The financial side of getting a college education is always a challenge. Aspiring dreamers get off with the use of student loans. But when it’s time to leave the university, you also want to end everything that comes along with it like your student loans.
Many feel that repaying student loans when you are already starting to be a full-time earner can be very inconvenient and distracting. Remember: this is a responsibility that you have to keep. To help you with the challenge, here are 10 ways you can accelerate student loan repayment.
Plan your finances.
While seemingly simple, planning finances can be difficult even for adults in their latter years. Technically, finances can be managed by applying basic accounting law of not spending beyond your income. Take the time to seat and write your regular, stable monthly income such as your salary. Don’t push it by considering freelance or consultancy projects you get from time to time as these aren’t secured forms of income.
Next, list down all your mandatory expenses including the loans you have to pay on a monthly basis. Everything also means gas, cab fare, snacks, groceries, etc. This alone gives you a good idea of how you should be managing your expenses. Cut down on expenses that you think you can limit. Allot money for student loan repayments every month.
Never miss due dates.
Missing out on a repayment is equivalent to earning interests after interests and penalties. While you’d think that these are manageable amounts, you might be doing the calculations wrong. Missing a payment once gives you license to miss it for the second, third and so forth time. Be stricter with your finances by paying everything on the dot.
Pay more than what is due.
There are certain times when money is easier to come by. Say you accepted a freelance gig and you got paid for it early. Use part of that extra income as ADDITIONAL payment for your student loan. That month’s payout should be composed of the minimum amount due (one which you’ve ideally saved for already) + additional payment you got from the extra income. It might seem like a downer but you’ll enjoy its benefit in the long run.
Sign up for automatic repayments.
Your bank account might have automatic loan repayments or bill payment feature. Consider signing up for this free service so the loan would automatically be paid on the schedule you elect. The upside is that there’ll be more pressured to ensure that you have enough money on your account to pay for the student loan.
Have an exit loan counseling at your school.
Some universities and colleges have exit loan counseling for their graduating or exiting students. Financial counselors help you manage your debt better. The best part of it is that you’ll learn many strategies to lessen or repay your loans on time. Never put aside the advantages of such free services.
Talk to your lender/s.
Student loan lenders have heard it all. They know people deal with seriously difficult times. Talk to your lenders to get a better repayment agreement. Most lenders provide loan restructuring plans to give their borrowers more room. Update them of your financial status and your impending inability to pay the loan beforehand. Their representative would be able to help you avoid multiple penalties.
Consider consolidating loans.
A consolidated loan provides you the convenience of paying one big loan instead of several small to medium ones. The upside is that you will just be responsible for one due date on a regular period. Student loan consolidation is based on the current credit score of the borrower.
If you’re credit rating has improved because you’ve been paying bills on time, and you got a stable job, it’s very likely you’ll be able to negotiate better and more manageable interest rates. Note though that federal and private student loans can’t be merged into one consolidated loan.
Check if you’ll qualify for student loan interest deduction.
There is a possibility of getting discounts on interest rates when you pay your federal income tax. Depending on the case, one can get as much as $2,500 for student loan interest deduction every year. This would fall in your exclusion from regular income declaration. However, this possible benefit is limited to the borrower’s own tax return. See if you can avail of such perks.
Look for partial loan cancellations.
The Federal Perkins Loans Program provides borrowers with payment deferment and partial loan cancellation opportunities. Partial loan cancellations are given to qualified borrowers like full-time public teachers in low income students area, nurses, medical technicians, law enforcement officers, and military personnel. Contact the university where you got your loan to get further details.
Stop using plastic.
Many individuals get buried in bigger debts because they have this strong and unplanned urgency to use their credit cards. Stop the urge by looking at the bigger picture. Also, reconsider paying your loans through credit cards. It’s likely that these plastic money options have higher interest rates hiding under the guise of convenience.
Manage your finances well by setting your eye on student loan repayments. It’s the only way you can free yourself from the risks of further financial difficulty. Last but, not the least, do continue to save for emergency fund while repaying debt. Its good to be prepared for an emergency by having saved for it. Here’s tip on preparing for emergency financial situation.
