The first thing one must do is manage the expenses. It 'a fact that the expenditure how large a mortgage on a house and even a car that will take time to finish. Reducing luxury items and get something similar for a more affordable value, adds that the money saved can be used for other things such as reducing debt. A good example is instead of buying lunch out every time one is at work, you could instead make dinner at home, take it to work and save money.
The next step will be for an early retirement to accumulate capital. Already at a young age, you can start saving to get a plan. Some banks and insurance companies have rates well in the long term will be perhaps twice the single currency has made over a period of ten years.
Finally, you can have more money to invest it. Some studies have shown that there are many places where money can be doubled. You can do it through debt, putting money in the stock market, buying some real estate and even putting up a business.
A bit 'of money well spent for sound investments is another way to help accumulate a certain amount of money and realize the dream of retirement is in 10-15 years.
The task is not easy. There will be times you will be tempted to buy something. It just takes a lot of planning, patience and self control to make it happen.
Retirement is not the end. And 'the beginning. It is a phase in which it closes a historical chapter and the person moves forward to face another.
It 'a moment that you may be able to restructure their lives and spend more time with your family or give more to the community.
New opportunities may arise from it and showing the same amount of strength and courage as he had done many times in the past, the options are endless.
The choice is up to you what to do next.
Thursday, May 10, 2012
Financial advice young adults
Financial advice young adults. To help you get started, we'll look at eight of the most important things to understand about money, if you want to live life comfortable and prosperous.
• Learn Self Control
If you're lucky, your parents taught you this skill when you were a kid. Otherwise, keep in mind that the sooner you learn the subtle art of delayed gratification, the first will find it easy to keep your finances in order. Although you can effortlessly purchase on credit the minute you want it, you better wait until you've actually saved money. Do you really want to pay interest on a pair of jeans or a cereal box? (To learn more about credit, check Understanding credit card interest and our debt management capabilities).
If you make a habit of putting all your purchases on credit cards, regardless of whether you can pay the bill in full at the end of the month, you could still be paying for those items in 10 years. If you want to keep your credit card for the convenience factor, or the rewards they offer, always make sure to pay your balance in full when the bill comes, and do not carry more cards than you can keep track of.
• Take control of your financial future
If you do not learn to manage their money to other people will find ways to (mis) manages for you. Some of these people can be malicious, unscrupulous as designers of the finance committee. Others may be good intentions, but do not know what they are doing, how his grandmother Betty who really wants to buy a house but can only afford a variable rate mortgage treacherous.
Instead of relying on others for advice, take charge and read some books on basic personal finance. Once you are armed with knowledge of personal finance, do not let anyone take aback - if a significant other that slowly siphons your bank account or friends who want you to go out and blow tons of money with them every weekend . Understanding how the money is the first step to making your money work for you. (For information on how to have fun and still save money, see Budget without blowing Off Your Friends.)
• Know Where Your Money Goes
After crossing a couple of books on personal finance, you will realize how important it is to make sure that expenses do not exceed income. The best way to do it in the budget. Once you see how Java adds morning during a month, you will realize that making small manageable changes in your daily expenses can have as much space an impact on your financial situation as getting a raise. Moreover, keeping the monthly recurring charges as low as possible even save you a lot of money over time. If you do not waste your money in a stylish apartment now, you may be able to afford a nice condo or a house before you know it. (To learn more about the budget of our budget for 101 special feature.)
• Start an Emergency Fund
One of the oft-repeated mantra of personal finance is "pay yourself first". No matter how much you owe in student loans or credit cards and no matter how low the wages may seem, it is wise to find a certain amount - any amount - of money in the budget to save in an emergency fund each month.
Having money in savings to use for emergencies can really stay out of financial trouble to help you sleep better at night. Also, if you make a habit of saving money and treating it as a non-negotiable monthly "spending", that very soon you will have more than just emergency money set aside: you'll have the money for retirement, holiday money and also money for a house down payment.
Not only sock away the money under the mattress, put it in a line of high-interest savings account, a certificate of deposit or money market account. Otherwise, inflation erodes the value of your savings.
• Start Saving for Retirement Now
As we headed off to school with hope your parents' prepare for success in a world that seemed eons away, it is necessary to prepare for retirement in advance. Due to compound interest works, the earlier you start saving, the less you will need to invest principal and ending with the amount you need to retire, and before you will be able to call work, an "option", rather a "necessity".
