What Is Whole Life Insurance?

What Is Whole Life Insurance?

Whole life insurance is considered as the most basic type of permanent policy. This insurance pays out the death benefit to beneficiaries. Its cash value also accumulates and you can tap into this during your lifetime. However, just like other lifelong forms of coverage, whole life insurance can be quite expensive.

Whole Life Insurance – A Short Definition

Whole life insurance policy offers coverage that can last your entire whole life, as the name suggests, provided that you can continue paying your premiums. These premiums remain the same during the life of your policy so you will know the exact amount you will pay every month.

A whole life insurance policy is different from term life insurance in the sense that this policy earns cash value on the portion of the premium.

How Whole Life Insurance Works

There are two parts to whole life insurance – a savings component and a death benefit. With death benefit being guaranteed, it means that the beneficiaries will receive the payout once the plan holder passes away. On the other hand, the savings component is known as the cash value that you can take advantage of while you are still alive.

The Cost of Whole Life Insurance

Whole life insurance substantially costs more compared to term life because of several reasons.

For starters, term life insurance is only temporary. This doesn’t accumulate cash value. If you think of life insurance as a game of risk, insurers can consider term life to be a good gamble since many people can live longer than their policies. Once this happens, there is no need for insurers to spend cash for the payout of the death benefit.

Whole life insurance provides a guaranteed death benefit and permanent protection. Provided that you keep up with the premiums, the insurer is going to pay the beneficiaries once the plan holder dies. This kind of coverage got cash value as well and guarantee investment return rate on a part of the premium.

This is an investment and this is why the amounts of coverage are also higher.

Benefits and Drawbacks of Whole Life Insurance

Policies for whole life insurance have their own pros and cons:

Benefits

  • Usually utilized as mandatory savings
  • Peace of mind knowing you have a lifelong protection
  • Guaranteed death benefit
  • Cash access once circumstances change
  • Premium stays the same during the policy’s life
  • Possible earnings for dividend that can be withdrawn or come in handy to reduce premiums and increase cash value
  • Cash value portion continues to grow every year with guaranteed interest savings
  • Could be used for saving money as a retirement fund

Drawbacks

  • Coverage is not as flexible
  • Higher premiums than term life insurance
  • Coverage doesn’t keep pace with inflation that can put beneficiaries at underinsurance risk during the time of the claim
  • Poor choice of investment since the interest earned on cash value might be lesser compared to other available alternatives of investment

Whole life insurance policies may also have expiration dates with some policies expiring once the plan holder turns 100 or 121 years old. Even if the policy expires, however, the cash value will remain payable.

 

Top Five Businesses to Start in 2020

Top Five Businesses to Start in 2020

If you are the type of person who only catches up on business trends when things are too late or worse, you miss out on them completely, now is the perfect time to change your perspective. With 2019 almost over, you have to gear up for the New Year 2020 as early as you can. These days, staying ahead of the game is the best way to stay in the game.

Learning how to invest in future trends as soon as possible will give your business the edge of reaping more benefits.

Here are the top five businesses that you might want to start in 2020 to keep up with the ever-changing trends.

  1. Plant Shop

This business requires a very low budget that you can start right in the comforts of your own house and neighborhood. With the improved awareness about the importance of going green, more and more people are starting to plant in their yards. Opening a plant shop will help you augment your income. All it takes is using a small part of your yard to get this business started. You can even earn more if you offer delivery services to your customers.

  1. Pet Food Store

Many people all over the world have their own pets and this paves the way for the increased demand for pet food. To cater to this need, you can open a pet food shop. There is no need for you to rent or lease a place just to open this store. You can begin this business right at home with just a small space for your store. This lets you open shop even with a low budget. Before starting this business, it is important to choose a good location with the scarcity of pet food stores. After some time, you can then add pet-related accessories and other types of pet products.

  1. Yoga Business or Yoga Teacher

If you have some knowledge and skills about yoga or you are a registered yoga teacher yourself, this is a business you can start anywhere and anytime. In this day and age when people have become conscious of their health, this kind of business has tons of opportunities. This is another business you can start at home. You can also look for public locations such as near temples, schools, and others.

