More than 50% of Americans will be diagnosed with a mental illness or disorder during their lifetime, according to the Centers for Disease Control and Prevention. Chances are, some of these individuals will be inheriting wealth at some point.
If a family member’s mental health issues may interfere with their ability to manage finances, answering these questions could help them create long-term financial stability.
Have I set up a trust?
Setting up a trust is one way to transfer wealth to a loved one and create financial stability for them. A trust enables you to leave specific instructions for trustees about how to care for your loved one and distribute assets.
Trusts can be especially helpful for transferring assets to loved ones who have a mental illness but are still able to function independently. While these loved ones are often independent, they may still have difficulty managing assets on their own, says Lillie Nkenchor, an attorney who does estate planning in New York. One example includes someone with depression.
“You can put assets in a trust,” Nkenchor says. “It can simply be a trust that says, ‘This money is to be used to take care of my sister who is high functioning, but is not great with money.’”
Likewise, you can request money be allocated to health care expenses and anything else that helps them live a healthy and functional life. Having a trust in place can also help beneficiaries avoid probate, a court process for handling estates that could be stressful for someone who has a mental illness.
Does my loved one receive government assistance?
Another important question to ask is whether the person receives government assistance or may need to in the future. While a basic trust may suffice for a loved one who has a mental illness but mostly functions independently, it could negatively impact one who doesn’t and receives government assistance.
“We want to make sure that if we are caring for someone who’s receiving that type of benefit, we don’t accidentally leave them something that disqualifies them from that benefit,” Nkenchor says.
People who receive government assistance may have limits on how much they can have in assets. For instance, to be eligible for Supplemental Security Income through Social Security, they generally can’t have resources of more than $2,000 as an individual or $3,000 as a couple. That is, unless you put those assets into a special needs trust. It’s an estate planning tool for individuals with disabilities or functional needs.
“The special needs trust is meant to supplement government benefits that person is receiving. It doesn’t replace it, it’s meant to supplement it,” Nkenchor says.
Nkenchor adds that a standard special needs trust isn’t effective until the person who establishes the trust dies. So, if you plan to financially support your loved one while you’re alive while they receive benefits, consider setting up a stand-alone special needs trust. Since setting up an SNT can be complicated, it’s advisable you speak to a professional who specializes in this area. The Special Needs Alliance website has a directory that can point you toward attorneys for special needs planning to help you get started.
Have I named the right trustees?
The estate managers you name will be responsible for distributing assets to your loved one when you die or if you’re incapacitated. Talisa Utsey, an independent estate planning attorney licensed in Maryland and New York, says a mistake some people make is not appointing the right trustee. She adds that people sometimes take advantage of older adults, young people and those with mental illnesses.
You have two options: someone you know or a corporate fiduciary. Utsey says if you opt for the former, choose someone who has a good relationship with the beneficiary. You also want to be sure they have some knowledge of estates or can get advice from someone who does.
“If they are not familiar with estate administration, if they’re not familiar with the documents that give them the authority, they’re not familiar with their actual authority, then that can be harmful,” Utsey says.
Alternatively, you may choose to appoint a corporate trustee since they’re usually experienced and have no emotional investment. For example, you could use a financial institution like a bank. Just know that corporate fiduciaries often charge heavy fees.
Utsey also advises appointing at least one successor trustee — a person who takes over trustee duties if the initial trustee can’t serve. And don’t forget to consult with prospective trustees first, Utsey says: “Make sure that the primary and the successor are both interested in taking on that type of responsibility.”
Is my estate plan clear?
To protect your loved one from financial abuse and prevent mishandled funds, you want your estate plan to be clear and streamlined, Utsey says. This means ensuring all your accounts and assets are addressed to the trust, none are in your loved one’s name, and there are clear directions about how money is spent. All assets should flow through the trust if possible.
“When there’s a plan, there’s less likelihood of manipulation and funds being wasted because it’s clear, it’s a process and it’s written down in plain English, and black and white,” Utsey says. “And to some extent, it’s legally enforceable when it’s done the right way.”
Being clear will also help the trustee execute your plan with ease.
If you’re looking for a wide selection of home loan options, you may want to check out “Homeside Financial.”
The Columbia, Maryland-based mortgage lender offers a ton of different options for home buyers and existing homeowners looking to tap equity or snag a lower rate.
Aside from their goal of providing the highest level of customer satisfaction, they also strive to be #1 in employee satisfaction.
Hopefully that translates to a pleasant experience for all involved. Let’s learn more.
Homeside Financial Fast Facts
Retail direct-to-consumer mortgage lender
Offers home purchase financing, construction/renovation loans, and refinances
Founded in 2013, headquartered in Columbia, Maryland
Licensed to do business in 42 states and the District of Columbia
Has 500+ employees and 40+ branch locations nationwide
Goal is to become a top-20 home purchase lender
Sister company of Lower.com
Homeside Financial is a retail, direct-to-consumer mortgage lender, meaning you can work remotely online or visit a local branch.
