Houston, TX — (SBWIRE) — 11/20/2013 — The 2007/08 economic recession negatively impacted on most people’s lives where some of them lost their jobs making it very challenging to handle the debts that they owed. This resulted to late payments, missed payments, defaulting and foreclosures among other things that contributed to lower credit rankings. There are still many people who have not recovered from this up to this day.
The reasons mentioned above have left a considerable percentage of applicants to rely on online personal loans for bad credit since this is the best option they have for accessing cash. Applying through the web also comes with a lot of convenience since consumers are now able do this from any location provided they have internet connected PCs. This also saves a lot of time allowing borrowers to access the required amounts quickly.
In order to improve on efficiency, the company’s management team decided to upgrade the platform that applicants have been using and this has now been done. There are a number of things that were customized starting with the first step of application. The inquiry form is very brief and its simplified form will be making it very easy to complete. Its new design will also help to avoid common mistakes.
The team charged with the responsibility also oversaw the overhaul of the matching process to ensure that consumers’ details are accurately matched across the database of lenders. This was also a success and quotes on online personal loans for bad credit will be coming from the appropriate lenders. Display of these offers was also optimized to allow borrowers to compare them easily and within a short time.
Jason Clarke has already experienced the new changes and he commented that, “It’s quite unbelievable how they have simplified the application process and I was done with this step in just three minutes. I was very happy with the quotes I got and the funds were in my account within 6 hours. It’s really an amazing experience and I’m very sure that all the applicants will appreciate the company’s efforts.”
This company was started in 2011 and it has been adding lenders all along to develop the database that is currently in use. On making an application, consumers are issued with multiple offers to make their own choices and all this happens in a matter of minutes. Most borrowers are also able to access cash within 24 hours. Applications for online personal loans for bad credit should be forwarded through www.epersonalloansforbadcredit.com
A smaller share of applications for purchase financing converted to closings last month, while turnaround for all loans slowed. Credit scores on government originations fell even as conventional scores moved higher on refinances.
Out of all home loan applications started in the previous 90-day cycle, 51.4 percent closed in the month of October.
The closing rate worsened from 52.3 percent in the previous month and 54.5 percent in the same month during 2012.
A recent study by Genworth Financial finds that many people have unrealistic expectations about retirement.
Although 73 percent of pre-retirees are confident they will retire as planned, only 48 percent actually do. Some workers are forced to retire earlier than planned because of job loss, health or family issues.
Two things that used to be expected in retirement were that you only needed 70 percent of your income during retirement and that your income taxes would be lower. These things are not certain in todays economy. The Genworth study found that 65 percent of retirees found that their expenses stayed the same or increased during retirement. This is partially because many people start their bucket list when they retire or have more time to do expensive activates such as golf and traveling.
Another big reason expenses are more than expected during retirement is medical costs. This may well be your biggest expense during retirement. Anyone retiring before age 65 must deal with the total cost of health insurance. Once you reach 65, you probably qualify for Medicare. However, Medicare is not free. Medicare Part A covers hospital care. It is funded through payroll taxes that we pay while working.
Part B covers doctor visits and outpatient services. Part D covers prescription drugs. These two parts are funded with subscriber premiums. There is a sliding scale based on your income. If you withdraw a large amount of qualified funds to make a large purchase, it may increase your next years Medicare cost. This should be a consideration if you are making a Roth conversion while receiving Medicare.
Your Medicare premiums are calculated using the Medicare modified adjusted income. This is figured differently than MAGI figures used in other areas of retirement planning. To calculate yours, look at your 1040 and add line 37 to the tax exempt interest amount on line 8b. Remember, the premiums you are calculating are for a single person, so you need to double them for a couple.
While a Roth conversion while receiving Medicare will increase your cost, a conversion before starting Medicare can give tax free income that does not increase your insurance cost. Many people use tax exempt bonds to avoid the 3.8 percent Medicare surtax. This tax free income is included when calculating your Medicare cost.
It is important to consider medical costs while you are planning your retirement income. If you do not take this into consideration, you may not have enough funds to fulfill all of your retirement dreams.
Next week, we will look at all of the confusion with the Affordable Care Act. Many things are up in the air with the presidents announcement this week that some parts are being pushed back for a year.
To help you plan for Medicare, we are offering a free 24-page Life Guide…Social Security and Medicare. To get your copy, e-mail your name and address to email@example.com.
Gary Boatman is a certified financial planner and a local businessman who serves as president of the Monessen Chamber of Commerce.
Given the multiplicity of goals, how should a parent decide which one is more important? One should prioritise ones goals based on two main factors–the time on ones hands and alternate sources of funding the goal, says certified financial planner Jayant Pai. List your goals and the time in which you need to achieve them. Then, distribute the investible surplus among goals on the basis of the urgency of each goal.