Do you have some projects that are lagging behind due to lack of adequate capital? Have you visited any financial institution to get financial support? If you haven’t considered seeking information of the best financial institution that offers loan services at reliable rates, make sure to visit your favorite bank as there are amazing supports that they offer.
Loans play a prominent role in boosting the financial status of most individuals. However, many people shy away from taking loans due to the false myths that are circulating globally that there are other additional cost included while taking loans. In most case, this factor is not considered being an actual fact that should limit you from realizing your business potential. Loans can help you in improving on your business ideas such as expanding your montages, buying assets and creating business solutions to already existing business premises.
There are few factors that most financial institutions consider so as to qualify you to get a loan. The most important aspect that you should always give good consideration is the guarantors that sponsor you. They highly determine your chances of getting a loan from either banks or other financial institutions. Once you get your loan, always remember to maintain the lifestyle that you previously owned and make sure that you invest the loan into good and highly profitable use. If you consider this simple fact, chances that you will be able to pay back the loan on time are high. (Related - Numbers that can make you sick)
The most common investment opportunity that has the most promising results worldwide is investments in the Real estates’. Real estates are developing at an alarming rate that most investors should take keen notice. It is the perfect way to invest your capital as their returns are also adorable. However, the amount of capital required in this type of investment is equally high. Thus, the use of loans in these case will equally play a vital role in determining if you can join the world class of wealthy merchants or not. Feel free to grab these opportunity as the returns are highly amazing.
There are several financial institutions both online and on your area code that are very willing to loan you capital for investments. It is thus your obligation to take keen interest and make sure you get your loan right in hand. In simple words, a loan can change your life from the little zeros you have in your pocket to a rick wealthy merchant. The major factor that highly determines your total returns is choosing the perfect investment opportunities.
There are several other investment opportunities that will favor and boost your capital in a great deal. It is thus not necessarily that you must invest your capital in the Real estate business so as to get returns of your capital to increase your financial status. Real estates are only considered being the prime leading investment opportunity. However, you can always come up with your creative ideas of how to spend every single penny you get from trusted financial institutions. You can use loans to buy Cubs for hire, homes, or even expand on your existing business. This should be practically done if you believe that such business has a promising future. Never hesitate taking a loan whenever you feel like you need some financial supports to support you genuine Ideas.
Loans can improve your financial status whenever you come up with bold and creative ideas of investing your capital. It is however important to take note and keep good monitor of your financial records so as to get the best out of your investments.
Whenever you feel like your investments do not give good returns, never hesitate putting that project at a standstill as such projects may jeopardize your financial status. It is important to consult and get all the relevant information about any idea that you wish to support with your loan.
This is the only way that gives you complete guarantee of getting the best out of your money thus boosting your financial position. If you want to improve your cash flow try to find the best personal loan option in the market. Don’t just go for any loan that you’re offered, carefully scan the terms, rates, etc.
Student loans play a prominent deal in improving most of the college students, and university students future. The wise individuals use these loans to diversify and explore their unique ideas. Thus, generating them capital that plays a prominent step in their lives when they finally graduate. The loans are easily accessible to registered students at their schools and usually take about 3 months before the requested loan is deposited into your accounts. The aim of these loans is usually to support the students in paying their school fees.
However, there is always an over flow of money deposited in most of the students accounts. College and University students should thus be aggressive enough and use these great opportunity to diversify their investments. When the capital is invested in the most thrilling manner, these usually play a good role in boosting your financial status from your own creative and innovative ideas while you are still at school.
Loans should thus be given special attention as they have positive impacts on individuals’ lives especially when invested properly.
Using leads brings another experience from the original way of advertising. This is quicker and provides more and useful information to the agents thus increasing and reaching more clients in the market. Insurancefiles.com is a company which competes to provide the best leads to its agents who want to purchase any type of insurance leads for the many whom are there in the market. They are experts in providing best leads online and they make sure that all the information is provided to the agent who wants to purchase these quality leads so that they can prosper and expand the client’s base.
