50 Plus Finance

Thursday, November 22, 2012

Term Life Insurance Available for the 50 Plus Person

Universal Life Insurance Company (Photo credit: Thomas Hawk)

If you are past the age of 50, you may not know that you can still apply for a term life insurance policy. As time passes, it’s natural to think about the financial future of the people you cherish most. Term life insurance for senior citizens may help address some of these needs.

Why might a senior citizen want a life insurance policy?

Life insurance for seniors can help compensate for future expenses that your retirement savings may not cover.

You can also use term life insurance to help loved ones:

• pay off a mortgage
• cover estate taxes
• afford payment of final expenses
• transfer a business

Do I need to be in good health to be approved?

All life insurance companies may evaluate your physical health when quoting you for a term life insurance policy. Age, gender, height, weight, blood pressure, cholesterol, history of family illnesses and prescription medications can be considered when evaluating life insurance for senior citizens. Physicians may generally administer the same paramedical exam they would perform on a younger life insurance candidate. If you’re concerned that your general health condition will prevent you from being approved, some providers offer an option to insure people ages sixty and over with no medical exam. These policies generally range from $3000 to $15,000 in value and are appropriate for seniors

How young do I have to be to get approved?

It could be a rare event that insurance providers will issue a permanent life insurance policy to senior citizens over sixty. However, you may be issued a term life insurance policy for up to ten years from some of the leading providers as a senior citizen. It is common to be able to receive a 10-year term life insurance policy until the age of 70; in some states, like Arizona, seniors may be issued a policy until age 75.

How much can I expect to pay monthly?

When you’re a senior, it is important to consider the benefits of buying a term life insurance policy as soon as possible. Monthly rates for term life insurance policies may increase significantly on an annual basis. For example, a person at age 60 in great health and no history of family illness might pay $68.76 monthly whereas someone with the same medical standing at age 65 can expect to pay $117.37 for a 10-year $250,000 life insurance policy with MetLife. At 70, the same person might pay $223.56 monthly and at 75 could pay $431.91/month for the same policy.*

What should I look out for?

Too much life insurance is sold rather than bought. The best advice for seniors should be determine what it is they want to insure against and figure out what type of protection makes sense for them.

In other words, you should figure out what your loved ones’ financial needs will be. Then, you should determine how much insurance you’ll need to provide for their financial future. If you do decide that life insurance for seniors can cover your needs best, you should ask around and find a good professional that will not “sell” you on policies.

6 Do’s and Don’ts of Being Self-Employed

(Photo credit: squareintheteeth)

There are many advantages to being self-employed from tax efficiency and flexibility to career enhancement. As with any job in any sector, there are rules to abide by. When one works in a permanent role, you have a strict work schedule you need to adhere to and you have an employer that you are answerable to.

Contracting is more flexible but there are still do’s and don’ts that you need to stand by. You are your own boss however there are certain things which you need to know.

Here is a guide to help you comply with all UK law.

Claim for expenses

There are special rates and allowances which you can claim back as a freelancer. During your work you will incur certain expenses like mileage and accommodation. Although you will have to pay these with your own money, you can submit a claim to your client and get the money back. Find out what rates you can be compensated for because they are tax deductible.

Pay taxes on time

As a self-employed person, you are in charge of your own tax affairs which means you need to file your own tax return and pay any owed taxes by the deadline set by HM Revenue & Customs. Any late payments will get a fine so make sure you file your return on time whether it is by post or online.

Have the right business structure

There are various business structures available to choose from such as limited company, umbrella company, sole trader and partnership. You need to choose the right one for you and make sure you operate within the law.

Business structures to choose from include:

limited company
umbrella company
offshore benefit employer trust (EBT)
sole trader
partnership
limited liability partnership

Keep business, business

When you become self-employed, you need to keep everything about your business separate to your personal life. This can be difficult but by having a dedicated bank account just for your business finances, you ensure no lines get crossed. If you have a profile on social networking sites like Facebook or Twitter, set up separate business accounts.

Get expert help

One of the main things you must do is get expert help. If numbers has never been your specialty and maths isn't your strong point, it will benefit you to seek professional accounting help. It may seem like a waste of time and money but in the long-run it will save you much more money. The specialist accountants can help you to avoid costly mistakes whilst advising you on legalities like IR35 and the Agency Workers Regulation.

Do your research

Being self-employed isn't a walk in the park. There will be times when work is quiet and therefore you will have dry financial periods. Make sure you do your research to ensure your desired industry is competitive and thriving.

