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June 3, 2020, 6:54 am

What to consider before dipping into retirement: JP Maroney of Harbor City Capital Investment reviews

by: The Financial Blogger    Category: Personal Finance

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In today’s uncertain financial times, many people are looking for ways to grow their money. There are numerous investment opportunities ranging from all types of stocks, bonds and mutual funds to unique and even obscure vehicles. It all depends on how much you want to invest, how comfortable you are with risk and what your anticipated outcomes are.

One of the surest bets to growing your money for the future is by investing in a retirement plan.  For example, a 401K plan allows you to defer money from your paycheck into a 401(k) account and invest it. The idea is that the value of the stocks and bonds you invest in will increase in value over the years you spend working.

Prior to the COVID-19 pandemic, investing in a 401K was common practice among many American employees, but now millions of American workers have had to file for unemployment benefits for various reasons.  Today, many people who have lost their jobs are finding themselves in desperate need of cash flow, and some are turning to their savings or 401K accounts just to stay financially afloat.

While it may be tempting to take money out of your retirement plan, you should probably think twice before accessing your funds, or you could trigger a host of unintended financial consequences.

Financial strategist J.P. Maroney, Founder and CEO of Harbor City Capital Corp., reviews that the current health crisis has actually made it easier to take out a 401K loan, with factors like the economic downturn and new government legislation in the CARES act all contributing to the ease of withdrawal.  Maroney’s company, Harbor City Capital, a global alternative investment group specializing in buying, building and monetizing digital assets, is always reviewing ways to help keep investors achieve safe, high yield returns in this and every other environment. 

JP Maroney urges people to consider these things before dipping into their retirement savings.

How much tax will you pay?

Although times are tough and some people don’t have a choice, Maroney says taking money out of their retirement savings should be a last resort.

“People have got to do whatever they have to be able to survive and I would look first to other things. Do you have anything that you could liquidate quickly? Maybe there’s a vehicle,” JP Maroney suggests.

One of the reasons it’s probably not a good idea to withdraw early from your 401K is because there is a hefty tax penalty if you take money out before the age of 59 ½.  In fact, you will need to pay a 10% early withdrawal penalty, in addition to income tax, on the distribution.

If you have to dip into your retirement account, make sure you know how much and which bills you need to pay immediately. Don’t use the funds on discretionary spending.

Find other ways to access money

Even if you are going through a rough financial period, it is best to find other ways to access cash rather than withdraw from your 401K.  Perhaps you could look into refinancing your home mortgage, take out a loan or borrow money from family.  If these are not viable options, consider only taking out the exact amount you’ll need to cover expenses. 

If you must take money from your retirement plan, only cash out the amount you will need to cover the emergency and keep the rest invested.

Talk to an expert

Making a financial decision that can affect your future and is not always straightforward can be worrisome.  Review your options, first.  Compare the urgency of your current situation with the ability to achieve your long term savings goals.  You may want to seek the services of a financial advisor who can help you go over your available options, like boosting your income in other areas or taking on a side job to cover any immediate expenses.

Educate yourself

Whatever the reasons may be for wanting to withdraw from your 401K plan early, it pays to be prepared and educated yourself for the financial consequences that could result from your decision.

“Let’s say you’re a millennial so in the last few years to start up a 401k, it’s a different mindset isn’t it?  I would be less concerned about the immediacy of decisions right, but I think that everyone still needs to try to educate themselves,” says Maroney.

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May 22, 2020, 8:19 am

10-YEAR PLAN FOR A REMARKABLE LIFE

by: The Financial Blogger    Category: Personal Finance

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Life is the name of moving on. And, aging is a constant process. No matter what we do or say, we cannot reverse the process at all. When we look back after a certain period in our life, we feel that so much time has passed. Then, we may wonder if we could have spent our life differently. What if we lived our life the way we wanted and according to a plan. We would face hardships and obstacles, but we would never feel lost. Such is the power of having a plan ahead in your life.

The fact is, individuals who go according to their plan always have a feeling of contentment. They know that they will be able to deal with any problem as per their wishes. They always lead their lives in a specific, defined direction. And, it serves as a guiding light for them. People who have a clear understanding of their life are undoubtedly victorious.

Now, it is also interesting to find out how it guarantees a remarkable life? To understand this, think of it as a journey. When you embark on a trip, you plan everything. You take every necessary thing along and decide your route. You also figure out as to how you will deal with the impediments and hurdles. In short, you leave no stone unturned in making it successful. And, a life plan works in the same way.

