Finding Funds: All About Structured Settlements

Structured settlements are one way that courts and insurance companies make sure that not only is justice done, but that payments go toward their intended purpose. When you're involved in an accident, medical malpractice suit, or you're just retiring from work, a structured settlement provides for periodic, guaranteed, monthly or quarterly payments. But, sometimes, it's better to just take the cash. How do you choose the right payment option?

Understand What A Structured Settlement Really Is

A structured settlement is nothing more than an insurance annuity. An annuity is a contract that requires an insurance company to guarantee monthly, quarterly, or annual payments to an annuitant (the policyholder) for a set period of time.

Sometimes, the annuity specifies payments for a set number of years (i.e. 10 years). These types of annuities are called "period certain annuities." The other type of settlement option available is a life payment annuity. These annuities make payments for the life of the policyholder.

For example, let's say that you win a lawsuit. The defendant must pay you $1 million. A period certain annuity settlement option would require an insurance company to pay the $1 million out to you over a period of 10 years, with interest. The life payment option would require the insurer to pay that same $1 million out to you over your entire life.

Why choose the life option? Because payments continue regardless of how long you live - even if you would have otherwise spent all of the million dollars. So, it's possible that you could end up getting more than what you would receive under the 10 year payment option, if you live longer than you life expectancy calculated by the insurance company.

Why They Are Beneficial For You

Structured settlements have a huge benefit over lump sum payments: certainty. With a lump sum payment from a retirement plan, personal injury claim, or medical malpractice suit, you are on your own to manage the funds.

If you run out of money before all of your medical expenses are paid, or before you die, you're out of luck. With a settlement option that's structured, you will never run out of money before the contract expires. For lifetime payments, it's impossible to run out of money before you die.

Why You Might Want To Sell One

With structured settlements having a seemingly unbeatable advantage, why would you ever choose a lump sum payment? One reason: you have immediate expenses that require cash right now. But before you sell your structured settlement payment, keep in mind that any company willing to buy your payments won't give you the full value of your structured settlement.

Companies, called factoring companies, buy structured settlements for a discount. A discount factor of 8 to 14 percent is common. On the high end, at 14 percent, you will receive only a small portion of your total structured settlement option. For example, a $1 million settlement option can quickly turn into a lump sum of just $250,000 or less.

Why so little? Because of the time value of money - a $1 today is worth a lot more than $1 20 years from now. Even though it seems like a small amount of money to accept in lieu of the full settlement payment, it's not always a bad deal. As always, consult with an attorney or financial planner before you sign anything.

Melissa Rudd is a financial consultant with several years experience. When she's not in the office, she enjoys sharing her insights by blogging online.

How Much Home Can I Afford?

Obviously, everyone wants to own a home, and this can be easier as long as there is sufficient money to buy a new one. However, there are many ways and options to consider in buying and owning a home. The first thing that comes in mind when planning to buy a home is the amount of the house. If you are thinking of getting a home loan, then you should first determine how much you can afford for the home loan.

There are several factors to consider in getting a home loan since the payments can be on par. This makes sense in considering your current financial situation before deciding to buy a house. Likewise, you should also take into account your income, the credit history, debts and the cost of the house. In this way you can easily determine how much home you can afford to loan. Before making your final decision, it is important to consider some pointers.

Down Payment

One of the important pointers to consider in determining the amount of home that you can afford to buy is the down payment. Usually, home loan would require paying 20% down payment from the total house cost. However, you can also opt for non-standard loans that require lower amount of down payment. The downside of getting non-standard loan is the higher interest rates. This makes sense of asking for calculations before making your decision.

Income and Monthly Obligations

In determining how much home you can afford, you need to consider the monthly income and obligations. The mortgage company would require you to furnish the income details as well as the monthly obligations. These details will help the company in identifying the mortgage amount in which you can qualify. In calculating your loan capability, the mortgage company will check your credit card debts.

Interest Rate

Another factor to consider in determining the amount of home that you can afford to buy is the interest rate. Obviously, if the interest rate is lower, most likely you can afford buying bigger house. That is why home buyers should be aware about the prevailing interest rates in the area. It is also necessary to ask for quotes from different mortgage companies. In this way, you can compare which mortgage company can give you the best deals. In addition, you should also consider fixed rate mortgage than a variable rate mortgage. It is because the latter would impact your monthly obligations.

Location

The cost of the property that you want to buy also depends on the location. If you want to own a home in a commercialized area, then you should expect for higher cost. You need to conduct thorough research if you want to find a property located in your chosen area yet with the price that you can afford. Usually, if the property is of close proximity to the city it would be more expensive.

Indeed, it is very challenging to find affordable property. Nevertheless, St. Louis real estate can help you in finding the home that you can afford. If you cannot afford to buy a home, there are other options to consider. All you have to do is to seek advice from mortgage companies.

