Buying a house isn’t an out-of-reach fantasy, even for those who do not have exceptional credit ratings or lots of money on deposit at the financial institution. Regrettably, many individuals presume they will never have the opportunity to own their particular house since they have paid for bills past their due date or perhaps declared a bankruptcy proceeding. The truth is, whilst it will be more challenging to have a mortgage with poor credit, it isn’t out of the question. There are a selection of options available and the alternatives each individual house shopper will have will depend on the severity with their credit rating issues along with how long since the problem had been fixed. The easiest method to discover about mortgages for bad credit is to speak to a bad credit mortgage broker. Unlike the average particular person, these kinds of professionals understand which loan companies feature home mortgages to folks that don’t have optimal credit track records. Since they focus on aiding people hunting for mortgages with bad credit, they may have one of the most present information and facts within the topic. These are the individuals to turn to whenever conventional loan companies reject financing request in accordance with the credit ranking. When it is feasible to obtain a mortgage, they will be able to look for a financial institution who will do the mortgage. Just like all residence loans, these kinds of home loans have limits. A customer is not able to currently have a really current insolvency processing or county court judgment. Before applying for a mortgage, possible buyers ought to make certain all their monthly bills happen to be compensated punctually for a minimum of 2 years. Soon after getting every one of the required documents, the brokerage service should figure out if the house shopper meets the qualifying criteria of the loan providers and can send in the application to those loan providers to get approval. To start, potential buyers might pay a visit to badcreditmortgagebroker.co.uk to acquire a estimate. This web site contains a great deal of information which will help a person examine their own credit record and correct any kind of errors. Mistakes on credit accounts can be a commonplace source of mortgage denial. As numerous individuals have discovered simply by following the tips at www.badcreditmortgagebroker.co.uk, out-of-date and wrong information is usually integrated on consumer credit files. Correcting those errors through getting in touch with the credit rating firm may boost an individual’s credit score enough to be eligible for a home loan. A wide range of credit accounts will be documented to credit reporting agencies. Cellular phone, utility and pay day loan balances are probably the most commonly disregarded expenses that can damage a credit rating making it difficult to obtain a home loan. Any person who wishes to invest in a residence must be sure these payments happen to be paid out punctually every month and keep documentation of such monthly payments in the event that their credit history doesn’t represent their well-timed payments. Websites similar to https://www.badcreditmortgagebroker.co.uk/ supply guidance and focus to individuals who have experienced previous consumer credit troubles to enable them to have the modifications needed to help them buy a residence.
How to Stay Safe When Out at Night
Think about ways in which we can defend ourselves proactively against danger, risk, injury, and/or death. Specifically, safety at night is something that seems to be an issue for people from all ages and walks of life. When traveling alone at night or just being home alone, there are things you need to think about constantly in order to keep a vigilant awareness about your safety. For example, if you need to go to an ATM at night (or even during the day), try to go to an ATM in a well-lit, public place and where there is a nearby safety spot, such as police car patrol and protection. If you have to walk at night, do everything in your power not to walk alone, as being with just one other person decreases your chances of being attacked or put in harm’s way. If you do end up having to walk alone, make sure you have self-defense and awareness items like pepper spray, flashlight, reflective/bright clothing, working phone with GPS, and perhaps even put 911 on speed dial in case of emergency. Also, let your family and friends know where you are going and how long it should take, so that if you don’t return or respond to calls/texts by a certain time, they know you are in danger and to find out what is going on. If you ever are somewhere alone, let someone else know so that you are not the only person who knows where you are.
This all might sound like common sense, but sometimes we take these things for granted and end up in danger that could have been easily avoided had we prepared vigilantly. According to statistics released by the U.S. Department of Education in 2014, during the years 2011-2013 on U.S. college campuses, arrest rates went up consistently, showing an increased crime rate across the board. Furthermore, the reported criminal offenses across U.S. college campuses remain in the 700-800 range, meaning that almost one thousand crimes a year are reported to law enforcement, making for quite a consistent level of criminal threat. College campuses are one particularly charged arena for individual safety concerns, as college students are young, naïve, newly independent, and unable to access the same resources as adults and parents.
