Life Insurance As a Savings and Retirement Plan - 6 Reasons to Buy Life Insurance

By Jeremy Kong 

Many arguments have been put forth especially by insurance agents that life insurance is a complete, perfect and balanced financial program by itself. Personally, I do agree with the argument although there are many differing opinions against it. But surely, most cannot deny and acknowledge the fact that a life policy is simply great and supreme as a savings and accumulation vehicle as well a retirement plan.

There are many reasons for this argument and I would like to put forth six logical reason why life insurance is simply as a great savings and retirement plan rolled into one as summarized below:-

1. To maintain the life policy, the policy holder is required to make the periodic payment regularly and consistently to prevent the policy to lapse. Herein, lays the secret of forced savings and systematic accumulation to achieve your financial goals.

2. Records have shown that for life endowment policies of medium to long term say 20 to 25 years, the projected yield is around 4 to 6%. This is certainly superior to the low prevailing interest rates that banks offer these days. Based on the difference in the savings rate of banks, and the compounding effect, insurance is certainly considered as a better than an average savings vehicle.

3. In many countries, the returns from the life policies are generally tax free. Due to this advantage, its returns will certainly be superior to that of bank deposits.

4. Life policies has always been regarded by investments experts and financial planners as a moderately low risk investment. Hence, it certainly has a vital role to play as an asset allocation alternative in building a balanced investment portfolio in the retirement plan.

5. The use of life insurance as retirement tool can start very early in life, almost immediately after your first pay check. As the nature of a life insurance compels people to save systematically, you can be assured a sizeable retirement account at retirement.

6. In recent years, investment linked life insurance policies have become very popular in the insurance industry. These types of policies allow you to systematically invest into the financial market to achieve even higher yield for your savings when compared with your money deposited in the banks.

Life insurance has been a wonderful creation. The contribution of this creation to the world had been immense. The logic that the instance you purchase an insurance policy, you have created an immediate estate for your family makes it such an important element in the financial planning process. Needless to add, as supported by the above reasons, life insurance can truly be considered as a great savings and retirement plan.

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Health Insurance Guide to Stress Free Living

By Santosh Verma 

There are hardly any people in the world who don't need some kind of medical care at least one point in their lives. Although health care facilities have diversified and now there is a cure for almost everything, the costs are very high as well. Rising health care costs have added to everybody's woes. An unexpected event can change your life forever and completely throw off all your financial plans. So why take such big risks?

It's always better to be safe rather than sorry later on. There are many options for everybody out there. You can go for a family insurance or an individual insurance; you can even go for a short term or long term plan. There are options galore and obviously there are options which you will find to your liking and specifications.

When to go for individual health insurance?
If you don't have a family to support then going for an individual health insurance is right for you. This type of insurance will cover the costs of one person and is good if you are alone. If you have just come of age and just moved on from your parent's family insurance plan then too going for such a plan is advisable.

An individual can easily find the perfect insurance cover from the host of options providing cheap health insurance for individual. Under this you can go for a long term plan or a short term plan depending upon the severity and frequency of your medical expenses. It is easy for a person to manage his/her premiums as far as cheap health insurance for individuals is concerned. So start looking around and you will hit upon the right insurance plan in no time at all.

When to go for family insurance?
Those supporting families know how important the health of each and every member of the family is. Affordable family insurance plans give you the chance to take care of your family in the best possible way. None of us want anything bad to happen to our loved ones. But if unfortunately something does happen we all want to provide them the best care possible. This is possible only if you have invested in a good family insurance plan. Instead of taking individual insurances for every member it is much more feasible to buy a family insurance plan that covers everybody. If you and your family are not already covered under your employer's scheme then you should go for an extensive family health insurance policy immediately. Your family's health should be your first priority. Affordable family health insurance plans make it easy for you to take care of your family while allowing you the freedom of having a balanced budget. The premiums you pay will definitely not turn your life upside down. These family health insurance plans can be specially designed to meet your family's needs in the most ideal fashion. Every moment counts so don't waste anymore time and look up for the ideal family insurance plan.

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Financial Planning - A Planning to Achieve One's Financial Goals

By Jiten Sukhrani 

While one cannot predict the future, one should certainly be better prepared for it as all of us have our goals to be fulfilled at every stage of life and these goals will only be achieved if one has done the financial planning. So, its better to start planning now as prevention is always better than cure. It is a systematic approach whereby the financial planner maximizes customer's existing financial resources by using the appropriate financial tools and investment vehicles to best achieve his financial goals and objectives.

In other words, it is the process of meeting once life goals through proper management of one's finances. Life goals can include buying a home, saving for children's education,buying a car, protecting family against financial risks or planning for retirement. The need for financial planning arises from the need of meeting the financial goals of one's life & it helps us to take a comprehensive look towards one's futures financial needs and goals including cash flow, debt management, education funding, retirement planning, estate conservation and portfolio management. It also gives you the direction to make informed decisions about your investments so that you won't make any mistakes and you can reap the benefits of your planning for the rest of your life.
Financial planning(FP) is simple mathematics. There are 3 major components:

1. Financial Resources (FR)
2. Financial Planning Tools (FT)
3. Financial Goals (FG)

When you want to maximize your existing financial resources by using various financial tools to achieve your financial goals, that is financial planning.
FP: FR + FT = FG
Benefits of Financial Planning:
Financial Planning ensures that the right amount of money is available in the right hands at the right point of time in future to achieve specific Financial Goals. Virtually anyone with moderate wealth or a decent income can avail the benefits of financial planning like:

• It is based on individual risk profiling, and it provides a road map to achieve financial goals
• It helps you take a 'big picture' look at your financial position and it guides you to examine your current financial status and determine objectives.
• It helps in devising a strategy or plan for how you can meet your goals given your current situation and future plans. It also identifies weaknesses and recommends improvements.
• It puts in place the risk management system to meet uncertainties of life through efficient Insurance Planning, Tax Planning and Estate planning.
• It is the process of managing your money to achieve personal economic satisfaction. It allows you to control your financial situation and provides a feeling of security and less stress.
• It is a disciplined approach to managing your finances to reach life goals. It involves systematic & disciplined investment mechanism, which helps in creating wealth over a period of time. It helps you to become more responsible towards disciplined investing.

Financial Planning Process:
The Financial Planning Process consists of six steps, using which, you can work out where you are now, what you may need in the future and what you must do to reach your goals.

• Step 1: Determine Your Current Financial Situation
• Step 2: Develop Financial Goals
• Step 3: Develop various alternatives
• Step 4: Evaluate Alternatives
• Step 5: Create and Implement an Action Plan
• Step 6: Re-evaluate and Revise One's Plan

Financial planning, especially at an early age can help to give your life focus and help you to achieve your goals in life. So, start planning your finances today and fulfill all your dreams & goals of life without any hassles.

Article Source: http://EzineArticles.com/4446930

Mutual Fund Popularity - Choosing Mutual Funds Can Be a Popular Choice

 

By Sean L Johnson 

Many people today are considering investing in mutual funds. In the last few years, it has become one of the most popular means of investment for many reasons. One of the primary reasons why people choose to invest in mutual funds is because they can diversify their investments without knowing a great deal about individual stocks. By using this vehicle, they can spread their investment over several different types of stocks or bonds without dealing with all the issues that several investments would create. This allows them to limit their losses by enabling them to put their money in different funds.

Mutual funds are basically a set of stocks or bonds that one can invest in with a group of other investors. The investment is managed through a professional management team who helps in investigating various stocks or bonds and making decisions on which will be best for the group's investment. This eliminates a lot of the worry and stress that an individual investor might go through, especially if they know little about the market and which stocks are good investments and which are not. This concept generally deals in large amounts of securities transactions so their individual costs can be much lower. In addition, mutual funds are easily liquidated and that can be a tremendous asset for many investors.

With all the benefits that come with buying mutual funds, there are disadvantages as well. For many using a management team to manage their investments is an expense they are not willing to pay. In most cases, having a management team will cause one to have to pay fees for the team that can be rather high, depending on the team one uses. In addition, since one has their money spread out over several stocks, returns on investments are generally not very high and this can be distressing when one stock makes a sudden jump in price.

There are many advantages to using mutual funds, which make them so popular today. They are a good way for a novice investor to start making investments. In addition, one can set up a beneficiary and if something happens to the original investor, the mutual funds can be passed to their heirs. Mutual funds can be a good alternative to life insurance policies for many people. However, there are some drawbacks to this type of investment so one should spend some time examining the pros and cons of this type of investment before they actually invest their money.

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Why Do You Need A Financial Advisor?

By Kevin M Luis  

 

The internet is a vast pool of investment tools that are designed to provide investors and traders with simplicity of trading. These tools serve a wide variety of purposes. One of the most important benefits that they provide is that they help you make calculations based on your investment capability and create a plan that will help you leverage your capabilities. Before you use stock investing tools it is important for you to get a basic understanding of the stock market in order to understand how your wealth is being applied and ensuring that you do not get conned or receive improper advice. Most individuals who are new to the trading platform prefer receiving advice from a financial planner to help them make the nest decisions with respect to their money.

While looking for an advisor to provide you with investment advice there are several factors you need to keep in mind in order to ensure that you choose wisely and avoid making mistakes that could turn out to be costly. In order to ensure that your advisor is right for you, it is important to check credentials and qualifications that will help you ensure that the person has the required knowledge.

It is important for you to identify your investment goals so that you find the advisors and planners who will best help you meet your goals. Do you wish to plan for your retirement or are you investing for education? This is crucial information that you should provide your advisors with right from the get go so that they make informed decisions with regard to your wealth and help you derive maximum value. This will also help the advisor select the appropriate investment channel that will provide the desired result in the desired amount of time.

It has often been noted that certain individuals providing isa advice make tall claims that are unrealistic and are often difficult to meet. It is important for you to remember that the stock market is not a magic platform that will help you churn money. Look out for an advisor who will give realistic advice and help you make the most out of the amount you wish to invest. Always ensure that you address the issue of fees before you fix an advisor. There are certain advisors who work on a commission basis while others work on a fixed fee. Choose one based on what suits your requirement. Pick ideal investment methods that will provide you with financial security and best help meet your goals.

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Retirement Planning - How Much Money Is Enough?

By Chris C. Sturat 

 The thing about planning for retirement is that you would want to be able to retire without any worries towards your financial commitment. Successful retirement planning would mean that you have covered all the aspects in your life that you are financially attached to, as well as the what-if's situation that may occur. Hence, in order to plan for a successful retirement, you will need to set and achieve a number of goals before securing enough money for retirement.

