take care of the monthly monetary obligations that you may have.

Disability insurance is extremely essential for people who are single. Unlike life insurance, if you are single, you would be more concerned about your well being rather than securing the future of your children. Disability insurance protects you from any the financial hardships that may occur because of some disability. Select the best disability insurance policy and prepare yourself from any unpleasant and unpredictable life event.

Getting Earthquake Insurance? – Important Things to Keep in Mind

Natural calamities can not be predicted and earthquakes can cause a lot of damage to the property and money. The US has very powerful Seismic zones that suggest that earthquakes can any day completely destroy your home or property. Earthquake insurance should be your priority as your average homeowner’s insurance does not cover all the risk and damage accrued by an earthquake. If you are considering getting earthquake insurance, there are some things that you need to keep in mind.

If you are not insured with earthquake insurance, you must ask yourself the following questions –
  • Can you afford to build your house once it is destroyed in a powerful earthquake?
  • How much can you pay for the damages caused by the earthquake?
  • Is the cost of getting the earthquake insurance higher than replacing the belongings in your home or rebuilding your home?
  • If you will have to stay somewhere else, can you afford the rent for lodging?
Earthquake insurance frees you from the obligation of paying whopping dollars for constructing your home. It is extremely critical to secure your home and finances with a earthquake insurance so that you are saved from any type of financial strain after you have been hit by an earthquake.

Top 3 Myths about Foreclosures

Foreclosure is never an easy situation for a homeowner and the presence of innumerable myths makes it even more confusing for the homeowners. Here are the top three myths associated with foreclosures –

Lenders push homeowners for foreclosure – Foreclosure is time consuming and also involves huge amounts of money. It is a way through which lenders try to recover the investment that they made. However, it is the last option lenders want to exercise.

Only professional investors can buy a foreclosed property – Today owing to the availability of so many tools, it has become possible for potential buyers to buy a foreclosed property.

If you are financially callous, your property will be foreclosed – Financial callousness is one reason of foreclosure and not the only reason. An unpredictable life event, illness, loss of job or the demise of a contributing family member can result in foreclosure.

Foreclosure is never a happy situation as losing the property that you had bought after so many years of hardship and struggle can never be a positive life event. However, there are various ways through which you can avert foreclosure. Contact your financial advisors and do not let the threat of foreclosure wipe you of your happiness.

Misconceptions about Loan Modification

Matters related to money are such that you can never be sure of what the future might hold for you. This is one of the reasons why many individuals opt for loan modification. However, there are various myths associated with loan modification. Below are some of the most prevalent misconceptions about loan modification –

Income of the debtor is the only consideration for loan modification – A lot of people are of the view that your income will be considered by the bank. However, it is the total income of the household, including the income of the spouse, as well as, other adults that would be considered by the bank.

Loan modification reduces the principal amount of the loan – This is highly unlikely as lenders will try to only adjust your loan in such a manner that you do not become delinquent. You might get reduced interest rates and deferred payments on some part of the loan but there is no reduction in the principal amount of the loan.

You can qualify for loan modification only if you are behind the payments – This is not true as even if you are making the monthly payments, you can qualify for loan modification as well.

There are various myths associated with matters related to finance. Contact your financial advisors today to get a clearer picture.

The Various Benefits of Loan Modification

Loan modification is a process through which you can get the mortgage contract altered. Under loan modification, you can modify the terms of the mortgage contract to suit you. Here are some of the top benefits of loan modification –

Convert adjustable rate to fixed rate – With loan modification, you can get your adjustable rate mortgage converted fixed rate mortgage. When you feel that the current interest rate is higher than the fixed rate, you can get it converted by getting your loan modified.

Reduced interest rate – Loan modification is extremely beneficial for individuals who find it difficult to make the payments owing to higher rate of interest. You can get a reduced interest rate on your loan so that you can pay them affordably.

Longer payment duration – By working out with your creditor, you can also get a longer payment duration that allows you to cut your monthly payments drastically.

Loan modification is an excellent tool for anyone who is finding it difficult to manage the loan payments and the monthly expenses owing to the existing rate of interest. Get your loan modified today and keep the threat of foreclosure at bay.

Why You Require Insurance?

Life is unpredictable and unwillingly, we find ourselves in some unfortunate circumstances that tend to put a strain on our personal, professional and financial fronts. Illnesses, accidents, thefts, natural calamities and death never come knocking at your doors. It therefore becomes essential to hedge ourselves from any possible losses.

Insurance acts as a shield to dodge the unforeseen risks of the future. Insurance is a contract under which the insured is protected from the risk of losses by providing them the finances to deal with the after effects of any unfortunate event. Insurance companies offer insurance policy for which the insured has to pay a regular amount, known as the insurance premium. The insurance company then pays the customer back the amount in case of an emergency or loss.

Having an insurance policy allows you to lead a stress free life. Insurance Whether it is life insurance, flood insurance, personal injury insurance, fire insurance or any other type of insurance, by paying a small premium, you can protect yourself from various unforeseen events. Insurance is an affordable solution to hedge you from unforeseen future events.

