Premium Offshore Investment - Key Tips for the Investors

All or any of our key asset classes can be invested through Offshore Investment Bonds, which are even known as Single Premium Unit-Linked Life Assurance bonds.

Five Effective Ways to Protect Your Retirement Nest Egg

When most people start a full-time professional position, they’re given an opportunity to save for retirement through a 401K, IRA, or other retirement plans.

Investing in stocks and shares - A few tips

The risk of losing money is always associated with placing your money with investments like stocks and shares. In place of cash, you’ll find a more lucrative return out of your investment for over a longer period of time.

Debt Worries In The Future

Here, I've listed some tips that will ensure that you have no debt worries in the future. This article takes a serious look at 5 areas of finance that need your close attention in order to stick to the straight and narrow in the future.

Wednesday, April 9, 2014

Premium Offshore Investment - Key Tips for the Investors

All or any of our key asset classes can be invested through Offshore Investment Bonds, which are even known as Single Premium Unit-Linked Life Assurance bonds. Amongst the various asset classes, we have overseas and national equities, commercial property, instruments with fixed interest and cash to consider for premium offshore investment.

Throughout the lifetime of a bond, Taxes in lieu of Capital Gains or Income won’t accumulate any personal liability by way of your Offshore Investment Bond. Every year, you’ll be able to draw till 5% of your initial investment as per the current legislation; this doesn’t create any personal tax liability.  No immediate personal tax liability will be generated till the fifth year of investment and you’re even allowed to draw up to 25% of your initial investment if you haven’t withdrawn any amount till during that period; this happens due to the cumulative nature of such allowance.

There’s no tax exemption for this type of offshore investment; on the other hand, it yields the benefit of tax deferment. Only in the event of an excess withdrawal by up to 5%, you may see need to bear an income tax charge. This again happens only when the bond owner dies or surrenders the bond in full.

All gains are included within the income of the investor and taxes are applicable as per the personal tax position of the individual for each occurrence of a chargeable event. In case the chargeable gains (including the income) crosses an amount worth £25,400 during the tax year 2012-13, a part or full surrender of the investment bond will mean a reduction of personal allowances (age-related) for senior plan holders. For each taxable income worth £1, a reduction of £2 will be seen for incomes exceeding this figure.  HMRC notifications will be applicable whenever individuals aged 75 (or more) have earned more than £30,510, and when individuals between 65 and 74 have earned over £30,190.

Offshore bonds have certain tax advantages for UK investors.

No annual tax charges are applicable on funds linked with offshore bonds. Offshore investment bonds are likely to grow without taxes in lieu of capital gains and income. When it comes to a premium offshore investment, withholding taxes worth small amounts may be payable; alternatively, no taxes are accrued on the growth. This is known as an effect of gross roll-up. Much of the tax fund’s burden is reduced when the income of the fund undergoes a deduction of management expenses for the purpose of taxation with any investment bond based in UK. In a close similarity with offshore bonds, an effect of lowering the advantage of gross rolling up associated with the onshore version (based in the UK), when no tax is payable.

In addition, no capital gains tax is applicable on offshore bonds; No CGT liability is generated while carrying out fund switches efficiently.

Time Apportionment Relief is more beneficial for the holders of offshore bonds that aren’t citizens of your nation. In the UK, the number of days that a citizen spends abroad is discounted in lieu of chargeable gains due to the purchased bond.

For the tax year 2012-13, personal allowances in relation with ‘age’ stands at £10,500 for individuals that fall in the age group of 65-74; for those that fall in the age group of 75 or more, it stands at £10,660. Till the time the standard allowance level is reached, the rates will remain fixed since the tax year 2013-14. Personal allowance related with age cannot be claimed by any individual who has turned 65 on or after April 7, 2013. You must keep the above factors in mind while opting for premium offshore investment.

Friday, March 14, 2014

Student loans were never tough

Getting student loans has never been an issue for any of the students. Lenders also do not check on the credit status of the students at the time of the approvals but when it comes to repayments they are all there.

Most of the students have to take loan for their studies as the education cost is very high. When a student complete their education and graduate from their college then they have a time of six months of grace before they start making payments for their loan. Before you start making payments for your loan with bad credit you should contact the lender for the option of repayment of the loan. You can choose your payment plan according to your convenience. If you have already started paying your loan and you are facing some difficulties in paying them then you can contact your lender for switching your payment plans.