They actually offer different types of leads to the agent. Some of the insurance leads they offer include:
- Auto insurance leads
- Health insurance leads
- Life insurance leads
- Commercial insurance lead
- Home insurance leads
Using leads helps you to save time and energy as well. You will not go spend a lot of time trying to advertise like other ways of advertising which consumes a lot of time. If you are planning to thrive very well you have to know how to choose the provided leads. The difference between good and bad leads is the number of times the leads have been sold. Thus makes the exclusive and semi-exclusive leads the best to choose if you want to have something good out of these leads.
Health insurance leads
Nowadays with the increased health problems rising significantly, health insurance demand is also increasing rapidly. Health insurance is a bit confusing just like the life insurance because of the policies which are involved. All these confusions and difficulties facing the agents and customers are solved by the health insurance leads. There are so many health insurance leads in the market due to the increased health insurance demands. With customer’s difficulty to understand all these health insurance types the agents are given the task of bringing the light to the customers. Insurancefiles.com then takes the responsibility of bringing the best and quality health insurance leads to the agent. So you as an agent you need to have the best health leads provider and get the chance to retain and attract more customers through the adequate information you provide to them since it is provided to you by insurancefiles.com.
Auto insurance leads
The biggest advantage of providing leads is that you are only dealing with the people who are currently on the market trying to look for such quality auto insurance services. When you realize how important these leads are you will be able to choose the best supplier of these leads. So, if you are an agent, try to choose the leads firm that sells exclusive auto insurance leads and by that you will be able to compete very well in the business. Try your best to avoid those firms which sell ineffective leads or oversell leads since it will cost you a lot of time and money as well.
Commercial insurance leads
Insurancefiles.com provides high quality commercial leads to its agents. This commercial insurance leads comes in two waysides.
- Business property and casualty
- Business benefits
The difference between these two is that business benefits includes life and health, disability and key man disability while business property and casualty include the general liability, commercial and workman’s compensation. This means a commercial insurance lead comes with the combination of these two. Since new businesses are being opened daily, you can have a good deal if you invest in such leads. If you are willing and qualified then insurancefiles.com is there to provide you with such quality leads. As an agent you need to have to look for the quality leads which will be handling in real time and most important they are exclusive or semi exclusive.
Life insurance leads
Many customers keep on looking for reliable life insurance that will fit and satisfy their needs. It’s now among the most purchased insurance cover thus meaning it’s more valuable. So if you are an agent and you have very good customer relation then all you need is a best leads supplier. If you get the best leads supplier you will be able to make your clients loyal in your business thus making some good out of it. With less people being conversant with life insurance policies comparing to car insurance, leads will make them get confused even more. As an agent you are provided with quality leads that will make you have some good information about this leads so you can educate your clients and attract them to your business. Since life insurance policies are written for a long term, this usually creates a good relation to clients. It also provides the opportunity to sell other insurance types. All you need to do is go for the insurancefiles.com.
Home insurance leads
Home insurance is mostly purchased when one is purchasing house thus making home insurance leads very competitive. When it comes to this type of insurance leads, the agent needs to be very careful and also knowledgeable concerning the leads. You all need to have a good home insurance leads supplier.
There are various types of insurance policies. The policies aid in certain functions such as offering security against risks that may occur. The various types of insurance policies cover variant fields. That is there are policies include marine insurance to property insurance. The various types of policies offer different functions. One policy that has been the source of debate is the funeral insurance policy. The policy is available in some insurance agencies. The policy has created a lot of talk on the necessity of the product and the alternatives that could be in use to replace it. It is therefore important to comprehend the results of this product.
Financial experts have argued that the taking of the policy is a financial loss. This is mainly because of the demands that come with it. Many people often ignore the advice from the advisers and choose to purchase the product. This however is suicidal due to the various expenses that one would incur as they purchase the product. The majority of people who take out this policy often feel the urge to ensure that their next of kin and the family members are secure after the insured has died. However, certain restrictions come with the purchase of this policy this noble venture.