Other particularly endangered groups include nighttime delivery or taxi drivers, people working in the service industry who travel alone or work alone at night. Many of us like to order food late and take service industry workers for granted. The job they do is truly important and convenient. So if you’re a taxi or delivery driver, or anyone on duty at night, please be aware of your surroundings and consider keeping pepper spray and a safety alarm/whistle on hand to protect yourself from danger or injury. The extremely reasonable prices of pepper sprays and personal alarms are worth the minor cost, considering their important role in keeping your life safe!
Safety During Holiday Shopping and Activities
It’s officially holiday season, and what a year 2015 has been! As we near the end of this year, it is important to reflect and keep in mind how far you have come in terms of wellness and security. In order to help you with this moment of awareness and reflection, we have some tips we want to share with you for making it through this holiday season safely.
First off, let’s talk about shopping safety tactics. Try not to carry a lot of shopping bags in public or through a dark parking lot after you are done shopping, as this will make you a target for thieves and criminals. Keep your wallet and purse zipped and hidden away, perhaps inside your coat or pants pocket, in order to get your money and ID cards out of harm’s way. When you do drive with shopping bags in your car, keep them in the hidden trunk and not in your backseat, as backseat bags are viewable from the outside and can make your car a burglar’s target.
Drive safely through shopping centers, as pedestrians and crowds are more common during the busy holiday shopping season. Don’t get distracted or even hold your phone while driving, as this will tempt you to text or look down while driving a powerful and potentially dangerous vehicle. Once you get home, make sure you move your shopping bags inside discreetly and without strangers’ attention. This will ensure that the items and presents you have purchased are not on the radar of potential thieves.
After opening the presents that have been wrapped in beautiful décor and wrapping paper, it is always a good idea to break down cardboard boxes and place them in opaque/black garbage bags. This will help to hide your trash and curbside items from looking new or attainable to passersby. If a potential criminal passes by your home and sees gift boxes on your curb, he/she might be more inclined to invade your personal space and steal your brand new possessions. Thus, the lesson here is to not leave your items out in plain sight, as this could put you in harm’s way. Safety is all about conscious awareness of your surroundings, and we hope that this holiday season, as you take in the beauty of the season, you remember to take care of your security and that of your loved ones.
Remember to always ask yourself, how can I protect my loved ones and myself from threats both inside and outside of our homes?
Understanding Fundamental and Technical Analysis in Forex Trading
To become a successful Forex trader you need to understand how to analyze the market. Market analysis in case of Forex Trading is usually done in two different ways. These are Fundamental Analysis and Technical Analysis. So what really is fundamental analysis and what is technical analysis? Let us understand what these terms mean and how can one use these techniques to trade in a better manner.
Fundamental Analysis: Fundamental analysis deals with analyzing the economic, social and political position of a nation as a whole to determine the value of its currency and to determine whether the currency’s value will rise in the near future or whether it will fall down. The main principle behind this is that if the economy of a nation is doing very well then its currency would also do well. Certainly the value of a currency of a nation which is having a growth rate of 10 % per year would be better than the value of a currency of a nation whose progress is very slow. Similarly the currency of a developed nation will have higher stability than that of a developing nation. Fundamental Analysis basically means that a good economy leads to higher currency value and a bad economy leads to a lower currency value.
Technical Analysis: Technical analysis deals with Forex Trading at the root or basic level. Technical analysis is the study of the price movement of a currency pair.By this we mean that in Technical analysis we analyze the price of a currency pair with respect to time and find out the change in the value of a currency pair over a certain interval in order to ascertain which is the best currency pair to invest in and at what time should the investment be made. One of the most important thing that one must learn or try to interpret is trend. A trend is a situation when the value of a pair is either falling or rising constantly. A trend can earn you money in forex trading. If you are able to find a trend and follow then you would surely gain from it. So it is important to find out trends and follow them to earn a profit.
From the above discussion we can conclude that Forex Trading has two aspects that need to be understood in order to gain an advantage over other investors as well as the market. Complete understanding of Fundamental and Technical analysis techniques can help you earn a continuing profit in the Forex Market.