But before you contact any lender for the repayment plans, analyze and evaluate your own repaying capability. What is it that you can comfortably bear now towards the education loans? As a student you must be having a clear cut understanding of your repayments and the debt that you can carry on? Students are financially immature and hence they tend to take too many loans to satisfy their immediate needs. This definitely helps them overcome the problems they face in the short run but when looked at it in the long term they are going to cause a lot of issues to the individuals. Students generally cannot understand the implications of the financial commitments and often end up defaulting the loans. These will have a long term negative impact on the financial credibility of the individuals which they cannot understand till they reach a level of career.

There are debts and you have to make a repayment towards them. Student loans cannot be eliminated even under bankruptcy conditions and hence you should be very careful before getting into any sign up.

Some common repayment plan available for students:

Level Repayment or standard repayment system

In the Standard plan, there is a fixed amount set by banks with the customer’s consideration that have to be paid by customers on a monthly basis. You can repay your loan in 3, 5, 7 or 10 years. This plan seems to be beneficial for those people who earn a big amount monthly so that they can easily pay a fixed amount. In this payment system a fixed interest rate is charged on the loan amount which I added to the loan amount and then a fixed monthly installment is fixed which is to be paid monthly without any fail. Even you can pay some extra amount so lower down your loan and your interest.

Graduated Repayment system

In this plan, initially your payments start with low amount but get increased generally after every two years. The length of the repayments depends on the total amount. This system of repayment is good for that person who initially earns fewer amounts but they know that at a certain period of time they will get an increment in their salaries and they will start earning more and they can pay more monthly installments of their loan

Extended Repayment system

In the Extended Plan, you will again take a benefit of monthly minimum payment as standard plan but the difference will be that you can take up to 25 years time to repay your loan. But you should take a loan of at least $30000 to take the extended plan. But you should keep one thing in mind that the longer you will pay for your cash loans no credit check the larger interest will be charged to you. This plan has a benefit to pay less amount monthly but it will take many years to pay which will be a headache for you to pay and you won’t be able to concentrate if you want to take another loan for any other thing as you have to finish your old dues first.

Forbearance repayment system

This system helps you in reducing your payment amount by extending the repayment period. You can give a valid reason to a lender for applying to forbearance repayment system. This will help you not paying your capital amount but you are not allowed to skip your interest amount. You have to be punctual in paying your interest otherwise an unpaid interest amount will be added to the total balance which has to pay later.

Deferment system

The deferment system helps you in postponing your monthly payments for a specific period under some circumstances.
  • You are looking for job continuously but you are unemployed
  • You are in college for at least six months.
  • You have some economic problems.
Like forbearance, you are still responsible for paying interest on the loan while it's in deferment.

Student loan forgiveness program

There are some plans launched for students from which they can skip their education loan. You can skip some or whole student loan if you switch to student loan forgiveness program. It depends upon your occupation and degree which you got after completing graduation.

In this program you are volunteering in the service of America, Peace Corps, or America corps which will lead to forgiving 70% of your student loan. You also have an option to become a full time teacher to get rid of your education loan. You can even get rid of student loan if you join the army or air force or navy which offers student loan up to 20000$ depending upon the course which you are opting totally free.

Some drawbacks of forgiveness programs for student

There are some drawbacks of forgiveness programs given to the student as it will put a sudden increase in your liability to tax. And you may get into a contract with the forgiveness program for lifetime and you may not allow doing something else according to your wish.

Tuesday, March 11, 2014

Importance of student loan repayment options

Had it not been the introduction of the new student loan repayment plans, the number of cases of the loan defaults could have been so high that the government would be forced to check if they would really continue lending to the students.

According to the latest survey it has come out that student take loan for their education but they are not able to pay them. They find many difficulties in paying their loan. Students get six month in grace when they complete their graduation and go for their job. But there are many students who don’t get job in this grace period they find difficulties in paying their loan which increases student loan debt. Still student loan does not proceed for any bankruptcy.

Understanding the plight of students who have taken loans

Looking at the current state of economy , there is hardly much that the students need to tell their lenders when they express their inability to payback the loan with bad credit. Things are getting tough with those seeking jobs , not getting them and the others who are in job are suffering a threat of losing them or are exposed to cost cutting measures by the companies they are employed with.