Some of the additional expenses that an insured incurs include the payment of high premiums. Unlike other policies that offer reasonable premiums, the funeral insurance policy offers high premiums, which do not base on any form of calculation. The policy also does not allow the pre calculation of the premiums thus inhibiting the insured from proper planning. The compensation period is always longer in terms of the funeral insurance policy. Even though the policy offers some advantages, which include the provision of financial security among the relatives and provision of burial money, it also offers some disadvantages such as the high financial burden that the insured people suffer.
The policy also comes with certain other disadvantages such as the payment of high rates in terms of premiums. This is the main disadvantage of taking out this financial product. In addition, other additional disadvantages accompany this product. The funereal insurance policy offers some form of security to the people taking out the policy however, it does not offer benefits such as the other policies related to life insurance. The other forms of life insurance offer more advantages than the funeral insurance policy. There are also other alternatives to the funeral insurance policy. These alternatives offer similar services as the policy as but with slightly more advantages than the funeral policy.
Some of the alternatives to funeral insurance policies include
The use of savings accounts is important. The practice enables people to save money, which in turn earn them interests on the deposits. The use of the savings accounts ensures that the person gets to save money there by ensuring financial security in the case of the person’s death. Various banks offer good deposit rates for the savings accounts. This also ensures that one saves a lot of money. That is through the savings accounts one does not incur any form of charges. This is unlike the funeral policy that ensures that the people pay premiums.
Life Insurance Policies
This is the most appropriate alternative to the funeral policy. Since there are various types of life insurance policies, the clients often have a unique choice. One thing that separates the funeral policy from the life insurance policy is the provision of low premiums to the clients. In terms of the general life insurance, one also gets compensation right after the period of insurance is over. The whole life insurance also offers the best in terms of payment of premiums as well as the period of compensation. Instead of choosing the funeral insurance policy, the selection of either the different type of life insurance policies ensures that the client gets to save on money for the premiums.
This allows the clients to receive burial arrangements easily with the financial estates. They assist in the payment of the expenses. This is an alternative to the funeral policy. The policy would charge high premiums but through the estates, one could easily pay the expenses and still save money.
Thus, it would suffice to say that the taking of the funeral insurance policy is not a good financial decision. This is due to the variety of disadvantages that it brings to the insured and his relatives. Incase of a default in any of the payment of the premiums, the clients do not get their compensation thereby hindering the burial process. There are however, the above stated alternatives to the funeral policy, which offer a much better results than the latter. The alternatives are more preferable than the funeral insurance policy. This is due to the advantages that they offer to the clients.
When one of my coworkers bought a Nissan Altima through USAA, I got curious about the bank. I latter realized that I being a non-military person can never open one account there. I inquired other who use USAA for their banking needs. Here’s my finding, enjoy the post.
USAA provides many competitive financial products and services for its clients, most of who come from the military community. USAA stands for the United States Automobile Association. It was started early in the 20th century by army officers and it has grown to become one of the best financial service provider for army offices.
To become a member, you must be an army officer although this privilege can also be enjoyed by those who have retired from the military. Adult children whose parents are in the military and who are party of USAA can also enjoy this privilege and so can widows and widowers of former members of the USAA who have had insurance policies with the USAA.
There are tens of products that are provided by the USAA; these include life insurance policies, banking products, credit cards, financial planning and so forth. USAA is one of the highly rated financial institutions in the United States. Perhaps the fact that it is not a publicly traded company is one of the reasons it has maintained its financial stability over the years. USAA is one of the companies with the highest ratings in the United States.
Some of the benefits you will get from banking with USAA include;
- Depositing checks from your Smartphone or a scanner with deposit at home or deposit through mobile, or directly at selected locations
- Direct deposits are free
- Instant money access through ATM (consumers can use any ATM without the fear of penalty-any penalty fees will be borne by USAA)
- Mobile banking- you can find out your balance and get access to your money through your mobile phone from wherever you are in the country.
- You can make transfers from any bank in the United States and there is no limit as to the amount you may transfer from any of these banks.
- Online money management-thanks to USAAMoney Manager, you will be able to keep tabs on your spending. In essence, you will have a lot more money in your pockets as you will be assisted to spend less and save more.