Company-sponsored retirement plans are a particularly great because you get to put in dollars before tax and contribution limits tend to be high (more than you can contribute to a pension plan). In addition, companies often match part of your contribution, which is like getting free money. (For more information, see understanding the value of money and Retirement Tips for 18 - to 24 years of age).
• Get a Grip on taxes
It 's important to understand how income taxes work before you even get your first paycheck. When a company offers a starting salary, you need to know how to calculate whether that will pay enough money after taxes to achieve your financial goals and obligations. Fortunately, there are plenty of online calculators that have had the dirty job of determining payroll taxes, such as Paycheck City. These calculators will show your gross pay, how much goes to taxes and how much can be left, which is also known as a network, or take-home pay.
For example, 35 thousand dollars a year in California will leave you with about $ 27,600 after taxes in 2008, or about $ 2,300 a month. For the same reason, if you're thinking of leaving a job to another in search of a pay rise, you must understand how your marginal tax rate will affect your raise and a salary increase of 35 thousand dollars 'year to $ 41 thousand a year will not give you an extra $ 6,000, or $ 500 per month - will just give an extra $ 4,200, or $ 350 per month (again, the amount will vary depending on your state of residence). In addition, you'll be better in the long run if you learn to prepare the annual statement of the tax yourself, as there is plenty of bad tax advice and misinformation floating around out there. (To learn all about taxes, visit our revenue guidance.)
• Guard your health
If meeting monthly health insurance premiums seems impossible, what will you do if you have to go to the emergency room, where only one visit for a minor injury like a broken bone can cost thousands of dollars? If you are uninsured, do not wait another day to apply for health insurance, it is easier than you think, to conclude in a car accident or a trip down the stairs. You can save money by getting quotes from different insurance providers to find the lowest rates. Moreover, taking steps now to keep you daily in good health, like eating fruits and vegetables, maintaining a healthy weight, exercising, not smoking, not drinking in excess, as well as defensive driving, you'll thank yourself for the road when you aren 't paying exorbitant medical expenses.
• Guard your wealth
If you want to make sure that all your hard-earned money does not disappear, you must take steps to protect it. If you rent, get insurance to protect the owner of the contents of your place by events like theft or fire. Disability insurance protects your greatest asset - the ability to earn an income - providing a steady income, though never able to work for an extended period of time due to illness or injury.
If you want to help you manage your money, find a fee only financial planner to provide impartial advice that is in your best interest, rather than a director of the finance committee, which earns money when you sign up with his back investment company. You'll also want to protect your money from taxes, which is easy to do with a retirement account, and inflation, which can be done by having all your money is earning through vehicles such as high interest savings accounts, money market funds, CDs, stocks, bonds and mutual funds.
• Learn Self Control
If you're lucky, your parents taught you this skill when you were a kid. Otherwise, keep in mind that the sooner you learn the subtle art of delayed gratification, the first will find it easy to keep your finances in order. Although you can effortlessly purchase on credit the minute you want it, you better wait until you've actually saved money. Do you really want to pay interest on a pair of jeans or a cereal box? (To learn more about credit, check Understanding credit card interest and our debt management capabilities).
If you make a habit of putting all your purchases on credit cards, regardless of whether you can pay the bill in full at the end of the month, you could still be paying for those items in 10 years. If you want to keep your credit card for the convenience factor, or the rewards they offer, always make sure to pay your balance in full when the bill comes, and do not carry more cards than you can keep track of.
• Take control of your financial future
If you do not learn to manage their money to other people will find ways to (mis) manages for you. Some of these people can be malicious, unscrupulous as designers of the finance committee. Others may be good intentions, but do not know what they are doing, how his grandmother Betty who really wants to buy a house but can only afford a variable rate mortgage treacherous.
Instead of relying on others for advice, take charge and read some books on basic personal finance. Once you are armed with knowledge of personal finance, do not let anyone take aback - if a significant other that slowly siphons your bank account or friends who want you to go out and blow tons of money with them every weekend . Understanding how the money is the first step to making your money work for you. (For information on how to have fun and still save money, see Budget without blowing Off Your Friends.)
