Top 6 Advantages Of Student Loans

It is just a common myth that only the federal loans provided by the UK government are cheaper and easier to repay than the student finance options provided by the private direct lenders. However, if you see the APR and repayment modes, then you come to know that private student loans are the clear winner! Let’s have a quick look at the top 6 advantages of education funds offered by the direct lending companies:

Borrow Short-Term and Long-Term Funds

Whether you are looking for a big amount to complete the higher education course, or need short-term funds, to give just hostel and tuition fees; both options are easily available and you can access the required funds in less than 24 hours without facing any hurdles. You can ask the lender to transfer funds directly to your bank account or deliver to your doorstep.

No Documentation to Waste your Time

The time of a student is very precious and instead of taking stress about the cash, he should focus on studies. Direct lending companies know the importance of young generation in the development of the UK and hence they offer paper free student loans plans. You are not required to submit your last class mark sheet or the address proof.

Apply Online in Just 2 Minutes

You don’t have to bunk classes or take leaves from the college, just open your laptop or smartphone and apply for the student finance loans on any reliable direct lending website. You would need just 2 minutes to complete the online application procedure. No hard copies or soft copies are required.

Avail Funds with No Guarantor

Students don’t have a big network to arrange a guarantor. They are dedicated towards their studies and interact less with people. Arranging a guarantor is an embarrassing task for them as people are not ready to co-sign their application. They can easily access student education loans with no guarantor and no broker by applying to a reliable direct lender.

No Hurdle of Bad Credit History

Some students have bad credit issues due to pending credit card bills or some other reasons. Banks and conventional lending companies don’t entertain their funding requests. However, they can easily secure the cash by applying student loans to a bad-credit friendly lender. There are no hidden charges. You can compare various deals and grab the best one with the lowest APR.

Easy and Flexible Repayment Modes

Everybody knows that a student can’t repay funds during his education time. He doesn’t have a steady source of income. Direct lenders offer various student repayment plans that can be chosen as per comfort. You can either start repaying in installments from the next month or repay the total debt in instalments after completing your education.

Does Social Media Help In Getting An Auto Loan?

We live in a world dominated by technology and social media. Whether they are your shared posts, status or your connections, social media platforms play a key role in carving your virtual personality. A well-known fact is that technology is an inevitable yet an integral part of our lives. When it comes to financing your car, social media is building its way and becoming a relevant medium of profiling. For instance, John walked into a dealership to purchase and obtain financing for a car. The quickest and easiest way to search for a tentative background of John would be to get a grasp of his personality on the basis of his behavior on Facebook and Twitter account, respectively. Currently, a small percentage of lenders use social media for judging an individual’s creditworthiness. However, the developing presence of social media is gaining mind share of the lenders.

Can Social Media help in ascertaining the Creditworthiness of an individual?

1) Facebook can build your Credit Circle

The very essence of Facebook lies in networking. A creditworthy profile does not require millions of posts or many friends. However, if you have a genuine profile and do not pose any abnormal social behavior, your profile is likely to get approved for an auto loan. Additionally, the presence of certain contacts in your friend list with a clean history and a strong credit score further add to your creditworthiness. Lenders can look for mutual contacts that have been previous customers. The payment history of the mutual contact can then be used as a basis to judge your creditworthiness. In order to get the most out of your circle, seek a person with a good credit score and make him a cosigner and your auto loan process will become smooth.

2) With LinkedIn, lenders can check your Employment Stability

A stable employment speaks volumes about your personality and trustworthiness. LinkedIn can serve as the best source of obtaining information regarding your job history, duration, professional position and interests. The documentation of an auto loan requires you to display evidence of a source of income through pay stubs. However, there is less proof one can gather regarding the stability of employment. Social media can become a tool to ascertain not only if there is job-hopping, but also the financial strength of the individual. A person with a 500+ connections, long duration of employment history and a considerable profile activity can become a favorable applicant in the eyes of the lender.