  1. Parking Business

If you are living nearby a market area with parking problems or you have an unused open space, a parking business is something you can consider. Due to the lack of open spaces and a bigger population, there is always an issue of parking, making this business profitable. If ever you don’t have your own land, you can have one under lease.

 

  1. Candle Making Business

The last but definitely not the least profitable business for 2020 is none other than the candle making business. This business has an increased market demand since candles are now being used for decoration purposes.

These are the top five businesses that you can start in 2020. Which of these do you want to try yourself?

 

The Top Ten Truths about Entrepreneurship

The Top Ten Truths about Entrepreneurship

When people think of entrepreneurship, they instantly imagine a rewarding and lucrative career. However, being an entrepreneur is not always about flowers and clear skies. In fact, before taking the plunge, there are several important truths you should know about entrepreneurship. These truths will help you decide whether or not this career is for you.

  1. Entrepreneurship Requires Hard Work

The lifestyle of an entrepreneur may seem pretty cool for an outsider. You create, you make things happen, you design your life and schedule. But, entrepreneurship isn’t all about glitz and glamor. You need tons of discipline and hard work for you to become a successful entrepreneur.

  1. Wealth Doesn’t Come from Large Amounts of Revenue

Many entrepreneurs fail to realize that revenue doesn’t mean more money in their bank accounts. During the early stages of your business, you will reinvest almost all disposable cash back to your business. It means that even though your profit might be in 6 or 7 figures, it is likely that you still live your life like someone who earns less than 5 figures.

  1. Progress is the Focus and Not Perfection

There is no such thing as perfection in the world of entrepreneurship. Instead, it is best for you to take simple and small strides and focus on your journey. Learn from mistakes and move forward better and stronger.

  1. The Secret is Self Motivation

Self-motivation is important to succeed as an entrepreneur. You should arm yourself with tons of emotional and mental fuel to maintain enthusiasm and energy for your venture to get off the ground.

  1. It’s Not Easy to Rely on Yourself

An entrepreneur is both the omega and alpha of your business. You answer only to yourself and not to anyone else. Self-reliance is both amazingly liberating and challenging at the same time.

  1. Mentors are Crucial in Your Journey

Seeking out a mentor’s guidance can do wonders in giving you clarity of the steps you need to take in your entrepreneurial career. Their experience and skills offer sage wisdom to help you with your journey.

  1. It Can Be Terrifying to Grow Your Business

The mere thought that you are running a business on your own is more than enough to make you feel afraid and anxious. You have lots of responsibilities that require you to step outside your comfort zone. However, everything will be more than worth it.

  1. Learning is a Continuous Process

Amidst your busy schedule, you also need to set time to continue with your learning process for you to stay relevant in your field.

  1. Work-Life Balance is Just a Myth

When getting started with your business, you will have a hard time balance life and work. If your goal is to make your business bigger, you need to sacrifice some areas of your life for it to become possible.

  1. You Should Bid Your Emotions Goodbye

Finally, being an entrepreneur means you should stop wearing your heart on your sleeves. You have to let go of all your emotions as you make decisions best for your business based on data and logic.

Do you think you are up for these truths of entrepreneurship?

 

Is There an Oversupply of Apartment Buildings?

Is There an Oversupply of Apartment Buildings?

Understanding and knowing the financial drivers that influence the behavior of developers and investors is crucial for communities that hope to attract more private investments. From 2007 onwards, the conditions of the financial markets have been changing continuously and rapidly that limit all types of investment.

Not too long ago, markets have become more stabilized to give confidence to some investors and developers to start new projects. Investors are also starting to go back to real estate as they believe it to be a good and stable investment to serve as protection from future inflation many people feel will happen as the result of sustained low rates of interest and government spending.

In the real estate market, apartments are most suitable as investments against inflation. They also reflect the market with favorable economic and demographic trends that result in significant numbers of new projects including rental units.