Trading Analysis of Stocks Successful Results Revealed
Trading Analysis of stocks employs different tools and models to give investors and traders the best edge. The 2 principal tools employed are Technical and Fundamental Analysis.
The market activities of the last decade provide a good look at the merits of Technical VS Fundamental Analysis.
The Dow Jones Industrial Average started the decade of year 2000 at 10, 937.74, saw a high of 14,198.10, crashed to a low of 6,469.95 on March 2, 2009, partially recovered from its low and ended the decade at 10,572.02.
Similarly, the S&P 500 Index started the decade at 1,394.46 saw a high of 1,576.09 and ended the decade at 1,136.52.
The NASDAQ Composite Index fared not better. It started the decade at 3,961.07, saw a high of 4,696.69 and ended the decade at 2,308.71.
What a ride! Many people who panicked and got out at the bottom suffered huge losses. They also lost double because inflation did not follow the pattern of the Dow; it increased.
Those whose Trading Analysis of stocks was based on Fundamental Analysis were hurt miserably. Investors who were buying and holding securities over that period saw their portfolios shrink.
Even worse were those who panicked and got out when the market bottomed in early 2009 thereby suffering and turning huge paper losses into actual loses before the market recovered partially from the bottom.
The rebound off the bottom is actually astounding – over 60% in many cases as of this writing.
For younger investors, as painful as this was, they have time on their side to play catch up. However, older investors, especially those nearing retirement saw their 401Ks and other retirement vehicles crash and badly damaged putting their retirement income in jeopardy.
Was there a way to sidestep this market collapse, especially in the final years of the decade? Yes there was! Doing a stock trends analysis or pattern analysis of stock prices and movement would have given a clue.
Proponents of Technical Analysis ride the Trend whether the Trend is going up or down and get in or get out at Support or Resistance.
Technicians following the trend would actually have made money going down and on the way back up.
It will be worthwhile to point out some of the main differences between Fundamental Analysis and Technical Analysis.
1. Fundamental Analysis focuses on:
A. Macro Economic Factors
Supply and Demand
Other Market Data
B. Company Specific data like
Valuations including Ratios of Price/Earnings(P/E), Price/Sales, Price/Book, PEG Ratio
Profitability: Gross Profit Margin, Operating Margin, Net Profit Margin
Growth Rates: EPS and Revenue
Financial Strength: Total Debt/Total Capital, Quick Ratio
Effectiveness: Return on Equity, Return On Assets, Return On Investment
2. Technical Analysis
Volume, stochastic analysis and open interest
Fundamental Analysis is very important and it predicts the long term direction of the stock. However, it has a serious flaw. It usually works with a lag. It is also difficult, even impossible perhaps, to tell when it will be driven by it’s fundamentals. The eminent Economist John Maynard Keynes put it best when he said that markets can remain irrational far longer than people can stay solvent.
Technical Analysis on the other hand offers an immediate clue as to the stock’s direction which is signaled by the behavior of the stock price. Technicians also believe that all the fundamentals of the stock are baked into the price anyway and just studying the price pattern will also justify the fundamentals.
Although there might be some credence to that, what is even more important is the fact that Technical Analysis has so many followers and users all of whom are observing the same Trends, Support and Resistance and they behave the same way based on the same observations.
In Trading Analysis of stocks, technical stock market analysis provides the rationale that makes Trends, Support and Resistance ultra important. They are self fulfilling particularly Support and Resistance Levels especially when they occur at nice round numbers.
This is because many traders do the same things at the same time resulting in a herd mentality thus confirming these Support and Resistance Levels. So if you can identify these points, you can benefit immensely.
Hence the reasons for big bounces off Support and Resistance. To get a step ahead, many professionals try to preempt some of these events.
Trading Analysis provides different but effective trading strategies depending on ones psychological make up.
To learn more about Trading Analysis, GO TO stock-trading-guru.com/technical-analysis.html [http://www.stock-trading-guru.com/technical-analysis.html] for more detailed information.
Winston has extensive knowledge and proficiency in the Financial Markets. He started trading in the Commodities Market since the mid 1990’s and has since become very active in the Stock Market.