Buying a Car: Making the Most of your Social Media Profile

Social media has made its way into the minds of auto buyers as well as lenders. As primary sources of guides, nothing comes above your credit score, current income status and payment history. However, virtual platforms such as Facebook and LinkedIn are starting to occupy mind share in terms of creditworthiness. Once the primary sources of information seem insufficient, lenders may turn to social media to get an idea of your personality. A few helpful ways to make sure your social media positively adds to your credit score is to be careful with your online posts, invite only genuine friends into your virtual circle and to always keep your professional profiles updated.

Personal Finance Online Or Personal Finance In Excel?

Wherever you are in the World, be it New York City, New York or Mumbai, India, before technology made things easy and before the explosive use of online services, personal budgets if they were done at all, were largely done on computer spreadsheets, and by far the most popular choice was doing personal finance in excel.

Now that apps and technology have made so many things easier, accessible and convenient online, including managing budgets online, it’s time to reconsider if personal finance in excel has had its day, including all the variations of family budget worksheets, financial planning spreadsheets, or any other offerings of managing money in excel.

The Benefits Of Managing Personal Finance In Excel

The most obvious benefit is that calculations are done by a formula processor so that the mechanics of adding up and making calculations can be automated and easily repeated, pasted, and copied.

That much is obvious, and all sorts of elaborate versions of family budget worksheets in excel can be created by anyone who can write a basic formula. So ease of creation is a major benefit, even though cost of time is high in order to create the formulas, and format the financial spreadsheet as you build it.

Another benefit to managing a budget worksheet in excel is that it could be free, certainly it will be free if you invest the heavy hours to do it yourself. Given that creating family budgets is not exactly a fun day out in the first place, however, many people look for free family budget worksheets or spreadsheets.

These products are invariably created by someone else online and sold or given away free – fully formatted and formulaic.

The Problem with Managing Personal Finance In Excel

The problem with personal finance in excel though is exactly that – personal finance in excel!

It sits on a personal computer or laptop, and is not much use on a smartphone – no-one wants to sit squinting at a finance worksheet or spreadsheet on a phone. Also, the time it takes to personalise these standard financial worksheets in excel can be wasted with one little slip, an accidental delete, formula mismatch and everything clogs up and numbers and columns don’t match up.

It is incredibly hard to recover a corrupted formula unless you are professionally trained in excel.

Also, personal finance in excel is limited to basic calculations and can’t really be integrated easily to a wider range of financial budget decisions. Each personal finance worksheet created in excel is for single purpose, not multipurpose use. One obvious danger is localised loss of the PC, laptop, or attack from virus or malware – spyware and identity theft from an unsecure system.

One very real danger in downloading free financial excel spreadheets is that these are so often given away in promotions, as ways to harvest personal details, or include hidden shipping costs, or suck you into buying something much more expensive later.

You can never be sure if you have bought or loaded illegal pirate copies or OEM software. These localised personal finance spreadsheets might even contain malware, spyware or tracking cookies to steal your data – you just can’t tell.

The Explosive Benefits Of Personal Finance Online.

Managing money online has a lot of the benefits of finance in excel without any of the drawbacks.

In fact the only problem with it isn’t really a problem at all. It costs more than free – but comes with dedicated service, it never crashes, you can’t lose it, someone else has to maintain the connections, and a bunch of employed people are concentrating 100% on making it work and work well.

There are no install problems, hidden costs, or personalised mistakes. The best ones have encryption software to protect security, they make it really easy to use, access it and maintain it.

Financial budgeting online can even be fun, and money saving. Chose one which pays back a user dividend or uses your details anonymously with your permission to find you really cheap deals and money saving opportunities without spamming you to death.

Personally, I think personal finance online software is the only way to go, way better than personal finance in excel, which frankly is decades out of date and not at all convenient.

An Amazingly Simple Formula to Attain Financial Freedom So You Never Worry About Money Again!

After several years of research, reading all types of money making books, investing in all types of business opportunities, my wife and I have finally realized a simple way that has helped many people become financially free. I won’t pretend that I have the magic formula that will: make you $100,000 in 3 minutes while you sit on the couch, or allow you to retire next week without ever leaving the house!

Now, I’m not saying that the folks who sell those programs are lying because I have not done them all, but years ago, I tried a couple of them and let’s just say the only thing that happened while I sat on the couch was I made an imprint!

