How do Fixed Deposits Affect your Financial Stability?

Following the demonetization drive, a lot of banks have seen an increase in investment in fixed deposits. Fixed deposits are a safer option as opposed to market stocks and mutual funds, and they are rarely affected by the volatility of the market.

Investing in the fixed deposit is easier since you have to invest your funds only once throughout the tenure of the deposit as opposed to recurring deposits where you have to keep investing some part of your limited monthly income.

Fixed Deposits

Different banks offer different interest rates which are dependent on their policies, the tenure of the fixed deposit and the amount of money that you want to invest. Not only banks but companies also offer fixed deposits.

The company fixed deposits provide you with a higher rate of interest as compared to bank fixed deposits. Whenever you decide to invest in fixed deposits, it is necessary that you choose a financial institution, lender or company based on their reputation in the market and the rate of interest that they provide.

It is necessary to keep in mind that the income that if you receive more than INR 10, 000 in one financial year, you will have to pay tax on this extra income and the tax amount will be decided based on the tax bracket that you fall into.

Financial Goals

The tenure of the fixed deposit depends on your financial goals. A fixed deposit is dependent on the amount that you invest in and the rate of interest that is paid to you by the financial institutions or lenders. The term of your fixed deposit can range anywhere from 7 days to 20 years.

If you have a large amount of cash that you want to invest, it is advised that you invest in different investment options. This will provide you with financial security since all your investments will not be affected by the volatility of the market.

If you have opted for a short-term fixed deposit, you can extend the tenure of this fixed deposit once it matures and this will help you in increasing your liquidity. 

Whenever you invest your funds, make sure you choose the tenure in such a way that you keep receiving the benefits of your investment in a timely fashion. 

Rate of Interest

The best type of fixed deposit in which you can earn go rate of interest is the one where the rate of interest is calculated the compound interest, with the help of online fd calculator you can check your returns of invested your saving in FD . 

If you are opting for a Non-Banking Financial Institution (NBFC) or a Housing Finance Companies (HFCs) you should consider the nature and stability of their business, the services provided by these companies and credit rating of the companies. 

As credit rating has very less impact on the interest offered by the company’s fixed deposit, it's the investor’s responsibility to check the rating of the company should be AAA rated. 

Financial Emergency

If you are facing a financial emergency, you can break the fixed deposit and use this money. No penalty charges are usually applied by the financial institutions or lenders if you break your fixed deposit before its maturity. 

It offers attractive features like cashless hospitalization benefits, discount rating from 5% to 25% on medical services, doctor on call. In company deposits, new customized options are available for each customer, as per their goals and budget, specialized offers for women, free accidental insurances for the individual investor.

6 Unexpected Stresses of Retirement

Many of us paint this idealistic picture of retirement in our minds, where retirement is a beautiful place untouched by the everyday stresses of life. 

Unfortunately, retirement isn’t quite as idealistic as this, and people who are retired face just as many stresses as working individuals—but different stresses. Here is a brief look at some of the most common unexpected stresses of retirement.

Financial concerns

Though retirement is ideally a time for you to enjoy a lifetime’s worth of invested savings, financial concerns remain a top stressor for retired individuals. 

Retirees must adjust to living on a fixed income, and oftentimes that adjustment is more dramatic than expected. Unexpected expenses may drain your retirement fund more quickly than anticipated, for example, or lack of portfolio diversification (a concept discussed in this article) might have undermined the wealth of your retirement account. 

Because financial concerns are so prevalent in retirement, it’s important to remain in close contact with a financial adviser to ensure you will be taken care of once you retire.

Health problems

Many of us expect to encounter health issues as we get older, but we still get this idea in our minds that old age happens to everyone other than ourselves. 

Age-related health problems develop in even the most active adults, however, so it’s important to approach retirement with the mindset that you are going to do what you can to preserve your health. 

Experts suggest regular exercise for retirement-age individuals—even if that is simply light stretching, walking, or yoga. The CDC, in particular, recommends engaging in at least 150 minutes of aerobic exercise per week.

Caregiving

Perhaps you expect to encounter more personal health issues as you get older, but what you might forget to consider is having to take care of a spouse, parent, or other relative once you’re retired. 

Caring for a loved one, particularly from an illness involving cognitive impairment such as Alzheimer’s disease, can become very stressful. Experts suggest that the best way to cope with this unexpected stress of retirement is to seek help from others, including family members, friends, and professionals.

Relationship issues

Retirement is a major lifestyle change, and as such it can change the dynamic of a relationship—be it marriage or a family relationship. 

A newly retired spouse, for example, might suddenly feel isolated and lonely once they are not spending as much time with their colleagues. The changing dynamic that comes with retirement can easily result in relationship issues. 

Experts say that the best way to cope with relationship issues brought on by retirement is to appreciate retirement as a time to nurture relationships, and to seek counseling if necessary.

Identity loss

Many who are newly retired experience stress from suddenly not having something to work for. These individuals feel less valuable and struggle to maintain a firm grasp on their personal identity. 

These types of feelings are perfectly natural as, again, retirement is a major life adjustment. To maintain a strong sense of value and identity during retirement, it’s important to seek new pursuits and to use your time to nurture cherished relationships. 

