Insuring Your Household: Will Give You Peace of Mind

The home is where most, if not all people, feel secured and safe. It symbolizes one’s hard work and perseverance in order to provide a quality living to the family. While there’s no place like home, it is also one of the most vulnerable places since it contains our most prized possessions. There are also unforeseen events such as fire, earthquake or theft which hampers the security of the family.

There are many ways where you can insure your household. Aside from employing safety and security measures such as padlocks, double doors or CCTV camera, getting a home insurance is one way of giving you a peace of mind.

Here is an overview of what you should know about home insurance policies and why you should get one for insuring your household.

Features of a home insurance policy

Every insurance company has its own features that will make them unique and more saleable to consumers. However, most insurance companies cover the following fortuitous events:

• Fire and lightning
• Earthquake
• Damage caused by accidents, storm, rain, or flood 
• Losses or theft
• Structural damage
• Acts of war

It is also important to note that not all coverage is included the basic policy. Oftentimes, a basic insurance policy covers only fire and lightning. If you want additional coverage for earthquake or other natural calamities, there needs to be a separate policy and payment of additional premium. 

Benefits of insuring your household

With today’s economic slowdown, most homeowners think whether having an insurance policy is viable. The answer is yes. You don’t want your home to be struck by a fire before you consider applying for an insurance policy. Hence, here are the benefits of insuring your household:

• It protects your home, period. Imagine if you live in a hurricane-prone area. If you insured your home, you know you have something to turn to in case hurricane happens. Some companies even extend an additional coverage wherein if your home is not liveable, the living expenses incurred will also be shouldered by the insurance company. 
• It protects your personal belongings. Aside from your home itself, you can have the contents inside it be protected as well. This feature must be included in the policy and may require payment of additional premium. In case your house got robbed while you and your family are on vacation, this feature can help replace the valuable items lost. 
• It protects you against any court proceeding. If you’re having a party and someone slips and gets injured, you can save yourself from being sued. Your insurance company can help pay for the medical expenses – after you paid your deductible, of course. 

The more coverage you include in your home insurance policy, the greater the amount of premium to be paid. While you may think it’s a waste of money, think again. It is better to be ‘paranoid’ and prepared for any calamity or event rather than worrying about it when the time comes. 

Easy Money: Make The Most With These 4 Investment Hints

When looking to enjoy a decent return on investment, most people do not have a clue as to where to begin. Financial markets are not easy to understand. A complex maze of options leaves many individuals puzzled about the best places to put their money. While plenty of people try to invest in the stock market, they usually fail in the long run but don't know which way to turn. With that being said, here are four ways to make easy money if you have a desire to try something new.

Index Funds:

Most people cannot beat the market averages. When trying to, the average investor will miss out on gains and waste valuable time picking stocks. Instead, one should buy index funds and continue contributing money every month in a retirement or cash account. With this, an investor will not pay too much in fees and will enjoy solid returns on his or her investments.

Free Money:

When trying to save for the future, one should take advantage of tax benefits. For example, when opening an IRA or 401k, one can put money away for retirement without having to pay taxes. This is a massive benefit for a person who wants to save money for the future while enjoying a lower tax rate. Furthermore, some companies match 401k contributions and an employee would be foolish to skip this free money.

Refinance:

When carrying a mortgage, many overpay the on interest as they do not shop around often. This is a mistake and can cause a person to waste thousands of dollars over the life of the loan. Instead, a smart consumer should opt to refinance and get a lower rate on their mortgage. Luckily, with Low VA Rates, one can save money on their mortgage. In fact, when heading to LowVARates.com a customer can enjoy lower rates than others. This will enable a person to pay off their loan quickly and without as much struggle.

Do Nothing:

When trading too often, a person will miss out on market gains. Furthermore, he or she will have to pay taxes and deal with commissions and fees. Instead, when investing for the future, a person should sit back and do nothing. When relaxing and watching the account grow, an investor will beat most people who try to trade the market every day. Without a doubt, when trading too often, a person will have to work harder just to meet the market averages. Remember, with a slow and systematic approach, one will save enough money for retirement without much stress.

With these four investment tips, a consumer can save money for the future and pay off old loans. Most of these ways are sure fire to gain you some revenue if you have the extra cash to invest or if you are in a bind but remember it is important to have a long-term outlook on the situation when your finances are concerned.

The Best Way of Buying Expensive Things

What is the essence of ‘salary sacrifice Australia’?

‘Salary sacrifice Australia’ is an innovative financial scheme that is prevalent in Australia, which gives good benefits to both the employers, as well as the employees. All monthly salaried employees can make use of this specific financial plan, for making valuable purchases. 