• Know Where Your Money Goes
After crossing a couple of books on personal finance, you will realize how important it is to make sure that expenses do not exceed income. The best way to do it in the budget. Once you see how Java adds morning during a month, you will realize that making small manageable changes in your daily expenses can have as much space an impact on your financial situation as getting a raise. Moreover, keeping the monthly recurring charges as low as possible even save you a lot of money over time. If you do not waste your money in a stylish apartment now, you may be able to afford a nice condo or a house before you know it. (To learn more about the budget of our budget for 101 special feature.)
• Start an Emergency Fund
One of the oft-repeated mantra of personal finance is "pay yourself first". No matter how much you owe in student loans or credit cards and no matter how low the wages may seem, it is wise to find a certain amount - any amount - of money in the budget to save in an emergency fund each month.
Having money in savings to use for emergencies can really stay out of financial trouble to help you sleep better at night. Also, if you make a habit of saving money and treating it as a non-negotiable monthly "spending", that very soon you will have more than just emergency money set aside: you'll have the money for retirement, holiday money and also money for a house down payment.
Not only sock away the money under the mattress, put it in a line of high-interest savings account, a certificate of deposit or money market account. Otherwise, inflation erodes the value of your savings.
• Start Saving for Retirement Now
As we headed off to school with hope your parents' prepare for success in a world that seemed eons away, it is necessary to prepare for retirement in advance. Due to compound interest works, the earlier you start saving, the less you will need to invest principal and ending with the amount you need to retire, and before you will be able to call work, an "option", rather a "necessity".
Company-sponsored retirement plans are a particularly great because you get to put in dollars before tax and contribution limits tend to be high (more than you can contribute to a pension plan). In addition, companies often match part of your contribution, which is like getting free money. (For more information, see understanding the value of money and Retirement Tips for 18 - to 24 years of age).
• Get a Grip on taxes
It 's important to understand how income taxes work before you even get your first paycheck. When a company offers a starting salary, you need to know how to calculate whether that will pay enough money after taxes to achieve your financial goals and obligations. Fortunately, there are plenty of online calculators that have had the dirty job of determining payroll taxes, such as Paycheck City. These calculators will show your gross pay, how much goes to taxes and how much can be left, which is also known as a network, or take-home pay.
For example, 35 thousand dollars a year in California will leave you with about $ 27,600 after taxes in 2008, or about $ 2,300 a month. For the same reason, if you're thinking of leaving a job to another in search of a pay rise, you must understand how your marginal tax rate will affect your raise and a salary increase of 35 thousand dollars 'year to $ 41 thousand a year will not give you an extra $ 6,000, or $ 500 per month - will just give an extra $ 4,200, or $ 350 per month (again, the amount will vary depending on your state of residence). In addition, you'll be better in the long run if you learn to prepare the annual statement of the tax yourself, as there is plenty of bad tax advice and misinformation floating around out there. (To learn all about taxes, visit our revenue guidance.)
• Guard your health
If meeting monthly health insurance premiums seems impossible, what will you do if you have to go to the emergency room, where only one visit for a minor injury like a broken bone can cost thousands of dollars? If you are uninsured, do not wait another day to apply for health insurance, it is easier than you think, to conclude in a car accident or a trip down the stairs. You can save money by getting quotes from different insurance providers to find the lowest rates. Moreover, taking steps now to keep you daily in good health, like eating fruits and vegetables, maintaining a healthy weight, exercising, not smoking, not drinking in excess, as well as defensive driving, you'll thank yourself for the road when you aren 't paying exorbitant medical expenses.
• Guard your wealth
If you want to make sure that all your hard-earned money does not disappear, you must take steps to protect it. If you rent, get insurance to protect the owner of the contents of your place by events like theft or fire. Disability insurance protects your greatest asset - the ability to earn an income - providing a steady income, though never able to work for an extended period of time due to illness or injury.
If you want to help you manage your money, find a fee only financial planner to provide impartial advice that is in your best interest, rather than a director of the finance committee, which earns money when you sign up with his back investment company. You'll also want to protect your money from taxes, which is easy to do with a retirement account, and inflation, which can be done by having all your money is earning through vehicles such as high interest savings accounts, money market funds, CDs, stocks, bonds and mutual funds.
