How Reverse Mortgage Calculator Makes Your Retirement Life Easy

Mortgage (Photo credit: 401(K) 2012)

A lot of homeowners have opted already for reverse mortgage and there are many who are following the same direction. If you belong to the group of those who face immense problems while they return the existing home loan then, I must tell you, that reverse mortgage is the best option. It is usually given to senior citizens who are above 62 years old for converting one of the home equity’s part into cash. This step not only helps in improving living standard of the senior citizens after their retirement but also makes their life tension free. Once you convert a part of your equity into cash there is no need of any further payments to repay the mortgage loan. In this case, a reverse mortgage calculator can even give you a brief idea about the reverse loan.

With an options like buy to let mortgages, making use of a reverse mortgage calculator is also one of the best options of getting an idea of the amount that one may get from their reverse mortgage. It is an estimate and should not be mistaken with the actual amount. In order to use this calculator, seniors need to input their home value, age, mortgage balance(existing one) and the interest rate(estimated).The calculator uses all the information for determining whether any individual can be considered for a loan and the amount he will receive.

Make Use Of A Reverse Mortgage Calculator For Determining The Right Time For A Loan

In order to qualify for any reverse loan, seniors must have a home or any mortgage balance. Many seniors already know about this but there are still few who are not aware of the exact equity they would require to get a loan. This is where a reverse mortgage calculator comes to their rescue. These calculators make use of every information related to the senior and calculate the amount of equity that one needs to pay. Once the equity is already known, more research can be made using the calculator and one can even calculate their individual payouts.

In order to find the impact of age as well as equity on their payout, this calculator can be used for seeing that what amount of money can be received if the seniors wait for a few more years and then apply for this particular loan. There is even a chance for prospective borrowers to explore other options if they calculate potential payout by considering a high property value, small mortgage balance and various interest rates. This even helps the borrowers to finally reach a decision that whether they consider a particular time to the best for taking a loan or they prefer to wait.

Reverse mortgage calculators are considered great tools that can be used by potential borrowers before they apply for a loan. The different options that are available to a consumer before getting a loan makes them more confident and they come to know what they keep at stake for getting their respective loans. Moreover these calculators make the consumers realize how they may benefit from a reverse mortgage loan. After they start using these calculators, borrowers seem to have much better understanding about reverse loans and the possible eligibility's.

The best part about a reverse mortgage calculator is that the tool is available for free online. They are basically designed for educating seniors about reverse loans so that they can opt for them confidently. Though these calculators cannot provide accurate results but they prove to be quite helpful for seniors in determining the correct time for a reverse loan. Their retirement life becomes completely hassle free with no worries about money.

Author bio:

Jonny Pean is a financial consultant. He manages to take out time in writing blogs covering topics like mortgages, debt, saving money and recommends to use mortgage calculator from emortgagecalculator.co.uk.

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Tax Lawyers Are Going To Be Very Busy

The United States Tax Court Building, in Washington, D.C., headquarters of the United States Tax Court. (Photo credit: Wikipedia)

The recent news concerning the ruling on health-care legislation, handed down from the Supreme Court, has made some angry and some glad. The Congress of the United States passed a law saying that all citizens are mandated to carry health insurance and if you did not carry insurance you would be fined. The case went to the Court and they determined that the penalty was just a tax and would be allowed under the U.S. Constitution.

In life they say there are only two certainties, death and taxes, with the recent ruling government will be wanting more of your tax dollars. As long as governments want a piece of your income, tax experts will be needed for legal advice on tax implications for disputes concerning property, estates, trusts, and finances. The kind of lawyer you need for tax disputes is one with a llm in tax law.

Tax law is its own distinct and separate legal area but it is also a companion legal area. By a companion legal area I mean, knowledge of tax law is necessary if you practice other types of law like business & corporate law, estate planning, and probate law. Tax law can also be integral to other areas of law like family law, bankruptcy law, guardianship law, real estate law, and securities law. Having a knowledge of the intricacy of tax laws can be an advantage. Without this kind of knowledge, the client will be missing out on vital knowledge that could make the difference.

