Finance For a Great Retirement!

(Photo credit: Wikipedia)Although there can be no mandatory retirement age and people nowadays are working well into their seventies, the time when one is in one’s fifties is a good time to start planning for retirement. And 65 (or in some places, 67) is, after all, the age at which people become eligible for retirement benefits such as pensions. This article will be primarily about equity release schemes and the best ones there are out there.

The precise definition of an equity release scheme is when somebody uses the value of their residence to get a lump sum of money, thus providing themselves with a steady source of income, while retaining the use and possession of it. When the beneficiary dies—or occasionally, before then—they must repay that amount; and any pre- existing mortgage must also be paid off.

There are five basic types of equity release schemes:

(1) Home income - a form of lifetime mortgage (see number 4) whereby the capital can be used to purchase annuities which the lender himself may provide.

(2) Home reversion - where the homeowner sells his house to a reversion company, in whole or in part, so that the latter owns that much thereof, but the resident still retains the right to live there and (depending on his choice) receives a lump sum and/ or a regular income.

(3) Interest only - the borrower makes interest payments for as long as he remains on the property, with the loan itself being repaid upon the borrower’s death.

(4) Lifetime mortgage - whereby the homeowner takes out a mortgage loan on the property, retaining ownership thereof for as long as he remains living there, repaying the loan and compound interest that is added to it throughout its term by selling the house and moving into a retirement home.

(5) Shared appreciation mortgage – again, the homeowner retains the right to live in the house; he takes out a capital loan and in turn, owes the lender any increase in the value of the property.

Equity release has a number of advantages. The most important, of course, is that it provides the borrower with a steady source of income for the rest of their life. But there are other benefits as well. It can reduce the amount of inheritance tax on the property. Decline in interest rates are no problem, as the mortgage can easily be refinanced with another provider at a lower price. Likewise with downturns in the housing market: Here the borrower is protected by the no negative equity guarantee, which ensures that the total amount of the amount borrowed and the interest accumulated on it cannot exceed the house’s future value when it is sold as outlined in the terms of the scheme.

It is quite easy to take part in an equity release plan. An individual’s eligibility depends largely on the mortgage provider; however, in most cases the minimum age is 55 (but see under reverse mortgage, below) and the person must be retired, since, as mentioned above, the purpose of the scheme is to allow retirement itself to provide a source of income. Those who prefer to release income, or to take out a home reversion loan (described above), generally have to be at least 65. The property must be owned by the applicant and in good condition. It should also be on either long leasehold or freehold.

Most schemes operated under the term “equity release,” including those described below, are available only in the United Kingdom. In the United States, a form of equity release called reverse mortgage is provided to those 62 and over under an HUD-administered federal program.

Some of the best equity release schemes are:

• Equity Release—variable type, no early repayment charges accrued on the loan
• Aviva Lifestyle flexible option—fixed
• Liverpool Victoria flexible lifetime mortgage—fixed

In Stafford, England, Lyndon and June Watts, age 71 and 74 have enjoyed a happy elderly life due to equity release. They used the money to make improvements to their house, which is also worth more now than when they first took out the loan, go for holiday and spend money on their grandchildren.

Author Bio - Jonny Webber lives in Manchester, where he works as a free lance writer creating content about Health, Fitness and Finance. To find out more about Equity release visit www.equityrelease123.co.uk Follow him on twitter by clicking @Jonnywriter

Make The Most of your Car Insurance

 (Photo credit: Wikipedia)

Scouting for the best car insurance can be tiring and time consuming. But, purchasing auto insurance is not a herculean task! All it needs is some research and a little planning on the type of coverage you will require to keep you and your family safe. However, to choose the best insurance you need to understand the types of insurance and how to make the best use of it.

Types of Car Insurance

The UK government introduced a law in 1930 which stipulated that every vehicle owner should have a third party personal injury insurance; and it is mandatory to either have security, be insured or should make a deposit of a specified amount as per Road Traffic Act (RTA) against the liability of injury caused or property damaged by the vehicle.

Just like any other insurance, car insurance has also been constructed to meet the requirements of the policy holder.

While some of the below-mentioned insurance policies can be chosen as per individual requirements, some are compulsory in accordance with the law.

RTA only Insurance: has very low coverage for the damage done to the third party.
Third Party only Insurance: this is the most commonly available; and considered a basic, legally required car insurance.
Third Party, fire and theft insurance: is the most purchased car insurance that covers all third party liabilities and, unlike the preceding insurances, it provides coverage to the vehicle if damaged.
Fully Comprehensive Insurance: It is the most expensive type of insurance and is a hybrid of all of the three above-mentioned insurances.