Let’s face it: If you truly want to get rich & achieve financial independence, it’s going to take some work! However, if I told you that you could become rich and increase your net worth (regardless of how much money you currently make) by using a tried and true formula that consists of 3 simple steps, would you believe me? Well you should, because it works!

How do I know? Because We Have Used This Formula to Increase Our Net Worth Over 300% over the past 7 years!

It could happen sooner or it might take a little longer for you depending on your situation. But, what I can guarantee is that if you follow these three simple steps, YOU WILL ACHIEVE FINANCIAL INDEPENDENCE!

I’ve spent many years (AND DOLLARS) looking for ways to become rich and financially free. I can honestly tell you that of the many things I’ve tried, some worked and some did not. Instead of getting upset about the things that didn’t work, my wife and I had a conversation and we simply asked ourselves, “Of all the things we’ve tried that did work, what did they have in common?”

And that is how we were able to come up with the simple 3 step formula that we’ve been following for the past several years that has allowed us to walk the path towards wealth and financial independence.

Before I share the formula with you, let me just answer one question so that you can decide if I’m someone you want to listen to or not:

QUESTION: WHAT DO YOU CONSIDER FINANCIAL FREEDOM, INDEPENDENCE, OR BEING RICH?

I think if you were to ask ten different people this question, you’d get ten different answers. So, what I consider being rich might be totally different than what you consider being rich. However, financial freedom for me was the point where my wife and I did not have to have jobs in order to sustain our quality of life. I’m not saying that having a job is a bad thing. But the key is working somewhere because you want to, not because you have to! And being financially independent will make it much easier for you to decide if you want to have a job or not.

SO WHAT IS THIS FORMULA?

As I mentioned earlier, it is 3 simple actions. The greatest thing about the formula is that you don’t have to do the steps in any particular order. You can do them one at a time or work on all three simultaneously:

Step 1: Debt Reduction

In order to get rich, you have to reduce the amount of debt that you owe others. It is important to know that not all debt is bad. Good debt is that debt which helps you to become richer. As one famous author puts it, “Good debt is that which someone else pays for you”. Your goal should be to get rid of bad debt first and then work to eliminate good debt.

Step 2: Expense Management

In order to get rich, you must manage expenses. You need to identify where you are spending your money and then determine what is absolutely necessary and where you can trim. This doesn’t mean you have to change your way of life, but instead take better control by being prepared. Your goal should be to prepare for new expenses in advance while minimizing the risks of being caught off guard.

Step 3: Multiple Income Streams

In order to get rich, you must have more than one source of revenue. So often I hear people say, I could be rich if I just got a higher paying job. Believe me, there are financially free people who make less than $40,000 annually, and there are people making over $100,000 annually who are broke. It’s not about making more money from one source of revenue; it’s about making money from more sources.

Think about it: if you make $50,000 from one income stream (e.g. job) and you lose that job, you are temporarily doomed. But if you make $5,000 from ten income streams (e.g. businesses, stocks, real estate, etc.) and you lose one (maybe the stocks tank), you still have $45,000 coming in. There are tons of books, seminars and courses you can take on building streams of income. Your goal should be to always have 4 or more income streams going.

So there you have it. An amazingly simple three step formula on how to attain financial freedom so that you never have to worry about money again!

Brandon Wilkins is a financial expert and co-founder of Financial Freedom Builders LLC. Mr. Wilkins is also the author of the financial classic, Getting Rich is Simple…But It Ain’t Easy! He is available for coaching, workshops and seminars designed to help you take control of your finances.

Efficient Markets and Behavioural Finance

As a first step, let me explain how efficient markets behave. Think of supply and demand. The prices of assets adjust quickly as new information arises. New information could be quarterly earnings, the CFO leaving the company or a patent approval. Anything that is linked to a company and makes economic sense. As new information comes to market, investors trade on that information and the price of the security is adjusted upwards or downwards. For every willing seller there is a willing and informed buyer and the market clears at the market price. In other words superior risk-adjusted returns cannot be achieved in an efficient market because the price of securities reflects all past and present information about the fundamentals of those companies.