Technical Analysis For the Advanced Options Trader
Technical analysis often plays a large part in the determination to enter or exit stock trades in the short and intermediate term. It can also play a part in determining entry and exit of long option trades (buying calls or puts). What about using technical analysis in determining entries and exits of more complex options strategies such as vertical spreads, calendar spreads, iron condors and diagonal spreads? In this article, I want to specifically address the use of technical analysis in advanced options trading.
The problem with technical analysis
Even the best market technicians can only tell you what is likely to happen. This isn’t the fault of technical analysis (TA for short) or in the practitioners of it. It is simply a fact that must be reckoned with. TA is much more like checking the direction of the wind than a predictor of which way it will blow tomorrow.
While TA may be able to tell you what is likely to occur or what is going on at the moment, it can’t tell you your probability of success in a trade. There has been some work to quantify the accuracy of different technical indicators, particularly in the area of chart patterns, but that still doesn’t help with the analysis of the trade itself.
One other danger of technical analysis is the temptation to pile on a bunch of indicators in the hope that it will somehow give us additional insight or edge in trading. I’m not saying the employment of stochastics, MACD, Bollinger bands and the like aren’t important but their use in the overall trading strategy must be understood.
Technical analysis must also be correlated to a timeframe to be effective. In other words, you must know the timeframe you are working in. Is it short term (days), very short term (intra-day), medium term (weeks) or long term (months). To be effective, you must understand the timeframes involved in the options trade and ensure that technical analysis is done for the same timeframes.
Don’t get me wrong, I’m not against using TA for advanced options trading. In fact I’m a firm believer and practitioner of it. However, it is important to realize the limitations as well the benefits and uses. In fact, let’s take a look at some of the benefits.
The benefits of technical analysis
Technical analysis can be used to time an entry or trigger an exit. I often use basic support and resistance levels to do just that. In fact, I believe the combination of TA to time an entry combined with probability analysis for choosing my position actually improves my overall success. Also, when I have a clear support or resistance level that can be used as an indicator that my initial analysis was wrong, I often exit a trade earlier keeping more of my money for another trade.
One other area of TA I find beneficial is in determining overall market outlook. Remembering that timeframe is important, I often use TA to determine what the medium term trend is. This can help me determine what kinds of trade strategies to best employ over the coming weeks.
I’m sure there are other very successful options traders who have found additional uses for TA. In fact, I’m sure there are as many ways to incorporate technical analysis as there are strategies to use them on. That’s what makes trading so interesting. In fact, networking with other successful traders can be an important factor in determining your own trading style.
Knowing how and when to use technical analysis
Ultimately, the determination of how and when to use technical analysis is up to the trader and the trading plan(s) they are using. Understanding the limitations as well as the benefits of technical analysis is a great start. From there, experiment with different approaches using some form of paper trading until a clear strategy emerges.
It’s best to start with basic support and resistance analysis. Keep it simple. Use only the indicators that you are comfortable with and that help in making basic trading decisions. Ultimately though, you as a trader must make that decision to enter or exit the trade based on your evaluation of all the factors.
Putting it all together
In concluding this article, I wanted to provide 4 key tips in using technical analysis for advanced options trading.
Determine what technical analysis tools will be used. It’s easy to be distracted by all the indicators that exist. Paper trade and experiment but start simple. Support and resistance should be your first and primary indicators. Everything else should simply be confirming indicators. Don’t have so many indicators that they drive you to indecision.
Determine timeframes you will use for your technical analysis. Make sure the TA tools used are consistent with the timeframe you are trading. Most advanced options strategies last weeks to months. Make sure the timeframe analyzed is the same.
Put your strategy for technical analysis in your trading plan. Once you decide how and when to use TA, make sure that it becomes part of your trading plan for each strategy employed by writing it in. Having a written trading plan you can look at frequently is a great help to being consistent with that strategy and consistently using TA according to your plan.
Stay flexible. Remember TA isn’t an exact science but more of an art. As you practice, you’ll get better. Remember also that the outlook at one point in time can change in a matter of days. Be prepared to change your outlook if the technical indicators warrant it. However, don’t let small changes drive you to flip-flop in your trades. Continue to take trades for sound reasons and exit for sound reasons.