In such a scenario, repayment of the debts that the students have build over the years and while they were still in college are definitely proving to be really tough for them. Grace period of six months seem to pass in no time and the students keep thinking as to what they can do before the time arrives and they are due for the payment of their loans. Students often get into thinking that loans which were the easiest to get are now proving to be so difficult to repay.

The lenders and the Federal government is aware of the difficulties faced by the students and hence they come up with different repayment plans which can be really helpful for them. These plans allow them to pay as per their financial situation and offer them the much needed convenience. Looking at the ever increasing figures of loan defaults, the lenders easily agree to the changes in the payment of the student debts.

Some common repayment plan available for students:

Level Repayment or standard repayment system

In this repayment plan, you have to pay an exact amount of money each month without falling till the duration of your loan gets over till your last installments. This total duration can be between 3 to10 years. This is a better option for people who are certain about their income and they can pay a fix amount every month without skipping any installments. You will be charged with fixed interest rate to the total loan amount and then the interest and principal amount will be divided in equal amount for every month till the duration of your loan.

Graduated Repayment system

In this plan, you start making payment of cash loans no credit check in small amount for few years and when you come to know about increase in your income and you can pay more money now then you can increase your monthly payment. This will help you to lower down your rate of interest and the duration of your loan accordingly.

Extended Repayment system

In the Extended Plan system you can extend you loan from 10 year to 25 years which will provide you less monthly installments if you are unable to pay large monthly installment according to your previous repayment plan. But there is a criteria of 30000$ loan amount at least. If your loan amount is below 30000$ then you are not eligible to switch your loan to extended repayment plan. This plan is beneficial but some time it acts as a burden on your income as you have to pay more interest rate when you are opting extended repayment plan. This plan is good for paying lesser amount but bad for paying your loan for longer period.

Income Contingent plan

In this repayment system the monthly payment you make to pay your loan depends upon your monthly income. If you are earning good or you are not alone in your family to earn your children wife everyone earn and every one contribute money in monthly expenses then obviously you save a lot of money then you can switch to income contingent plan in which some percentage of your monthly income will be taken as your monthly payment toward your loan. It can range between 5 to 20 percent of your monthly income.

Forbearance repayment system

This system helps you in reducing your payment amount by extending repayment period. You can give a valid reason to a lender for applying for forbearance repayment system. This will help you not paying your capital amount but you are not allowed to skip your interest amount. You have to be punctual in paying your interest otherwise an unpaid interest amount will be added to the total balance which has to pay later.

Loan consolidation system

In this system you can pay off your loan by taking another loan. It means that some time you have more than one student loan for which you have different due dates and you even give two interest amount together and some time you forget or get confused between due dates. For this situation you can consolidate your student loan by which the left out amount will be calculated and with new interest rate you have to pay your all loans on one due date with one interest rate charged on it.

Deferment system

Deferment system helps you in postpone your monthly payments for a specific period under some circumstances.
  • You are looking for job continuously but you are unemployed
  • You are in college for at least six months.
  • You have some economic problems.
  • Like forbearance, you are still responsible for paying interest on the loan while it's in deferment.
Start paying as you start earning

It is good for a student to start repaying his loan as soon as he start earning which will lower down the burden of loan from your head slowly. You can start paying your loan with low amount initially for few years and when you start earning good then you can increase your monthly payment according to your income which will lower down the interest rate and even the length of your loan.

Conclusion

Today’s economic condition there is a very high rise of unemployment students who took loan for their education and ultimately loan debts are also increasing. New graduates are suffering from depression because of this unemployment. This is an economic problem which is affecting every individual’s life. Recession is wasting new graduates student. Professional people think that if student start paying to their loan as they get job can improve economic conditions.

Sunday, March 2, 2014

Know your cat insurance affordability before applying for a policy

We take care of our cat due to a number of reasons – laser pointed games that seem energetic, loving head butts and soft purrs. You'll need to keep your cat safe all the time since you won't always find them landing on their feet; on the other hand, they are truly wonderful as companions. It's a bit of challenge to keep them safe all the time; your vet bills can be managed well when you have cat insurance in place. It will help you cope with sudden illnesses and accident that your cat meets with.

Although the kitties seem to remain indoors all the time, cat insurance is likely to protect your furry household members. In spite of all your safety measures, cats might feed on things that you don't want them to, move out of the house, trip and strike things accidentally. Diseases concerning their kidneys as well as their stomach are a few of the most common health issues that you won't expect them to suffer from.