Have a back-up plan in place and remember, if it doesn't go to plan don’t beat yourself up about it. Being self-employed just doesn't work out for some people.

Follow these do’s and don’ts to become a successful freelancer!

This article was provided by Nixon Williams, a leading freelancer accountancy firm in the UK.

A Quick and Easy Guide on Tax for Charitable Donations

Taxes (Photo credit: Tax Credits)

If you make charitable donations to approved organizations you may be able to lower your tax bills. However, there is a number of IRS set steps you must follow to qualify for charitable donation tax reductions. All you have to do if use the guidance provided below and you will be on the right track to help your chosen cause and benefit from tax savings in the process.

To gain a legitimate tax reduction, the charity you donate to must be a qualified organization that meets all of the IRS’ requirements. For a start, you cannot claim tax reductions for donations given to political candidates, political organizations or individuals. To get a full rundown of what constitutes a qualified organization, read IRS Publication 526, Charitable Contributions, which gives a clear description of the regulations.

Be aware that should you receive any kind of benefit from your charitable contribution, be it merchandise or services, then you can only deduct the tax amount that is in excess of the benefit’s fair market value. Fair market value is the agree price at which property could be exchanged between a willing buyer and seller, with both parties fully aware of the facts relating to the property. For more information, read IRS Publication 561, Determining the Value of Donated Property.

To deduct a charitable contribution from your tax, you are required to file Form 1040, making sure that you carefully itemize all deductions on the part of Form 1040 entitled Schedule A. If you are donating stock or a different form of non-cash property, it will be valued at the fair market value. For the specific rules that apply to vehicle donations, read IRS Publication 526, Charitable Contributions.

No matter how much your contribution comes to, to deduct it you have in your possession a bank record, payroll deduction records or a written document of communication from a representative of the charity that states the name of the organization, the amount of the contribution and the date that it was made. If you donate via a text message, you can use your telephone bill as proof, but it must state the name of the organization, the amount and the date given.

If your total tax deduction for non-cash contributions exceeds $500 for the year, you must fill out and attach IRS Form 8283, Non-Cash Charitable Contributions, to your tax return. If you donate an item or collection of items with a value in excess of $5,000 you will also be required to complete Section B of Form 8283, which usually requires the services of a qualified appraiser.
For further information, simply visit the IRS website, or phone them on 800-TAX-FORM (800-829-3676).

As a recap, here are the documents you should read to learn more about tax on charitable contributions:

Refer to the instructions included on Form 8283, Non Cash Charitable Contributions
Read Publication 526, Charitable Contributions for clear details on specific rules
To get helpful information on determining value, read Publication 561, Determining the Value of Property

Author Bio

This article was contributed to 50 Plus Finance by George Papas. You can read more of his work on a number of different sites including Jeffrey Epstein among others.

Festive Saving Tips for a Thrifty Christmas

christmas 2012 (Photo credit: paparutzi)

Christmas can be an expensive time, and with the shops full of tempting displays and pretty lights, it's easy to blow your budget and find you've spent more than you intended. Read on for 5 tips to make sure you're not in the red come Boxing Day.

1. Budget.

Think about what you can realistically afford to spend on Christmas and stick to it. List everything you need to budget for. Food and presents are obvious, but don't forget your Christmas tree, or added extras such as a day out at a Christmas market.

2. Plan your gifts.

Plan who you need to buy for and what you're going to buy. Instead of rushing out to the shops, spend time researching online to compare prices. Shopping online means you'll make fewer impulse purchases, but remember to factor in postage costs. Once you have started your shopping, keep a list of what you've bought and how much it cost. It's easy to forget how much you've spent if you don't keep a running total.

3. Make use of cash back and loyalty schemes.

There are plenty of free websites that offer you cash back on your purchases, and now is the time to make use of them. If you have a store loyalty card then this might be a good time to spend your points, especially with some stores offering good deals when you exchange your points for vouchers.

4.Have a clear out.

You'll need to make some space for new presents, so spend time having a clear out and put your unwanted things for sale on eBay. A little time and effort could bring in some extra cash.

5. Ditch the cards.

It's lovely to get Christmas cards, but rising postage costs have made it expensive to send them. Most people would appreciate a heartfelt and personal Christmas message sent by e-mail just as much as a card through the post.