There is a lot of great information on technical analysis out there. I’ve summarized some of the basic techniques on the TA page of my website at http://www.success-with-options.com/technical-analysis.html. In addition covering how I use TA in my trading there, I’ve included references to some great sites. Be sure to check it out.
Remember to investigate, plan, experiment (with paper trading) and implement technical analysis into your options trading strategies. It can seem like a slow process of getting there but the confidence and consistency you achieve in your trading will be well worth it.
Data Mining and Financial Data Analysis
Most marketers understand the value of collecting financial data, but also realize the challenges of leveraging this knowledge to create intelligent, proactive pathways back to the customer. Data mining – technologies and techniques for recognizing and tracking patterns within data – helps businesses sift through layers of seemingly unrelated data for meaningful relationships, where they can anticipate, rather than simply react to, customer needs as well as financial need. In this accessible introduction, we provides a business and technological overview of data mining and outlines how, along with sound business processes and complementary technologies, data mining can reinforce and redefine for financial analysis.
1. The main objective of mining techniques is to discuss how customized data mining tools should be developed for financial data analysis.
2. Usage pattern, in terms of the purpose can be categories as per the need for financial analysis.
3. Develop a tool for financial analysis through data mining techniques.
Data mining is the procedure for extracting or mining knowledge for the large quantity of data or we can say data mining is “knowledge mining for data” or also we can say Knowledge Discovery in Database (KDD). Means data mining is : data collection , database creation, data management, data analysis and understanding.
There are some steps in the process of knowledge discovery in database, such as
1. Data cleaning. (To remove nose and inconsistent data)
2. Data integration. (Where multiple data source may be combined.)
3. Data selection. (Where data relevant to the analysis task are retrieved from the database.)
4. Data transformation. (Where data are transformed or consolidated into forms appropriate for mining by performing summary or aggregation operations, for instance)
5. Data mining. (An essential process where intelligent methods are applied in order to extract data patterns.)
6. Pattern evaluation. (To identify the truly interesting patterns representing knowledge based on some interesting measures.)
7. Knowledge presentation.(Where visualization and knowledge representation techniques are used to present the mined knowledge to the user.)
A data warehouse is a repository of information collected from multiple sources, stored under a unified schema and which usually resides at a single site.
Most of the banks and financial institutions offer a wide verity of banking services such as checking, savings, business and individual customer transactions, credit and investment services like mutual funds etc. Some also offer insurance services and stock investment services.
There are different types of analysis available, but in this case we want to give one analysis known as “Evolution Analysis”.
Data evolution analysis is used for the object whose behavior changes over time. Although this may include characterization, discrimination, association, classification, or clustering of time related data, means we can say this evolution analysis is done through the time series data analysis, sequence or periodicity pattern matching and similarity based data analysis.
Data collect from banking and financial sectors are often relatively complete, reliable and high quality, which gives the facility for analysis and data mining. Here we discuss few cases such as,
Eg, 1. Suppose we have stock market data of the last few years available. And we would like to invest in shares of best companies. A data mining study of stock exchange data may identify stock evolution regularities for overall stocks and for the stocks of particular companies. Such regularities may help predict future trends in stock market prices, contributing our decision making regarding stock investments.
Eg, 2. One may like to view the debt and revenue change by month, by region and by other factors along with minimum, maximum, total, average, and other statistical information. Data ware houses, give the facility for comparative analysis and outlier analysis all are play important roles in financial data analysis and mining.
Eg, 3. Loan payment prediction and customer credit analysis are critical to the business of the bank. There are many factors can strongly influence loan payment performance and customer credit rating. Data mining may help identify important factors and eliminate irrelevant one.
Factors related to the risk of loan payments like term of the loan, debt ratio, payment to income ratio, credit history and many more. The banks than decide whose profile shows relatively low risks according to the critical factor analysis.
We can perform the task faster and create a more sophisticated presentation with financial analysis software. These products condense complex data analyses into easy-to-understand graphic presentations. And there’s a bonus: Such software can vault our practice to a more advanced business consulting level and help we attract new clients.
To help us find a program that best fits our needs-and our budget-we examined some of the leading packages that represent, by vendors’ estimates, more than 90% of the market. Although all the packages are marketed as financial analysis software, they don’t all perform every function needed for full-spectrum analyses. It should allow us to provide a unique service to clients.