When it comes to your cat, you may seek sophisticated treatment from reputed vets. This will more likely pull them out of the toughest health conditions. You're bound to see a rise in service quality and treatments costs in the years to come. Vet care worth 13 billion USD had been spent by pet owner within the US in 2010; this reflects a 40 percent hike since 2006. your treatment costs seem more affordable when you have a proper cat insurance plan in place.

Different cat insurance coverage levels are in offer, and this includes medicines and treatments associated with illnesses and accidents. Wellness care has a couple of good options like dental cleanups and vaccines; your cat gets purring in the long run as you avail these options at a lower price. A healthy feline is supposed to get covered under cat insurance; this even allows you with opportunities to brace for the unexpected and prepare financially. Your cat remains in great shape when you opt for such preventive care.

My cat is a pedigree: do I need special insurance?

Pedigree cats may be fed with standard insurance; coverage worth a higher level is what you may need at times. The breeding pool depicts a lower diversity of pedigree genes amongst cats. Their physical attributes would often cause specific illnesses for pedigree cats. In order to get your cat tested for inherited diseases, you'll need to ask your breeder regarding the origin and pedigree of your cat.

How to determine the level of health coverage that actually suits your cat

Prior to choosing your pet insurance, you must ask the following questions to yourself. Will a generalized health insurance suffice your cat if it turns out to be a pedigree? How much do you need to bear for a standard insurance policy within your locality? Are you currently residing in an area wherein your cat is exposed to specific risks? Will your chosen policy be enough to provide your cat with a wholesome coverage? Is it just enough for your policy to reimburse the vet fees? How much do you need to bear out of pocket?

You must feel free to inquire more about the nature of such coverage. You must gain more knowledge on certain aspects like the standard vet bill in your area. Under the guidance of certain approved organizations, cat insurance is known to cover certain conditions under hydrotherapy treatments, physiotherapy, and osteopathy and chiropractic manipulation. Knowing it all will help protect your pet in the long run; you’ll have the much needed peace of mind in knowing that your little furry friend will live with you for long.

5 Tips That Will Ensure You Never Have Debt Worries In The Future


License: Royalty Free or iStock

When we decide to never fall seriously into debt ever again, we really need to sit down and think about why it ever happened in the first place. Once you have climbed out of that pit of worries and stress, you may need a few incentives to ensure it was a one off. This article takes a serious look at 5 areas of finance that need your close attention in order to stick to the straight and narrow in the future. Look at what it was that caused your financial collapse and then think about how to avoid those actions hereafter.

Savings
License: Creative Commons

You may think that opening a savings account isn't really going to help you stay out of debt, but you would be wrong. The very action of putting some spare money to one side instead of looking for something nice to spend it on is a very important step to take. Even if you can only save a tiny amount of your income, it can soon add up to a useful nest egg that can be used when times are harder. The best way to do this is to set up a direct debit that draws from your current account a day or two after payday. If you never really see that amount in your bank, you’ll probably never really miss it.

No Random Borrowing

License: Creative Commons
Think back to those creditors who were making your life hell back in the dark days, can you remember how nice they seemed when they offered you that store card or personal loan?  And now think about what it was that you spent that money on, you probably can’t even remember. So when the opportunity raises its head again in the future, just say ‘no’ and you will get a really nice warm feeling inside. The loan company will not care either way, but you will be saving a small fortune and a lot of hassle in the not so distant future.

Chip Away

License: Creative Commons
Many of us have a bank overdraft and they can really help when times are hard, but do not think of this balance as part of your own cash, because it isn't. So if your overdraft is rather hefty, chip away at it each month until the balance changes color from red to black. It may take a few months or even longer, but the darn thing will eventually disappear.

Prioritise Your Spending

License: Royalty Free or iStock

Take a good look at your income and expenditure details and remember to make all of your necessary payments before thinking of ways to enjoy what is left. All of your bills, accommodation, fuel and food need to be taken care of first. You can plan a few treats for the forthcoming month once the living costs have been deducted.

Be Realistic

When you have a whole month ahead of you and you know exactly how much money is left in the kitty, don’t be tempted to push the envelope. Even if you are due money in the near future, don’t send this or even count it until the cash is in your hand. Always know the exact amount that is in your bank account and never conveniently go overdrawn just for a few extra treats in the week.

Norman King, the author of this post, is an employee at Loan Saver Network, providers of debt consolidation home loans. Norman is a technophile and reviews the latest gadgets that hit the market.