How to make the best use of your Car Insurance

You might have chosen car insurance that suits your requirements, however, it is most useful if you are able to utilise its full potential. And if you are a new buyer or even an experienced one, you might want to consider these criteria for your car insurance:

1. Do analysis on the organisation you are going to be associated with and make a comparison of the deals offered with others on the market. Give importance to the premium paid and the level of coverage offered.
2. Opt for the firm that has a good reputation and have already established themselves on the market; this is an easy way to judge if the company is genuine or not.
3. Do not buy add-ons that you don’t need! You need to focus on the essential parts of the car and not the luxuries. Add-ons are not reimbursed or replaced in case of accidents or theft (unless you have an additional insurance policy for it)
4. Maintain a good credit score if you want to qualify for lower interest rates. Although, Car loans UK can give you good deals on loans for your car irrespective of the credit score.
5. Do research while renewing your policy. Save time and money with accurate policy information and ask your insurance company for new deals that could benefit you.
6. Reduce Premium by driving less every year. If you prove to your insurance company that you drive less, you will get reduction on premium
7. Raise your deductible and you can get lower insurance premiums. And you can also create a separate fund in case of an emergency or accident.
8. Enrolment in defensive driving course will make you eligible for special discounts after completion by insurance companies. This is followed by most of them so make the best use of it.

Author Bio: Hi this is John. My passion is to write on Finance and Travel Blogs you can reach me @finance port.

6 Places To Retire Abroad and Save Money

When I retire I see myself with a beautiful house on the lake with my fishing boat catching a few fish and sipping on a cup of coffee. But for some, that is to laid back and not very exciting. To spice up your retirement have you ever considered retiring abroad?

If you are thinking of going overseas you better do a lot of research and maybe even take a few vacations there to see if it meets all your needs. I did some research in the United Nations World Tourism Organization 2012 publication and found the top six destinations. 

If you are a bit of an adventurer you may find overseas living intriguing. As you do your research you will find many web sites, media outlets, authors, and bloggers who can help you find what's best at a reasonable price.

France.

Here you will find the food and culture center of the world. France was rated as superior in the 2010 International Quality of Life Index. Their health care is also rated as very good. On the downside they do have high taxes, a difficult bureaucracy, and high prices. So it's better to find yourself a place outside the larger cities.

Turkey.

Though on the edge of the European landscape, they consider themselves more Western than Middle Eastern country. Soon to become part of the European Union they are one of the top growing economies in the region. You can find retirement destinations in the mountains or at the seashore. Property in turkey is well suited for retirement or vacation living.

Mexico.

Being the closest destination to the U.S. and already popular with retirees for its money saving standard of living, Mexico is a great choice. In Mexico, you will find modern and up to date health care near big cities. Many retirement and vacation communities have been providing a relaxing life under a warm sun and tropical weather for many years. 

Panama.

Another small country that wants to attract the foreign investor and retiree. The currency is tied to the U.S. dollar, there are retiree discounts, and favorable tax treatment on income and new homes. Mostly a rural spot with no major metropolitan areas, so traveling for major health care may be necessary. The weather is also warn and tropical.

Costa Rica.

A small country in Central America that is already the home to many people that have chosen the laid back life style. It has a good economy and a stable government that encourages the foreign dollar to its shores. Retirement income and real estate profits are untaxed, combine that with lush beaches and country side living, you have a perfect destination.

Italy.

Who could argue about Italy being a great place to retire to. You have the great food, culture, and the Mediterranean weather is very attractive to visitors. The best bargains are in the southern areas and again staying in the country side is going to save you a lot of money. Like most metro areas you will be paying a premium for city life.

This is only a short list of all the possible destinations to retire at. You need to consider other obstacles to living abroad like language, government stability, and living standards. These and many other things need to be considered for such a big move. 

Living overseas is going to give you the adventure of your life. It takes a certain mindset to leave you home country and live abroad. Maybe after a while you may become homesick. There is much to consider in living overseas. 

Do your research and take a vacation to your destination and see if it is all you thought it would be. Good Luck.

How Business Owners Can Save Money on Credit Card Processing

(Photo credit: Wikipedia)Business owners often face a double-edged sword when they decide to accept credit card payments. It's simply good business to offer the ability to use a credit card and it helps attract more customers and make more sales, but on the flip side, credit card processing fees can be very expensive and will whittle away your profit margin.

Before you decide on a credit card processing company, there are a few things to do to make sure that you are saving the most money possible.

1. Comparison Shop. There are literally thousands of credit card processing companies and no two are alike. You'll need to comparison shop among several different types of companies and see which one will offer you the best deal. Don't forget to check with your local bank to see if they offer this ability, you may end up getting a better deal.

2. Get Help With Your Credit. If your personal credit is bad, this will affect your ability to get a credit card processing account and will raise the fees you'll need to pay for processing each card. Get a free copy of your credit report and make sure there are no errors or collections on there. If there are, get help with your credit to get these items removed. Give it about 6 months after fixing the issues on your report before you apply for a new processing account.