- Thanks to USAA Web BillPay; you will be able to pay your bills from the comfort of your home. In case you want alerts for accounts that are almost overdue, you can get them with this application.
- The fact that it is an online bank with no physical location means you can access its services from anywhere in the United States. Physical locations tend to limit banking services; something that hasn’t been an issue for the USAA
- The site for the USAA is very easy to use; obviously because it is the only means by which you can access the bank. The USAA has invested a lot in web design and social tools for the marketing of its financial services. Still, it manages to maintain simplicity, which allows every possible user to access its services with ease. You will not have to hassle your way around to find a feature in the site, and this makes it very user-friendly, especially for those who do not know how to use the internet.
- Users will get free checks for as long as they are using USAA.
- There are tens of banking options with the USAA and you can have all of them hosted by this bank. You can have your life insurance, home insurance, auto insurance, personal bank account, crediting account in USAA.
- You will earn 1 point for every $2 spent with your debit card and for this you can redeem for rewards like gift cards and so forth.
- Consume care services offered by the USAA are top-notch, and you can be assured that any banking issue you may have will be taken care of immediately.
The cons of USAA include the following;
- You have to be in the military, or your parents have to be in the military. This is a banking option that is open to military personnel or former military personnel and their immediate families only. When you think about the percentage of the USA population that is in the military, it means most people cannot access the services of the USAA. You can only smile and appreciate it from the outside if you are not in the military.
- Any overdraft will be drawn from your savings account. If you use your credit card, it means you will only draw in increments of $100. No matter how much you overdraft by, $100 will be deposited to your account. This means if you are not careful with your spending you will end up owing the bank a lot more money than you expected.
- The USAA has very few mutual find options, which means you will have very few investment options with it. The USAA has only four index funds, which means you are limited.
The verdict on USAA
If you have a military connection, you’ll feel at home with USAA, the bank servers people like you. But if you are a rate chaser, like me, you may fund better rates else where. We reviewed Ally, TIAA Direct and EverBank which pays better than USAA.
According to the name, this is budgeting software that will help its users to manage their money better. With Mvelopes, you can set money aside for every need you have and track all your expenses. This will help you a lot with spending and saving in the future. Mvelopes is an application that will track all kinds of accounts; mortgage accounts, personal accounts, business accounts, retirement accounts and even investment accounts.
Anyone who wants to keep a strict budget and look at every aspect of their spending should make use of this software. For those who have a very simple budget that can be tracked with pen and paper, this may not be your kind of thing. However, those whose accounts are many needs to make use of this application as it can be hard to keep tabs on all of them to ensure that you are afloat.
The pros of Mvelopes online budgeting softwarr
This is a budgeting application that will allow you to put all your finances on point. In other words, while it can be complicated to have several different accounts and manage them using pen and paper, you can manage it using Mvelopes and have everything organized and neat. It can be complicated to have many people in a household and have everyone spending money here and there. It can be hard to track expenditures and still be there for your family and boss and all your other commitments.
- Mvelopes has the advantage of being supported by major financial institutions, so you cannot have any problems linking up with all of these and getting any financial information you may need.
- With Mvelopes, you can control your spending and save a lot of money than if you were saving by tracking all your spending otherwise. If you are not sure, you need to try this application first before you dismiss it.
- Mvelopes has the advantage of being online, meaning you can access your account from wherever you may be. So long as you have a password, you only have to have internet access. Those who have mobile phones can access their information from these phones as well.
- This site offers a Bill Pay service which is a fantastic budgeting option for you. With this, you can literally pay all your bills and be able to track all your payments. This will save you a lot of time and money.
- Setting up an account with Mvelopes is very fast and very easy, you do not need to be an expert in anything. The only thing you need is the basics of using the internet.
- Mvelopes comes with a net worth tracking tool. This tool is exactly what it is…it will tell you how much you are worth at a certain place and time. You will know where you are financially at a certain point. Naturally, your assets should be more than your liabilities. You should then know how far you will go financially depending on the steps you want to take.
- For many users of this application, it has given them a wakeup call on financial issues. It is important to be able to plan and make moves accordingly; trying to make sure that you are on the right track financially.
