Thursday, September 20, 2018

Home Loan Tax Benefits That You Should Know

money for dream home
With the constant rise in real estate prices, it’s become almost impossible for an individual or a family to purchase a house without the help of a home loan.While many are apprehensive about taking a loan because of the kind of interest rates that they come with, what most people are unaware of are the tax benefits that you can enjoy on home loans. If you’ve got a mortgage on your house, you can avail of benefits and deductions under 3 separate sections of the Income Tax Act.

Deduction Under Section 80C: 

If you’ve taken out a loan to purchase a home for which the construction is complete, and you have the completion certificate, you can enjoy deductions on the amount you pay towards repaying the principal amount of the loan. This clause is only applicable for individuals or Hindu Undivided Families (HUF). The maximum deduction under this section is Rs. 1.5 lakhs. It’s important to remember that deductions will not be valid on any repayments made before the construction is complete.

Even if you haven’t taken a loan to purchase a house, you can still enjoy deductions on the amount that you have paid towards the stamp duty and registration fee of your new home.

Deduction Under Section 24: 

When you’re repaying a loan, you will pay a certain, fixed amount to the lender every month as your Equated Monthly Installment or EMI. Your EMI amount is calculated based on the loan amount, the rate of interest, and the tenure of the loan. Typically, your EMI is made up of a principal repayment amount, and an interest amount. The interest amount that you pay is exempt from tax under Section 24 of the Income Tax Act. You can claim this deduction at the start of the year in which the house’s construction is completed. This benefit is also available if you’ve utilized the loan to repair or reconstruct an existing property.Additionally, if you’ve rented out your home, you can claim for a deduction for the interest amount paid all through the year.

Deduction Under Section 80EE: 

When you apply for a home loan to finance your first-ever house, you can get additional tax benefits on the interest payment sunder this section. To claim this deduction, you will be required to provide a statement from your lender which clearly indicates the total amount payable, your principal amount, and the amount paid towards your interest. The maximum deduction you can claim under this section is Rs. 50,000.

Now that you know about the various deductions and claims you can enjoy when you take out a property loan, you should easily be able to determine which benefits apply to you and which ones don’t. If you’re still having trouble understanding how to figure out the deductions, you can use an online tax benefit calculator. The calculator will help you understand how much money you can save despite the fact that you have to pay interest on the loan amount.

Over the years, home loans in India have helped numerous families find the home of their dreams. With so many additional tax benefits to home loans, it’s getting easier for young individuals to put aside enough money for a down payment and then secure a loan to help themselves find their own little place in the world. So, it’s time to put all your worries to rest, and fill out that application for a loan. Your dreams are counting on it.

Monday, September 10, 2018

Benefits that come with a Child Insurance Plan – Find them out

child insurance investment
A number of responsibilities and joys mark the beginning of a unique journey for a new parent. Parenting remains shrouded by challenges and at times it seems to be an uphill task. Successful parenting is all about nurturing the child and bringing him up to be a responsible and honest individual.

A parent is always concerned about brightening the future of their child. Security is one word that remains associated with your love for the little one. Right through the initial stages of growth, a child needs financial security. That’s one reason why financial planning is so necessary for securing your child’s future. You must identify the financial needs pertaining to your child’s education when the time is right and you actually feel the need to plan things. You’ll even need to allocate a portion of your savings for his college fees, professional courses and boarding charges among other things. It’s truly crucial for you to make your investments on a timely basis. A number of child education plans are now being rolled out by some of the most eminent insurance providers in their attempt to retain policyholders. A child education plan is also a good way of luring investors that keep an eye on the tax exemptions.

Child Education Plans Offer Benefits that Secure the Future of a Child:

Paying off College Expenses with the Maturity Benefit

Parents often want their children to grow up as successful professionals in the field of medicine, law, architecture, and engineering. In order to become a successful professional, it’s necessary for your children to pursue some professional courses in any of these areas. However, it has become increasingly difficult for you to meet all the expensive course fees for a long duration. You may even be compelled to apply for a children’s educational loan that meets the needs of fulfilling your child’s higher studies. The college fees may be inflated but the investment corpus accumulated during the maturity of a child insurance policy can be substantial if you aren’t wasting any opportunity of investing in such plans.

Escaping Deduction of Capital

The return on investments tends to vary with the fluctuating marketing conditions. You must consider adopting some dynamic allocation strategy for funds if you wish to make the most of your vested amount and keep capital erosion at bay. Certain privileges are offered under child plans in the form of Systematic Transfer Plans and Fund Selection benefits. These benefits enable you to make an investment planning according to your expected outcome through the various stages of your life. With an STP, you can even make the most of market fluctuations by transferring all of your fund units automatically.