But, since it is a comprehensive plan, to begin with, we need to discuss it in detail. Let’s elaborate on what we should include in the program to make it top-notch and flawless.

1. Future Investments and Finances

Your investments provide you peace of mind and help you avoid unseen troubles. That’s because the uncertainties in life are inevitable. We may never know what emergencies await us in the days to come. Many of us may tend to overlook this one and invest in a short-term plan. A detailed insurance plan is necessary to be completely secure. To do so, you may sign up with the USHealthGroup – Life Protector Plan to work it out properly. Secondly, you should be savvy about your finances. Without it, you won’t be able to craft a plan at all. You may think about what sort of spending you will opt for during a prolonged period. You should also decide how you will fulfill your financial obligations.

2. Long-term Professional Decisions

Your profession is the one that remains decisive in the success of your life. Without it, you cannot be secured financially or pursue a passion. Therefore, it is essential to think in the long-term. If you are on the crossroads of making a career decision, you should do so wisely. Think about how it will impact you in the longer run. Ask yourself if it will serve your passion and encourage you to proceed forward. You should also choose your organization carefully. Choosing the right people to work with will benefit you for the rest of your life.

3. Think About Some Adventures

No person can achieve what they want in their life without some thrill in it. You can only pursue your passions if you are motivated and determined to do so. So, you should plan out the places that you want to visit and the people that you want to meet in the next several years. You may estimate the expected costs of such trips and the planning that it will require. You can also determine who your friends will be during such adventurous tours. Try to create a mix of usual and exotic trips to avoid monotony. Visiting a new place every once in a while during those years will keep you energized.

4. Streamline the Health Issues

Without deciding about your health, it is almost impossible to carve out any plan. There are mainly two aspects to carrying for your health long-term. The first one is related to general issues. It is beneficial to plan out your visit to the physician and the medications that you may require. If you have a health condition, you can plan it out at this point. Carrying out medical tests is also beneficial in the longer run. Primarily, it lets you spot any disease or condition in time. Planning all of your health issues will make your 10-year plan remarkable by all means.

5. Motivational Aims and Ambitions

You cannot achieve wellbeing of any sort unless you are psychologically fit. For this one, you need to have the right motivations and objectives. It is immensely useful to turn to some digital resources. Many people subscribe to a mentor or life coach to find newer ways to solve their issues. Often, it requires them to plan for a certain period or several years. You should also decide that you may read nearly a dozen books to increase your knowledge base. They will become a source of inspiration and motivate you for your plans.

6. Forge New Relationships

You should also plan long-term to forge new relationships and make good use of the available time. If you are single, you may decide how you would want to approach the love of your life. You may determine the years that will take to become financially independent and ask them out. And, if you have a fiancée or spouse, you may work towards building your relationship. You can plan how you could be financially and mentally upbeat to tie the knot. Making crucial decisions about your links will allow you to live with complete clarity.

The Takeaway

Life is full of challenges and obstacles. If you have a good grip on your life, you can indeed perform well. But that’s only possible through some planning and pondering. The key is in thinking long-term and estimating everything. You can only win long-term if you have it planned. Now is the time to craft a complete and diverse plan. Remember, a little effort today will benefit you for many years to come.

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March 27, 2020, 1:01 pm

Unsecured Loans; Options to Consider Before You Decide to Apply

by: The Financial Blogger    Category: Personal Finance

Personal loans are broadly categorized into two, secured and unsecured loans. There are different types of loans under these two broad categories. Secured loans require borrowers to pledge an asset that can be used to recover the outstanding loan amounts in case they default. In most cases, the asset used as security serves as motivation for the borrower to repay the loan within the agreed period. 

Since these loans are secured, most of them are always cheaper in terms of interest rates, other associated fees and the repayment period. On the other hand, unsecured loans do not require an asset for security. The loans under this category are offered on merit. Since the lenders carry a lot of risks lending money, unsecured loans may be relatively expensive compared to secured loans. 

There are so many types of unsecured loans with different sources, including online. You are supposed to be logical when making borrowing decisions, especially when dealing with unsecured loans. If you are not careful, you may end up in a financial crisis. It would be best if you considered several things before sending your application. This discussion will mainly focus on unsecured loans. Specifically, we are going to discuss the options to consider before you decide to apply. Let us see.