However, though evidence suggests that markets are efficient, researchers have shown that sometimes securities can be mispriced for a longer period of time which translates into a market anomaly that can be exploited by informed traders and investment managers. Take for instance the internet bubble in the late 90s where everybody bought stocks in the tech sector because ‘it is a no brainer to do so’ or the more recent housing bubble where again ‘you had to own a house’ under those ridiculous conditions.

Now you must be confused. If we are living in a world where markets are efficient and investors make decisions after a thorough analysis, why do we still have mispriced assets and financial bubbles?

The answer is very simple: because we are all humans! And as humans we exhibit biases. Some of them are cognitive, being the response of faulty reasoning and some of them are emotional, stemming from past experiences, feelings and intuition.

For example you are an investor who would like to trade in the stock of Apple. Based on the information you gathered and your own assessment you conclude Apple is a good company to own. The current price at which one share of Apple trades should reflect all available information about the future upside potential and as a rational investor you think you are paying the correct price. As new information comes to market you should update your forecast about Apple in a diligent and disciplined manner. You should incorporate new information according to Bayes formula and assign a probability for that event to happen. Thomas Bayes has developed this model to determine conditional probability. It relates current to prior probability of an event.

Think of it from this perspective: the stock price will rise if interest rates fall. It means the stock will change in value if interest rates fall. Think what is the probability that the interest rates will change? You are trying to find out what is the probability the stock price will change in value and you are basing it on the probability that interest rates are going to fall. You got that probability. All of a sudden something happens at the macroeconomic level and you need to update your probability that interest rates will fall and you will also need to update the probability the stock price will change in value. This process or reassessment is done with Bayes formula. It is a way of conditioning your prior probability if new info comes out. It is simpler to use it with a decision tree.

With that in mind you should make decisions that maximise your utility function in the aforementioned case, buying more, holding it or selling the stock. Did you follow the above process precisely? If not don’t worry. It doesn’t mean you are less disciplined or less skilled than professional money managers. You have to know it is really infeasible to analyse all possible relevant data and assign a probability to each event.

Behavioural finance assumes investors employ a combination of traditional finance and psychological biases when making investment decisions.

This is the thing, the assumptions of traditional finance doesn’t always hold true. Investors don’t make decisions according to their utility function and don’t update their expectations according to Bayes formula.

People are not fully in control and rational when making decisions and this is because we lack the cognitive resources of looking at every possible situation and arriving at an optimal conclusion. Instead, we have a set of goals we would like to reach. Buying a car then a house followed by a vacation house. We take things step by step and take decisions that will help us reach objectives one after another. People’s goals are based on experiences and comparison with what other people have achieved: friends, neighbours, colleagues, public persons etc. If you succeed you will adjust your goals upwards and if you fail you will adjust them downwards. This is where behavioural biases play an important role. They shape your thought process which in turn alter your decisions. And just to give you an example, think of people who already own one car per family member and want to buy another one, just for fun. From an utility point of view do they really need another one? No, absolutely not. But what drives them to go to the dealer, test-drive it and buy it? It could be explained by a lack of self-control which is a bias. The tendency to overspend current income and forgo long-term plans. Or it could simply mean that they have a lot of money and can afford buying and keeping another car in the garage. Whichever the answer they will buy a new car. Behavioural bias attempts to explain why they make the decisions they make.

As a wealth manager and trusted advisor for high-net worth families I have an unique opportunity to work closely with them and observe their behaviours on how they run their businesses, investments, or how they perceive risks. I will guide you in the following articles on how behavioural biases influence our day-to-day lives and how we can moderate, reduce, or even eliminate them, depending on the root-cause of the bias. I am doing it because in my professional experience of more than 6 years as a wealth manager, I have not seen any advisor or portfolio manager working with his clients from a behavioural stand point and looking at understanding and shaping their relationship and strategy of investments taking this factor into account.

Top Five Intra Day Trading Tips To Become A Better Trader

In words of Warren Buffet The stock market is a device for transferring money from the impatient to the patient. Let’s read between lines. The investor or trader who is impatient (frequent buy/sell strategy) transfers money to the patient (holding strategy).

