Author: GuestPoster

Categories
Pensions

Tips for Allocating Funds in a Variable Annuity

The process of how to allocate funds inside a variable annuity is not as straightforward as you might think. This is an investment tool that gives the control of what is invested in, for how much and the length of each investment in the hands of the investor. This is good if the person who is handling the investments knows what they are doing. On the flip side, you also have no one to blame if your investments turn sour.

Unlike the fixed rate annuities that will only return a predetermined amount for the investment, the variable annuity will differ. The economic conditions of the market and the choices that are invested in will determine the return on investment for this annuity.

When you are making an investment in an annuity with an insurance company and the type you specify is for a variable rate annuity, you then have to make a decision. This decision will be on what your investment dollars should be allocated into. The most common of these is the index annuities. These are tied to one of the large indexes, like the S&P 500.

With many of them in insurance companies, they already have certain funds you can allocate your money into. There are domestic stock funds for a variety of business sectors, there are bonds which will closely simulate
fixed annuity rates, and there are the international funds.

After you choose where your money should be invested, get in writing how often you can change the investment amounts around. Each insurance company is different and some have waiting periods. No matter how they allow you to move your funds around, be ready for a fee to be applied with each transfer. This might even be a double fee. Once for selling the investment and the other when you reinvest it. At no time will you be withdrawing the funds; this will all be handled electronically.

Each investment option you have with your annuity being provided by the insurance company will have a prospectus. Each one of them should be obtained for future reference. These prospectuses are in-depth reports on how the fund is managed, where the fund’s assets are allocated to, and the expenses of running the fund.

The risks of each fund are a section you should become very familiar with. This is where a judgment call has to be made on where you wish your money to go. The greater the risk, the higher potential for larger returns, but there is also a greater chance of losing on your investment.

Unless you already know about the funds with the insurance company, these prospectuses should be analyzed before you sign the contract and make your investment. Information is power. The greater the facts you have on how your money is going to be handled, the greater control you will have over your financial future.

If you ask the insurance agent for advice, some good ideas could be suggested. One thing you need to remember, they want to make as large a profit from your investment as possible. It is the reason they are in business. It is okay to listen to them, but never be fooled into thinking they are considering what is best for you above their own interests.

Knowing how to allocate funds inside a variable annuity is necessary so you can change where your money is invested according to the current market conditions. You need to judge the market conditions against the fees you will be charged for making any changes in your annuity.

Categories
Mortgages

How Does a Reverse Mortgage Work Defined

Recently reverse mortgages have become more popular and more readily available. To get a reverse mortgage you must be over the age of 62. Mortgage loan providers who provide this type of mortgages aim their ads at seniors who have built up equity in their homes. You may need to be aware about reverse mortgages pros and cons.

The way that a reverse mortgage works is that the lender will make payments to you, instead of the traditional way that a mortgage works with you making payments to the lender. Taxes and interest amounts are included in the amount to be repaid. The way that the lender gets repaid is after the home owner dies or when the house has a new buyer.

Many of these mortgage loans do not have to be repaid for a quite a long time. The way that the lender determines how much money you will be paid is through a system of figuring out what your home is worth, how much equity the home has, your age and the reverse mortgage rates at the time.

You have some options on how to be paid. You may choose a lump sum, monthly payments, or as a line of credit you can use when needed. You may also choose to combine monthly payments and a line of credit.

When deciding on whether or not to consider a reverse mortgage be aware that there are some cons to this type of mortgage. There can be large fees, so be sure you understand them and shop around for the lowest fees. You can find a reverse mortgage calculator online to help you with this. Having an income from a reverse mortgage could also effect your government benefits such as social security or medicaid. When you pass away if you have not repaid your lender, your house will go to them.

A reverse mortgage can be a great idea for certain people in certain situations. Hopefully you can make an informed decision and decide if it is a good option for you.