Learning basics personal finance
If you're like me, you hate filling the pump. Especially the time when, without any valid reason, it goes up five or ten cents overnight. Most of my clients seeking help finance staff are seeking advice on saving money in certain areas. For now, I will focus on how to manage money on your fuel economy. Keep in mind, I think it's important that you set a budget of good quality so that you have a predetermined goal of spending on gas. You might look in google for various financial instruments, or go to our resource links for a detailed budget spreadsheet. Below are 3 tips that I think are more practical.
Driving in a meaningful way - my grandmothers Lincoln Town Car has a fuel gauge. It's amazing the change in mileage when I'm accelerating aggressively (imaging and is not a city car, but rather a sports car) against easy grip. Studies have shown that hard acceleration, speeding and sudden braking can lower fuel economy than a third on the road and 5% in the city guide. So, is it not as fun to drive like my grandmother, but if you want to start managing better, the money in the car safer and slower. Fewer accidents, save on fuel.
Use Cruise Control - the ability to cruise at the top to allow you to rest your legs on long journeys, can prevent speeding sucking back the fuel. Furthermore, it is impossible to bring down your speed, causing accelerated more often to get up to speed. Not only will you save gas cruising, but as it is used as a method of how to manage money, you should also prevent those expensive speeding tickets.
Buy fuel efficient cars - there are some benefits here. The initial cost of smaller, more fuel consumption opportunities are lower. When showing my clients how to manage money and be better with money, their withdrawal of a vehicle often plays a huge role. They save money when buying and light trucks are much better on gas. When I bought our 2008 house, are qualified for the ego-car incentive program offered in Canada. I received $ 1000 back from the government.
It can be fun to feel rich and successful and they all drool over your big SUV, but it is bad for the environment and your wallet. In many lessons of how to manage money I give to clients who are thinking of buying a new car, I tell them to choose fuel efficient vehicles. They not only save more money after they buy the car, but they also save money on their gas. Watch online or use our spreadsheet of the budget to see what car works for your income and what vehicle will save more money.
Driving in a meaningful way - my grandmothers Lincoln Town Car has a fuel gauge. It's amazing the change in mileage when I'm accelerating aggressively (imaging and is not a city car, but rather a sports car) against easy grip. Studies have shown that hard acceleration, speeding and sudden braking can lower fuel economy than a third on the road and 5% in the city guide. So, is it not as fun to drive like my grandmother, but if you want to start managing better, the money in the car safer and slower. Fewer accidents, save on fuel.
Use Cruise Control - the ability to cruise at the top to allow you to rest your legs on long journeys, can prevent speeding sucking back the fuel. Furthermore, it is impossible to bring down your speed, causing accelerated more often to get up to speed. Not only will you save gas cruising, but as it is used as a method of how to manage money, you should also prevent those expensive speeding tickets.
Buy fuel efficient cars - there are some benefits here. The initial cost of smaller, more fuel consumption opportunities are lower. When showing my clients how to manage money and be better with money, their withdrawal of a vehicle often plays a huge role. They save money when buying and light trucks are much better on gas. When I bought our 2008 house, are qualified for the ego-car incentive program offered in Canada. I received $ 1000 back from the government.
It can be fun to feel rich and successful and they all drool over your big SUV, but it is bad for the environment and your wallet. In many lessons of how to manage money I give to clients who are thinking of buying a new car, I tell them to choose fuel efficient vehicles. They not only save more money after they buy the car, but they also save money on their gas. Watch online or use our spreadsheet of the budget to see what car works for your income and what vehicle will save more money.
Sunday, August 30, 2009
Correcting Four Common Money Mistakes
If you feel as though you keep making the same mistakes when it comes to money, there's good news.
By making a few small, practical changes in your behavior, you can often correct financial mistakes and make some positive changes that are likely to last. Here are four examples.
• Eliminate emotional spending: Before you head off to the mall, take a minute to note what you are feeling. In a recent study by moneycentral.msn.com, people who had just watched a sad movie clip were willing to spend more than those who had just watched other types of movies.
Remember, if you are feeling sad or frustrated, there are ways other than shopping to make yourself feel better.
• Pay off credit card debt as soon as possible: Take a long look at how much you are paying to borrow money from your creditors. Think about consolidating debt with a single loan that has a lower interest rate that's fixed.