Tax Law is a companion to other types of law but it is also a distinct legal area all to itself. A person that needs help can seek legal counsel concerning specific tax situations. Having a knowledge of  U.S. tax laws is only part of the solution. Each state also has their own specific laws and practices concerning tax law and that can be a challenge that a tax lawyer can help you with. 

Tax law has become such a specialized area of the law that many law schools have offered separate legal degrees above and beyond the basic law degree. This special degree is called a Master of Laws (LL.M.) in taxation. Many law schools have started llm tax programs in response to the rise in the specialty of a law practice and its higher knowledge requirements.

Tax law is even thought by the court system to be so highly specialized that there is a specific court that only hears tax cases. The U.S. Tax Court only hears cases that concern tax law disputes. Additionally, there is the U.S. Bankruptcy Courts and the Court of Federal Claims and all have jurisdiction in hearing federal tax cases. All this is guided by a separate body of laws which is the Internal Revenue Code. Add to that Treasury Regulations, Revenue Rulings, Revenue Procedures, Technical Advice Memoranda, and Private Letter Rulings.

Having to face the overwhelming tax laws we have in this country without a knowledgeable tax lawyer would be foolish. If you have a tax question or tax problem it's best to seek out a tax lawyer.

Understanding the July 2012 Credit Card Reform in Five Simple Steps

(Photo credit: Wikipedia)

This is a guest post by financial writer Paul Groberts. His post is about big changes going on with financial reform in Australia. 

We’re living in a day and age in which an increasing number of consumers are choosing to liquidate their debt and do away with their credit cards. However, recent developments in local credit card policies and regulations are heralding a new age in the use of plastic. Authorities have had the credit card reform in the making for quite some time and it eventually came into force on July 1, 2012. Official information on the precise prescriptions and implications on the reform can be easily accessed online, at BankingReforms.gov.au. However, no matter how clear-cut and straightforward it all may appear there, further explanations are always in order and welcome, for the day-to-day credit card user. If you want to learn what this recent development entails and how it will affect you, the regular holder of a banking credit card, read on, to understand the reform in three simple points.

First off, the much-touted reform is essentially geared at improving handling conditions and transparency on the part of the end-user. This means that the key fact sheet you receive when you sign up for a new credit card will have to use a standard format, making essential information easier to follow, grasp and understand. No more fine-print, no more tricky wording, in a nutshell.

Secondly, there are major changes afoot with respect to going over your credit card limit. Specifically, the lending institution will have to receive your expressed agreement on being charged a fee for over-limit services. What is more, the bank or financial service provider will be mandated by law from now on to inform you when you surpass your credit limit. At that point, you will be presented with two options: either continue to use the card or pay off a part of the debt first.

The third point is perhaps the most hotly debated, since it refers to direct repayments. According to the new rules, these will be directed to the most expensive part of your credit card debt. The Government website states that this will make it easier for users to reduce their debt and it will allow them to do so at a speedier pace. It’s worth noting that this particular rule strictly applies to new users, who have had their cards issued post-July 1. Check the issuing date on your card, to make sure whether or not this applies to you as well.

Fourth on the list, control over the credit limit has now been entirely turned over to the user. You can decide for yourself what that limit is and then inform the bank of it. We searched for various types of credit cards online, in order to understand this change and ran an online comparison on those types at BankWest.com.au (http://www.bankwest.com.au/personal/credit-cards/compare-credit-cards). What has changed since July 1, is that providers now have to inform you of the exact workings of their interest-free initial offer, making the whole process of signing up for a credit card much more transparent and unpleasant surprise-free down the line.

Finally, one of the most welcome changes in credit card regulations refer to one’s monthly statements. From now on, these statements will include the period of time required to repay your current debt, if you only continue to make minimum payments. The main consequence of this change is that you’ll have an easier time planning your debt reduction, as well as balancing the rest of your expenses.

All in all, credit card ownership seems to have gotten a whole lot more user-friendly and easier to handle. As with anything, transparency and clarity are surefire ways to improve on an existing situation. Besides, since credit is one of the fueling forces of any economy, this might just spell better times for Australia’s personal finance sector.

Please Vote For Me In The Personal Finance Olympics!