When to use unsecured loans

Unsecured loans are better applied when the funds are needed for a specific reason. For instance, in case you are plagued with a high-interest loan, and you really want to consolidate, it would be wise to an unsecured debt consolidation loan. Again, there should be financial prudence in this decision. It would be unwise to apply for a debt consolidation loan when you cannot save on interest rates.

You don’t have to use unsecured loans to cover expenses simply because the funds are there. You are applying for a loan to finance the things that you want, for instance, going for a vacation or acquiring a luxury, rather than what you need is unwise—unnecessary borrowing detriments your financial standing. The best way to finance luxuries is to wait until you save sufficient funds to cover the associated costs.

Interest rates

Interest rate is an essential variable when it comes to borrowing. There are so many money lenders open on Sunday out there, each with different offers. Rational borrowers will want low-interest loans in case there are no other factors that can make the loan very expensive and inaccessible. When you want an unsecured loan, it is vital to look at the offers from different loan providers. 

As we earlier stated, unsecured loans may be relatively expensive since security is not needed. In most cases, the ranger for interest rates varies between 5% and 36%. The rate charged will depend on several factors, including your creditworthiness and the type of lender you are dealing with. That is why it is advisable to compare different offers.

Other fees

There are cases when lenders ask for an origination fee. This is mainly used to cover the expenses incurred while processing the loan. The fee often ranges between 1% and 6% of the total amount borrowed. These fees may also vary depending on the loan provider. Additionally, some lenders will also require borrowers to pay some amount in case they are paying the loan earlier than expected. This is what is commonly referred to as prepayment penalty. 

However, you can benefit immensely by paying the loan earlier, specifically from interest payment. It will help if you shun loans that carry prepayment penalties. Most lenders also charge late payment fees. This is understandable due to the inconveniences that come with late payments. All the time, make sure you are submitting payments at the right time. In case you anticipate that you may not be in apposition to beat the deadline, talk to the loan provider in advance.

Why do you have to consider others fees apart from interest rates before considering applying for an unsecured loan? For a simple reason – these fees may make the loan expensive and unaffordable. For instance, an unforeseen circumstance may render you unable to make a payment in time. In case the late payment fee is very high, you may get into financial distress.

Your repayment plan

It would help if you established a suitable repayment plan before sending an application. How do you intend to pay off the loan? In case you find it challenging to respond to this question, then borrowing is a wrong decision at this time. The last thing that should happen is to borrow when you cannot afford to repay. Sometimes you may even have all it takes to repay a loan, but without a concrete repayment plan, you may struggle a lot. Re-examine your motive for borrowing and how you intend to pay the loan in terms of time and sources of funds before applying. 

Without an appropriate repayment plan, you can hardly be approved. The worst you can do is to send other applications to different lenders immediately you are declined by one lender. This may lead to a significant drop in your credit score.

Other alternatives to unsecured loans

Is it possible that you can get other sweeter deals? It is vital to look at other options at your disposal before sending an application. For instance, is it possible that a friend or a family member can offer you a loan with low or without interest? Is it possible to obtain funds elsewhere, for instance, by selling the stuff that you currently do not need? Can you save on interest and other costs if you apply for a secured loan?

The Bottom Line

There are several factors that you need to consider before applying for an unsecured personal loan. We have discussed some here, including interest rates, related fees, repayment plan, the appropriate time to use, and other better alternatives. It is also imperative to look at the loan period. You need sufficient loan to repay the loan comfortably. In case the lender cannot offer a favourable repayment period, do not apply for the loan.

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March 27, 2020, 11:55 am

4 Reasons Why Personal Loans Can Settle Your Financial Debt in Installments

by: The Financial Blogger    Category: Personal Finance

Indeed, there are several factors why you might choose to acquire a personal financial loan. Perhaps you’d prefer to get hold of those new groups of wheels or possibly you’re expecting your very first baby. Whatever your reason, a particular loan could be the most effective method to build your dreams into a reality quicker. 

Financial steadiness shouldn’t hinder us from offering our needs as well as the essential desires. In case your financial standing is unpredictable, you might like to turn to a loan. It may help you cover necessary obligations up until you become financially suitable. 

Think you’re facing a money crunch, don’t have experience in assets but have got a Bank Card? A Personal unsecured loan from Fast Cash Loan is most likely to suit your needs. Yes, we understand your Card provides you with a money withdrawal amount. But don’t forget, setting up a cash withdrawal on the bank card ends up to become more costly than trying to get an unsecured loan.   

What Is Personal Financial Loan?