Choosing Optional Riders

With some plans, the nominee of the insured person is entitled to achieve a waiver for the entire premium that’s to be met during the coverage tenure. Likewise, certain riders are developed to cover the insured if he suffers from a severe injury or ceases to exist during the policy period.

Meeting the School Fees

About 10% of the sum assured is to be paid by the insurance provider as soon as the parent opting for a child plan passes away. Again, till the end of the policy period, 10% worth the sum assured is supposed to be paid out towards the child’s education periodically every year.

Alongside a lucrative maturity benefit, certain comprehensive life coverage benefits are also offered under a child education plan. Compared to a few distinctive investment plans, there are a few unique advantages of investing in child education plans. While applying for a child insurance plan, you must check out if it yields adequate returns for securing the future of your child. Once you narrow down your choices, there’s nothing restricting you from securing your child’s future.

Monday, August 20, 2018

5 Personal Savings Tips to Put Your Savings on Auto Pilot

money saving matters
Putting money into savings is always a smart decision, but it's not always clear how to work that into the budget. After all, having the money sitting there in your checking just opens up the possibly of making unnecessary and impulse purchases. To take care of your hard-earned money, tese five tips will help you go from becoming a chronic spender to a chronic saver, all without having to change your habits directly.

Set Up Regular Automatic Withdrawals

Automated deposits are fast and easy because they happen without you having to worry about them. You should always have a comfortable emergency buffer in savings to help deal with any unforeseen expenses, preferably around six months of your usual salary. Automatically depositing a percentage of your earnings before you account for everything else is like paying your future self to save both time and stress. Set this up immediately if you haven't implemented a savings policy yet as it is the main thing that will help you start saving more.If you work hourly and can't figure out how to set up an automated savings schedule that works with your budget, consider small savings apps like Acorns and Digit that will round out all of your purchases and store the savings in an account for later use. You'd be surprised how much those little savings bits can add up!

Split Your Direct Deposit When Submitting to Tour Employer

Most employers pay by using direct deposit, but you don't have to have all of your funds deposited into one account. You can set up a percentage split with most employers that will see a portion of your income going directly into savings. You're less likely to pull it out of savings and spend it than you are if you leave it sitting in your checking account.

Switch to a Bank or Credit Union that Pays Interest on Savings

Stop banking with an institution that doesn't pay you a dividend on the money you're saving with them. Most standard big corporate banks like US Bank and Bank of America pay paltry interest rates on their savings accounts and charge account maintenance fees on top of that. If you're paying your bank to hold an account, then you're losing money you could otherwise be saving.Online-only banks like Ally and Capital One 360 offer competitive 1.80% APY on their savings accounts and often have multiple options that can be tailored to suit your needs, depending on the amount of money you're saving.

Consider Using a Cash-Back Credit Card for Daily Purchases

Instead of using your debit card for all of your necessary daily purchases, consider putting them on a cash back credit card that will give you a percentage of the purchase price in rewards. Currently, the PayPal Rewards Master card offers 5% cashback on every single purchase, with no rotating rewards categories.If you pay the card off each month and do not carry a balance, that's like getting 5% of what you would have spent back for more savings or to help with those everyday purchases further down the line.

Consider Shopping Around for Your Insurance Needs

If you've been with the same insurance provider for a while, chances are you've seen small rate increases on your bill over the years. These rate increases can account for a significant rise in your budget if you're not careful, so it pays to shop around for both car and house insurance periodically. Shopping around helps to ensure that insurance rates do not increase beyond your means and keeps insurance companies competitive for your business. For car insurance, you will need to have a spotless driving record and be comfortable haggling for rates, but you can always net a more effective rate by talking with your insurance company. Just tell them you're considering switching to a competitor who has a better offer. 9 times out of 10 they want to keep your business and will offer you the competitor’s rate if you stay.

Tuesday, July 17, 2018

What is funeral insurance — and is it right for me?

funeral coverage
Your funeral is a final farewell and celebration of your life. Naturally your family would like it to be special. At the same time, you and they may worry about the price tag. According to the Funeral Directors Association of New Zealand, the average funeral may cost anywhere from $4,000 to $15,000, but can be even higher in some cases. This could be a huge financial burden for your family.

Funeral insurance is one way to help pay for your final expenses. But what is it, and how does it differ from other types of insurance? Let’s take a look:

Funeral cover vs. life insurance

Though they are different products, there are some similarities between funeral insurance and life insurance. Both types of policies generally have the same structure, but typically vary in their details.

Both funeral cover and life insurance pay a lump sum in the event of your death. This benefit can be paid either to a beneficiary of your choosing, or to your estate if you haven’t nominated a beneficiary. Usually, you must continue to pay premiums on your policy to be eligible to receive the benefit payout.