You should first begin with your retirement goals. This gives you a purpose to successfully follow through your plans. For this, you should identify what you would like to have when you retire. For example, you may prefer to live in a condominium with beach view, have weekends at spas, or even travel for a bit. Knowing what you want will allow you to identify how much you will need to have at least to enjoy such privileges, and create a time frame in which you should achieve that much.

Do make use of retirement calculators as well. With a retirement calculator, you will be able to calculate how much you will actually be able to save if you follow through certain goals with what you have, in order to arrive at the goal of amount you should achieve at retirement. It can also help you in the process of creating a monthly savings goal in your budget.

Apart from that, you should also calculate and balance your risks versus rewards. This can be done with the help of the retirement calculator as well. For example, if you are unsure of what type of investment you should go for at the current or future time frame you are at, the calculator will be able to calculate the rewards and risks of investing in certain bonds, to help you assess if you will be able to attain your goals in time. The tip when it comes to investments is that the closer you are to the age of retirement, the more conservative your investments should be because you would not want to risk losing your investments that you may be partly relying on them to finance your retirement. After all, the stock market is a volatile one.

Lastly, prioritize on keeping money in retirement accounts, whether it is the 401k, IRA, or other form of accounts that works on a tax deferred basis. Having tax deferral means that there will be no owing of tax or interest income, dividend payment and capital gains since they are present in retirement account investments. Save up and avoid unnecessary expenditures. Retirement planning requires much patience to secure one's future.

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Saving Money Tips - Little But Effective Ways How to Save Money

 By Dan Cavalli 

You really do not have to start big when you want to save money. You can save little by little regularly and in time, you'll realize that your little savings have grown into considerable amount that you can find useful and valuable when you need it. Here are some saving money tips that will show how in little but effective ways you'll be able to save from your hard-earned income.

Understanding the Relationship between Income and Expense
In order to recognize the value of saving money, you must understand fully well the relationship between income and expense. Income is the money you have earned from your regular job, your part time job, or from your business. Expense on the other hand is the money that you spend for what you need or what you want. Income goes in while expense goes out.

In a normal situation, what goes in should be higher than what goes out. The money in between is what you now call as your savings. However, most people find themselves in the reverse situation where the money that goes is lower than the money that goes out. These are the people who spend more that what they earn for whatever reasons.

How to Save Money in Your Own Little Way
You can save money in your own little way. You can find the difference between your income and expense ensuring that the former is higher than the latter. Since saving money is always a decision, you can always choose to maintain the ideal to normal relationship between income and expense. The simple principle is to spend less than what your income is.

Saving from your utilities like water and electricity may yield a small amount but when put together over a period of time, you'll be surprised at how much money you can save from this little act. Introduce some small changes on your buying behavior; it pays to keep in mind to always base your purchase on what you need instead of what you want. Limit the use of your credit cards; instead, make it a point to pay in cash.
It is easy to overshoot your budget when you spend using your credit cards instead of paying in cash. The temptation to spend more that what you actually need is higher with credit cards. You may not be conscious about your spending and the interests you accumulate since credit cards allow you to pay the minimum amount.

You fall deep into your debts not only from your expenditures but also from the accumulated interests. Start to save money now in your own little ways. Consider these saving money tips to develop the good habit of saving. You can then proceed with bigger savings once you have developed the habit.
It may be a little difficult to begin with saving money, but the efforts that you will put in today can empower you to enjoy financial freedom and big time benefits in the near future as you reach your goals.

Article Source: http://EzineArticles.com/5969701

Investment Financial Planning

By Bill Hildebrand 

Risk is defined as the probability of loss or to expose to loss. Anytime or anywhere you are investing your money you are exposed to some level of risk. Even if you have your money in relatively safe investments such as savings accounts or bank CD's there will always be a certain risk associated with that action. In this case it may be the risk of losing purchasing power to inflation do to the low return on investment.

When it comes to investment financial planning, it is critical to know what risk tolerance level you can withstand. When most people think of risk tolerance, they think, "How much can I stand to lose before I start to struggle." Risk is a huge part of investing because it dictates what sort of investment vehicles you can put your money into, how much money you can invest and for how long. Knowing your risk tolerance is one of the biggest keys to successful investing.
There is more to risk than just fear of losing money. There are other "risk factors" such as not meeting your financial investment goals, working with an incompetent financial adviser or putting investments in the wrong products at the wrong time. The most common goal when setting up your investment financial planning is for retirement. Risk can run the extremes of losing your shirt to being so conservative with your investments that you don't meet those goals.

The first thing you need to do is to take a personal assessment of your own risk and develop what is known as an investment personality. Everyone's personality will be different, they are unique like fingerprints. Some investors can stand to take some big chances now with the lure of a potential payoff down the road, while others who may not have much time between the time they start investing and the point where their financial goals need to be realized and can't take big risks.

This is where your investment financial planning comes into play. Using a retirement calculator to assess what your retirement needs will be can help you put together a plan that can tell you what you will need to save and what level of return you will need to meet those goals. You can then look at the options you have available to get there and choose the method that most closely matches your risk tolerance.