Flexible Finance for Modular Office

office setup (Photo credit: Rob 'n' Rae)

Modular office systems fall under the category modular buildings which are also referred to as prefabricated buildings. It can be used for various applications such as medical clinics, restaurants, banks, schools, day care centers, and office buildings. If you are interested in modular offices, you can look into the different finance options.

Some of the benefits of modular offices are the following:

•      Flexible

•      Low cost

•      Fast delivery

These are also the reasons why a lot of companies and establishments prefer modular offices in comparison to the traditional buildings. As the name suggests, modular offices are able to stand alone based on the ‘module’ construction method. Depending on your preference, you can have a modular office that is one or two stories high which includes stairwells and elevators. Some manufacturers also offer four stories or even more, as per requirement of the client.

The modular buildings are manufactured in factories and the materials used as the same as the regular buildings. However, instead of constructing the building as a whole, it is broken down into smaller or individual modules. These modules will be shipped into your site. When all the modules are delivered on site, it will be assembled into one structure based on the customer’s design specifications.

Earlier occupancy is also possible with modular offices because site and preparation works can take place simultaneously. The workers will not be exposed to harsh weather because the modules are constructed inside the factory.

Flexible finance is also available for modular office depending on your location. If you are interested in constructing a new modular office building, you can check with your bank about the financing options. You can also inquire with the manufacturer to find out which banks or lending institutions offer financing for modular buildings.

Many financial institutions can help you in securing your preferred modular building because this type of structure also involves a considerable sum of money. There is a need to look for reliable companies that can finance your building. The application process is usually quick and it involves less paperwork or documents.

With the less cumbersome procedures when you obtain financing from lenders or banks, it is easier to secure the needed money to put up a modular office. These buildings are top quality and will last a long time. Manufacturers of these modular structures can be of great help and they can give you a list of potential institutions that can extend the needed money.

A lot of offices and establishments are now choosing modular buildings over the traditional structures. You can save money on your new office, but you must do your homework if you want to find flexible financing options. Conduct a thorough research and be sure to compare the rates and fees involved in obtaining financial assistance for your new office. This is the best way to find the best deal. It would also help if you compare several manufacturers of prefabricated buildings. By doing so, you can order the modular buildings from a reputed manufacturer or supplier. Secure financing today for your modular office systems! 

How Debt Consolidation Service Providers Help

Wipe our Debt (Photo credit: Images_of_Money)

As we all know, the global economic situation is going through one of the toughest times. As a result, it is only obvious that people are willing to tighten their purses. However, there are some people who would find it extremely difficult to save money as they have already built up a large amount of debt. The primary culprit of debts today is the credit cards. However, loans can also be a fiscal burden on people. When the economic atmosphere is not good, debts will be rising quick, more so when payments are missed and rate of interests are unfixed. There are over a million people who wish their debts to be paid off as easily and affordably as possible. 

Debt Consolidation Service Providers: Who are they and How to select them?

In such a situation debt consolidation services are gaining fast popularity as more numbers of people are being introduced to them. Several debt consolidation companies operate in the market and people can choose any of them. All you have to do is Google for a reliable debt consolidator, and a thousand of results will come up. One would need to research about a company before finalizing upon it and thus visit debt consolidation service website. Similar to any other case, there are several debt consolidation companies who have been reviewed badly and who don’t support their services. Researching for the right company can be a time consuming affair, but down the line, you will be free from any trouble. After the selection of the company is over, one can start the process of gaining control over his debt. The earlier one realizes the need to consolidate his debts, the better for him. One shouldn’t wait for the debt level to go way beyond his reaches, otherwise it would become extremely difficult the consolidated amount. 

Defining Debt Consolidation services in Simple Terms

To define debt consolidation, one can say that it is the process of combining all debts in a single one. Then the individual will be sanctioned loan, with which he can pay his dents off and then pay back the loan. Generally the interest rates on repayment of the loan are low or are fixed. Also the amount one has to pay every month will be lesser than what he had to pay previously. Once all the debts are consolidated into one single debt, it becomes easier for the people to meet their monthly obligations. The days of different due dates and varied amounts to be kept track of, will be over. Every single customer will be too delighted to follow this process of paying off their debts. 

On a Concluding Note

However, even when the debt consolidation processes have become highly popular, consumers must realize that it is not a quick solution for the debt problems. At the first place, one must be able to address the problems that lead to the debt. In general these services are meant to offer the consumers a certain kind of credit counseling, which aims at making them realize that one shouldn’t get their debt under control, just to start acquiring new ones. There is no doubt that debt can be a vicious cycle, especially if it is a credit card debt. If one falls into the deadly trap of this vicious cycle, the situation for him would be out of control forever. One can start living a debt free life very quickly, if they strictly follow the payment and debt control plan.