Each type of policy may also offer optional extras to “boost” the benefit amount in certain cases, such as if you were to suffer a serious injury or pass away due to an accident. Funeral and life insurance policies are not savings plans, so the premiums you pay generally cannot be refunded if you decide to cancel your policy.

How funeral cover is different

Life and funeral insurance may be similar on a high level, but they often serve two different purposes. Essentially, these differences are summed up by each product’s name.

Though life insurance policies are typically paid when a loved one dies, they are really designed to help those left behind carry on with their lives. The benefit amount chosen may be quite large (often starting at $100,000 and going up to $1 million or more). This is to help cover ongoing expenses such as making mortgage payments, paying school fees or allowing the surviving partner to take time off work whilst the family grieves.

Compare this to funeral insurance, which is designed to help pay for funeral and other final expenses. Benefit amounts on these policies are typically lower than what life insurance policies offer. Whilst funerals can be expensive, they are thankfully not an ongoing expense, hence the lower cover amounts.

Though these policies are sold as funeral cover, the benefit amount can really be used for anything. Loved ones could also use this money to pay final debts or day-to-day household expenses, giving them one less thing to worry about during what is often a difficult time.

Who might want funeral insurance?

Funeral cover is available for most adults, but it may not fit everyone’s insurance needs. Like with any insurance product, you may want to review your financial situation and requirements when weighing your options.

Many funeral cover policies are what’s known as “guaranteed acceptance,” meaning anyone can buy a policy if they meet certain criteria (typically residency and age requirements apply). Because of this, policies are usually easy and quick to purchase. You typically won’t need to fill out complicated paperwork or answer any questions about your medical history.

This may be ideal for some people, particularly if they’re unable to take out a life insurance policy due to their age. However, others may find that life insurance better fits their family’s needs. If you’re relatively young and don’t mind providing a more detailed medical history, some life policies may offer better protection and lower premiums.

Providing your family peace of mind

Thinking about your own funeral is not the happiest topic to consider. However, putting some thought into your funeral service may help the loved ones you’ll one day leave behind. A funeral insurance policy may be a good option to help them cover the expense of your service, and could remove some of the worry or stress they may experience during this time. 

About Author: Momentum Life is a leading provider of life insurance and funeral insurance products in New Zealand.

Monday, July 16, 2018

Bridging Loans Guide - A helping details

money bridge
Picture this scenario: you want to buy a new property. At the same time, you are thinking of selling the property that you already have. However, there is still no one willing to buy your existing property. Still, you want to buy that new property. What can you do in this situation? Let me tell you about bridging loans.

What are Bridging Loans?

Bridging loans are short-term loans that you can get, preferably from a licensed money lender, that allows you to 'bridge' the gap between your next property purchase and your current property sale. A licensed money lender often offers these loans for between one to 18 months. It can act as a vital recipe in making a property purchase dream into a reality that would otherwise be not possible.

Types of Bridging Loans

There are two types of bridging loans, namely, open and closed bridging loan. These mainly differ regarding your exit strategy with this short-term finance. An open bridging loan has more tentative elements than a closed bridging loan. In this option, you opt to have no firm dates, and your current sale may have no set buyer yet. On the other hand, a closed bridging loan is a type that is usually time-bound, linked to the timetable of your current property sale. You have a firm date on the repayment, and you should comply accordingly.

Considerations Before Getting a Bridging Loan

It is essential to ensure that you are getting a bridging loan for the right purpose.
  • Quick purchase of property – These purchases include auction purchases and properties. Getting a bridging loan is becoming a trend since private banks often take a longer time to process applications. 
  • Simple alternative to mainstream loans – Some view this quick and short-term loan as a means of replacing the usual credits, with more risks than traditional loans.
Also, you should take into careful consideration the viability of your repayment method. How will the loan be repaid? Does the term of the loan give you enough time to find a buyer and complete the sale? If you are thinking of getting a longer-term loan, will acquiring a bridging loan not hinder your chances?

Another thing you should consider is the loan provider whom you'll trust with the process. Find out one of the best bridging loan brokers at the end of this article.