Find below herewith five tips which should be followed by a day trader:

Take advice of professional trader

Before one starts day trading it is better to take advice from experienced and expert day trader trainer. Every trainer will have different teaching method and style. See for one who has good teaching method. He should also suit your trading style. They may be ready to teach in their free time. He may charge the fee. As he is spending his free time with you. But it is worth. You can assume that paid fee as an investment, which you need to get knowledge. They are the best share tip providers when you trade.

In future when you grow big, many newbies’s will come to get knowledge from you. At that time you can charge them likewise.

Gather information from financial news

One has to gather news from across the globe. Segregate relevant news, which affects your business. Analyze and set priority which news will most affect your business. Stay updated on news like meetings, change in government policies and rules. Local, national and international news should be followed.

M&A, financial results, entry/exit of members of BOD, etc. These types of related news of the company one have shares in, make sense.

Though the news does not impact a common man but may have an impact on your investment in the concerned company. This news helps to take a smarter decision, especially while trading shares. Through nifty future tips also one can gather information.

Treat trading as any other business

Take day-trading as any other business. It is not a hobby, but a serious business. It is not for fun that one is in day trading. Like any business, it needs devotion and dedication. Trading is a part. One has to devote a lot of time preparing a plan. Study different charts before coming to any conclusion. Follow news on TV, read business magazines, study reports etc. It is a full day activity.

Keep eye on professionals

One should study professionals. What they are buying, when they are selling. For how much time do they hold the script? Since they have experienced one can learn a lot by keeping eyes and ears open and mouth shut. If one makes mistakes, then analysis the mistake. What went wrong and where? You can find them in many share market advisory companies.

Patience

It needs time, energy and devotion to master the skills. As the old saying goes Rome was not built in a day It was destroyed and then rebuild. This process was repeated many times over. Even if one makes loss he has to get up again for a fight.

Traders do not profit all the time. Many a time they incur losses. So one has to be prepared for losses and have patience during the time of loss. Commodity tips are also helpful to know the market trends.

Today’s successful traders were also novice once in a while. They got success by their hard and smart work. They had put in their efforts, made mistakes, but kept up their learning process.

How To Save Money On Your Two Wheeler Insurance

Tips to save money on two wheeler insurance

Many people in India own two wheelers. It is compulsory for you to buy a two-wheeler insurance policy if you own a bike or a scooter. But can you reduce the insurance expenses? Sure you can! Just follow these tips and you will see a difference.

Avoid making smaller claims: Before you make a claim, see how much the bill amount is. If it is a small amount, pay it yourself. Making numerous small claims will unnecessarily bring down your NCB to zero which will overall lead to a loss.

Attach anti-theft devices: A car insurance plan offers protection against theft and other dangers to the car. So if the car is found to be safe and less susceptible to thefts and break-ins, the insurer will offer a discount on the premium. Therefore look to install some anti-theft devices to the car to not only keep it safe but also to reduce your insurance costs.

Be a good driver and earn No-claim bonus: Driving carefully will reduce the chances of your car getting into mishaps. This will reduce the need to make claims and you will earn NCB. The NCB will in-turn pull down your insurance premium costs.

Renew two-wheeler insurance before expiry: Do not wait for the two wheeler insurance policy to expire before you renew it. If you have a lapsed policy, you may need to pay some fees and fines to get a new plan. So always try to renew the policy on time to save money.

Buy online: It is known fact that insurance bought online is cheaper. So buy a two wheeler insurance plan online and save a considerable amount of money.

Choose the right kind of cover: If you have a two wheeler that you use occasionally or is almost on its way out, opt for a third party cover. If however your bike is used daily and is a valuable vehicle, go for a comprehensive plan. Knowing which cover you need will help you save money.

Deductibles: Every two wheeler insurance plan has a deductible component. This means that as the policyholder, you will have to pay certain amount at the time of a claim and the insurance provider will pay the rest. A high deductible will lower your premium costs and vice versa. If you are confident of your driving skills and feel you won’t need too many claims, opt for a higher deductible. This will help you save money on your two wheeler insurance plan.