ACCPAC CFO (Comprehensive Financial Optimizer) is designed for small and medium-size enterprises and can help make business-planning decisions by modeling the impact of various options. This is accomplished by demonstrating the what-if outcomes of small changes. A roll forward feature prepares budgets or forecast reports in minutes. The program also generates a financial scorecard of key financial information and indicators.
Customized Financial Analysis by BizBench provides financial benchmarking to determine how a company compares to others in its industry by using the Risk Management Association (RMA) database. It also highlights key ratios that need improvement and year-to-year trend analysis. A unique function, Back Calculation, calculates the profit targets or the appropriate asset base to support existing sales and profitability. Its DuPont Model Analysis demonstrates how each ratio affects return on equity.
Financial Analysis CS reviews and compares a client’s financial position with business peers or industry standards. It also can compare multiple locations of a single business to determine which are most profitable. Users who subscribe to the RMA option can integrate with Financial Analysis CS, which then lets them provide aggregated financial indicators of peers or industry standards, showing clients how their businesses compare.
iLumen regularly collects a client’s financial information to provide ongoing analysis. It also provides benchmarking information, comparing the client’s financial performance with industry peers. The system is Web-based and can monitor a client’s performance on a monthly, quarterly and annual basis. The network can upload a trial balance file directly from any accounting software program and provide charts, graphs and ratios that demonstrate a company’s performance for the period. Analysis tools are viewed through customized dashboards.
PlanGuru by New Horizon Technologies can generate client-ready integrated balance sheets, income statements and cash-flow statements. The program includes tools for analyzing data, making projections, forecasting and budgeting. It also supports multiple resulting scenarios. The system can calculate up to 21 financial ratios as well as the breakeven point. PlanGuru uses a spreadsheet-style interface and wizards that guide users through data entry. It can import from Excel, QuickBooks, Peachtree and plain text files. It comes in professional and consultant editions. An add-on, called the Business Analyzer, calculates benchmarks.
ProfitCents by Sageworks is Web-based, so it requires no software or updates. It integrates with QuickBooks, CCH, Caseware, Creative Solutions and Best Software applications. It also provides a wide variety of businesses analyses for nonprofits and sole proprietorships. The company offers free consulting, training and customer support. It’s also available in Spanish.
ProfitSystem fx Profit Driver by CCH Tax and Accounting provides a wide range of financial diagnostics and analytics. It provides data in spreadsheet form and can calculate benchmarking against industry standards. The program can track up to 40 periods.
Finding an Accounting App to Suit Your Business
Cloud computing is the product of innovation in technology that has changed the working environment altogether. Gone are the days when one has to be physically present in the workplace. The application should have adapted to times and be providing this feature – otherwise, the advantages associated with it like collaboration with other co-workers, security and disaster recovery, among others cannot be reaped. This makes online accounting possible.
The app should be mobile friendly as well as operable in multiple operating systems. A business cannot be expected to be run in a single platform. Rather, with cloud computing, various devices can be used for administration purposes as well as for other purposes. Therefore, cross-platform compatibility is a must. The interface should be conducive for the operation of the application. This includes easy to use home page, a search bar and tabbed interface. In addition, customizable feature should be present so that the business can include its own theme in invoices.
Security of data generated on the course of business should be guaranteed by the application. Business should not be worried about the vulnerability of data – from natural calamities or cyber-crimes. Integration especially with banking system is a desirable feature because this way the transactions of business to the vendors and from the customers becomes quicker. Also, payment of the amount that has been calculated from the transaction can be made with a few clicks and the accuracy can be ascertained.
Acceptance of checks, credit cards, debit cards and PayPal as well as direct deposits from the customers will result in them being happy – the ultimate target of any business. This is another feature which is a must because every mode of payment feasible should be incorporated. Reports that are generated should be exportable in PDF format so that printing is made easy. The reports should also be able to be generated on demand of the business.help menu and manual should be provided to the businesses so that normal problems can be solved by going through those menu and manual.
