Wednesday, November 24, 2010

Retirement Benefits of Variable Annuities

Nowadays, almost all retirement plans and investment after retirement plans come with variable annuities for the retirees. Before you purchase a plan with variable annuity, make sure to know the fundamentals of variable annuity from insurance agents or brokers or other financial professionals. On the basis of the information from them, you can easily determine the suitability of variable annuity for you.

First of all, gather general information from all possible sources related to variable annuities, to say what annuity is, how it works, how it can benefit you financially and what the charges are associated with it. Ask the retirement plan provider for a prospectus on variable annuities. Go through the prospectus carefully. It may provide important information on investment options, annuity payout options, death benefits, and annuity fees and charges. Compare the facts and figures of the annuity of your chosen plan to several other variable annuities.

Variable annuity refers to a contract between an insurance provider and you. The contract is a sort of agreement between both of you. According to it, you will receive periodic payments from the insurer. Variable annuity comes with several different investment options. The value of the investment in a variable annuity varies depending on the profitability of the investment option that you have chosen.

Mutual funds are good investment options for variable annuity. Mutual funds invest in bonds, stocks and money market instruments. However, variable annuities are different from mutual funds in many ways. A variable annuity will benefit you with periodic payments till the last year of your life. It provides protection in sense that you do not need to outlive the assets after your retirement. Death benefit is one of the best advantages of a variable annuity. If your death occurs before you receive payments from the insurer, your beneficiary is sure to get the benefit.

Friday, November 19, 2010

5 Tips For Credit Card Elimination

5 Tips For Credit Card Elimination

With the economy rebounding so slowly, paying thousands of dollars each year on those credit cards not only does not make sense but, robs you of money that you and family could put to good use. While getting out of credit card debt is not easy and will take time, here are 5 tips that can if followed get you out of debt and have your family on its way to your own economic recovery.

Make a Budget
The first thing you are going to want to do is make a budget and plan on how you and your family are going to live without using those credit cards. The only way you are going to eliminate your credit card debt is to quit using those cards so having a budget and planning for each purchase in advance will help eliminate your need to depend on those cards.

Use Cash
Though it may seem like an old fashion way of living, use cash for whatever you purchase. There is no interest charge when you purchase things with cash so you won't be paying more for an item than its actual cost.

More The Debt Around
Some credit card companies charge more interest than do others so try moving those high interest debts from all those credit cards to one low interest rate credit card. This will end up saving you money while you are paying those debts down.

One Card Only
The only way to eliminate your credit card debt is to eliminate the number of credit cards. Desperate times call for desperate measures so cut up all your credit cards except the one with the lowest interest rate and use that card only in an absolute emergency. Getting rid of the temptation that multiple cards hold will help you live within your budget and make it less possible for you to continue to add to your debt.

Start at the Top and Work Your Way Down
Make a list of the credit cards on which you owe money no matter how little money it may be. Make sure to also list the rate of interest you pay on each card. Then take the cards and list them in order from the highest interest rate to the lowest. Start making more than the minimum payment on the card on the top of the list even it you can only pay an extra $5.00 or $10.00 a month and continue paying on the card at the top of the list until each debt is paid off then move to the next card on the list.

The only way to eliminate that credit card debt is by making the hard choices and some sacrifices along the way. Changing your purchasing and spending habits won't be easy but, is necessary. Adopting the attitude that if you can't pay cash for it you don't really need it will go a long way in helping you to get out of debt faster. It is a long difficult road but, one that can lead you not only to relief from debt but, also in putting more cash back into your families coffers.

Guest post by: Mirsad Hasic is the webmaster and editor of best credit card deals, a site where you will learn how to pick a credit card that suits your current needs while learning how to reach credit card debt relief.

Monday, November 1, 2010

Processing of Multifamily Apartment Loans

Investing into a multifamily apartment project requires a hefty amount. So, one must need to do a thorough market research regarding several factors including market rents, operating expenses and obviously multifamily apartment loans. As such loan is of big size, therefore, the borrowers need to provide a project description along with the summary. The description includes the provision of basic necessities as well as amenities, plan of the building, rough estimation of the project cost and how much the project is environment-friendly.
Once you are done with the initial processing, the lending authority will issue an 'Invitation letter'. This letter is a written acknowledgement that your project is worth getting the multifamily apartment loans. Once your project is considered feasible, the next step of loan processing starts. During this period, the cost of the project is analyzed in detail. Finalized architectural plan, construction costs and other details are meticulously checked. Review of the design of the proposed building and its cost are evaluated to finalize the deal and determine the size of the multifamily apartment loans. When all the necessary steps are finished, a commitment paper will be handed over to you. The paper is a proof of an investor's intention to finance your project and it also mentions the rate of interest charged for the loan.

Closing is the final step of the multifamily apartment loans processing. The investors need not to be worried regarding the permanent loan interest rate risk due to the locking of interest rate for both mortgages. Different sources are there to provide the borrowers with the multifamily apartment loans. The interest rate and repayment facilities vary from one lender to another. Some non-traditional lending programs issue a commitment paper containing the details of all the relevant items including the approval of design, cost and general contractor.