Forex Trading Demo For Beginners

Forex trading is a speculative business and before you enter this world it advisable that you practice trading by opening a Forex trading demo account. Most of the Forex brokers provide you with free demo accounts but it is important to choose the correct one. The account should have close resemblance with real money accounts and have maximum time limit for operating them. There should be minimum difference between a real and a demo account so that you are not heartbroken when you step into the real world. 

How to open a Forex demo account?

Forex trading demo account deal with virtual money and it is important to look for the amount of virtual money they offer. The more, the merrier. There are numerous Forex demo account providers but it is advisable to choose the one by seeing what brokerage is offering it. You should also look into the trial package it offers along with the charges and mode of payment. The necessary steps in order to open a Forex demo account is quite simple. You need to visit the brokerage website, register your name and e-mail, look at the terms and conditions, and you are all set to trade with your virtual money.

Advantages of trading on demo first:

Using a Forex trading demo account can be worthwhile experience for new budding traders. Firstly, you get a realistic feel of the forex market as the accounts have a realistic touch to them. Secondly, you can learn while you trade and that’s a very good opportunity to newbie’s who wants to get the understanding of the market. Thirdly, there is no real money involved so, a trader can do business without any risk of losing money. Lastly, it provides a good platform to test a strategy. You can always try your creative business mind and see the results for yourself. A Forex trading demo account can be a learning curve for all amateur traders out there.

What drives the Forex market?

Forex market is elastic and changing. It does not follow anyone’s guidelines nor will it follow your set of rules. It is driven by these factors namely- politics, speculators, business transactions and central banks. Political condition of a nation reflects the economic stability. Political unrest forces the investors to sell which results in the fall of currency. The role of central banks in determining the rate of interest also impacts the exchange rate of a nation. Foreign exchange being one of the largest markets in the world boasts of great business transactions. These great transactions often affect the Forex market and the currency of the country as well. As mentioned earlier, that Forex being a speculative business is bound to work on the theories and guess work of the traders. If the traders believe that prices may go high in future, they tend to buy, ultimately impacting upon the prices.

It’s easy to open a Forex trading demo account and quite risk free to trade with fake money. Although it is not serious business when you are trading with your demo account but it should be dealt seriously as it is the foundation stone to your Forex dreams.

5 Luxury Products that Make Affordable Gifts for the Holidays

Purchasing luxury products as holiday gifts will get you a lot of praise and thanks. Luxury gifts don't have to be expensive; they can still exhibit the signs of luxury without breaking the bank. Here are five luxury products that are affordable, useful and perfect gifts for the holiday season.

For The Person Who Loves To Cook: A Himalayan Salt Slab

Salt slabs are a perfect gift for foodies. These salt slabs are crafted from solid bricks of Himalayan salt, which is full of magnesium, iron, potassium and other nutrients that your body needs. When you cook using one of these slabs, the salt and nutrients are leeched into your vegetables or meats. It's the perfect component for cooking and baking. It's a luxury product, but you can score a nice one for under 50 dollars.

For The Person Who Shaves Often: Shaving Equipment

Quality shaving gear is important. Without proper shaving pieces, your face and body can suffer from micro tears and cuts caused by cheap razors and shaving creams. Luxury shaving accessories aren't cheap, but they are an investment. The Art Of Shaving makes these products more affordable than you would think. By making an investment in quality shaving equipment, you can avoid the constant expense that is associated with replacing disposable razors and other cheap products. These quality items can also help to prevent serious skin problems.

For The Tech Geek: iPad Folio

A luxurious and designer iPad folio is the perfect gift for the tech geek in your life. A nice case for their iPad or other tablet brand can be the ideal gift you can give to your loved ones or friends for the holidays. Designer companies often come out with cases around the holidays, which makes it so that you can purchase the latest designs and styles when you truly need them. This means that you can get your techie something that is useful, but that also keeps them current with the latest fashions and looks.

For The Old-Fashioned Writer: A Moleskin And Fountain Pen

A Moleskin and fountain pen are all the traditional writer needs. These perfect gifts are luxurious, beautiful and ideal for the person who loves to write. This gift is not one that will be forgotten any time soon, and it is sure to be well loved and used for a long time to come. Both of these things will also help to preserve the work of the writer, making sure that generations will be able to read the text that they wrote.

For The Fashionista: A Silk Scarf

A luxurious and silk-blend scarf is a perfect holiday gift that will not only keep the recipient warm during the winter, but it will also keep them looking fashionable. Silk is a luxury, and it's one of those gifts that simply cannot be turned down. It's perfect for the holidays, and it's a worthwhile investment. To avoid returns, choose a solid color like black or navy, since both of these colors will be able to match with the style of just about anyone.