Wednesday, November 21, 2012

Invoice Factoring Costs: A Small Price for a Great Help

Apart from the recurrent growth of a business, its very survival depends upon uninterrupted cash flow. However, for many businesses, the newer and the smaller ones in particular find it quite difficult at times to avail funds from various sources.

Invoice factoring, is one of the latest inventions in the finance market. In this process an entrepreneur sells his unpaid invoices to a third party, i.e. the factoring company. The money he thus receives is used to fund his business.

As far as the factoring company is concerned they collect the payments against the invoices from the customers.

The Factoring Rates

The factoring company, charges a certain amount as payment for the immediate service they offer. The factoring cost is charged as a discount on the amount it pays to you.

In most of the cases a factoring company has charged a discount rate of about 1.5 to 5%. How the rates will be structured depends upon the company itself.

However usually it is based on a daily segment, for instance a segment of 10, 20, 30 days or so and it is a percentage of the invoice value.

Calculating the Factoring Cost

The calculation is pretty simple. For instance, if you run a business which is going to factor a sum of 50,000 dollars a month at a factoring rate of 2% every 10 days. Therefore, you would have to incur a factoring cost of 6% of the total Invoice value for a 30 days customer.

It wouldn’t be an extra or unnecessary expenditure, since in all probabilities you would have allowed a certain discount to the customers for speedy payments, which neutralizes the expenditure.

However, you need to make sure that Invoice Factoring suits the nature of your business. For instance, if you need cash flow to continue business operations, it is imperative to factor invoices to keep the lights on.

For example, independent truckers often need freight bill factoring to buy more fuel and perform maintenance on their vehicles to continue working. Once you are decided, you would have to go online and look for a suitable factoring company. Get online quotes from them.

The companies will ask you to produce your customer list and receivable accounts aging list for review to assess the credit risk and the time they would have to wait to for the payment.

Higher Charges for Better Services

You must as well be prepared for factoring rates varying up to 90%. But, it would necessarily mean that the company offers a better and a much higher amount as compared to other factors.

If you find that the factoring company charges you a higher rate, since it offers you extra services, figure out if you need those services at all. You will obviously not wish to be shocked by any hidden charges later and thus it is important, to go through the terms and conditions of a contract before you put your signature in it.

The business lending market is no more solely depended on the banks. Invoice factoring has helped small business owners to a large extent by bringing ready funds to them, against the unpaid invoices.

Factoring services are not expensive. Therefore, if you are asked to pay absurd rates make sure that you have are the clauses and are getting services worthy of the payment.

If not, then you are treading on the wrong path. Search for companies, which offer useful services and reasonable rates. It is not hard to find one!

Author’s Bio

Emily Jones is a freelance author penning articles on Invoice factoring and other finance deals for twenty five years now. She suggests that one should find Out What Invoice Factoring Costs are before he decides on factoring his invoices.

Tuesday, November 20, 2012

The Keys to Successfully Getting a Payday Loan

Loans (Photo credit: zingbot)

Times have really gotten to be a lot harder over the past decade. Maybe this is due to our own fault, and maybe it is due to abusive government spending, but it has definitely impacted a lot of the country personally and financially in a very bad way. Because of the weakened economy, it has become very difficult to be approved for a payday loan. There are a few keys though to being approved successfully for a cash loan that you can look into for easy success.

The absolute bottom line to being successful when it comes to applying for a loan is to do thorough research on the lenders. The main problem that people have when they are applying for loans is that they don’t do enough research before they go searching for loans, and they end up not being approved for the loans that they look for. You really need to do thorough research, because lenders have really cracked down on how they hand out their loans, and they don’t just approve anyone anymore like most lenders used to.
By analyzing and understanding your credit situation, you will have a good idea of which lenders might be willing to approve your payday advance. Everyone is entitled to one free credit report per year, and this is a way that you can be able to see where you stand. Knowing where your credit stands is a good way that you can be able to know which lenders to apply for loans with, as they will always list what their criteria is and who they are targeting for payday advances. This can save you a lot of time when it comes to being able to successfully be approved for a loan.
A lending tree service, such as Green Apple Loans and other companies can get you set up with a secure way of applying for many different types of loans in one shot without affecting your credit. This is a good way that you can see who all would be willing to approve you, and you can get a good idea of the different lenders and be able to see which ones would be the best to consider.
These are the keys to successfully obtaining payday loans online. If you strapped for cash and need to find a way to get approved for a loan successfully, these keys can help you get approved quickly without having to spend an eternity trying to find a lender that will work with you.

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Thursday, November 22, 2012