Categories
Insurance

Protect Yourself and Your Spouse with Joint Term Life Insurance

It is important to plan for the future, particularly as you get older. Most people have car, home and home contents insurance, but what about your life? Joint term life insurance helps ensure that your family and spouse will be taken care of once you pass on.

No one really likes to think about death, but it is necessary to plan for it. Whether you or your partner passes first, having insurance can make things a bit easier. Planning now can smooth the way later for your family.

When it comes to coverage, joint term life insurance can be taken out for a specific amount of time. Payments can be made monthly or annually, depending on your situation, for a certain period of time. If either you or your partner dies within that specified time, the other will receive the payout.

If you have debts, a death can wreak havoc on finance. There are always bills to pay, plus the costs of the funeral can be difficult to cover. Life insurance helps to pay for this and allows the remaining partner to grieve without financial stresses on top of the loss.

For children, life insurance can be a blessing, as well. It offers a little extra something for their education or simply helps them out. Money can never replace a loved one, but it does ease the way through life. Your children will know that you loved them enough to plan ahead for them, even after you are gone. This legacy can also help children move ahead in life, when they might not have been able to otherwise.

There are several options with insurance, but a joint term life insurance policy is often the best choice for couples. Any questions you have can be asked of your insurance broker . . . take the time to make certain that this is the best policy for you and your family before making a decision.

Categories
Insurance

Premium Costs Of Temporary Auto Insurance And Car Insurance For Teenagers

One important aspect of insurance policies that consumers want to know is the premium cost. This also applies to temporary auto insurance and car insurance for teenagers.

Temporary auto insurance is a very affordable policy since its duration can range from 1 day to 6 months only, unlike the regular car insurance, which lasts for a year.
Car insurance for teenagers, on the other hand, is a very expensive insurance policy which the parents are required to get for their teenage children. This is because insurance companies believe that teenagers are more likely to engage in a high incidence or risky behavior when driving a car.

Because you cannot convince insurance companies that your teenage daughter/son will not be doing stupid things when driving, you should look for other ways to lower down the premium costs for this insurance policy.
Instead of buying a brand new car, buy used, less expensive car because it will be a factor to be used by the insurance company in setting up the premium costs for the policy. You can also opt to increase the deductibles, this way the insurance company may decide to lower down the cost of the premium.

If your teenage son/daughter has a school grade point average of at least a B, the insurance company will offer a 5-25% discount. Applying for mileage discounts can also be done since the teenage driver mainly commute to and from the school.
To ensure that your teenage daughter/son will follow traffic rules to avoid accidents, you can enroll them to a driver’s training course, which will also offer an additional 5-10% discount.

Another suggestion is to insure the teenage driver as an occasional driver on a family car and not a principal driver on his or her own car. Other ways of lowering down premium costs include decreasing the coverage and liability limits and search online for companies that offer affordable insurance policies.

Categories
Investing

Stock Trading for Dummies: How to Choose Your Stock Broker

If you are new to the stock market and stock trading you should definitely find a good broker to assist you with your investment transactions. Choosing a broker is especially important for a newbie in the stock market. They contribute a significant part in your success in stock trading and in increasing your investment.

But before we go on stock trading tips for dummies on how to choose a good broker let us first discuss what stock market is. Stock market is where stocks, bonds are traded by different investors and companies. In the stock market, an average person can make transactions with large companies. It doesn’t matter if you are a beginner investor or a big-time Wall Street genius. Here in the stock market everybody trades with everybody. To know about the stock market’s nature, you can search for more articles regarding stock market for dummies. Stock market for dummies articles will give basic information regarding the stock market.

For you to engage in stocks trading you ought to have a broker. There are three types of brokers the full service broker, the discount brokers and online brokers. Each of these brokers provides different services that will assist you to get the best stocks for your investments. There are different things that you need to consider in choosing a broker. First is the amount of assistance that you need. Do you want someone who will just be in charged with your buying and selling transactions? Or do you want someone who will guide you through the whole stock market processes? Next is the cost. Each type of broker would charge you differently depending on the services that they offer. To find whether you are charged with a reasonable price or not, you should search for different brokers and find out the services that they offer and the average charge for these services. That way you can weigh if you are charged higher than the usual.

