Month : June 2016

Insurance

The 5 Must-Have Kinds of Insurance

There’s a lot of insurance out there, from the extended service package on your newest iGadget to whole life policies with complex value schemes. Whether or not any given type of insurance is right for you depends on a variety of factors. However, financial experts consistently identify five kinds of insurance that most established families will need.

Term Life

Losing a family member is hard enough without adding financial hardship to the situation. Term life insurance pays out to help make up for the lost income and associated expenses. Unlike whole life insurance, which covers a person for the length of her life, term life policies can be bought for the length of your working life – making it enough less expensive that even middle-earning families can replace five or ten years’ worth of income.

Only skip this if you have no dependents or other people relying on your income.

Homeowners/Renters

If you have a mortgage, your contract probably requires you to carry a homeowners policy. Even if you own your home free and clear, it’s a good idea to protect the largest investment of your life. If you don’t yet own a home, renters insurance is an inexpensive option for protecting your possessions against accidents, vandalism and theft, assures Michael S. Phillips.

Only skip this if you don’t own a home, and have sufficient cash reserves to replace your belongings.

Auto

In the US, if you have a car you’re supposed to carry this in order to protect other drivers from damage you might do – but it’s often worthwhile to carry enough comprehensive coverage to replace your car if you accidentally damage it yourself. In most families, the car is the second largest investment they make.

You’re not legally allowed to skip this one at all. Skip the comprehensive coverage only if you can afford to buy a new car out of pocket.

Disability

Consider this life insurance’s little brother. An injury or illness can take a person out of the earning pool for months or even years – a situation that’s little different from death in terms of the family finances. Long-term disability insurance protects for those longer periods of recovery, while short-term disability will help out during problems that last only a few weeks like i case of a minor injury at the workplace, says Michael S, Lamonsoff.

Don’t skip long-term disability if you have any dependents, or if somebody could become liable for your medical bills – this service from The Clark Law Office should be considered in this case. Skip short-term if you can weather one to two months without a paycheck.

Disaster

Homeowner’s insurance in areas where certain kinds of disasters are common expressly do not pay out for damage due to that sort of disaster. For example, if you live on a flood plain, your homeowners insurance won’t pay for flood damage. If you live in such an area, you might be able to find (often government-run) insurance coverage specifically for those natural catastrophes.

Never skip on disaster insurance if you live in an area with frequent natural disasters.

Home Ownership

What Is Your House Worth To You?

Gingerbreadhouse Let me just paint you a picture. You have a two income family with two children and a lovely house. Your mortgage payment is around $1200 a month plus taxes and insurance. It’s not too bad and hovers around 30% of your income, so you’re sittin pretty.

Bam!! One of you loses your job, and your mortgage payment is now 60% of your income. In order to pay the mortgage you have to pay your other bills with credit cards in hopes that you get a new job soon. But the economy sucks, your cards are maxed out, and you’re passed due on the mortgage, so the bank is foreclosing on your home.

You finally decide that bankruptcy is the best option. So you go through bankruptcy and you say to yourself “I’ll get a modification on my mortgage and keep my home. Even though they’ll only bring it down to $1000 a month I’m sure I’m bound to get a job soon.”

Why?

Why would you put yourself through that again? Why would you want the sleepless nights and all of that stress weighing you down to pay a mortgage you can’t afford? Why would you put yourself into that cycle?

Am I missing something? Is it because I haven’t owned a home before so I don’t know the feeling? Maybe it’s a good thing this is happening to people every day. Kids will get to be on the outside looking in as their parents stress out over a house.

I know that if I was in that position I would have tried to do whatever I could to get rid of the house. Makes me wish I had a guide like this one. Maybe try renting it out if you owe more than it’s worth. You don’t need to make a profit, just rent it for whatever covers your cost. I know that would be good for you and I’m sure some family would love to rent a home from you because it will be cheaper than renting from someone trying to make a profit.

If anything, and I was forced to bankruptcy, I would absolutely not keep my house. My family’s well-being is much more important than some drywall.

What do you think?

Money Management

Why do people borrow money?

Most people will borrow money at some point in their lives.  It is almost unavoidable.  Borrowing money to buy a house is obviously a large, long term, borrowing commitment.  Other kinds of borrowing are likely to be shorter term – on credit cards, store cards or borrowing from friends or family.    