The folks over at GoBankingRates.com are running a contest over the next few weeks that they're calling the Personal Finance Olympics. The winner of the contest will win a $1000 Amex gift card at the Financial Blogger Conference in September, and I'd love your help in winning. You can vote for it here by just clicking on the voting button on the respective pages:

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What Can Credit Repair Services Do For You?

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In today's world your credit report is so integral to your financial life. It used to be that your credit report was only used to see if you credit worthy to take on new debt. Today, your credit report is reviewed when you sign up for car insurance. If your credit report is bad you will definitely pay a higher rate on your car insurance. When you sign a lease for a new apartment or start a new cell phone plan, your credit is checked and if it is bad you will be denied your apartment lease or new cell phone plan.

If your credit is bad, is it possible for someone do credit repair on your report? There are many companies who can help you fix your credit report and improve it for you. 

Most people think that magically you can just remove the negative items. No one can erase negative information if it’s accurate. Only incorrect information can be removed. Accurate information stays on your record for 7 years from the time it’s reported (10 years for bankruptcy). Even information about bills you fell behind on but now are paid will remain on your report for these time periods.

Remember only incorrect entries in your credit report can be removed. If you have legitimate negative marks on your report, the only thing that will remove them is settling with those creditors. After that's done the settlement will be reflected on your report. In time your credit score will climb to a more appropriate level.

By law you have the right to dispute inaccurate, misleading, biased, incomplete, unverifiable, and questionable listings on your credit report. With a little time and energy you can work on getting these blemishes off your credit report. If it is too time consuming or confusing for you to do the credit repair yourself there are good companies that can do it for you. 

The Bucket Approach for Retirement Income

 (Photo credit: Wikipedia)

For many people the worst part of investing is short term volatility of the market. Going through that stomach turning rollercoaster can keep you up at night. You worry if you are going to have enough money to cover daily expenses. Staying invested during these trying times is very hard to do if you are worried about your life savings going down everyday. 

The solution is to find a way to keep you afloat during these frightful time. You need to find a way to insulate yourself from the storm until your through it. The "Bucket Approach" is a possible way to help you through these tough times.

Harold Evensky, President of Evensky & Katz Wealth Management, has come up with the "Bucket Approach" as a strategy for solving this problem. Back in the eighties Harold developed this approach which includes his five-year mantra. It simply means do not invest money you are going to use within 5 years.

His plan says to carve out a lump sum that you will be needing, short term. These needs can be a second home you may want to purchase in 3 years. You take that chunk of money and put it in short-term bonds or cash. Also, that goes for your retirement money that you need to live on for the next five years. But in this instance, you would be losing to much in potential growth so through experience Harold says to only take out two years worth of living expenses. The rest of your retirement money stays in your total return portfolio.

What you do is take that cash and set it up to pay yourself a check once a month like a payroll check. The market can be volatile, but you know where your grocery money is coming from, so you are not going to be panicked when the market is going down. As you manage your investment portfolio you need to rebalance as necessary.

This helps you be much more cost and tax efficient in managing that portfolio. You are not going to have to sell at the wrong time. You can sleep through volatile times. Your worry level should be way down during the tough times. Your portfolio may be down but you have money to live on for two years. This relieves any need to sell off your investments at the wrong time.

How Many Buckets Do You Need?

The amount of buckets you need can be as many goals you need to finance within a five year period. But for the small investor two buckets will do. One bucket with two years of expenses and the other holding your retirement portfolio. The most important thing is you have your short term cash in a bucket available to spend. Having other buckets for a trip or college expense, or a car is also good to do if you have the funds available. There is no reasonable limit to how many buckets you can have. 

The problem with multiple buckets is there more to keep track of but you are in a more organized position. Plus you are able to borrow and move around cash between buckets as you see fit. This system gives more control over your finances

My Take.

I believe this plan can work and solve the number one problem of retirement investors which is selling at the low. It would of worked in the last deep decline. You would of been able to hold on till the market began to rise again. I can imagine the freedom having two years of expenses put aside. Not having to worry about paying the bills and knowing you are able to ride out the storm. What's your take?