A good barometer to judge what your risk will be is how will you feel if your capital goes up, down or stays the same? Are you willing to be patient and accept small increases, or do you want to see the most possible movement? If you're sitting at your computer right now ringing your hands in fear that you might lose money on your investment, you should already be able to tell exactly what sort of investor you are. Losing sleep because you lie in fear of what is happening with your portfolio is absolutely not an option.

I developed a savings and investment program that can meet the risk tolerance levels for most people. The portfolio is broadly diversified and allocated to smooth out many of the bumps associated with investing in the stock market. The performance has exceeded the average stock market return since the portfolio was put together in 2003, which makes it ideal for people just starting to put their investment financial planning together or even those approaching their retirement date.

Assessing both ends of your risk tolerance is quite possibly the most important single financial decision you can make. Knowing how much money you can invest, how long you need to invest it and what kind of investments you want to buy into is very important. Once you determine your own risk tolerance, you will be ready to take the next step and start investing.

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The Guide to Long Term Care Insurance

By Martin Lukac 

When you think about long-term care insurance, you want to consider a few questions. First, you want to decide if you truly need this type of coverage. Next, you want to consider what the plans will cover.
In addition, you want to compare the costs and the benefits of taking out long-term care insurance. Once you decide you want to learn about basic plans verses comprehensive packages.

To begin evaluate your overall case:
Do you have Alzheimer disease? If you do then you will need a long-term care insurance policy to cover expenses, such as long-term medical needs and care provider. If you have Alzheimer disease, you will need a policy to cover nursing home expenses in the future.

HMO branches into Medicaid and/or Medicare. These insurance polices will cover basic healthcare needs, prescriptions and so on. What Medicaid and Medicare will not do is cover name brand prescriptions. In some instances, you also pay co-payments. Medicaid and Medicare will cover nursing home expenses, caregiver services, and basic medical expenses including hospitalization. However, if you make x amount of income, you may not qualify for HMO plans such as Medicaid assistance. Medicare is usually given to those 65 and older.

When considering long-term care insurance you want a plan that will cover expenses when you have to retire or are unemployed for a length of time. Look for plans that will cover healthcare costs, adult care, and will offer you coverage for caregivers if you need them.

Any insurance plan includes interest, premiums, and sometimes deductibles. Medicaid does not have deductibles but other types of insurance plans do.

The interest rates are based on your gender, age, risks, marriage status, health condition, and so on. There are different types of policies and coverage so check around to explore your options.

When you search for long-term care plans visit the web to search through various companies that offer these plans. You can use the quote systems to compare the types of insurance policies, prices and so on.
At what time you search for coverage buy the plans earlier in your life so you will save on premiums, and interest rates. Some of the long-term care insurance will give you a surplus of benefits, so search the Internet to find the best plans and rates.

Other types of insurance plans include life insurance, term life, healthcare insurance, HMO, cobra, and so on.
Check your current plans to see what you have already. You may have sufficient coverage to protect your future. If not, then review all plans. Rather than focusing on one type of insurance, you want to find coverage that gives you the most for your money. Some insurance plans will reimburse you when you are out of work. Some plans will also cover burial expenses. So be sure to surf through the different plans when considering insurance.

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Make Money Successfully With Mutual Funds

By Connor Swinney 

If you'd like to take a stab at investing, but aren't yet ready to get into the risk-ridden world that is the stock market, investing in mutual funds may be the perfect option for you. There is much less risk involved in that corner of the market, and you can get started with a small amount of money. The following includes information you will need to know about mutual funds.

Plan For Your Future With An Investment
Mutual funds can be a lot less risky way of investing opposed to the stock market, and as a result, more people are likely to invest in them. Diversifying your portfolio is a great plan. Spreading your money out protects you by not putting all your money in one place. Hiring a professional has its advantages. Having someone else worrying about your gains and planning is a good idea. These people will make decisions based on your goals in your behalf.

Margin For Error
These funds are inviting to companies as well as individuals, attracting people from all walks of life. But not everyone can be a winner. Some place their money with the wrong companies and lose. Many invest in top mutual funds from magazine articles, and don't know any better. This is a common error for new investors and not a good idea.

Projections Can Be Misleading
Avoid projections and focus on ratings. Looks can be very deceiving, with the rankings and figures promising great gains. If you trust them mistakenly and make them the basis of your future investments, the result could be tragic. Ratings are only there to represent the past and present behavior and in no way predict the future; they are not a reliable way of predicting future results.

Past Performance Does Not Predict Future Gains
Take Morningstar for example. When comparing the past performance with the current performance, none of the current names appear to be on both years. Each and every year the names and figures would constantly change and jump around. Top mutual funds this year, or even this month, may end up duds next month.

The Big Advantage
 Mutual funds don't require a huge amount of money. This is why some many people are now moving toward this type of investing. They can be a less risky way to save for your future, and a great way to diversify your investment portfolio. Diversifying your portfolio is key to protecting your investments.

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Steps Needed to Plan Your Retirement

 

Start Early and Invest
If you are like many Americans, planning your retirement should begin with your first job and taking advantage of one of most important financial planning steps a person can make: invest in your retirement account. Most employers will offer a certain percentage and the key to have a comfortable retirement is to start investing in your retirement early. That is not the only means of saving for retirement, but it is certainly one of the more lucrative and one of the easiest steps along your path to a comfortable retirement.