3. Try Third-Party Alternatives. In some cases, a third party processor, such as PayPal, may be your best alternative, especially if you don't expect to do a high volume of credit card sales. Again, you'll need to comparison shop with several different companies to ensure that you are getting the best deal out there.

4. Choose the Cards You Want to Accept Wisely. MasterCard and Visa are typically the most economical when it comes to processing fees. American Express on the other hand can be very expensive to accept. Keep this in mind when you decide which cards you want to accept in your store.

These steps can help you save a significant amount of money for processing each purchase. Remember, your personal credit will affect your business credit, especially if you are just starting out. Now is the time to get help with your credit so that it doesn't keep you from living your dream of starting your own company.

Preparation Is Important Before Buying That New Car

 (Photo credit: Wikipedia)Life is not a rehearsal and you need to live it fully and in the best way possible. Everything in this life requires proper planning so you can avoid disappointments. To have your own car is not easy and therefore, you need to be well prepared, financially. 

The purchase can be expensive depending on the type of car you want to purchase. It's up to you to do a lot of shopping around and diligent research on the Internet to make sure you are getting the best deal when going to the dealer.

Buying a car is one thing and maintaining that car is another thing. Whether it’s a new car or a second hand car the maintenance cost must be incurred in both cases. Most people have come to like the minivan that is known as the Nissan Quest. 

Even though you have purchased a new car you are still going to incur some repair costs after the initial warranty is over. It is therefore, advisable to purchase a used car which is cheaper at first than a new car but does still have similar maintenance costs.. 

This can be a good option especially when you have a vehicle that was well maintained by the person who possessed it before. The only measure that you ought to take is to be sure that you use a honest dealer who can guarantee you the integrity of the used car you are about to purchase. 

If you want to purchase a previously owned car, which is still in a good condition, then find the best used car dealer known for their honesty. It is important to consider the price you pay for the vehicle is in direct proportion to the condition of that vehicle both in appearance and performance. Finding a excellent condition used car is possible and worth the effort.

Save Money and Enjoy Better Coffee With an Aeropress

Brewing coffee with aeropress (Photo credit: Wikipedia)

I have always enjoyed my morning cup of coffee. Even in college I never missed having a few cups a day. Back then my only choices were Dunkin Donuts or coffee at the quickie mart. Now the choices abound. Starbucks has opened the flood gates on coffee enjoyment. No longer are we stuck with a cream and sugar coffee, today the choices and flavors are endless. They are also expensive.

To save a little money I went the way of the single serve coffee brewer it's worked very well. I probably save $15-$20 a week making coffee at home. I have been completely satisfied with this for several years. But I have been exploring ways to do better. 

My exploration has brought me to a device called an Aeropress. Which is basically a French Press, only better. This little machine has given me an even better cup of coffee than my single serve brewer. Like a single serve machine it makes only one cup at a time. This is the theory for brewing the freshest, best tasting cup of coffee you ever had.

I started with the "AeroPress Coffee and Espresso Maker" I purchased from Amazon. It comes with the coffee press, 700 filters, a bag to carry the stuff in, and all the tools to brew coffee. The 700 filters should allow you to make 700 cups of coffee, what a deal! 

Here's How To Use The Aeropress:

1. Place a filter disk in the cap and attach the cap to the chamber. Place the chamber, with cap, on top of your favorite coffee mug 
2. Place your ground coffee into the chamber. Use one included scoop per cup of espresso or per cup of coffee wanted, to a maximum of four scoops.
3. Now heat the water. You can actually heat it in the plunger, since it is hollow, or heat it any other way desired. The manufacturer recommends 165 - 175 degrees F. (75 - 80 C). First, wet the grounds with the water slowly, then add the rest of the water. There are markings on the chamber as well as the plunger for how much water to use. Stir gently for about ten seconds.
4. Wet the rubber seal on the plunger, insert it into the chamber and press slowly, it should take about 20 seconds for all the water to pass through the grounds, depending on how much you are making. 

The results of this work is a cup of "Expresso Strength" coffee. This is arguable, but the fact is that you have a very smooth, concentrated form of coffee. If you are after a more "classic" cup of coffee, you can add hot water to the output of the Aeropress, diluting it with 2 to 3 times the amount of hot water to espresso.

Link to World Aeropress Championship 2012 Recipe Competition

Now the coffee is ready to drink so flavor it as you usually do. I have found that sometimes I can't drink the amount of coffee made so I have stored it in the fridge for later. It still tastes as good but the aroma is substantially lost. Many people do not mind this so they make up an extra batch and keep it in the fridge and report it is still good tasting weeks later.

I believe that good coffee is as important as good personal finance. Try the Aeropress for a great cup of coffee.

AeroPress Coffee and Espresso Maker with zippered nylon tote bag and an Extra 350 Micro Filters (700 Total)