• Start planning for retirement now: If you are not saving money for retirement, you should be. A recent study in USA Today showed that currently, 53 percent of people in the workforce have no pension and 32 percent have nothing set aside for retirement. If you're planning on relying just on Social Security, you probably should think again. The current average payout is just $955, or $11,460 annually-and could be even less, depending on your work history. You should consider working with a financial professional and completing a personalized financial profile. This can help determine how much you need to start saving in order to reach your financial goals, such as retirement, education savings for your children and other goals.
• Prepare for the unexpected: Don't use the "it could never happen to me" excuse when dealing with something as critical as your family's financial future. Sudden accidents or unexpected critical health problems happen every day to those who least expect it. If you are the breadwinner of a young family, according to the experts at Kiplinger's, life insurance protection of eight to 12 times your annual income is recommended. Most experts agree that the most affordable form of insurance is term insurance. According to Kiplinger's, "Dollar for dollar, term life insurance gives you the most protection for your money. Period."
By making a few small, practical changes in your behavior, you can often correct financial mistakes and make some positive changes that are likely to last. Here are four examples.
• Eliminate emotional spending: Before you head off to the mall, take a minute to note what you are feeling. In a recent study by moneycentral.msn.com, people who had just watched a sad movie clip were willing to spend more than those who had just watched other types of movies.
Remember, if you are feeling sad or frustrated, there are ways other than shopping to make yourself feel better.
• Pay off credit card debt as soon as possible: Take a long look at how much you are paying to borrow money from your creditors. Think about consolidating debt with a single loan that has a lower interest rate that's fixed.
• Start planning for retirement now: If you are not saving money for retirement, you should be. A recent study in USA Today showed that currently, 53 percent of people in the workforce have no pension and 32 percent have nothing set aside for retirement. If you're planning on relying just on Social Security, you probably should think again. The current average payout is just $955, or $11,460 annually-and could be even less, depending on your work history. You should consider working with a financial professional and completing a personalized financial profile. This can help determine how much you need to start saving in order to reach your financial goals, such as retirement, education savings for your children and other goals.
• Prepare for the unexpected: Don't use the "it could never happen to me" excuse when dealing with something as critical as your family's financial future. Sudden accidents or unexpected critical health problems happen every day to those who least expect it. If you are the breadwinner of a young family, according to the experts at Kiplinger's, life insurance protection of eight to 12 times your annual income is recommended. Most experts agree that the most affordable form of insurance is term insurance. According to Kiplinger's, "Dollar for dollar, term life insurance gives you the most protection for your money. Period."
Thursday, August 20, 2009
Good Investment Advice: Only For The Rich?
If you think good investment advice is only for the rich, you're not alone. Nearly two-thirds (65 percent) of investing Americans believe that those with more money are able to get better financial advice than those with less money. Further, more than a quarter (26 percent) state that it takes at least $100,000 to get top-quality financial advice.
This is according to a new survey by the Retirement Corporation of America, which also finds that more than half (56 percent) of investors believe that financial advisors lose credibility when they accept fees or commissions.
Given the above perceptions, it is not surprising that 53 percent rely on themselves or turn to family and friends when it is time to make investment decisions rather than seek professional advice. However, changing investment funds is easier said than done for investors. The survey finds that nearly a third (31 percent) are willing to wait from one to five years before they move their money from a poorly performing option to a better one. The factor that makes it most difficult for investors when contemplating change is the scarcity of time to conduct adequate research, as cited by a third of respondents. This is followed by 20 percent who state that they are confused by all the available options and 16 percent who are afraid of making the wrong decisions.
The Retirement Corporation of America conducted this survey to better understand why consumers stay invested in poor-performing mutual funds. Their newly launched investment opportunity-Money Masters Investment Portfolio-is the first to offer unbiased advice and access to top-performing investment funds for every American.
Taking The Guesswork Out
The good news for confused American investors is the new registered investment advisory account (the "R" Account), offered through the Retirement Corporation of America, with no minimum account balance, commissions, transaction fees or exit penalties. It allows investors to access a fully managed Money Masters Investment Portfolio containing 15 of the world's top-performing mutual fund managers-the "Money Masters." The Money Masters are the top 10 stock fund and top five bond fund managers chosen from more than 8,000 fund managers who meet very strict selection criteria.
How It Works
When an investor opens an "R" Account, Retirement Corporation of America advisors determine the individual's objectives and risk tolerance. Based on that profile, a Money Masters Investment Portfolio is created to best suit the individual investor's needs.