 This scheme is also officially approved by the ‘Australian Taxation Office’, and so, it is a legally valid method. This financial agreement, which is also termed as ‘salary packaging’ or ‘total remuneration packaging’, is a contract between the employers and the employees. 

As per this contract, the employee gives his or her consent for giving up a part of their monthly salary, as a replacement for some other equivalent benefit, which will be actually in par with the surrendered salary. This is indeed a great method, which enables the salaried class to buy expensive goods, without pumping the needed capital for the same from their existing savings, and just because of the constructive feasibility, this specific scheme is very much appreciated by all employees. 

As far as the employers are concerned, for sure they will be able to enhance the quality of their ‘Human Resource Management’ efforts, by offering this scheme; another positive side-effect of this salary scheme is that it will augment the productivity of the workforce, considerably, and thus the overall profits of the company can be amplified. The scheme will also increase the loyalty level of the workforce, thus helping the management in their ‘employee retention’ endeavors.

What are the fundamental requirements for ‘salary sacrifice Australia’?

There are some mandatory requirements that should be followed by the concerned parties, and only when these conditions are met in accordance with the set rules, the contract will become legally valid. Some of the main requirements are as follows:

• The contract should be made into effect, before the implementation.
• It should be noted that the agreement can be done by oral methods also, even though it is always advisable to get it done in black and white, as it will go on records.
• Yet another significant matter that should be remembered by all employees who are preparing to salary sacrifice is that, they will not have any claims for the relinquished salary, until the contract with the company comes to an end.
• The benefits that have got accumulated in the account of the employee before the enforcement of the contract will not be a part of the contract. 
• In case the concerned individual is awarded a new financial benefit, outside the salary sacrifice scheme, then obviously that will come under the taxable income account. 

What are the general things that can be bought by the scheme of ‘salary sacrifice Australia’?

On the whole, many kinds of valuable goods, which in normal cases will need bulk money for buying, can be acquired by using this financial scheme, in an easy manner. Some of such items are ‘brand new motor vehicles’, ‘laptops’, ‘tabs’, ‘iPads’, ‘GPRS Units’ and ‘Income Protection Insurances’. Many more items can be added to the list, and so, whenever you decide to go for ‘salary sacrifice’, try to get hold of a reliable and professional finance firm, for making arrangements for the same.

Are Baby boomers Happy with Their Financial Life?

According to a new study, 80% of over-fifty reporters are citing high levels of financial well-being, but younger generations are not so optimistic.

A global study of financial satisfaction has found older Britons to be happier than their French, German, and American counterparts. This research, collaboration between scholars at Bristol University and The International Longevity Center, must be read in the correct context: the current political agenda is focused on the financial struggles of the middle- and lower-classes, who must grapple with rising energy bills and other problems.

The controversy surrounding the baby boom generation and whether or not they are benefiting from a range of financial factors that younger generations will not have access to is one that has been hotly debated for some time. Earlier this year, Richard Chartres, the acting Bishop of London, said that baby boomers are a fortunate generation. But whether it is just a matter of luck has yet to be determined.

In any case, the numbers speak for themselves. In Britain, eighty percent of people over fifty reported that they are satisfied with their financial situation, putting the United Kingdom in seventh place among fifty-six countries. Beating out Britain were Norway, Sweden, Finland, and Switzerland, which was at the top of the list; it reported that almost ninety percent of its over-fifty population are satisfied with their financial situation. Sixty-five percent of same age group reported being satisfied in France; for Germany, it was sixty-one percent, and for the United States, sixty-four percent. Only two-thirds of Britons under the age of fifty report feeling as satisfied as their over-fifty counterparts.

Professor David Hayes, who is in charge of the project, reported that the United Kingdom showed a substantial different between financial satisfaction of different age groups. For example, the international average of financial satisfaction among individuals aged from sixteen to forty-nine is fifty-two percent, which is slightly lower than the percentage reported by those above fifty. In the United Kingdom, however, these numbers are different enough to merit a second look: only two-thirds of those under fifty feel the same.

Part of an on-going project between the Personal Finance Research Centre at Bristol University and think tank ILC, this dataset includes twenty-five thousand reports from participants from across fifty-six countries. That being said, the information will be mined further for a more clear understanding of what these satisfaction levels mean and imply. And its implications are nothing to underestimate: people over sixty-five spend more than one hundred billion pounds per year, which accounts for almost fifteen percent of international home expenditures. 

Nevertheless, the increase of financial pressures as people age, for things like health care, can have significant effects on their quality of living with many struggling to get out of debt before retirement age. Representatives of the study want to emphasize the importance of keeping policy-makers informed of the risks and threats facing people over fifty and over sixty-five the world over.