You should choose to allocate a higher surplus towards your own retirement if you havent managed to build a sizeable nest egg. However, if you have a sufficiently large retirement corpus, you can allocate more towards other goals. Experts say retirement planning is paramount because you can get a loan for all other goals, but nobody lends for retirement. Yes, reverse mortgage is gradually catching on, but only the people with a house can go for this option.
The Indian parent is also an emotional investor, torn between his responsibility to provide for his childrens needs, and ensuring a golden retirement for himself. This is why child Ulips, despite their high charges, were of working people expect an inheritance from their parents. of retirees expect to leave an inheritance for their children. 86% 59% Rs 12.09 lakh Rs 26.78 lakh Median value Median value
Source: HSBC Future of Retirement 2013 survey Sacrificing for children can jeopardise your retirement planning, says Sakina Babwani. a big hit with insurance buyers at one time. Emotion is the last thing that should influence your decision. This is why it is not always prudent to allocate all your savings towards your childrens goals, says Pai.
Dont get us wrong. We understand that your childrens needs are paramount and you want to give them a leg up in life, but dont go overboard in doing so. Putting away a large chunk of your investible surplus in a house for your child is not a good idea if you have not built a sizeable nest egg. Besides, who knows whether your child would want to live there 20-25 years from now. So, you are diverting resources today towards things that your child might not want tomorrow. In most cases, children may not even need the money you are saving for them. As the HSBC survey shows, 86% of retirees plan to leave an inheritance for their kids, but only 59% of the working people expect something from their parents.
Retirees plan to leave more than youngsters expect to receive
Gift Financial Independence
The greatest gift you can give your child is financial independence. Delhi-based Apra Jain, 23, learnt the importance of saving as a kid. Today, I put money in equities instead of the piggy bank, she says. During her college days, she would get a monthly allowance of Rs 5,000, from which she began to invest in stocks. I started by putting in Rs 10,000 and gradually increased it to Rs 25,000 a month, all from my savings. Today, I invest Rs 10,000 every month in my portfolio, Jain adds.
As financial advisors, Gordo and Burrow were used to meeting with clients and trying to help them manage their money, but they were frustrated by how difficult that process could be. They wanted an easy way to give people an answer to those two big questions an assessment of their financial well-being and a road map for improving their finances. Thats why they developed FlexScore, which generates scores along with ideas for how to increase the score, based on a wide range of financial factors, including savings accounts, insurance policies and estate planning. Earning the maximum score of 1,000 means youre financially independent, Gordo explains. (The lowest score is technically a zero, but most beginners start closer to 150.)
We felt there needed to be one score for a person to rely on if they were trying to figure out if they were financially independent. Then, once you have the score, there has to be ways to improve. The combination of the score and the to-do list is the horsepower of FlexScore, Gordo says.
[Read: Why You Shouldnt Share Your Good Credit Score on Facebook.]
One tool within FlexScore allows users to model potential decisions, like buying a home, to see how the rest of their financial lives could be affected. Now you can make informed decisions about your life based on the scoring tool maybe Im way ahead of the game and can retire earlier or can buy that second home, Gordo says. Another tool provides a peer ranking, so users can see how they compare to people with similar profiles. An online FlexScore learning center offers videos explaining topics ranging from inflation to estate planning, and users earn points by watching them.
Recommended action items might include taking out more life insurance, getting a lower-interest rate credit card or learning more about estate planning. FlexScore refers users to related websites, such as Insure.com or Bankrate.com, which allows the company to earn referral fees. FlexScores business model also includes earning licensing fees from banks or other financial institutions that pay to incorporate the tool into their own websites for customers.
FlexScore also licenses the tool directly to financial advisors who pay a monthly licensing fee to use the tool with their clients. (However, anyone can use the core part of the tool for free by creating an account.)
And this is just the beginning. Gordo says he wants FlexScore to eventually replace, or at least be used in tandem with, credit scores as a way of measuring peoples financial health and ability to take on credit. Our aim is to become an industry standard by which people measure themselves financially. Its much more complete and complex than a credit score, Gordo says. The credit score is a black box logarithm that nobody understands. FICO invented it in the 1950s its very confusing, he adds.
[Read: How to Avoid Online Ticket Scammers.]
Gordo and Burrow have a long way to go to make that goal a reality. Kristine Snyder, a spokeswoman for the credit bureau Experian, says she is not familiar with FlexScore, although she says she cant see a score based on self-reported information being more valuable or more reliable than what is currently available today.