Thursday, 19 December 2013

Pick Your Insurance [Infographic]

The infographic titled ‘Pick Your Insurance’ has been created by Moneytips with the big idea of highlighting the existence of different insurance products and how their suitability varies differently based on the age, life stage and financial objectives of different people. Due to lack of proper knowledge a vast majority of Americans end up buying either policy unsuitable to their needs or are under insured.

The infographic adumbrates:
  • Statistics about insurance in the US
  • Most Suitable insurance products based on financial objectives
  • Choosing the best insurance depending on the life stage of buyer
  • The amount of coverage needed at different ages


Monday, 16 December 2013

15 pleasent ways to save money for your kid's college fund

Here the above displayed infographic highlights the few things you can do to start saving for your kid's college fund.


Payday Loan Affordability Fast Facts

A payday loan (also called a payday advance) is a small, short-term unsecured loan, "regardless of whether repayment of loans is linked to a borrower's payday".

Have a look at this infographic showing Payday Loan affordability fast facts:


Need money? Take out a personal loan

A personal loan can be used for just about anything. It is a loan made for any purpose not specifically defined or secured by a specific asset. Personal loans are usually made for general expense purposes.

Did you know that 49% of personal loan applicants are seeking a loan for consolidation of debt.

Take a look at the infographic displayed below giving the details about Personal Loans more deeply.


10 things you did not know about Life Insurance

As you all know that Life insurance (or commonly life assurance, especially in the Commonwealth) is a contract between an insured (insurance policy holder) and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money (the "benefits") in exchange for a premium, upon the death of the insured person. However, there are many things that people did not know about Life Insurance.

This infographic highlights 10 things you did not know about Life Insurance:


Friday, 13 December 2013

Management of money throughout Life Stages

As you all know that money plays a very important role in everyone's life so we should learn about money management to face the emergencies & to make our life financially healthy.

A solid plan can actually play a big role in building financial security for you and your loved ones. You may need to give your finances extra consideration upon reaching the following milestones:

First Job. When you obtain your first “real” job it’s likely that you will be presented with employer-sponsored retirement savings plans. It is never too soon to begin saving for retirement, and taking advantage of your employer’s retirement savings plan as soon as possible will give your account the maximum amount of time and potential to grow. The combined effects of time and compound interest are powerful, and the sooner you start the better. Try to contribute enough to your fund to take full advantage of any employer-provided matching contributions.

Also, learn about the insurance provided by your employer’s benefits plan, including health, life, and disability insurance. If your employer’s plan offers insufficient coverage, or if a plan is not offered at all, consider obtaining coverage independently. If you change jobs, pay attention to the benefits. Benefits will often vary greatly from employer to employer, and changes in insurance coverage and retirement options must be factored into your personal plan. For example, funds in your retirement plans might need to be rolled over as you continue to save.

Marriage. Weddings are special occasions that become cherished memories long after the bouquet has been tossed and the rice has been thrown. They are also events that bring about financial changes. After getting married, you may consider opening a shared bank account, owning property jointly, as well as sharing auto insurance and possibly medical insurance. You may also want to begin saving toward the purchase of your first home and start preparing to raise a family.
Obtaining and/or updating life insurance plans to reflect a name change, if applicable, as well as including your spouse as your beneficiary, will help to ensure that financial goals will continue to be met. Review retirement plans and goals to establish a savings plan that aims to fulfill your retirement needs. Getting married will also most likely affect your tax situation. Think about the most effective tax strategies that will help with annual filings, as well as your long-term goals.

New Home or Refinancing. Buying a first home is a happy event. Now, the money you may have spent on rent will build equity in a place that you own. Whether you are a first-time homeowner or are looking to refinance, research the various mortgage types available to find the one that best suits your needs. In addition, you will have to find a homeowners insurance policy that will suit your coverage needs. This is also a good time to review life insurance policies to assure that mortgage obligations will remain covered in the event of your death.

Children. With the added joy and responsibility of a child comes the need for extra financial security. Update your medical plans to include the child. In addition, review your life insurance policy to ensure you have adequate coverage amounts, and include the child on the beneficiary list.
For an infant, college is 18 years away, yet the sooner the family starts saving, the better. A college fund that has many years to earn interest and contributions is ideal. Children may also change your estate plan. Writing or reviewing your will becomes especially important to make sure the child will be provided for and suitable guardians will be named.

Starting Your Own Business. If you leave your old job to start your own business, you will have to assume responsibility for previously employer-sponsored benefits. It is important to maintain retirement, medical, and life insurance plans, as you continue building financial security.

Retirement. Now is the time to enjoy the fruits of your labor. You may be considering relocating to a warmer climate and are anticipating all of the adventures you will have there. However, your funds will still require attention as you continue to manage your money. Remember to maintain adequate health care coverage, and know your long-term care options. Proper planning can help protect your hard-earned assets from being spent on potential medical expenses.
Perhaps one of the most secure feelings in life is knowing that you are financially secure and are prepared for whatever may happen. Through annual checkups you can assess financial goals, provide for your loved ones, and build for the future. As you approach each new life stage, you will find that additional consideration and planning are well worth the effort.