Hopefully through these tips on stock trading for dummies you can effectively choose a good broker to handle your investment account.

Categories
Insurance

The Consequences That Travelers Without Travel Insurance May Face

Travel insurance is created to offer assurance to travelers who may face unexpected events during their travels. This is especially important if they are traveling outside of the country.

However, there are some travelers who are reluctant to obtain one because they think it’s a waste of money and it’s not that important. In this article, I will present why travelers, especially those who are 70 years old and above and pensioners, should apply for a travel insurance coverage before their trips.

It’s so easy to obtain one because of the prevalence of specific insurance products that cater to groups of people and these include travel insurance age 70 and travel insurance for pensioners.

One reason why travel insurance is considered to be a necessity is because it will ensure that several aspects of their trips will be covered. Insurance policies offer refunds for cases like lost personal belongings, delayed flights and cancelled trips. Additionally, its medical coverage should not be ignored, specifically those that offer 24-hour medical assistance.

If you won’t obtain one and you encountered a problem during your trip, then you missed a lot. It also means that you will not totally enjoy your vacation because you will be busy managing the issue instead of relaxing.
So, the next time you fly out of the country, secure travel insurance that is designed to meet your specific needs as a traveler. Although it can cost a lot of money, it’s still worth securing one in the end.

Travel worry-free and enjoy your vacation totally because you are securely covered by the travel insurance you obtained.

Some of the recommended travel insurance companies that have good reputation and are offering quality service and the best insurance policies include Columbus Travel Insurance, Insure For, JS Travel Insurance Avanti Travel Insurance and John Lewis Insurance.

Categories
Insurance

Advantages of Short Term Car Insurance Policies

If you only want to use your car or a borrowed car for a couple of days which is why you are looking to get a cheap car insurance, then you might as well consider getting a short – term or temporary auto insurance. This type of car insurance will serve as your protection from financial liabilities if in case you get yourself involved in accidents where bodily injury and damage to property have been incurred. It is cheaper than if you will be paying for an annual cover but it can still protect you all the way. Why would you pay for a long term policy when it is not even necessary, anyway?

Advantages Of Temporary Car Policy

 As already mentioned, one of the major benefits of a short – term or temporary car cover is that they are cheaper than if you will have to purchase an annual policy which is not necessary if you only need to use your car or if you are borrowing somebody else’s vehicle for a short period of time usually from 1 to 28 days but it can be renewed to a period not exceeding 6 months. All you have to do is to request multiple short term car insurance quotes from insurance providers so you will be able to get a good deal of cheap temporary policy. However, if you are looking to use your car on a long term basis then an annual policy is the right thing for you and it will be cheaper than if you will always be paying an extra fee to renew a temporary policy.
 Because adding another person or an extra driver to an existing policy is expensive, a short term auto insurance will allow you to add multiple drivers in your car without affecting the no – claim bonus of your primary insurance cover.
 With a short – term auto insurance, you can always use your car for a weekend trip without spending much on the insurance policy; you can allow somebody to use your car; you can borrow or rent a car; and making an affordable daily or monthly payments is possible.

Categories
Credit Cards

There is Not a Better Deal Available than an Interest Free Credit Card to Use

An interest free credit card is like money in the bank. While you charge living expenses and luxuries on an interest free card, you can leave your personal money in the bank to draw interest. To utilize this offer, you simply make sure you pay the balance in full before the interest free period expires.

Normally, credit card companies issue interest free credit cards for promotional purposes and remains interest free for a certain amount of time. Once that predetermined date has passed, interest becomes chargeable on any outstanding balance. There is no benefit to using a card in this manner if you do not do it correctly. It will cost you more than paying cash if not done properly.