A personal cash loan is a money you lend to cover almost anything, just like your wedding, a desire vacation, a brand new computer, hospital bills, or even combining other debts.  

The two primary forms of personal loan:

  • Having a secured loan, recommended pledging guarantee, like a car or property, to assist the financial investment if you ever don’t make installments.  
  • By having an unsecured loan, which can be a lot more common, you don’t just set up any collateral. Short term loans can also be known as a customer or individual loans. 

In case you are still not convinced of the way loans may help you, listed below are advantages and essential things about signature loans that you would like to consider. 

Signature Loans Provide Financial Versatility

What’s good about having a loan could it offer you the freedom you may need when it comes to finances. This means if you are seeking to loan a great deal of money or maybe a smaller amount, you will get approved of this application – still with all the thought on your account and credit rating. 

Once you become financially adaptable, you’ll be able to provide several needs. If you’re searching to cover your rent while having the amount of money to maintain your everyday essentials, you may obtain a personal cash loan to satisfy your financial wants.  

Choosing a personal financial loan is simply a simple task. Banks, as well as other commercial companies, give loans with a reasonably reasonable interest. It’s convenient and straightforward to have signature loans compared with different kinds of loans. 

Intended for Any Purpose

Lenders are not going to obligate their borrowers to identify the idea or reason behind trying to get a personal unsecured loan. Unlike real estate loans whereby they limit using the funds just for development or buying a home, or perhaps a car loan that one could use for choosing your vehicle, signature loans are multi-purpose. 

The amount of money that you will get from signature loans could be put in plenty of ways, turning it into versatile. Compared with the other loans like an education loan, a home loan, or perhaps an auto loan, unsecured loans could be used to fund a wedding event celebration, to invest in your getaway family trip, to settle hospital bills or stuff that should finance.  

When choosing a loan, indicating the reason or maybe the reason behind borrowing the cash isn’t necessary. It’s possible to make use of the finances credited to their account for any purpose. Your consumer decides to select how to deal with the total amount given. 

However, you might like to personally establish the main reason for this type of loan, as signature loans can turn to unnecessary expenses if you’re not smart about utilizing the money.  

Settle Your Financial Debt in Installments

In signature loans, you will find the choice to take a loan for any fixed time and repay in set installments monthly. Besides, individual unsecured loans are unguaranteed. This means you don’t have to provide assets. The borrowed funds will likely be handed to you personally, depending on your credit history and credit rating. 

In case you are having a tough time settling your financial troubles within a one-time amount, you might like to change to signature loans that provide installments. Installments are computed by having the cash that you just borrowed as well as the interest rates. The sum will be split into a couple of regular payments.  

It can be useful when you have already evaluated your financial capacity in repaying your debt that you’ll get. Paying out in installments will even allow you to look after your day-to-day needs along with slowly consolidating the loan. 

Unprotected Kind of Loan           

Considering that the loan is unsecured, collateral protection isn’t necessary to obtain the loan. The main crucial requirement is one’s ability to settle the borrowed cash, which depends upon the cause of capital. An individual doesn’t have to give an assurance or mortgage their assets. After the bank or money loan company guarantees one’s repayment capacity, the processing of your loan is straight away done. 

A Personal Loan Has Reasonable Interest Levels 

Rather than using charge cards, going for a loan provides you with an acceptable interest. Together with low-interest rates, you’ll be able to set aside additional money with other important stuff. Just like a bonus, your loan provider won’t request collateral for the investment that you borrowed.  

Compared with a residence equity loan or even a mortgage, bank loans are generally offered to be an unsecured kind of loan. This might satisfy your financial need in case you have no property, which can be viewed as collateral. 

Summing up, a personal loan is ideally suited for if there’s a short-term cash condition; however, the borrower doesn’t have any available assets and requires the cash fast. However, before you take this loan, a consumer should keep in mind that this loan possesses a higher rate of interest. Financially, it can result in more problems if he’s not capable of paying the financial loan.  

Getting a personal financial loan isn’t always a bad idea. In case the situation needs it, don’t hesitate to consider loans. With cautious planning and sound choices, you might use the borrowed funds wisely, provided there is a valid purpose as well as the determination to cover it well in time.

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March 27, 2020, 8:52 am

What are the Easy Ways to Pay for Unplanned Expenses

by: The Financial Blogger    Category: Personal Finance

Do you have a savings account? I guess you have one. But then what do you intend to use the funds for? Emergencies? What about emergency funds? Logic demands that the funds in the emergency fund be used to cover unforeseen expenses. Even though this is an indisputable fact, it is challenging to determine what amounts to unforeseen costs. Many people confuse unexpected costs for different things. For instance, should the emergency fund be used for cyclical yearly bills? In this blog, we are going to discuss the easy way to pay for unplanned expenses. But let us start by understanding the concept of unplanned expenses first.