- You can make use of Mvelopes for its portability; this is because you can use it on your Smartphone. There are applications for entering expenses, editing transaction and reviewing balance. These applications will allow you to take photos of important documents and attach them to any transactions.
The cost of Mvelopes
For anyone who has a lot of expenses to track, this will be the best investment you will make. Mvelopes has great features and it is cost-effective. There are three plans which you can use to get access to the Mvelopes application. First, you can get a three months plan for which you will spend $40. This is perfect if you do not plan to spend so much time making use of it. In essence, if you just want to try it out, make use of this plan.
If you want to stay with Mvelopes for longer than three months, try out the $130 plan or the two year plan for $190. It is cheaper to buy the two year package than the one year package. With Mvelopes you will be able to save a lot of money, if you are the kind of person who can’t seem to keep tabs on your expenses; this is the kind of application to use.
Downside of Mvelops
There are two downsides with Mvelopes that we could found in their free version
first, it does not seem to work well with other currencies, which can be very difficult especially if you have earnings/expenditure in two different currencies. It can never distinguish between the currencies.
Second, while it has some degree of data import capability, it doesn’t support many personal finance software or other online applications. You may have a hard time having to do this physically, and if you have a lot to import, it will take a long time.
Verdict on Mvelops
You can right away start using Mvelops free version (app or online software). Once you get familiarized with it and if it fits your bill, you can opt for paid version. We are recommending the software for your own good. You may have to pay a monthly fee, but, it can save 100s of dollars for you in long-term.
If you think the software is not for you, you can discard it anyway, without opting for subscription version. Either case, evaluate the free version first before putting any money on it.
Trading the stock market is normally only for people with a direct connection to the markets and captains of industry, right? Wrong. There are some markets which can be traded by just about anyone, which, if done successfully, could prove to be quite lucrative. One form of trading where it’s possible to potentially make significant profits is forex trading. Short for foreign exchange, trading forex involves speculating on whether one currency will strengthen or weaken against another currency e.g. GB Pound/US Dollar.
One of the best things about trading forex is that, unlike other, more traditional forms of trading, you could potentially make money regardless of whether there’s a rise or fall in the market you’re trading in. All you need to do to get started is open a forex trading account and find a guide to read before you commence trading. There are many great forex trading guides out there such as the how to trade forex guide by City Index, which is available online.
You choose a currency pair you know of, and either decide to ‘go long’, which means you think the first currency in the pair will rise in value against the other. Or you can ‘go short’ if you believe a fall in value will happen. You start at a set price, and can close the trade when you’re satisfied with the level of profit made or want to limit any losses. It’s an attractive form of trading which can be done at any time of the day from Sunday night to Friday evening, as the forex markets are open for trading 24hrs a day between these days to allow for international time zones.
Any money made from trading forex could really help to boost your income. It could be used for home improvements, buying a new car or going on holiday abroad, or, if you have any debts that need clearing, you can wipe them out or reduce them if with your profits. However, when getting started, it’s important to be cautious, so that you know what to do in future when you’re used to forex trading.
It is also important to recognise that forex trading is a leveraged product and you can encounter losses that exceed your initial deposit. As such, forex trading is not for everyone. Please understand the risks involved before trading forex.
This annuity review is intended to explain who needs a pension annuity investment, and why they are so important. When you retire, you have no money coming in and will rely on social security unless you have made some form of financial provision.
“People are living longer, and retirement is no longer just a few years, but can be as long as 20-30 years and more,” says James from iannuityrates.co.uk. “It can be a terrible shock to change from living comfortably to being on the bread line! Yet many who fail to invest for their retirement end up in this situation.”
Most people in regular employment are already investing for their annuity, although not all although they might not be aware of it. You must either take steps to sign up with an insurance company for a pension annuity investment plan, or join your company pension plan that likely operates a 401K defined contributions scheme.
A defined Contributions scheme provides you with a lump sum on retirement that you can use to purchase the annuity of your choice. Your pay a proportion of your pre-tax income into an annuity investment plan and your employer also contributes an agreed amount. On your retirement, you can use the accumulate investment to purchase an annuity to provide you with a regular income throughout your retirement.