Down Side of Acquiring a Bridging Loan
  • Total Cost – Bridging loans get quite expensive than the traditional and usual loans out there.
  • Future loans application could be slowed down – Your prospective money lenders would want to see evidence of a clear repayment plan like taking out of a new mortgage or paying with cash from a property sale.
  • Failure to repay may cause significant issues – This is similar as with other loans as a bridging loan is still a debt. You have a considerable liability to settle it. Not being able to pay the lender may lead to repossession and higher costs.
Advantages of a Bridging Loan
  • Fast processing – In under 14 days, your application can be accepted and processed, making funds readily available just like that. This advantage is probably one of the primary consideration and driving point of people getting this loan.
  • Competitive bridging market – Since this kind of loan is getting much attention, the bridging market is competitive more than ever. This competition leads to a reduction in interest rate. And this is excellent news for you. The interest rates can go as little as 0.37% per month. It can also go lower than that as time goes by.
  • Get that capital right away – Related to the quick application offered by licensed money lenders, your bridging loan can help you have assets like a business when your cash flow is tight. These assets will aid you in comfortably settling that loan.
  • Purchasing an impossible property – By impossible, this means properties that couldn't be bought by other types of borrowing. This includes uninhabitable properties. Ever dreamed of reconstructing an old and rusty house into a restaurant? Acquiring a bridging loan could help you purchase the once uninhabitable property and work to get that vintage restaurant. 
  • Acquiring a property without a deposit – This becomes possible when buyers purchase properties at a cost lower than it's worth. In this situation, lending is often based on the full value of the property, and a bridging loan could help you.
Whether you are a landlord or an amateur property developer or someone in between, you can avail a bridging loan with no stress and fuss. Don't hesitate to access contact the best bridging loan broker and discuss the requirements needed at Take that first step towards your dream property purchase.

Thursday, July 5, 2018

Helping points to find the ideal broker for your trading

time for forex trading
Do you have a feeling that you are ready to get in the market of trading currencies? If yes, you should first take sufficient time in finding the most reliable Forex broker in the market. A forex broker is firm or a company that enables forex traders to buy and sell foreign currencies by offering them access to a trading platform. The foreign exchange market is the world’s largest financial market as it has a daily average traded value of more than $4 trillion. Consequently, the number of forex brokers has increased. Therefore, caution has to be taken when selecting the right forex broker for success in this foreign exchange market.

Rakuten broker as a leading international forex and metals broker provides a suitable trading atmosphere for forex and metals trading. Its reliability can be described by achieving the following aspects that are taken in to account when evaluating the right forex broker for you.

Tips for selecting a reliable forex broker

• Regulation

A reliable forex broker should be duly registered and regulated by the appropriate regulatory body in the country of establishment. This ensures safety of the deposits made by the clients and affirms the integrity of the forex broker.

Rakuten Securities Australia is registered and complies to the Australian Securities and Investments Commission (ASIC). It complies to the commission by having segregated bank accounts to hold the funds for its retail clients. Having this trustworthy bank accounts allows it to distinguish its own money from its retail clients’ money.

Therefore, incase Rakuten broker becomes insolvent,its clients will get the refunds of the funds held in the bank accounts.

• Safety of the deposited funds

Having segregated bank accounts is a form of safety of the clients’ funds. However, one should consider how the funds deposited in these bank accounts will remain accurate.

Rakuten broker conducts client money reconciliations every single day to ensure that the funds being held in the bank accounts accurately mirrors the client assets. This is usually in accordance with the regulation requirements by ASIC.

• Commissions and spreads

Spreads represents the costs of the brokerage services and replaces transaction fees in the provided platform. It is usually the difference between the price of the bid and ask of the currency pair. Typically, forex brokers make money through conventional commissions and spreads.A forex broker that utilizes commissions to make money may charge an identified percentage of the spread. You should therefore consider this spread to ensure that it is favorable for you.

Rakuten broker utilizes pricing technology directly from its global expertise of Rakuten SecuritiesInc., which is located in Tokyo. This allows it to provide a distinctive pricing model to the global markets. For Rakuten broker, there is no commission that it chargesfor its spreads. During 95% of the normal trading hours Rakuten’s spreads are fixed. The other 5% of the time is usually during low liquidity times for instance during holidays, data releases and market roll-over.

• Initial deposits

To begin trading in the forex market, you are required to have a forex account on the identified platform. A reliable forex broker should allow its clients to fund their forex account with a small initial deposit. Usually, with leverage, the purchasing power can be significantly great than the minimum deposit. Leverage in forex trading is commonly borrowed from the forex broker to enhance the trading capacity of the trader.

Rakuten Securities Australia allows a minimum deposit of $50 for its prospective clients to gain the access of its market leading pricing model.Moreover, regardless of its clients’ capital worth, they all receive equal operational support and high quality customer service.

• Customer service

A reliable forex broker should provide adequate support to their clients including forex analysis and global market research tools.

Rakuten broker provides this support to its client by providing: daily market updates and long-term analysis; live market updates through Twitter feed; and new traders are provided with educational content.

• Trading platform

A trading platform being the trader’s portal to the forex market should be well designed, easy to use and have a variety of important analysis tools.

Rakuten broker uses the MetaTrader platform for forex trading. This popular software for forex and metal trading manages trades and has technical analysis tools to enable the traders analyze prices easily.