Lifestyle and Living Arrangements
Next step is to look at the lifestyle you have now and the lifestyle you would like for retirement. If you are looking to travel extensively, budget accordingly. Do you have family that lives far from you and would moving closer to them be a goal upon retirement? Factor in the elements that are most important to you - I would suggest picking only two or three things that you would want to accomplish or indulge in once you've retired and ask others who are already retired and done something similar what hurdles you may need to cross. No one knows what retirement is like better than someone already living it. While every generation will have its challenges, it's good to get the perspective.

Know What You Need
For any financial advice, this is the cornerstone. Knowing what resources you will need to live on now and what you will need for retirement is the key to a comfortable and successful retirement. Set a solid savings goal. Think long term and set a figure that you want to have saved and an age that you want to retire at. Next, all you need to do is break down that goal into smaller sections for you to accomplish within a given timeframe. Set aside all or a portion of any windfalls you may encounter to help cushion your savings. You cannot save enough for retirement if you do not know how much money you will actually need.

Annual Portfolio and Savings Review
At the end of the year, it is very important to review your IRA, 401K, savings, and other investments you've created for retirement and with the help of your personal banker, financial advisor, or accountant, see if you are able to invest any more into your retirement for the year. In doing this, you maximize your retirement allotment and possibly shift you into a lower tax bracket. As each state has its own laws regarding savings and retirement, it is best to contact someone regarding what you are able to do to take advantage of your retirement.

Planning ahead for retirement doesn't need to be expensive or time consuming, but the dividends can be substantial. A solid plan starts with clear goals, both short term and long term, and knowing what it takes to reach those goals. Reviewing your plan annually keeps you up to date on how you are doing on those goals.

Article Source: http://EzineArticles.com/6694633

Why is it Good to Invest in Gold?

By Jimmy Karter 

Many expert investors have the opinion that it is very important to have some part of your portfolio invested in gold. Investing in gold is considered to be a hedging strategy against the fluctuations in the stock market. Investing in gold is considered a safer bet especially in such economic crisis which is happening in recent times. In historic sense, gold started being referred to as a standard among international countries after the Brenton Woods conference in 1946.

Like any other commodity, the price of this metal depends on the demand and supply. In recent times, the demand of gold has been on the rise due to increase demand in emerging countries like China and India. In these countries, the rapidly increasing middle class has ignited the demand of this precious metal in the form of jewelry as well as direct investment of gold. On the other hand, the supply of gold has been decreasing all over the world.

This is the reason why the price of this metal has been rising continuously over the last few years. Since 2001, the gold bull run started and it has not stopped yet. The demand is ever increasing and everyone wants to invest in gold because this run is expected to continue in future as well. Another reason why people want to invest in this precious metal is that gold prices are generally immune to the fluctuations in the stock market.

There are various methods in which an investor can invest in gold. Most people think that jewelry is the best way of owning gold but the fact remains that this is not the best way to invest in gold. The other way to invest is to buy coins or bullion. This is a better way to invest in gold but the downside is that you need to take care of the physical gold in a locker or some place safe. The newest and the best way to start investing in gold is to invest in gold ETFs. These funds mimic the value of gold in international market and can be bought and sold like a normal stock therefore it is a liquid form of investment.

Another way to invest in this metal is to invest in stocks of gold mining companies. The prices of these stocks will increase with increase in process of this metal. Whenever these companies strike gold in any of the mines, the share prices will rise dramatically. Most of these companies have a big margin therefore, it is not a bad idea at all to invest in these stocks. Investing in gold has become pretty common with investors today and it should find a place in everybody's portfolio.

 

Article Source: http://EzineArticles.com/3269744

Planning Your Retirement?

By Alan L Jackson 

When it comes to your retirement, financial planning and investing strategy, there are many things you need to consider when investing your money. Your reasons for investing play a large part in what vehicle you decide to invest in too. There is however one thing that holds true regardless of your reason and choice of vehicle. Without action there will be no nest egg to speak of later on. Persistency and consistency will ultimately deliver the fruits of your investment seeds. However, you must be willing to learn from your mistakes and review your portfolio regularly to ensure you are maximizing the growth of your assets.

While we are often bombarded with sales pitches on what vehicle is the most effective strategy for our financial security, the most important thing to remember is that there are no absolutes. There is no one right or wrong method for investing, only the method that you are most comfortable with. While diversity is important in building a strong portfolio, we must be careful not to over diversify and spread ourselves thin. Find an area that sits well with your philosophies and investment strategy and educate yourself within that field.

If you are at the beginning of your investment career you may be asking yourself whether to pursue stocks, bonds, mutual funds, options, CFD's or even property. The best initial investment you could make here is to engage the services of a well-regarded financial planner. A reputable financial planner will be able to better clarify the dynamics of each area for you in order to help you decide on a vehicle you are most comfortable with. The small investment you make with a financial planner may just help you save thousands of dollars and years of time wasted on a vehicle that is not right for you.

Never allow yourself to be pressured into making an investment decision that you are not comfortable with or have not done your homework on. Fear and anxiety are quite common emotions to experience when making decisions regarding your long-term financial prosperity. At the same time you need to remain mindful of the 'law of action' and avoid 'analysis paralysis'. In order to 'grow the fruits' of your investments you will need to take some risks. The greater the risks the greater the potential rewards. This is when a certified financial advisor or planner is an excellent idea as he/she can help take the emotion out of the equation and keep you on track.