Compare: Last but not the least, you most definitely need to compare the available car insurance plans to get the best deal at the best rate. This is one of the easiest and quickest ways to save money on your bike insurance plan. Compare when you buy a new plan or renew an existing one.

The Latest Trend In Doorstep Loans

These days, individuals frequently have no opportunity to visit loan specialist’s office to apply for quick cash bolster. Henceforth they begin asking financial assistance from relatives and companions that is exceptionally humiliating. Be that as it may, no more you need to shoulder the disgrace of looking for assistance from companions for banks and facilitates everywhere throughout the United Kingdom have presented Doorstep loans. As the very name suggests, finances under this cash backing is conveyed comfortable doorstep. Additionally, the sum affirmed is all that anyone could need for all your unimportant needs that look for your moment consideration.

Until the point that a couple of years back, applying for extra subsidizes was a testing assignment as you were requested to experience repetitive customs. You were solicited to submit piles from archives. Actually, it took a very long time to finish the whole procedure. The greater part of the circumstances, when you got an endorsement, the requirement for stores was finished.

Be that as it may, things changed with online machine mode that scarcely took a couple of minutes of yours. Simply peruse pages and you will run over different banks offering moment cash backing. Because of regularly expanding rivalry among moneylenders, it has turned into a great deal less demanding for you to pick the loan specialist that offers bargains according to your need.

Render your own subtle elements on an online application frame yet ensure it is finished and exact. Numerous loan specialists may get in touch with you inside no season of applying. You can choose from bargains that suits your current needs. In the event that they are happy with your data, assets may be authorized into your bank tally and you can sue it the way you need with no confinements. From paying pending power charges, Visa charges, stockpiling charges; obligation solidification, child’s instructive expenses to traveling, meeting wedding costs and therapeutic urgencies, you can do everything.

Regardless of where you live in the United Kingdom, you will get cash comfortable home as 12 Month Loans. Assets will contact you either as cash or as a check. Loan specialists will charge financing cost contingent upon your current settled pay and reimbursement capacity. Sometimes, reimbursement residency is additionally broadened. Here, loan specialists charge extra expense for late installment. Be that as it may, paying extra sum isn’t an issue as you can dispose of every one of your inconveniences without running all over.

There is all around the energy among the general population about getting the sum specifically at the entryway with no dreary undertaking by any stretch of the imagination. What’s more, the news is valid and spread like a fire over the United Kingdom. In this way, it is awesome time for those individuals, who used to go to the entryway of the bank keeping in mind the end goal to have exchange about the loans. However, now, the time has come to desert the conventional framework for the acquisition of the earnest bucks in light of the fact that the presentation of doorstep loans UK has been influenced the impact in the finance to advertise.

In this way, the borrowers don’t need to squander their valuable time in going all over on the grounds that the sum something like 100 to 500 is specifically dispatched at the home of the candidates inside round the clock. There is no prerequisite of playing out the hassle full customs. In this way, influence a call to the appropriate loan specialist with the sensible enthusiasm to rate and get the sum as ahead of schedule as could be expected under the circumstances.

Lead You To The Authentic Zone Of Money Transfer

If you have an international business and you have to move to many countries for the purpose it is the urgent requirement to find a reliable and efficient money transfer service. Business with any other country will require a resourceful money transfer. This transfer should be fast efficient and safe. Your trade shouldn’t be forced by the variation in exchange rates either. For all these reasons, it is prudent to take the assistance of International money transfer Services available. It will be better to find the reputed and quality one on the internet. It is an internet era and you get different types of information on the internet.
Process Involved
This service helps you find a provider that you are comfortable with. After you decide on the money exchange provider you will need to complete some forms. Once you have established contact, you will be informed about the rules, terms and conditions involved with a deal. Finally, you will be asked to complete some forms to set up your account. You can fix a standard rate for your exchange as well. The whole process is hassle free and once you learn how to go about it, the upcoming transactions will be smooth, effortless and quick.
Exchange Rates
When you wish the inexpensive currency transfer to be done, you should be careful about the rate you choose. With large amount of money a little change can make a big variation for your commerce. When you transfer your money to a bank, they will transfer it at a great exchange rate that you are happy with on the day you have mentioned. Exchange rates promised may differ between agencies that are why you should be careful while choosing one.
Staying in the circle
Most good free currency transfer companies will make sure you are kept in the circle about where your money is. When the transaction is being made, you will be sent a verification message and sometimes even a message. You will be consulted before and after the deal, which assures that nothing can go wrong with the deal. This feature gives you more control over your money.
Expediency and safety
Foreign Exchange is a very expedient way of sending money across countries. When you choose a reliable company, along with good customer service, you will also safer transferring your money. This service is as useful for the common man as it is for businesses. Having an overseas exchange agent working for you is an immense way of saving money. In some websites, you get to check the exchanging rates promised before you sign in to transfer money. This makes it easy for you to select the best in the record.
Currency Exchange near me, this thought is quite wise and intelligent as there is lower risk for the safety of your cash. If you are in Adelaide, you can find a good currency exchange company that has a strong team for a powerful deal of money transaction. A reputed and trustworthy company always offers the better rates and a higher security.