So why do people borrow money?  People obviously borrow money because they need or want something they can’t afford out right. Some people borrow money to buy a luxury, like an expensive holiday, others borrow because of an emergency, like medical treatment or an essential household item breaking down, others borrow money in the hope that from it they can make more money – for instance to set up a new business.   

Borrowing money is not therefore always a bad thing.  Yes, it would be nice if we all had enough savings to buy what we wanted when we wanted it.   However, borrowing money simply needs to be managed by the borrower.   It is when the borrowing becomes unaffordable that it becomes undesireable. 

Mortgages are used to buy property.  Mortgages generally are large long term loans but in many countries such loans are viewed as a necessity by most people who want to own a house or other property.  Many different types of mortgage exist. Interest rates may be fixed (where the interest rate is the same for a period of time) or may be floating (which adjusts up and down depending on the market).  Generally mortgages last for 25 or 30 years.  Different types of repayment schemes are available – Commonly regular payments are made to reduce the capital and the interest over the set term. 

Credit cards are a common way people incur debt.   The cards are generally issued by bank after an application by the borrower is approved.  A credit limit will be set by the card issuer.  Cardholders then use the card to pay for goods or services or to get a cash advance.    The cardholder is then sent a statement monthly setting out how much is owed to the card issuer.  At least a minimum amount set by the card issuer must be paid by a due date.  Interest is charged on any balance which is left unpaid.  A fee may be charged if the borrower is late in making the minimum payment. 

Another form of borrowing is via a pay day loan via a lender like wonga.co.za who has recently entered the South African market.    Pay day loans are typically used for an emergency – they provide money quickly to applicants on a short term basis.   These types of loan they typically carry high rates of interest because they carry high risk to the lender are for short term borrowing and are usually available to people regardless of their credit history. This type of loan can however be a useful source of money if caught short and if you need quick access to cash. 

Whatever form of loan you are dealing with – huge or small, long term or short term, they all need to be entered into knowing what you can afford and in full knowledge of the repayment terms.   Sometimes taking out a loan can be very worthwhile are and can actually improve a borrower’s quality of life. 

Insurance

7 Reasons Why You Need Renters’ Insurance

Author Bio: This article is written by Charles Henry of http://www.rentersinsurance.net/

If you are entering into a new property rental lease, or perhaps have been renting for a while without insurance, you may think that getting a renters’ insurance policy is unnecessary for you, or at least a very low financial priority. Perhaps you don’t consider your possessions to be all that valuable, and aren’t sure it is worth paying a monthly premium just in case anything happens to them. However, renters’ insurance can be highly beneficial to just about all people renting houses or apartments, and doesn’t just cover the contents of your home. Here we take a look at seven reasons why you need renters’ insurance: 

1 – Replacing even your essentials after an emergency can run to a lot of money 

While you may not think you have anything especially valuable, could you afford to buy all new furniture, a new computer, a new TV, new kitchenware and a new wardrobe all at once? While you may not own anything all that expensive on its own, if an emergency wiped out all of your stuff, leaving you with nothing, in an uninsured situation that is what you would be looking at. 

2 – Insurance can cover even minor losses 

Insurance doesn’t just have to come into play if you lose a lot of the things you own in a major incident like a fire or flood – it can also help with more minor losses. Say a problem causes your freezer to stop working and all of the food you had stored in there became unusable – certain policies will cover this. 

3 – Most people have at least a few valuables 

How a valuable is defined is different for everybody. Sure, you may not have a bunch of diamond tiaras or priceless works of art, but in line with your standard of living, something like a games console, a designer purse or even your widescreen TV can be a valuable to you, and you will definitely want to know it is protected. 

4 – It can protect you from unscrupulous landlords 

If your landlord claims damage has been done to the property, and tries to take this out of your security deposit, your insurance may protect you. Accidents can happen and wear and tear on the property and its inventory are inevitable, but if you are insured you don’t need to worry about these things costing you dearly when you move out. 

5 – It can cover your liability if anything happens to a third party on the premises 

In certain legal situations, you may be considered liable if something happens to somebody while they are on the premises you are renting. As you might imagine, this can end up being extremely expensive, as you may have to pay compensation including hospital bills and more. Renters’ insurance will cover your liability. 