Unfortunately, the latest upheaval in the property market has resulted in more developers with half-finished apartment buildings dot the landscapes of major cities.

With the year coming to an end, more operators who already pushed the limits will be joining them.

Places with oversupply of apartment buildings will be seeing more chaos for the next few months. In Australia, for example, areas over 10 kilometers from city centers of Melbourne and Sydney and some areas of Queensland are considered to be the most vulnerable.

Mounting Numbers of Job Losses

Jobs in construction are a crucial support for any economy. Expenses in this sector will flow through other industries such as services, retail, and manufacturing sectors.

Considering how important this aspect of the economy is, it is hardly a surprise that financial institutions are keeping a close eye on the activity or the lack of it.

The government officials are pointing out that they were able to contain the property slump and that it will not have any derailing effects on the economy.

But, the past year has seen the loss of around 40,000 jobs in the industry of construction as the lending crackdown driven by regulator started to take effect.

Projects Put on Hold

The oversupply of apartment buildings is probably the result of developers having a hard time getting to what is known as financial close. This usually happens around 12 months after the purchase of a site. During these 12 months, developers undergo the process of planning and kick off their marketing. Usually, 80% of the development should be sold to receive finance when this is achieved, the developer will get finance and begin construction.

However, considering the environment, developers don’t launch their projects. Around 50% of projects since 2015 got to the construction phase. But, even though the developers have enough buyers, there is the risk that customers don’t have the money to make a purchase.

The oversupply of apartment buildings today in many parts of the world might not be good news. But, with hopes of changing tides in the economy, this oversupply may still come to an end.

 

 

How to Stop Living Paycheck to Paycheck

How to Stop Living Paycheck to Paycheck

Can you confidently say that you can still cover all of your financial responsibilities even if you miss one paycheck? If you can, then, you’re lucky. Unfortunately, most people today cannot say yes because many of them live paycheck to paycheck. In fact, some may even end up homeless if they miss just a single paycheck. Scary, isn’t it?

This is why it is a must to know how you can break from this cycle and be more confident with your finances. Here are a few helpful tips on how to stop living paycheck to paycheck.

Cut Down Your Expenses

Food, clothing, shelter, and transportation are the four key things you need for survival. Everything else is considered a luxury. Asking yourself if you need something to survive is one good way to know whether an expense is really necessary or not.  Even if it happens to fall within the basic necessities, there is no need for you to settle for the most expensive.

Look for cheaper alternatives and buy only those you need. Cutting things out from your budget doesn’t need to be permanent. The sacrifices are only temporary to let you save and pay off your debts to help you entangle yourself from the cycle of living paycheck to paycheck.

Stick to a Budget

Probably the easiest way out of living paycheck to paycheck is learning how to manage your existing funds.  If you cannot manage the money you’ve got, the situation will just get worse once you earn more. The very first step in proper fund management is getting on a budget. When you create a budget, your spending becomes more visible. It gets easier for you to determine the expenses that you can eliminate or reduce so that you don’t spend way beyond your means.

Raise Your Income

After establishing a system and money management habit, you can now start looking for ways to amplify your income. The main point here is to ensure that you have more money to pay off debt, save, and invest. More money doesn’t mean more expenses. In this case, this means you will be working with more.

You can choose from several ways of increasing your income. Things such as part-time jobs are perfect to boost your earnings fast. However, your main goal here is to look for a consistent and sustainable way to earn more cash. Some of these ways include taking on seasonal or part-time jobs, selling unused items, and starting a home-based side hustle, just to name a few.

Pay Off Your Debt

Most strains brought about by living paycheck to paycheck is because of debt burdens. The majority of people’s paycheck goes to paying off car loans, credit card bills, student loan debts, mortgage, all these four, or more. Learning how to get rid of such debts is important to finally cut loose from the tedious cycle.

Changing old habits isn’t easy but with discipline and determination, it is possible to stop living paycheck to paycheck.