You will encounter setbacks along the way regardless of you investment vehicle. Always remain focused on the bigger picture and avoid getting caught up in the media hype and day-to-day market corrections. Remember that as long as we continue to do what we have always done, we will always get what we have always had!

Article Source: http://EzineArticles.com/6659519

Four Life Insurance Tips

By Jeremy Gold 

Use our fantastic life insurance tips to help you make informed decisions about your life cover options. The UK life cover market is very competitive and it can be difficult to make a valid judgement. Nobody understands the market like we do, and our money-saving life insurance tips could see you saving hundreds of pounds over the full term of your policy.

Tip 1: Buying Young
Although it is entirely possible to purchase life cover at any age, we believe that the best time to take out a first policy should always coincide with young adulthood. As the excitement of our teenage years slowly but surely fall behind us, the prospect of settling down and starting a family of our own becomes more prevalent and we should already be looking forward to preserving their financial futures.

We regularly suggest buying young as one of our most important life insurance tips as you will be able to secure the best rates now by locking in at the lowest possible age.

Tip 2: Choose the Correct Term
Always try to choose the appropriate term to maximise your life insurance coverage. Policies can run from around five years to thirty years so try to think ahead. If you are only just starting out as a family, think of where your children might be in twenty years time and determine how they will be supported if you can't be around to take care of them yourself. If you are in the later years of life, think about any inheritances that you might like to leave behind for your loved ones.

Tip 3: Choose the Right Coverage
One of our most frequently advised life insurance tips surrounds purchasing the right levels of coverage. Remember that you are planning for the time when you might not be here to care for your loved ones yourself. You will therefore need sufficient protection to ensure that the loss of your wages won't cause immediate financial hardship. A plan value that exceeds annual income by six to ten times is usually advisable.

Tip 4: Compare Quotes
Always compare your life insurance quotes carefully and try to choose a plan that combines effective cover with an affordable price. Be wary of budget level policies provided by inferior insurers. Make the most of our money-saving life insurance tips by making Premium Life Cover your first port of call for the best coverage deals.

Article Source: http://EzineArticles.com/6861280

Interested in Mutual Funds? Think Systematic Investment Plans!

By Nisha M Dixit

More and more people like to be a part of mutual fund investments and explore a different way of earning money through such savings. At online sources you will find out so many kinds of investments to go ahead with. Internet is the place to be if you are willing to have a seamless experience. Where they say 'mutual fund investments are subject to market risks', people are ready to take certain risks. Online platforms offer you huge number of options for the investors to invest into. Gone are the days when people used to think twice before investing. Today even the beginners find it exciting to invest in to Mutual funds and be a part of the saving plans. Where on one hand there are many ways of investing, the systematic investment plans have become a popular choice. People are now regularly investing in such mutual funds wherein a fix sum of amount is regularly invested.

For more than a single reason, regular savings that people can think about positively. There are lots of merits associated with SIP for the investors.

With systematic investment plans the investor gets a chance to buy units as per date that is given every month so as to go ahead with certain investment plan

You can simply decide about the amount that you wish to invest in these plans
After deciding on the amount, you are allowed to hand over the postdated cheques so as to invest regularly

It is very safe to invest equity mutual funds and unit linked insurance through the SIP modes
For small investors it is the best thing to do to take up SIP

If investors wish to manage their investments on monthly basis, the SIP is perfectly suitable for you. With such a plan the investors receive much required discipline, easy management and tools to manage the investments. Are you willing to manage certain amount of investments on regular basis instead of managing a big amount at one go? Systematic investment plan will suit you for sure! Over certain time period you can easily average your investments if you go ahead and invest into mutual funds through SIP.

If you are really interested in to investments you can think about systematic investment plans. With such an investment you can manage your investment amount rather than catching up with the ups and downs in the markets. The investors can accurately obtain lesser units whenever the market is on a rise. On the other hand you also get a chance to capture more units whenever the market is on a down-side. You can easily judge yourself when to buy more and when to buy less as per the increase and decrease in the price. With a systematic investment plan you enjoy two major advantages namely power of compounding and rupee cost averaging. Make more SIP investments and manage to earn more by keeping an eye on the markets.

Article Source: http://EzineArticles.com/6812340

Important Tips for Savings and Investments



By Mark Oral

Below is a discussion of several important tips for savings and investments that can be considered when developing a saving plan.

Save Regularly
No matter how old a person is, it is important to put money toward saving and investing regularly, as the benefit of accumulated funds is one of the most important factors of wealth accumulation. Even if only a small amount of money can be set aside at a time, regular contributions to saving plans will grow over time and will result in the accumulation of funds. Additionally, many saving vehicles include the possibility of the benefit of compounded interest, which can translate into the growth of a saver's contributions over time.

Diversify
While saving cash is great, especially if the cash contributions are intended for a short term saving plan, it is important for the saver to consider several different saving vehicles. Saving plans available vary, but in order to take advantage of the many benefits available, diversifying with several different strategies is most desirable and may result in even greater saving. Each financial portfolio should include safe, conservative options for the security of funds, and more aggressive options for growth opportunity. Not every investment type is right for everyone. It is important for the saver to consider his or her risk tolerance and long term financial goals.