This is according to a new survey by the Retirement Corporation of America, which also finds that more than half (56 percent) of investors believe that financial advisors lose credibility when they accept fees or commissions.
Given the above perceptions, it is not surprising that 53 percent rely on themselves or turn to family and friends when it is time to make investment decisions rather than seek professional advice. However, changing investment funds is easier said than done for investors. The survey finds that nearly a third (31 percent) are willing to wait from one to five years before they move their money from a poorly performing option to a better one. The factor that makes it most difficult for investors when contemplating change is the scarcity of time to conduct adequate research, as cited by a third of respondents. This is followed by 20 percent who state that they are confused by all the available options and 16 percent who are afraid of making the wrong decisions.
The Retirement Corporation of America conducted this survey to better understand why consumers stay invested in poor-performing mutual funds. Their newly launched investment opportunity-Money Masters Investment Portfolio-is the first to offer unbiased advice and access to top-performing investment funds for every American.
Taking The Guesswork Out
The good news for confused American investors is the new registered investment advisory account (the "R" Account), offered through the Retirement Corporation of America, with no minimum account balance, commissions, transaction fees or exit penalties. It allows investors to access a fully managed Money Masters Investment Portfolio containing 15 of the world's top-performing mutual fund managers-the "Money Masters." The Money Masters are the top 10 stock fund and top five bond fund managers chosen from more than 8,000 fund managers who meet very strict selection criteria.
How It Works
When an investor opens an "R" Account, Retirement Corporation of America advisors determine the individual's objectives and risk tolerance. Based on that profile, a Money Masters Investment Portfolio is created to best suit the individual investor's needs.
Monday, August 10, 2009
Balancing A Budget And Saving Money
Your finances are your business. But unfortunately it seems like you need an accountant to help you understand and decode the mysteries of balancing a budget or saving money. At some point you might need to get a loan. When that day comes, this article can help you understand which is the right one to get.
An unsecured loan is simply a loan you get based on your good name and your credit rating. Often the interest rates are higher on an unsecured loan than on a secured loan because the risk is higher to the lending institution. If, for some reason, you are unable to pay back the loan and the lending institution does not get any money back. However, your good name and your credit rating are potentially ruined.
On the other hand, a secured load is a low you get when you put up some assets. The advantage of a secured loan is that you often get more money at a lower interest rate for longer repayment period that you would with an unsecured loan. This is because you have some assets to backup your loan. The lending institution prefers this kind of loan because if you find yourself unable to make payments, they can see your assets as an alternative form of payment. Because the risk to them is diminished they are able to provide you with more attractive loans at a better rate.
You might think of a mortgage as a secured loan. The bank lends you money to buy a home and they use the home as a way to back up the loan. If you do not make your mortgage payments, the bank can seize your house.
Or you can think of a secured loan as a pawn shop that lends you the money you want but lets you still use the goods you pawned!
So which one is the right one for you? It’s a tough decision to make. In most cases, a secured loan will get you a better rate, so you just might prefer that.
However, perhaps you don’t have any assets available, or you don’t want to risk the seizure of certain assets if you are unable to make payments. In this case, you just might not mind paying a little more for the benefit of having an unsecured loan.
Both unsecured and secured loans are good options to have when you are doing your financial planning. You can use them to consolidate your outstanding bills, leverage your home investments, or get the things you need and want. And, with the choices between unsecured and secured loans, you have the benefit of being in total control of your financial destiny!
An unsecured loan is simply a loan you get based on your good name and your credit rating. Often the interest rates are higher on an unsecured loan than on a secured loan because the risk is higher to the lending institution. If, for some reason, you are unable to pay back the loan and the lending institution does not get any money back. However, your good name and your credit rating are potentially ruined.
On the other hand, a secured load is a low you get when you put up some assets. The advantage of a secured loan is that you often get more money at a lower interest rate for longer repayment period that you would with an unsecured loan. This is because you have some assets to backup your loan. The lending institution prefers this kind of loan because if you find yourself unable to make payments, they can see your assets as an alternative form of payment. Because the risk to them is diminished they are able to provide you with more attractive loans at a better rate.
You might think of a mortgage as a secured loan. The bank lends you money to buy a home and they use the home as a way to back up the loan. If you do not make your mortgage payments, the bank can seize your house.