The Meaning of Unplanned Expenses

Insurance costs, tax obligations, and other costs that are supposed to be paid yearly do not amount to unexpected. This is because one is ultimately required to pay for them either annually, quarterly, or semi-annually. So then how can you manage these costs? Well, you can save a certain proportion weekly or monthly specifically for this purpose. At no point should an individual use emergency funds to cover such expenses. What about intermittent maintenance or repairs? Here is another aspect where individuals make mistakes.

For instance, do you have a leaking roof? Are you supposed to pay a certain amount of money for health insurance? Sometimes individuals mistake these for unplanned expenses. In reality, such costs do not amount to unexpected costs. This is because one is expected to meet medical bills or service his car at one point in time. This implies that you need to include a certain portion of the budget to cover variable costs. 

And now the question is, what really amounts to unplanned expenses? Well, emergency funds are supposed to cover costs that cannot be classified as annual bills. It should not be utilized in such things as yearly bills. Unexpected costs involve such things as running out of a job or being plagued with considerable unforeseen health costs that insurance cannot account for. With this concept, you can now readjust your budget appropriately.

Easy Ways of Paying For Unplanned Expenses

Many people are plagued with unplanned expenses. Nevertheless, very few are always prepared to finance them. A recent survey indicated that about 40% of Singaporeans lack enough money to provide for most unplanned expenses. In case you are operating based on a set budget, you may not really struggle a lot. However, an individual surviving on paycheck to paycheck can find it so challenging to deal with even a little setback. We all find ourselves in cash shortage. Here are the easy ways to pay for unplanned expenses.

  • Cut your costs

Devote some hours for examining your regular expenses. While it might appear overwhelming, it pays to analyze credit card reports, payments made, and medical bills. This information can help you get an overview of what consumes most of your money. After tracking all your costs, the best thing to do is to cut variable expenses. This includes the money that you spend on such things as transportation as well as on utility bills. For instance, you have the option of switching off that thermostat over the winter or significantly lessening energy bills. Afterward, you can deal with discretionary costs. These include the products that you’d love to have, but you do not indeed need them. You can as well do away with daily coffee along with regular manicure. If you do all these, you will be left with some cash to cover unplanned expenses. While the funds may not be enough, it is the best way to get started.

  • Earn additional income

Do you operate with a very tight budget? Maybe it will be difficult to cut your costs. You have the option of looking for additional cash. Many individuals have benefitted from working overtime. Some have earned considerable cash working babysitting. Do you have some old clothes that can be sold? Another effective way of making extra cash is selling that item that you already have, but you do not use or need them at the moment. Still, you can look for a side hustle. The point is, looking for ways of getting additional income can help you finance unplanned expenses.

  • Apply for a loan

If the above strategies are not practical for you, then you take a personal loan. Estimate the amount that you need and send an application. If you have outstanding credit, you can quickly be approved by A1 Credit. The internet has revolutionized the lending sector, and with access to the internet, you can make an online application. You can receive funds within a short time. Nevertheless, you must be in a position to make monthly installments. It will also be good if you take some time to compare the rates charged by lenders on loans. Always go for lower interest since the loan will be cheaper.

Borrow from friends or members of your family   

In case of times does not allow you to take a personal loan, why not run to a family member or a friend? This is actually the cheapest alternative when it comes to dealing with unplanned expenses. These are the people closest to you, and they know you better. No doubt your condition impacts on them. They may not have issues allowing you a friendly repayment schedule. Additionally, most of them do not accept collateral or interest. Nonetheless, there might be critical repercussions of going down this route. Any misunderstanding regarding the repayment of the loan can significantly damage relationships.

Use your savings

In case your savings account is accessible without penalties, there is no problem using some cash from the account to cover unplanned expenses. However, use the funds only for unplanned expenses and nothing else. Cash savings can help you better in this case in comparison to investment savings.

The Bottom Line

There are different ways of paying for unplanned expenses. The only problem is that many do not understand what unplanned expenses constitute. In this blog, we have explained this concept in detail. We have also explained effective ways of dealing with them. How else do you think unexpected costs can be covered? Drop your comment below and let us see. Thank you!

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