Anthony Sprauve, a spokesman for FICO, wrote in an email that the FICO score is the most predictive tool for evaluating consumer creditworthiness. We continually evaluate new and alternative types of data for use in our credit scores. However, we only incorporate such data into our scores after extensive scientific testing has proven that the data is predictive of consumer credit risk and after ensuring that such data is compliant with all fair credit laws and regulations, he wrote.
If you are in your 20s and have started planning for retirement, then you probably feel pretty lonely: A survey conducted two years ago by Scottrade suggests that four out of five young people have not yet begun actively planning for retirement.
If youre one of the smarty-pants 20-somethings that have already started to save for retirement, youre already winning. For every dollar you save in your 20s, you can reasonably expect a minimum tenfold return — and you could definitely see more.
Achieving a return that high, however, requires a lot of patience and perspective.
If you are in your 20s now, it will be 30 to 40 years before you touch any of the money youve diligently stored away. That means you can afford to put all of your retirement nest egg — thats right, 100% — in the most risky and lucrative investment medium there is: the stock market.
Consider this: Large-cap stocks yielded an approximate 10.4% average annual return from the mid-1920s through the mid-2000s. In rolling 30-year periods, even during the Great Depression, stocks beat bonds every time.
Investors in their 20s can establish a large portion of their nest eggs by getting totally invested in stocks at this early stage of the game. Time is your friend; it minimizes the risk involved with total stock asset-allocation because you have time to ride out the lows of the market.
This isnt the Wild West. There are a few rules you should follow if you want to maximize your returns and minimize your exposure to risk.
Rule No. 1: Dont put all your eggs in one basket
By investing 100% in stocks, you are already (sort of) putting your eggs in one basket, so spread the love around. Index funds are a great way to gain exposure to a variety of stocks for a lower cost than a managed fund. The Vanguard Large-Cap ETF (NYSEMKT: VV) is a good place to start for new investors. This fund offers a sampler of some of the largest US stocks and will save you a fortune in fees in the long run. ETFs offer a lot of flexibility: You can buy and sell them like stocks, and you dont need to have a lot saved up before you can purchase a few shares.
Alternatively, if you want to get broader stock-market exposure and you have a little more to spend, consider the Vanguard Total Market Index Fund (NASDAQMUTFUND: VTSMX) . This fund offers about 30% of mid-cap and small-cap exposure in addition to its large-cap holdings. This fund has a $3,000 minimum initial purchase, but many brokerages offer monthly periodic investing in mutual funds after you make your initial purchase, which will help automate saving.
Rule No. 2: Avoid target-date funds
The idea of avoiding any actual retirement planning by tossing your money into a target-date fund is alluring. These funds allow investors to pick their target retirement year, and they supposedly provide an asset allocation that is risk-proportionate to the investors time horizon. These funds, however, are often too conservative for young investors who have time on their side.
For example, the T. Rowe Price 2055 Retirement Fund (NASDAQMUTFUND: TRRNX) is invested 10.53% in cash and bonds. Investors in this fund are more than 40 years from retirement, and theres no reason they should have any portion of their portfolios in bonds or cash. This reduces the funds potential return, and on top of that, investors will lose even more to management fees, which are significantly lower among passively managed index funds.
The long haul
Riding out the highs and lows of the market is the hardest part about being fully invested in the stock market. Once you get past the psychological barriers, however, you will find that the rewards are great down the line. Putting away a little now will give you more freedom in your career, more confidence in your future, and more options in your life. Your future self will marvel at how smart you were.
CEO of Hobart Financial Group, A Leading North Carolina Retirement Planning Company, Featured in CNBC Article About Supporting Adult Children
The CEO of Hobart Financial Group, a leading Charlotte retirement planning company, was featured in a CNBC article discussing the financial burdens of adult children on many couples.
As some credit unions continue to shift their focus towards courting younger potential members, baby boomers still have money to spend and shouldnt be counted out.
Jeffry Martin, president of auto buying CUSO Autoland Inc., backed that observation up by looking at sales activity at the Chatsworth, Calif.-based firm.
He said recent data showed that boomers represented 42% of Autolands sales while Millennials only represented 10%.
While most industries are heavily focused on influencing consumer behavior of the Millennial generation, the majority of todays US auto sales still rest with baby boomers, Martin said.
(Click on image at left to expand.)
Autoland serves more than 200 credit unions nationwide, representing more than eight million credit union members. The CUSO said it has delivered more than $1.8 billion in direct auto loans to credit union partners over the past 10 years.
During a recent auto lending symposium conducted by the California and Nevada Credit Union Leagues and the Northwest Credit Union Association, Martin said he urged the audience to strike a balance between boomers and Millennials.
Our message is to structure their loan programs, service capabilities and marketing to appeal to both groups with an understanding that boomers currently have greater purchase power and credit quality, Martin noted.