Take Advantage of Tax Benefits
There are many programs and benefits available that will reduce the amount of taxes that are paid on a saver's income. The best advice is to seek out the investments and savings plans that offer the greatest tax benefits. Over time, these plans can result in great saving and lead to great financial growth.

Plan for the Long Term
Whether a person begins saving in the teenage years or as an adult nearing retirement age, the priority should be placed on a long term perspective. It is important that short term funds are available in case of emergency, but by committing to a disciplined approach to regular saving that is diversified and takes advantage of tax benefits, the funds will automatically be there in case of a financial emergency.

It can be challenging for families to find extra money to contribute to a saving or investment account. Living a lifestyle within, or even below, one's means may be required to achieve financial independence. It is crucial, however, that a specific plan is in place for an individual's financial security. Research into the many different options available should be conducted and it would be prudent to consult a financial professional for guidance.

By using the above tips, the average person can be confident that their money will grow over time and provide for his or her family needs. The most important tip, however, is to be disciplined and consistent. Only then can the greatest rewards be reaped

Article Source: http://EzineArticles.com/6402010

7 Steps to Reach Your Retirement Goals

By Kailyn Law

Imagine your dream retirement. Whether it be a move to some tropical island, living a comfortable life in your home, spoiling your grandchildren, or the like, planning for retirement a couple decades away or right around the corner is something you should be working towards starting now. It is never too early to start saving up so you can reach your retirement goals. The retirement of your dreams is definitely attainable, you just need to take control and create a decisive strategy of how to get there. Read on to learn more about our tips and our seven ways to reach your retirement goals.

For one, making attainable goals is the first and most important step. Be realistic, but also know that you should not have to settle for less than what you want or deserve. You'll have plenty of opportunities later to adjust accordingly to changing conditions, but always keep in mind that you are working towards your original vision and you should not have to sacrifice so much. Think about where you would like to live during your retirement. What activities would u like to do? Will you have some pretty expensive hobbies and travel plans? How much would you like to leave behind for your children or grandchildren?

Secondly, think about your living expenses and general needs. Calculate monthly and even yearly needs in terms of financial input without any help. Then, once you've had this calculated and established, calculate the percentage of your income that you will need to set aside every month. Creating a breakdown of things you need to pay and pay off, you also need to consider that inflation is an ongoing process so make sure you round up all your estimates. It's important that if you have a certain costly medical condition that you plan for how you will pay for that once you have no incoming salary.

Third, think about your investments. A percentage breakdown of certain asset classes need to be calculated to help you determine your investing options in your retirement plan. Knowing how to allocate your investments and develop a saving strategy that accumulates more money in the long run is of course, ideal.

Fourth, think about estimating the amount you will need to save up from now until the age you would want to retire. If you find that your expectations are too high for u to save up and reach, then perhaps you will need to adjust your rate of saving to fit your retirement goals.

Fifth, look at the big picture and organize all your finances. We know there is a lot to think about like health insurance, stay, and vacation planning, but there are plenty of sites out there that will help you break these things down little by little in more manageable parts.

Sixth, you can shop around for insurance companies that give the best rate for the most comprehensive coverage.

Lastly, be sure to check your credit score to make sure you're secured financially and in case you want to make any big purchases, you're set to go. A good credit score is very important in any stage of life.

Article Source: http://EzineArticles.com/6852022

Best Mutual Fund Investments for 2012

By James Leitz
Even the best mutual fund investments could face strong headwinds in 2012, so finding the best investments in both stock and bond funds is the best way to cut losses if things get ugly. The best investments in both fund categories will have two characteristics in common, which makes finding the best easier than you may think.

With Europe facing recession and financial turmoil the best stock funds should be diversified domestic funds that invest in major American companies vs. international stocks. The U.S. economy is not booming, but corporate profits look good for 2012. The best investments in the stock fund category will be funds that hold stocks with excellent records for paying and increasing dividends. The best funds will pay 2% or more in dividend income vs. growth and small-company stock funds that pay little if anything in the form of dividends.

The best stock funds may be labeled as EQUITY INCOME and/or LARGE-CAP, and they offer the investor less risk and volatility due to both the high quality of the stocks held in their investment portfolio and the relatively high dividend income they pay investors. To find the best investments look for stock funds rated as relatively low on the risk scale that pay more than 2% in dividend income. To get your best value look for a fund with a TOTAL EXPENSE RATIO of less than.5%... with no sales charges called LOADS that can cost you 5% when you invest.

Finding the best investments in the bond fund arena will be a bit harder in 2012. In 2011 bond fund investors made money even though bonds were paying income yields that were near record lows. With the 30 year U.S. Treasury Bond yielding 3% and the 10 year note at 2%, how did investors make 8% or so in government bond funds last year? The value of bonds went up as interest rates continued to go lower and lower, making the fixed income bonds offer more attractive. When the best rate you can get on a one year bank CD is less than 1% and the best rate for a five year CD is 2%, don't expect rates to fall much more.

Long term bond funds might look like the best investments because they pay higher interest income. Don't be tempted, because along with the higher income comes much higher risk. When interest rates rise bond funds will lose money, and those that hold long-term bonds will lose the most. Here's how to find the best investments in the bond fund department in terms of risk vs. reward.