Top 5 Benefits Annuities Can Bring Except The Lifetime Income

Earning a consistent income in their retirement life is a major concern for the seniors approaching their retirement and many of them invest in different annuity insurance plans. These annuities help the insured to receive a guaranteed income for life protects from the fear of outliving their savings. Also, if a senior couple hasn’t saved enough or doesn’t have someone to support after their retirement, these policies help greatly to take care of their daily expenses and maintain a better lifestyle. However, the majority of seniors isn’t aware of all the benefits an annuity can bring. Most of them buy an annuity solely to receive a guaranteed income in their retirement life but the annuities have a lot to offer. Here, we are going to explain five more benefits of a retirement annuity plan that you might not be knowing.

Benefit to your loved ones

At times, seniors pay a long series of premiums to earn them back during their retirement but die at an early age without receiving the complete benefits. Many seniors die soon after their retirement and insurance providers keep their share of investment with themselves. But, the new additional feature allows transferring the benefits to the beneficiaries, if the insured dies early. Along with the immediate annuity plan, you can choose a guaranteed period of 10-20 years that are calculated since the time you start receiving the payments. If you opt for a 20-year guaranteed period with the annuities, your insurer will provide a series of payments for exact 20 years. You can name your spouse or kids as the beneficiary and they will receive the benefits for rest of the period, in case you die early.

Tax deferral on earnings

Most of the investments are applicable for state and federal taxes, but the investments such as interests, annuities, dividends and capital gains earn a tax-deferred status. These investments are tax-free until you withdraw the accumulated amount. The tax-deferral is similar to 401(k)s and IRAs, but there isn’t any limit on the amount and you can put any amount into the annuities that you assume enough to spend your retirement comfortably. Moreover, the minimum withdrawal criteria have more flexibility than that of to 401(k)s and IRAs.

Tax-free investment transfers

Market performs differently at a different time and an investment performing strong today may perform poorly after a certain period. Hence, investors keep transferring their investment amount form one to another fund and there are financial advisors to help with the same. Usually, these investment transfers or rebalancing are applicable for taxes but the annuity retirement plan has no such tax consequences. That means, you can rebalance your investments as per your financial advisor’s suggestion and you won’t have to pay any taxes on that.

Protection from lenders

People take different types of loans to match a better lifestyle and pay the due amount in installments. At times, people reach a stage where they only have the money enough to take care of their fundamental requirements and aren’t able to pay the loan installments. In such cases, if the lender files a lawsuit, they may lose the return on the investments made. Annuities insurance policies also help protect your investment return even if you can’t make the installments. Usually, the premiums you have made to your insurance provider, belongs to them and there are laws that restrict that money to be accessed by the lenders.

Variety of investment options

Insurers help the investors with a range of annuity options at retirement including the fixed and variable one. The first one credits a certain rate of interest on the amount you deposit while with the later, your money is invested in the stock or bonds like mutual funds and provide a return based on the market performance. Also, various insurance providers have introduced different types of floors that set a limit by which your investment value may not fall further. That means, if you have invested in a variable annuity, you return won’t fall below a certain value, despite the fluctuations in the market.