 

 

What Does Having a Poor Credit Score Mean

What Does Having a Poor Credit Score Mean

A lot of people feel that society looks down on them because of having a poor credit score. Well, it is true. It may be unfair as there are numerous reasons why somebody ended up having a poor credit score.

For instance, loss of a job or medical bills may put somebody in a tough situation. But, the reality is that credit problems do not go away easily and easy to acquire. Typically, they stay on your credit report for a long period of time.

What Poor Credit Score Means?

If your credit score is poor, you have to take action to build up credits if you like to qualify for credit cards, car loans or mortgage. If you don’t have credits, you might like to begin with a secured credit card. Secured cards will require making monetary deposits as security for the card. Lenders will establish your card limit that is based on the money you have on deposit.

If you do not make the required payments on the card, the lender will use your deposit for covering missed payments. Lenders aren’t taking a risk and having secured card may provide somebody with poor credit history the opportunity to have some positive results. Once you have proven yourself, you may apply for unsecured credit cards.

If you have poor credit score, it is essential to take a look at your credit report to ensure that it is accurate. If it is not, begin the process of disputing items that do not belong to you or incorrect. Never forget that you may get your credit report once every year. It is something you must take advantage to ensure that your credit report has updated and accurate information.

Poor Credit Score – How Can It Affect You?

Having poor credit score may affect you in various ways and these include the following:

  • Difficulty Getting a Small Business Loan

If you have a small business and you need loan, having poor credit score might make it impossible or difficult for you to get one.

  • Risk of Being Rejected for a Job

While employers cannot access your credit score, they may ask for your credit report and with negative information, you could be at risk to be rejected for a job. That is the case for the positions that have some financial responsibilities.

  • Difficulty Getting Approved for a Cellphone or an Apartment Contract

It comes back to the risk. Some providers do not like to lose money through taking on risky customers.

  • Risk of Being Denied Credits

The lenders reject your loan application once you have a record of managing your credit poorly.

  • Trouble Getting a Mortgage

A mortgage is a huge loan. Lenders like to be confident that you won’t default on them. While others will charge high interest rates, some might reject your application.

  • High Interest Rates

Since lenders see people with poor credit as a high risk, they will charge high interest rates. Having a bad credit score can result to high interest rate on home mortgage that may cost you thousands of dollars.

Poor credit score does not define who you are. You don’t have to be ashamed about it as there are ways on how you can improve it.

 

Should You Refinance Your Home In 2020

Should You Refinance Your Home In 2020

Refinancing is the term used when you get a new mortgage to replace the original one. It’s done to enable a borrower obtain better interest rates and terms. The first load is already paid, enabling you to get a second load, rather than having a new mortgage or throwing out your original mortgage.

For some borrowers with perfect or good credit history, refinancing is a great way to convert variable loan rates to fixed and acquire lower interest rates. For borrowers with poor credit, refinancing is risky.

In economic climate, it is hard to make payments on home mortgage. Between an unstable economy and possible high interest rates, making payments for mortgage can be tougher than you expected. If you find yourself in this situation, it is time to consider refinancing.

Basically, the risk in refinancing lies on ignorance. Without proper knowledge, it may hurt you to refinance, which can increase your interest rates instead of lowering it. This is why you should know the basics of refinancing first and how beneficial it is for you.

What to Know about Refinancing

Refinancing is basically the process of acquiring a new mortgage in an effort to reduce the payments monthly, take cash out of your house for big purchases, reduce your interest rates or change the mortgage companies. Majority of people refinance once they have equity on their house, which is the difference between the worth of a home and the amount owned to a certain mortgage company.

Benefits of Refinancing

One of the primary perks of refinancing is reducing the interest rate, regardless of the equity. Oftentimes, as people continue making more money and work through their careers, they’re able to pay every bill on time and increase the credit score. With that increase in credit, it is possible to procure loans at lower rate. Therefore, a lot of people refinance with the mortgage companies. Low interest rates may have a profound effect on the payments monthly, which can save you lots of money.