Or you can think of a secured loan as a pawn shop that lends you the money you want but lets you still use the goods you pawned!
So which one is the right one for you? It’s a tough decision to make. In most cases, a secured loan will get you a better rate, so you just might prefer that.
However, perhaps you don’t have any assets available, or you don’t want to risk the seizure of certain assets if you are unable to make payments. In this case, you just might not mind paying a little more for the benefit of having an unsecured loan.
Both unsecured and secured loans are good options to have when you are doing your financial planning. You can use them to consolidate your outstanding bills, leverage your home investments, or get the things you need and want. And, with the choices between unsecured and secured loans, you have the benefit of being in total control of your financial destiny!
Monday, July 27, 2009
About Dormant Bank Accounts
Banking experts estimate that up to ฃ5bn may be sitting unclaimed in UK bank accounts that have gone 'dormant'. What does this mean, and could you be entitled to a share in this huge amount of idle money?
A bank account goes dormant when, in the words of the British Bankers' Association, a bank and a customer 'lose touch with each other'. What this usually means in practice is that a customer has either passed away or moved house, and the bank haven't been told and are unable to locate the account holder some time later.
If there are no transactions on an account over a period of around 12 months, the bank will write to the account holder at the last known address to ask them if they wish to keep the account open. If no reply is received, then the bank will change the status of the account to 'dormant'. This means that from now on, no statements, chequebooks or other correspondance will be sent out to the customer.
The money in the account will still earn interest at whatever the normal rate of that account is, and the bank will still keep track of the account balance and keep a record of the last known address of the holder.
There are two main reasons for an account being made dormant. The first and most obvious one is to save the banks the administration costs of sending out statements and the like when there is no activity on the account from month to month (other than that initiated by the bank itself, such as interest payments).
The more important reason however is to guard against identity fraud. If a bank continues to send statements to an address when the account holder is no longer there to receive them, it is all too easy for these documents to end up in the hands of fraudsters, who could use the sensitive information they contain to begin a campaign of ID theft.
Most dormant accounts will have very small balances, but some will inevitably contain a substantial sum, often those belonging to someone who has passed away. If you think you may be entitled to money held in a dormant account, you can make a claim by filling in a form available from the bank in question.
You will need to give your reasons for making a claim, such as that the account belonged to a close relative whose estate was passed to you. You will also need to prove your own identity, and your connection to the original account holder if applicable.
If the bank don't agree that you're entitled to take over the account, you have the right to pursue an appeal, where your claim is re-examined. If the appeal fails, you can take your claim to the Financial Ombudsman Service, whose decision is final and binding.
A bank account goes dormant when, in the words of the British Bankers' Association, a bank and a customer 'lose touch with each other'. What this usually means in practice is that a customer has either passed away or moved house, and the bank haven't been told and are unable to locate the account holder some time later.
If there are no transactions on an account over a period of around 12 months, the bank will write to the account holder at the last known address to ask them if they wish to keep the account open. If no reply is received, then the bank will change the status of the account to 'dormant'. This means that from now on, no statements, chequebooks or other correspondance will be sent out to the customer.
The money in the account will still earn interest at whatever the normal rate of that account is, and the bank will still keep track of the account balance and keep a record of the last known address of the holder.
There are two main reasons for an account being made dormant. The first and most obvious one is to save the banks the administration costs of sending out statements and the like when there is no activity on the account from month to month (other than that initiated by the bank itself, such as interest payments).
The more important reason however is to guard against identity fraud. If a bank continues to send statements to an address when the account holder is no longer there to receive them, it is all too easy for these documents to end up in the hands of fraudsters, who could use the sensitive information they contain to begin a campaign of ID theft.
Most dormant accounts will have very small balances, but some will inevitably contain a substantial sum, often those belonging to someone who has passed away. If you think you may be entitled to money held in a dormant account, you can make a claim by filling in a form available from the bank in question.
You will need to give your reasons for making a claim, such as that the account belonged to a close relative whose estate was passed to you. You will also need to prove your own identity, and your connection to the original account holder if applicable.
If the bank don't agree that you're entitled to take over the account, you have the right to pursue an appeal, where your claim is re-examined. If the appeal fails, you can take your claim to the Financial Ombudsman Service, whose decision is final and binding.
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