About Jonathan Matthews

Jonathan Matthews has over 15 years experience working as a senior debt advisor for some of the most prestigious debt management companies in the UK. Jonathan has been helping people get out of debt, is well respected within the finance industry and enjoys blogging and sharing news regarding debt and finance.

Getting a Mortgage - Are You Ever Too Old?

As retirement slowly creeps up on you, you might think that it’s far too late for you to buy your first home. While this can be true in some cases as it wouldn’t suit certain individual’s situations, there are still occasions where it’s a good idea to buy. In this article, we answer the question that many people have been scared to ask - are you ever too old for a mortgage?

For the older homebuyer, there may be some extra things to think about that younger borrowers needn’t even consider. You’ll still want to get an idea of the crime rate, schools, and compare prices of similar houses in the area; but older home owners will also need to accept the fact that maintenance will become harder for them as they get even older. In a rented house, appliances, leaks, and other problems can be replaced and fixed no problem for free, but in your own home you’ll need to arrange a professional to fix them. Not only that, but simple things like cleaning the house will be a lot harder too. The closer you get to retirement age, the more you should think about your health, your finances, and how the house will impact your family in the future.

Some people say that buying a house when you’re older is better, as you have more savings and investments tucked away. However, if your retirement plans involve lots of exotic destinations and cruise ships or something similar, then it makes no sense to burden yourself with a mortgage to pay off (and the other fees that come with being a home owner). However, if you plan on settling down in one place for your retirement (having done all your travelling previously), then it might not be such a bad idea to get a mortgage now.

You might want to consider a time when you aren’t so mobile though - will you be able to afford care in your home? If not, you might one day need to move to a caring home which could result in you selling the house (even more hassle, and upsetting).

A home should be considered as a long term investment, and you need to think about what will happen to the investment when you can’t look after it yourself anymore. You don’t want to be left panicking, “how can I sell my house fast?”, do you? To help plan for the future, you may want to invest in a maintenance service and make sure you have cash tucked away for a rainy day just in case.

Sitting down with your loved ones and talking about long term plans for the house is also a good idea, as you’ll be able to fill them in on all of your ideas. How long do you plan on staying there? Do you plan to sell it eventually? Or are you planning on leaving the home to your kids or grandkids? Whatever your plans, make sure you have a good chat with them so you’re all on the same page.

Buying a house could be a great investment for you, regardless of age, providing you’ve thought it through properly and planned as best you can. In conclusion; you’re never too old for a mortgage if the time feels right for you!

What Does a Wealth Management Company Do?

Wealth comes in many different forms, and wealth does not necessarily mean having a large amount of money sitting in your bank account, and people with wealth and disposable income usually have complex financial arrangements. Generally, wealthy people have ‘assets’ that diversify their wealth and this is where wealth management companies come in. 

What Is Their Job?

The job of a wealth management company is to make these assets work efficiently and productively. People employ wealth management companies because of the complexity of the markets; as an in depth knowledge of both financial markets and investment opportunities required.

A wealth management company manages the wealth of its clients. People with a high net worth or HNW as it is known by people in the financial sector, are generally people who have financial assets that are valued at around $1 million.

There’s no set type of client eligible for wealth management, however. Although many people who employ wealth management companies come from the financial sector, business owners, celebrities, entrepreneurs and people who have acquired their wealth through inheritance also use them widely. 

What’s On Offer?

What a wealth management company offer is completely dependent on the individual’s assets. It is incredibly common for a client to have a diverse portfolio of assets rather than a cash lump sum in a bank account and, as a result, wealth management companies provide comprehensive financial support.

Advice offered is wide ranging, covering a number of different strategies such as taxes and asset protection, investments and property advice. Due to the fact that a wealth management company cannot be experts in all of these fields, they will act as a front for other parts of the bank or for other institutions that have a more in depth knowledge of how to invest. These other sectors or companies, however, will always be trusted partners.

Employing a wealth management company is a long-term strategy and, as such, you should not expect to make a quick buck. As a result, wealth management companies such as Sanlam Private Investors will touch upon many aspects of their clients’ lives in order to build a solid client-business relationship. This is vital to create trust between the two parties; especially with the size of the money that could be gained or lost.

Discretionary vs. Non-Discretionary

Wealth management is available at a discretionary and non-discretionary basis. If a client opts for a discretionary service, they effectively hand their assets over to the bank and the bank will invest on their behalf; assuming responsibility for protecting and growing the wealth of the client. On the other hand, non-discretionary means that, although the client receives advice from the bank, ultimate decision-making still lies with the client.

So, if you’ve got a wide range of assets and want to expand your wealth, try giving a wealth management company a try.