Other people refinance to acquire money for big purchases like cars or to decrease their debts on credit cards. The way they do it is through refinancing for the purpose of taking the equity out of the home. A credit’s home equity line is calculated as follows. The home is appraise and the lender will determine the appraisal percentage they’re willing to loan. The balance owned on the original mortgage will be reduced. Then, the money will be used for paying off the original mortgage and the remaining balance will be loaned to homeowners.

When to Refinance Your Home

Majority of lenders and banks will require the borrowers to keep their original mortgage for at least a year before they can refinance. It’s in the borrower’s interest to check with the particular lender for details and restrictions.

In other cases, it makes sense to refinance with the original lender. However, it isn’t required. Keep in mind that it is much easier to keep customers than making new ones, so many lenders don’t need a property appraisal, new title search, and so on. A lot would provide better price to the borrowers looking for refinancing. A better rate may be acquired through staying with the lender.

Is A Cashless World Even Possible?

Is A Cashless World Even Possible?

A cashless world might sound something out of science fiction. However, what you should know is that the world is already on its way. Some powerful forces are behind the move to cash-free world including big financial services companies and governments. Even the critics of mainstream financial system as well as government-issued currencies favor with cashless world.

Cashless World – What Does It Look Like?

Without cash, all payments will be done electronically. Rather than using coins and paper to exchange value, you authorize fund transfer to another business or person. The logistics are developing, but there are some hints on how cashless world could evolve.

  • Cryptocurrencies – They are already being used for money transfers and they introduce innovation and competition that can help keep the costs low. However, they have regulatory hurdles and risks that make them a bit impractical for majority of consumers, so they might be not be good for widespread use.
  • Mobile Payment Services – Mobile devices are used for cash-free payments through apps or online services.
  • Electronic Payment Apps – These are helpful for the P2P payments. Aside from that, the bill-splitting apps enable friends to split their bills in a fair and easy manner.
  • Debit Cards and Credit Cards – These are among the known cash alternatives today. However, cards alone are not enough. The mobile devices will likely be a primary tool for the payments.

Advantages of a Cashless World

  • Paper Trails

Financial crimes must dry up. It’s difficult to evade taxes and hide income when there is a record of each payment you get. Money laundering is much harder if the fund’s source is available.

  • Less Crimes

With cash, it is much easier to steal money, whether the amount is small or big. Illegal transactions usually take place with cash so there is no transaction record and so the seller may be certain that he or she will get paid.

  • No Cash Management

To print coins and bills, it costs money. Businesses have to store money, deposit cash when they have, and get more once they run out. Moving money and protecting a huge amount of cash is now a thing of the past with a cashless world.

Disadvantages of a Cashless World

Depending on one’s perspective, going cashless can be problematic. Some of the disadvantages of a cashless world include the following:

  • Hacking

Hackers are muggers and bank robbers of the cashless world. The consequences in a cashless world are higher if someone drains your account because you do not have alternative ways to spend. Even if you are protected under federal law, you might still face some inconveniences after a breach.

  • Privacy

Electronic payments may mean less privacy. You might trust organizations that handle your data and you might not have something to hide. However, your payment information might turn up in ways that can be impossible to predict. Cash enables you to spend money and get funds anonymously.

  • Fees

If you are forced to select from just some payment methods, a payment processor can just cash in on high volumes. It gets rid of the savings that must come from handling less cash.

 

How To Negotiate A Salary Raise At Your Job

How To Negotiate A Salary Raise At Your Job

Asking your employer for a salary raise can be a bit nerve-wracking. But, what you should keep in mind that there is really nothing wrong with asking for a raise that reflects your hard work. However, there are some best practices and approaches that will always give you better results than others. Even if your manager has data on the hard work you have been doing, you still have to present your case why you are deserving of a salary raise and you have to be ready to negotiate.

Prepare Yourself Before You Negotiate a Salary Raise

You must not ask for a raise on your salary without preparing for the negotiation. Regardless of how great your relationship with your employer, it expects you to prove that you deserve the salary you are asking and you will not favorably respond if it’s like you didn’t prepare.