Continuous improvements and updates should be another feature so that latest threats are addressed as well as ensuring its compatibility matched with the latest available hardware. Pricing of the application should be charged on the basis of the features that have been used – the number of transactions, depending on the turnover of inventory, or the number of employees, payroll calculation purposes, as the maximum limit for example. This will make it affordable to small businesses.
Free trial assists in deciding whether the app meets the demand of the business. While some may need it for lotto inventory, other may need fuel inventory to be tracked. The user should be allowed to familiarize oneself before making sure whether or not to stick with it in the long-run.
Cash for Your Annuity Payments
Getting the cash to pay for your son’s college, or to pay for your new house is something you can’t simply ignore. While you can apply for a loan, often times the interest may not be very favorable for you and you end up paying more than the amount you borrowed. However, if you are a recipient of an annuity payment, selling a part or the whole of the payments may be enough to answer for your immediate financial needs. In fact, most annuity recipients sell annuity for this reason.
While it is true that you can find several annuity buyers that are interested in buying your annuity payments for lump sum of cash, not all will be willing to pay most cash for your annuities. So it is best that you carefully choose to whom you’ll sell your annuity. There a few steps you need to follow to sell annuity for most cash.
The first step you need to do is to make at least a short research about your annuity payments. Does the agreement you signed allows you to sell annuity payments or transfer your rights to a third party? Does it require court order so you can sell your annuity? How much does your annuity cost? It is best that you also consult your lawyer, or your financial adviser when deciding whether it is favorable for you to sell your annuity or not.
Ask for Quotes
To help you find the best annuity payments buyer (the one who is willing to pay most cash for your payments) you need to have an idea how much will they pay for your annuity by asking for their quotes. You can either personally visit them at their office, or call their business line, or you can visit their online website. Either ways, you can secure the quotes you need to better decide on the matter.
Choosing the highest bid does not end the process. You also need to verify if they will be charging you with other fees in connection with the sale of your annuity. Some annuity buyers would usually offer huge amount of cash for it only to find out that they have to deduct from that amount the fees needed for the processing of the sale of your annuity. Compare the fees and the amount these annuity buyers offer you. Consulting your lawyer or financial adviser will be very helpful in this stage. Once you have cleared and compared everything only then you’ll finally sell annuity payments.
How Do Annuities Work
The term “annuity” basically refers to an arrangement that is made between two parties. One of these parties is generally an individual, who gives a sum of money, called the premium, in periodic payments or a lump sum, to the second party, which is often an insurance company. In return, the second party gives a steady stream of payment to the first party over a specified period of time that is stated in the arrangement.
Annuities consist of long term products and are a very straight forward approach to funding your future. However, before purchasing, it’s important for you to have a good understanding of what you’re buying.
There are two major kinds of annuity agreements. The first, called annuity certain, specifies the certain period for payment. For example, suppose you pay a certain amount of money to an insurance company for a twenty year annuity. You make an agreement whereby monthly payments are sent out along with a percentage growth, over the period of annuity. You will be a paid a specified amount of money, every month, till the arrangement comes to end.
The second type, called the life annuity, is most commonly employed by people who have retirement savings in mind. In this agreement, you pay a lump sum to the insurance company and they pay the money back to you at a specified amount every year for the rest of your life. Life annuities, when done in conjunction with a charity or a nonprofit organization, can offer extra tax benefits.
Among the many things you need to know about investing in an annuity is that it has mainly two types of balances that are running simultaneously. The first balance is your account value, also known as the contract value. This refers to the amount of money available to you at any given instance of time. It depends largely on the performance of the investments within the annuity that are also known as sub accounts.
The second one is the benefit base or the income base which is considered more as a hypothetical account. It is used to represent the amount of money that determines the annual guaranteed income one can draw from the annuity.
It is important to be aware of the differences between these two as sometimes you will come across variable annuities surrounding a guaranteed return that apply only to the income base and not to the actual account value. Income value is not the amount you can cash out. The only balance that you can withdraw when needed is your account value which may or may not be higher than your income base.
From time to time the insurance company will compare your account value with the income base. This, in most cases, is done on the anniversary date of the contract. If your account value turns out to be greater than your income base, then the insurance company will increase the benefit base such that it will be equal to the account value.