Consumers in the 55- to 64-year-old age range are most likely to buy a new car, according to a study, Marketing Implications of the Changing Age Composition of Vehicle Buyers in the US, from the University of Michigans Transportation Research Institute.
Coming in first was the 45- to 54-year old age bracket that also includes boomers, the data showed.
Experians latest State of Credit report paints a familiar yet disjointed picture of credit health in the US
Consumers in some regions seem to have come out on the other side of the recession like champs (we’re looking at you, Midwesterners), while pretty much the entire Southern half of the country is following at a limp.
Experian broke down the data* to rank the largest 11 US metros by credit score, and they seem to follow a similar pattern. Boston topped the list with an average score of 705, followed by runner-up San Francisco and fellow Northern metros New York City and Chicago. Falling farthest behind was Miami, with an average score of 628, followed by Dallas and Houston with averages of 665 and 666, respectively.
Obviously, your credit score is just one indicator of your overall financial health. It doesn’t reflect how much money you have in the bank, but it gives lenders a picture of how creditworthy you are.
What exactly do the folks in Boston have that people in Miami don’t?
Unfortunately, credit reports only tell us how consumers use credit, not why, which is essential if we want to understand why some regions fare better than others. But we can make a few educated guesses.
For starters, the recession didn’t hit every state with equal force, and states like Florida, California, Nevada and Arizona were pummeled by a tidal wave of foreclosures after the housing bubble burst. Location also makes a difference in how families manage their debt when they’re financially squeezed. A household in Miami earning the median income of $43,900 a year might have more trouble dealing with debt than the same family in Boston, where the median household income is more than 18% higher at $52,000. In San Francisco, which has the second-highest credit score among large metros after Boston, the median household income is $72,000.
Miami’s unemployment rate is still relatively high as well, at 7.3% compared to Boston’s 6.2%.
The age factor
The age of the general population in an area can certainly skew credit scores as well. Regions with a greater number of young and new immigrant populations tend to see lower overall credit health, and the South and Southwest boast some of the youngest populations in the country.
Sometimes, age makes all the difference. Although baby boomers carry nearly $30,000 worth of debt and hold an average of three credit cards, they boast a pretty high credit score of 700. Millennials, on the other hand, carry about $23,000 in debt on average across only 1.5 cards and still have the lowest credit score of all age groups at 628.
“Millennials have the lowest scores [because] they have very few credit cards,” says Maxine Sweet, vice president of public education for Experian. “And while they have lower overall credit debt, that’s not really a good indicator [of credit health]. You can have high debt and a good score because you have a lot of credit cards and low utilization rates.”
Credit utilization — how much you’ve charged on your card vs. your actual limit — is one of many factors that go into formulating a credit score. The higher it is, the lower your score will be. When you have only one or two cards to rely on, like millennials, you can wind up with a higher utilization rate per card than someone who carries three or more. At 37%, millennials’ average utilization rate is nearly four times higher than experts recommend and 7% higher than boomers, according to Experian.
Apart from simply having fewer cards to spread their debt around, millennials (who are between ages 21 and 33) don’t get the benefit of having a lengthy credit history on their file either. Ditto for new immigrants, who are just beginning to build their credit file in the US
“For millennials, showing you can use credit cards is one of the most important ways to build credit,” Sweet says. “I worry that millennials are suffering for the sins of their parents. Many of their parents may have messed up at some point in their life so they are warning millennials away from credit. But every adult needs to establish credit.”
*Experian calculated credit scores for this study using the VantageScore 3.0 model, a revamped version of the original VantageScore, which is a generic credit scoring model that has been around since 2006. VantageScore 3.0 was launched as a joint effort by the three major credit reporting agencies (Experian, TransUnion and Equifax). The biggest difference in the new score is that its the only credit score that doesnt track debt collection accounts after they have been paid in full and it uses the same 300-850 point scale as FICO.
Have a credit story to tell? E-mail Mandi Woodruff at firstname.lastname@example.org.
Reuters Friday 22nd November, 2013
NEW YORK (Reuters) – The stereotype of American millennials is not pretty: Hanging out in basements, sponging off mom and dad, not making much money to speak of, and not really sure of what to do with it, when they do get it.
But what if – as evidence suggests – that stereotype were all wrong? What if 20-somethings and 30-somethings are actually off to a pretty good start in retirement planning – and might turn out to be the savviest savers of all?
Consider Kevin Grubb. The 28-year-old career coach from Philadelphia takes his retirement saving as seriously as a heart attack.
The very first day that I was allowed to contribute at my first job, I did, says Grubb, who at age 24 started chipping in 5 percent to a 403(b) in order to take full advantage of his employer match. …