6 – It can cover your belongings even when they aren’t in your home 

Some policies will cover your belongings even when they aren’t at the insured address. This means that if you get mugged on the street, or items belonging to you get damaged while traveling, for example, you can still claim on your insurance. 

7 – If you need to stay in a hotel because your home is uninhabitable, your insurer will pay 

Another thing your insurance will cover is accommodation for you if your home becomes uninhabitable, for example after an emergency, or because of other problems with the building. Even if you just need somewhere to stay for a few days for building fumigation, this can end up being an expensive, unplanned cost, so this is one area where insurance can save you a lot of money. 

Employment

10 Best Promising Careers in Finance Sector

A career in finance isn’t all about being a “money man”. However, there exists a very awry notion about finance professionals. An academic degree is where it all begins, followed by exploring accessible professional alternatives matching the stupendous demands of the new age business.

The sector is multifarious and multifaceted, enabling an assortment of opportunities to individuals with diverse skill sets and vision of making it big in life. Even couple of decades back careers like “Budget Administrator”, “Financial Advisor”, “Equity Specialists” existed only on books. However with the changing demand pattern of the financial geographies, the young wave of professionals have realized the potentials of the Finance sector and quite gleefully greeted this Wind of Change!

If you are an aspiring young professional seeking a promising career in the Finance sector you must be reading this article, as today we present the 10 Best Promising Careers in Finance Sector

1.     Financial Controller

Any company’s financial planning and debt financing objectives are best represented by a financial controller. Organizing the budget management prospects in an extensive manner is another crucial task handled in this context. Advanced accounting methods are chosen to implement latest industry practices to obtain maximum profits in a consistent manner. Realizing such a career is best possible by pursuing a suitable course at bryantstratton.edu

2.     Tax Manager

Reporting and planning taxes on a regular basis is the major objective considered by a tax manager. The process of filing tax returns of the entire firm is undertaken without fail by such a dedicated professional. Implementing the local as well as international tax laws is best achieved by such professionals.

3.     Senior Accountant

Taking care of an organization’s liabilities in detail is creditably considered by a senior accountant effectively. The biggest responsibility shouldered by an accountant in the organization is that of examining latest financial trends on a regular basis. Realizing a glorious future in the financial sector is best possible at Bryantstratton with this career option.

4.     Financial Specialist

Investments have become completely logical with it requiring expert thinking entity behind regarding every financial decision taken. It is necessary to be a financial specialist in order to understand better about the share markets and their performances in a comprehensive manner.

5.     Valuation Analyst

Comprehensive business valuation needs to be performed on a regular basis to track the assets and liabilities of the concerned firm. The profession demands more with the concerned professional having maximum knowledge about various aspects such as accounting and taxing in an integrated manner.

6.     Investment Banker

Choosing the best performing firms on a regular basis with a strategic view is something that is best possible for those professionals in investment banking. Making huge profits is best possible in case the predictions go right for them. In contrast, severe losses are accrued if the decisions taken are not fruitful. Several of the students who pursued a course through Bryantstratton are now in responsible positions.

7.     Portfolio Manager

Dealing with the uncertainties of stock market in an extensive manner is the task cutover for a portfolio manager. Such a responsible professional is expected to manage multiple portfolios in a flexible manner with the sole aim of driving the concerned firm towards the path of profit in an assured way.

8.     Trading Analyst

Deciding about all those channels that are known to generate potential income on a strategic basis is the biggest objective of any trading analyst. Maximum understanding about the trading of stocks irrespective of the market condition has to be maintained so that no financial setbacks are experienced for sure. Generating maximum profits is best possible in this regard for you in an ultimate manner.

9.     Chief Financial Officer

Running a company towards a profitable path is what a Chief Financial Officer aims at. Multiple objectives have to be considered in this regard by any CFO in order to realize the best results in an effective manner. Maximum care has to be taken in this regard as the decision taken by a CFO is final.

10.   Financial Consultant

Starting a consultancy offering valuable tips and support to business owners who are willing forward to expand their firms to realize best growth irrespective of market conditions is very much beneficial. A glorious career to the level of an entrepreneur could be expected with this career choice.

Several other career options are available at Bryantstratton. for the exclusive needs of those planning to make it big in the finance domain. Developing skills and maintaining standards are some of the additional benefits that could be realized through the excellent services and features offered at the website in an exclusive manner. Seeking best career guidance too is easily possible with advanced options included for instant reference.