The 401K and IRA Annuity Investment
Such schemes may have a minimum retirement age, so check what that is if you want to retire early. For individuals saving for their own retirement, you have two options: a 401K or an IRA (Individual Retirement Account). A 401 K is the above defined contributions scheme, into which you and your employer pays. As to who needs one, it is frankly to the advantage of every American in employment to take a 401K, or they will be leaving their employer’s contribution on the table when they eventually retire.
Normally, when you join a company operating such a plan, you will be asked if you want to join. Irrespective of whether you think you are too young to save for your retirement, you should join. It will come sooner than you think, and it’s too late then to wish you have made better provision for what could these days be another 20-30 years of life. Do you want to spend that on social security?
Who needs an annuity investment? You do! Even of you don’t think so right now, you need a pension annuity investment program to begin now if you don’t already have one. The sooner you start salting away some of your income into an annuity investment, the more comfortable you will be in your retirement. Do you want to visit your kids and grand-children after you retire? Maybe you don’t even have the kids yet, but plan for the future or you will likely live to regret it!
What are your options? One is the 401K that you cash in for an annuity when you reach 59.5 years old, or an IRA with the same restrictions. Because such an annuity investment is deducted from your gross income (before tax), you pay tax on it when you cash in the investment. If you use your 401K or IRA completely to provide you with a regular pension, you will be taxed on your monthly payments, although with any tax-fee allowance applied first.
Roth 401K and Roth IRA
You also have the option of a Roth 401K or Roth IRA, where payments are made from your post-tax, or net income. In these cases, you pay no further tax when you use your annuity investment, either to actually purchase an annuity or take as a cash sum: there are limits to how much of an annuity investment can be taken as cash.
If you are in employment you should make a pension annuity investment on a regular basis, a 401K being your best option. If you win money on the lottery, or come into an inheritance, you could use part of that to purchase a deferred annuity, payable at a later date when your require it, or, even better, an IRA that you can cash when you reach a certain age to provide you with another regular monthly pension.
You Do Need an Annuity Investment
Whether or not you believe right now that have to save up for your retirement, the simple answer is that you do! Inflation means that cash loses its value, but pension annuity investments tend to rise along with interest rates and the cost of living. You could save your money in a bank or building society, but your annuity investment will tend to maintain its spending power far better than banks and building societies.
Once you retire you can cash your investment to buy an annuity. This will give you a pension for life, generally paid into your bank account each month. If you save enough, you could also make that a joint annuity, which protects your spouse or partner in the event of your death – then your pension will be then paid to her or him for life.
Kiva started as a tool through which entrepreneurs in developing countries were aided in starting their own businesses and hence improve their financial well-being. The main aim of Kiva was to stamp out poverty from developing countries in the world. It has grown in leaps and bounds ever since and it has turned to developed countries for the same purpose as well. According to many analysts.
Is Kiva all that great?
Kiva hasn’t made any significant impact in helping people in developing countries to pull themselves out of poverty as field partners seem to be factoring some countries over others and some groups over others. Also, national governments have also caused some companies to shut down for political reasons. The high interest rates charged by Kiva seem to be its own undoing and the reason why it seems not to be very attractive to people in developing countries.
This NY Times article describes a few of the general concerns on Kiva. Kiva came out with their response to the allegations here.
It was discovered a while ago that Kiva was facilitating loans that featured interest rates as high as 30% and in some cases being higher than the 50% mark. For this reason, many critics have talked about Kiva as having missed the mark (the whole idea of micro financing is to offer loans with little or no collateral).
It has been argued by others that having high interest rates will help institutions of micro credit to stand firm faster and to attract more borrowers and hence fasten the process of poverty reduction.
According to Kiva, when money is lent on Kiva, the borrower will pay interest, although Kiva does not make money off the interest that will be paid by the borrowers. Kiva is an institution that pays for its operations using tips as it is a non-profit organization.