Experts suggest picking up an old hobby to occupy your newfound time, finding a new hobby, joining a local organization, or getting a low-stress part-time job.

Substance abuse

Did you know that the elderly are at especially high risk for substance abuse? According to this article, rates of alcohol abuse actually spike at retirement age. The reasons for this are several. 

First, retirement itself is a major life adjustment, and it can leave one feeling useless or without identity. Alcohol abuse becomes a coping mechanism for these negative emotions. 

In addition, those at retirement age tend to start experiencing more physical pain, which can also lead to alcohol use as a coping mechanism.

Alcohol isn’t the only substance that sees high abuse rates among retired individuals, either. Prescription painkiller abuse is also remarkably high, as the elderly are prescribed relatively more painkillers than other demographics.

Substance abuse is highly dangerous for a person’s health and finances, so if you or a loved one begin to develop substance abuse after retirement, it’s vitally important to seek professional help as soon as possible.

4 Money Management Ideas to Employ When Injured and Out of Work

When you are injured and out of work, your finances will quickly take a big hit. Being out of work usually means having no health insurance, which further compounds your financial distress. 

These four money management ideas offer some help so that you can stay on your feet for as long as possible.

Applying for Worker's Compensation or Unemployment Benefits

If you were injured on the job, contact human resources and find out if you could qualify for worker's compensation. If you were let go because of your inability to do the job, find out if you could receive unemployment benefits. If your employer is uncooperative, consider a consultation with a worker's compensation or disability attorney.

Receiving a Personal Injury

Receiving a personal injury can be an overwhelming experience. You might feel frustrated, stressed and worried about what the future holds. Professionals, like those at D Chadwick Calvert Law Office, know that you should be sure to make the most of the insurance benefits that you have. 

Counseling may also help you to get through the experience of receiving a severe injury and loss of your job. You may also find a free support group in your community.

Cutting All But the Essentials

If your disability payments or unemployment benefits run out or never pan out, you could quickly run out of money. 

As soon as you are out of work, cut all but the essentials. Even if it means that you have to cut out the cable TV and other fun stuff, you can survive without it. Stick with the essentials at the grocery store and cut back wherever possible.

Find Work to Do from Home

There are only so many expenses that you can cut. At some point, you will have to be bringing some money into your bank account. Consider whether there is work you could do from home, even with your injury. 

Keep in mind that if you start working before a disability determination is made, the work could disqualify you from being eligible for the benefit. Some work options to do from home could include tutoring, sewing, dog sitting, house sitting or medical transcription.

When you are injured and out of work, take advantage of all of the resources available to you. Attorneys offer free consultations, and government employees at the disability and unemployment offices may be able to link you with community assistance. 

Focus on getting better and developing some new technology-oriented employment skills that could help you to find work that you can do as you recover.

5 Frugal Ways New Families Can Conserve Money

Many families today struggle to save enough money for the future. With the rising costs of many products and services, it is more important than ever to figure out a plan in this area. 

Many families also have to have both parents carrying full time jobs and for some, that might not even be enough to bring in enough money to make sure all of their bills are paid. 

The good news is that there are many ways that you can conserve money as a family.

Cook at Home

Perhaps the easiest way to save money for your family is to cook at home instead of going out to eat. 

There are a lot of people who spend way too much money going out to eat at restaurants in their local area. Not only is this less healthy, but it also costs a lot of time and money. 

Start working on meals each week that your family can cook and enjoy together. This will allow you to figure out a way to make things for less money.

Shop Insurance

Few people know that they can continually shop for cheaper insurance throughout the year. 

The average family spends hundreds of dollars per month on auto and home insurance. It only makes sense to look at ways that you can save money in this area. Many insurance companies are willing to lower the costs of care if you will bundle your coverage.

Budget

One of the things that all families can do to be better with their money is set and stick to a strict budget. 

Many families spend too much money on products and services because they do not keep and maintain a budget. This is never a good idea, and you need to make sure you have a financial plan for your money at all times. 

Simply writing down your financial goals has a huge impact on your financial future. You should also be doing simple things like taking ten percent of your income and dedicating that to savings. It may not seem like very much, but it will add up over time. 

You also may need to consider tightening up on unnecessary expenses. These usually include extras or guilty pleasures that you might enjoy. Eliminating these things will help stop unnecessary spending and thus helping you have more money in the long run. 

Buy a Used Car

One of the best things you can do is not waste your money on a brand new car. Rather, it is more frugal to buy used as you will have lower monthly payments each month allowing you to dedicate your budget to more important financial areas for your family. 

Dealerships like the Young Automotive Group can help you find the right and reliable used car for you and your family.

Coupons

Some people thing couponing is crazy, but if you put in the work, and you can save a lot of money, then why not take advantage of them? 

Another great way to save money on groceries is to look for coupons. These are easier to use than ever before because of all of the online options. If you are ready to start saving money, look for coupons in your area to clip for products that you can buy. 

A lot of people have high levels of success with this strategy.

Overall, saving money is possible with the stress of a new family. Simply stick to a plan and follow these tips to save more money each month. 

The more financially organized you are, the easier your overall life will be.