There are other savings to this type of transaction as well. There is only one check or bank withdrawal, instead of several. If paying by check, only one postage stamp is required. Most interest free credit cards offer rewards for every dollar spent. Throughout the interest free period, you are using their money for nothing and actually making money in reward points. Whether credit card companies offer cash, gift cards, or some other form of rewards, it still adds up to a bonus. You get something free you would have paid for otherwise.

Some people use an interest free credit card for large purchases that may be difficult to pay for at one time. This allows you to pay the balance on a monthly basis without interest or penalties. Many people will transfer a balance on an interest charging account to an interest free card. As long as you pay the balance in full before the stated deadline, and the transfer fee is less than you would have paid in interest, the interest free credit card is financially a better option.

Categories
Insurance

A Few Easy Steps to Finding Cheap RV Insurance

If you are seeking for any insurance plans regarding your motor home, you can have a wide variety of choice between the different deals of insurance offered in the market at the present. The thought of finding a cheap insurance for your bought RV is factual when we talk about it years ago wherein only few people have established the business and only few people have owned this recreational type of personal car. When you look for an insurance deal, you should not only look for a cheap one since you are on a tight budget. Consider some of the things below to guide you for finding that best insurance deal.

  1. If you own an RV and you and your family often use it for camping purposes during out of town trips, the best kind of insurance deal that serves you best is the        campervan insurance. This type of insurance does not only cover the car, it also includes your whole family during trips and unforeseen accidents that can harm your family.
  2. With the stiff competition of companies that offers insurance rate for RV’s, you will not have a hard time choosing amongst them because all of them will appear lenient enough to you by offering you RV insurance rates that are far more less expensive or same price but a lot of given benefits. Remember that when choosing for the right insurance, you should not only look at the price. The coverage is essential for you to determine since you may never know the things that might happen.
  3. Before picking up between hundreds of insurance companies, perform a background check on the top three of your pick. This one is necessary to assure that your choice is credible and reliable enough in times when you need their service.
Categories
Debt Management

Avoiding Scams on Your Way to Freedom from Debt

Even if you are burdened with debts, you should not lose your focus and get lured by fraudulent debt reduction agencies. If you want to settle your debts through the help of an agency, make sure that you only deal with a legitimate company. Well, debt settlement scams are not new in the market. There are lots of unscrupulous people who are taking advantage of other people’s misfortune. When you need debt help, careful planning and research are necessary because your future is at stake.

These are some tips to help you get rid of debts without getting duped by settlement scams.

  1. Ask your creditors for some advice – At the onset of your financial hardships, it is a good idea to talk to your creditors and inform them about your current situation. Lenders or credit card providers usually have amnesty programs for their customers who are facing financial troubles. As long as you agree to pay your debts at a given term, there is not much to worry.
  2. Have a lifestyle shift – It is understandable to have debts if you just lost your job or you had some medical bills to pay off. However, if you acquired debts just because of your non-stop shopping spree and expensive vacations then you need to change your lifestyle as soon as possible. Maintaining an affluent lifestyle and spending more than what you afford can result to overspending and debts. So, if you want to get rid of your debts, start living a simple life.
  3. Do some extra work – If you have skills like graphic design, bookkeeping and writing, why not offer your services? There are lots of job portals that allow you to search and apply for part-time and freelance work. The pay is also good, so your earnings from these side jobs can be used to pay your debts or buy the things that you want.
  4. Research for a legitimate and reputable debt relief agency – If you are in serious debt and your only option is to get help from debt relief agencies then invest time to conduct a thorough research. Make it a point to sign up for a company that has been in the industry for more than five years and has no records involving scams.

Having huge debts can really cause pressure but it is not enough for you to lose your focus and determination. These financial problems should not push you to make silly decisions such as falling for debt settlement scams and other unlawful activities as they will only make your situation worse.