Most of its field partners will make profit from the loans that they give to borrowers. Interest is charged on the amount that has been lent and the interest rates differ from country to country. The 30% and above interest rates have been justified by Kiva time and again; one of the justifications being that considering the fact that interest charged is about 10%, the inclusion of overseas partners makes the interest rates to jump to the 30% and above interest rates. Kiva maintains that it does not make any profits from the loans
With regard to the high interest rates; Kiva has justified this by explaining that the lack of infrastructure in some developing world makes interest rates higher. Also there is the fact that loans in developing countries are generally smaller than loans in developed countries. Generally speaking, the cost of administering smaller loans is higher than the cost of administering larger loans and this is the reason for the high interest rate.
For Kiva to choose its field partners, it ensures that they share the same social mission among other things. Kiva ensures that it has looked at their interest rates and operating costs among other things. It will also look at the general size of the population being served and how well they match their core value among others.
Field partners are required to endorse some principles;
- First, the financial institution must be able to prevent over-indebtedness by ensuring that a borrower has the ability to pay off his loans. The borrower should be in a position to pay off his loans comfortably without stretching too much
- Transparency-the field partners must ensure that their consumers are aware of what they are committing themselves to before they get those loans.
- When a client fails to pay back a loan, the institution must be able to maintain high standards of ethics
- The institution must have a healthy corporate culture so that clients are treated well
- They should have mechanisms for resolving complaints from consumers.
- Privacy and confidentiality of client data
How to borrow from Kiva
Business loans by Kiva require that a potential borrower is informed about the loan requirements.
- Generally speaking a borrower must have a good credit score of 525 and shouldn’t be bankrupt.
- All mortgage payment should have been done on time in the last year
- Should have steady income and prove so.
- The applicant must provide security
- In the event that the business is an emerging one, the business should have been In operation for the last one six months
- The borrower should provide a market study and projections of the business. A business plan may or may not be required.
- For home-based businesses, it is required that the applicant has less than $500 in debt and a business plan with a cash flow projection of 12 months.
- For business loans, one must come up with a cosigner. This may not be necessary if the loan is small, if there is adequate security and the borrower has shown that he has a steady flow of cash income.
Readers do you have any experience with Kiva? How did you find the company or the program?
Readers to deviate from our usual review series, here’s a post that may help you choosing your preferred software for Forex or currency trading. There are various software available in the market today. The tasks start from comparing those available option. Below points will explain you how you can proceed further.
Like any other software selection, the features you should look in to while choosing the best out of available currency trading software are as below.
The software should be up 24/7, like the Forex market itself, your software should never sleep or face outages. Any time in the day you should be able to access the platform.If a software does not have this feature you can safely turn away from it.
Your money and your purchases should automatically be protected from fraud potential by the encryption employed in the software. A 124 bit encryption is a must to beat today’s network attackers.
Ease of use
The trading platform should be easily usable and understandable. You shouldn’t have to click too many buttons to place a purchase order or a sales order. At the same time the software should not have missing features.
Real time Quote and movement
Unless you get to see real-time price movement and your profit and loss margin a trading platform is good for nothing. This is no different from a regular stock trading platform need. You need to know every movement especially if you are a day trader.
Always read reviews for the software. Expert review and regular user reviews are great resources to know a product feature better. Every review will either negative or positive and same product might generate good as well as bad reviews, go for the products that have best ratio of positive vs. negative reviews.
No matter how good a software is there will be glitches, that’s how electronics pulses work in a network, signal packets will be lost and connection will be broken at times. When that happens a good customer service fills the gap. If you don’t get an answer even after being one hour on phone then the software platform owners have a serious problem. Customer is the king, let’s behave like a king.
Brand name goes a long way. Brand name brings controls and procedures to meet standards, brand name brings reliability. A better brand is always more equipped to compensate for their mistakes. They may go out of their ways to fit your needs at times.
So, your tasks do not end till you learn how to trade Forex, it can only complete when you evaluate and select the best available Forex software. We at Finance Product Reviews will bring in future reviews of forex trading platforms, setting the pace here.
Thanks for being our avid reader, let us know if you have good/bad experience with a currency trading platforms.