Go with INTERMEDIATE-TERM bond funds to lower your interest rate risk (losses due to interest rates going up). Go with high to medium quality CORPORATE BOND FUNDS vs. government bond funds to boost your interest income without greatly increasing your risk. To get the best investments look for no-load funds (no sales charges) with expense ratios of less than.25%. Why pay 3% or 4% in sales charges and over 1% a year in expenses to earn 2% to 3% in interest income with the possibility of losing money if interest rates go up in 2012 or in the years that follow?

We said upfront that the best mutual fund investments for 2012 for both fund categories (stocks and bonds) had two things in common. First, they are relatively conservative and are less risky than more aggressive alternatives. Second, the best investments feature low cost investing in the form of no sales charges and low yearly expenses. Why pay $500 in sales charges off the top for a $10,000 stock fund investment that also charges over 1.5% a year (about $150 the first year, increasing as the value of your investment does).

Article Source: http://EzineArticles.com/6795804

Family Financial Planning - An Important Part of Any Family's Success

By Joseph H. G. 

Family financial planning is perhaps the most important part of the happiness of a family. One cannot have a happy family if one has to constantly worry about money. That's why it is important that parents and parent-to-be understand how to plan their family finance in advance.

The term "family planning" often used interchangeably with the words "birth control". Family planning involves the planning of the birth of your children at chosen times and the spacing of births a few years apart.

Having a good plan before marriage can save a family from lots of unexpected events. The couple will have time to focus on their work and their job and save enough money before having their first baby.

Having children less than 2 years apart or more than five years apart can affect the healthiness of the mother and the children. And by having too many small children the parents lose the ability to educate them to their fullest. The parents will not have time for each kid and some kids will feel neglected. As parents, we have the responsibility to provide food, clothing, education and shelter for our children. By having children at the right time, we are at our best to provide them what they need.

We can use many contraceptive methods to prevent unwanted pregnancies. Knowing and recognizing the importance of birth control is the first step to family finance. There are many organizations that will provide sexual education as well as free or inexpensive reproductive health care around the world so that even low income families have a chance to plan their family finance.

Family financial planning plays an important part in the success of any family. Before having your first child, you should plan well the resource your need to educate the child and any subsequent children to the best of your ability.

Article Source: http://EzineArticles.com/4618788

Start Your Financial Retirement Planning Now!

By Eric Moy  

With the economy on the decline, retirement may seem impossible. However, if you are concerned about the financial security of your retirement years, you have to be serious about financial retirement planning. Financial retirement planning is the first step to ensure that the lifestyle you're dreaming of at retirement will have a better chance of becoming a reality.

No matter how old or young you are, it's never the wrong time to think about financial retirement planning and start a retirement savings plan. However, the earlier you begin the better off you will be. Chances are you will have a larger nest egg at retirement if you begin saving at 30 years of age instead of 60. With more years to invest your investment will have a better chance of recovering from any drops or bump along the way. The longer your money is invested the better your chance of securing your future. By planning for your retirement needs, you'll identify what you need to do in order to secure your future and be in a better position to deal with most issues that may otherwise confuse you and do damage to you financially.

The first consideration for your retirement savings plan will be where your investment money will go and for how long. As a basic strategy, you should invest some of your money in short term investments, medium-term investments and long term investments. The type of investment usually is determined by your time horizon. Generally, the more time you have before having to sell off the investment for cash, the riskier the investment.
If your time horizon is five or more years, which would be considered long term investments, you can choose investments that appreciate over time. Growth stocks and real estate are good long term investments if you have many years left before retirement. Volatile stocks or CDs are considered short term investments, investments that are held for a year or less, and should be reevaluated several times a year.

Times are different - you can no longer take the retirement planning advice of an investment adviser as gospel when it comes to financial retirement planning. You need to educate yourself and take charge of your money.
If you find planning for your retirement needs a daunting task, there are many retirement planning tools you can turn to for help. These tools include well-written books that can explain the difference between things like bonds and stock, etc. There are also individual classes and seminars that you can take to help you craft your retirement investment plan to reach the goals you set for your retirement.

You don't want to find out too late that you don't have enough money to cover your retirement needs. You must educate yourself to gain an understanding of what is possible with the money you invest. Generally, a balanced retirement savings plan should include investments in treasury bills, money market and savings account to provide accessible cash; stocks in small, medium and large companies for growth and appreciation; and other investments such as real estate for long term appreciation.

Your financial retirement planning should take into account the number of years you have left until you plan to retire. The more years you have to invest your money, the more risk you should take with your investment money. If you have only a few years before retiring, you should have more of your investment funds in readily available cash. You don't want to be at retirement's door with most of your money tied up in the stock market only to see a big portion of the money disappear in a market downturn, which can happen at any time.
If you do have many years before retirement, aggressive stocks and real estate can be a sound investment. Your nest-egg may growth faster with this investment strategy because the funds are shielded from certain taxes, and because real estate is a good hedge against inflation.

Financial retirement planning is not rocket science. It's mostly common sense. Besides there are many retirement planning tools that you can use to help you create the best retirement savings plan for you. However, even the best laid out plan needs to be reviewed and adjusted with the circumstances. Review your retirement investment portfolio at lease once a year and make adjustments as warranted. Don't let short term ups and downs in the market throw you off your path that leads to your goals. Ups and downs in the investment market are part of the normal cycle of investing. Stick to your informed long term plans and the bumps along the way should all even out over the years to provide for your retirement needs.

Article Source: http://EzineArticles.com/5851862