Before opening the subject to your employer, you must know your worth and build your case. Look back to the periods of time and projects where you went beyond what was provided and expected for your company. Always use particular performance data if possible.

What Should You Say to Get a Salary Raise?

After you prepare your evidence for why a salary raise is what you deserve and choosing the best time to talk to your employer, it is crucial to think of what you will say during your conversation. You do not really need a strict script, but you should be specific and clear in your delivery and it will help you have some phrases up your sleeve to guide the conversation.

  • Be Specific

Consider mentioning your preferred salary and outline how you came to this kind of conclusion. Bring your salary estimate. You must be clear when you like your new salary  to be effective and other details that are pertinent to your preferred compensation.

  • Be Clear

A simple way to start a raise discussion is saying something like you are looking forward to growing and working with the company.

Ways to Negotiate a Salary Raise at Your Job

Though your employer understands the value you are adding to the company, it does not mean they will offer you a raise. You should prove your case like the way you prove your case to have a high starting salary. Below are some of the ways to negotiate a raise effectively:

  • Be Persuasive and Firm When Stating Your Case

Persuasiveness and confidence are important to negotiate a raise.

  • Choose Your Moment

You should pick the right time to negotiate for a salary raise if you are serious to get it. A good time to bring up the subject of a raise is when you know your employer is impressed with your performance or she/he is in a good mood.

  • Leverage Internal Moves

Having a new role provides a good negotiation opportunity. If you’re considering a new job or promotion with your employer, don’t consider the argument that the hands of management are tied. Try to use market data when laying out what it’d cost the company to hire off the street. You’ll likely find resistance. However, you should be firm.

 

Best Cities To Retire In The United States

Best Cities To Retire In The United States

Millions of people retire every year and retirement means newfound freedom. A lot of retirees relocate to areas with low taxes, more cultural opportunities, and better health care. Strong local economy is also an important factor for some retirees because most of them continue working after retirement.

If you are wondering the best cities to retire in the US, here are some of your options:

  • Iowa City, Iowa

This city is known for its writing scene. It is a certified UNESCO city of literature because of its famous University of Iowa Writer’s Workshop. Majority of authors put Iowa City on their list. If you want to write a novel when you retire, you will find lots of bookstores, independent workshops, and writing groups to inspire and guide you.

  • Prescott, Arizona

If you love a vibrant cultural scene and enjoy outdoors, you can choose Prescott, Arizona as your retirement place. It has summer compared to southern Arizona. In addition to that, it offers a rich history, economy, as well as low housing prices, making this place a contender for retirement.

  • Quincy, Massachusetts

Quincy is the best place to retire and it’s broken up to over many unique neighborhoods each with their own character and history. The city is home to many museums and public parks with cycling and hiking trails for physically active retirees.

  • Venice, Florida

Venice is just a small retirement community located in Florida on the Gulf of Mexico. It is named after Venice since it has a lot of rivers and canals that run through it. The place is also built with architectural influence from Italian renaissance. Low prices and calm traffic mean peaceful retirement and it is ideal to older retirees. Beaches, parks, tennis, proximity to the beach, and golf will keep you busy. The proximity to nearby Sarasota means you have everything you require.

  • New York City, New York

Those who pick New York as their retirement place are guaranteed to enjoy life to the fullest. The city takes pride the most culturally-rich and diverse neighborhoods in the US. New York City is also full of parks and greener than you might have imagined. It is an excellent choice for more adventurous and urbane retirees, which brim with recreational and cultural opportunity.

  • Cranston, Rhode Island

It’s a city in Rhode Island that takes pride of authentic New England feel that retirees to choose from. With its historic buildings, districts, and Victorian homes, it is no doubt an attractive choice for many people who are retiring soon. So, if you want to live in Europe, but your retirement plan doesn’t allow you, Cranston is your perfect choice.

Determining where you must retire a huge task that needs weighing some essential factors including employment and education opportunities, healthcare, family connections, climate, and tax liability. Whatever your preferences and needs are, there is always an option available for you. All you have to do is to choose what perfect fits to your needs.