They offer a very large variety of mortgage options, from home purchase loans to construction loans to refinances and HELOCs.
Their goal is to be a top-20 home purchase lender nationally, so they could be an especially good choice for home buyers.
But they are also big on mortgage refinances, with such loans accounting for two-thirds of their 2020 volume.
Last year, the company funded a healthy $5.1 billion, putting them close to the top-100 lenders nationally.
While they’re licensed in 42 states and D.C., they’re most active in Illinois, Maryland, North Carolina, Ohio, and Virginia.
They don’t appear to lend in Maine, Nevada, New Hampshire, New York, Rhode Island, South Dakota, Vermont, or Wyoming.
How to Apply with Homeside Financial
Call them up, visit a branch, or browse their online loan officer directory
Connect with a loan officer to discuss loan pricing and eligibility
Then you can apply online via their digital mortgage application powered by ICE
You’re able to manage your loan 24/7 via the online borrower portal
To begin, simply navigate to their website, visit a local branch office, or call them up on the phone.
You’ll need to get acquainted with a human being (loan officer) before you can proceed to the digital loan application.
This is generally a good first step to discuss loan pricing and eligibility to ensure you don’t waste your time or theirs.
Once you determine your path, you’ll be able to apply online via their digital app powered by ICE Mortgage Technology.
Simply select your loan officer from the “Find a Loan Officer” tab on their website and you’ll be able to search for that individual by name or location. Then you can get started.
The application allows you to link financial accounts, scan/upload docs, eSign disclosures, and start and stop from any device as you see fit.
After your loan is approved (hopefully!), you’ll be able to manage it via the online borrower portal.
Easily check loan progress, get status updates, and connect with your lending team at any time along the way.
Loan Programs Offered by Homeside Financial
Home purchase loans
Refinance loans
Home renovation loans
Construction-to-perm loans
Conforming loans backed by Fannie/Freddie
Jumbo loans
FHA/VA/USDA loans
Manufactured home loans
Fixed-rate mortgages and ARMs
One of Homeside Financial’s major strengths is its vast product menu. They offer pretty much everything under the sun.
If you’re a prospective home buyer, they’ve got home purchase loans, renovation loans, and one-time close construction loans.
Existing homeowners can take advantage of a mortgage refinance or even tap their equity via a HELOC.
They offer all major loan types from conforming loans backed by Fannie Mae and Freddie Mac to jumbo loans and government options including FHA, VA, and USDA.
It’s also possible to get a manufactured home loan, a student loan cash out refinance, and much more.
Both fixed-rate and adjustable-rate options are available, including 5/1, 7/1, and 10/ ARMs.
The Homeside HELOC
Homeside Financial is also one of the new nonbank lenders out there to offer a home equity line of credit (HELOC) product.
They refer to it as “The Homeside HELOC,” which is a line of credit that lets you borrow up to 95% of your property value. That’s very high by industry standards.
There is no prepayment penalty or annual fee, and you can borrow up to $350,000, with a minimum loan amount of $15,000.
A 1% loan origination fee is charged, so you’ll only want to draw what you need to avoid being hit with excessive costs.
For example, if you draw $25,000, you’ll be assessed a $250 fee, along with whatever interest is charged.
Homeside Financial Mortgage Rates
Like many other lenders, Homeside Financial doesn’t post mortgage rates on their website.
As I always say, this doesn’t mean they’re good, bad, or otherwise. It’s simply an unknown.
You’ll need to speak with a licensed loan officer to get pricing. However, a decent number of their Zillow reviews indicate lower-than-expected interest rates.
And while they have a page dedicated to lender fees on their website, they don’t list dollar amounts. They just explain what certain fees are. It’s more of a glossary than a pricing guide.
As such, it’s unclear if they charge an application fee, a loan origination fee, and so on. Be sure to inquire about those all when you obtain your rate quote.
Homeside Financial Reviews
On Zillow, the company has an excellent 4.89-star rating out of 5 from over 2,000 customer reviews.
That’s where the bulk of their reviews exist online. Take the time to filter by loan officer to find someone really fantastic to work with.
They’ve also got a 3.3-star rating on Google, though it’s only based on tiny sample size of 12 reviews.
Homeside Financial is not an accredited company with the Better Business Bureau (BBB), but does hold an ‘A+’ rating based on customer complaints.
To sum things up, Homeside Financial excels when it comes to loan choice. They have basically everything you can think of and more.
They also have brick-and-mortar branches if that’s your thing, but still offer the latest technology as well.
The possible downsides might be pricing and fees, though we’re in the dark when it comes to that.
Ultimately, you should take the time to shop around regardless, or check out their sister company Lower, which may offer even cheaper mortgage rates.
Homeside Financial Pros and Cons
The Pros
Offer a digital mortgage application
Can apply apply in a matter of minutes
Most loan tasks can be completed electronically from any device
Also have physical branch locations in several states
Excellent reviews from past customers
Tons of loan programs including renovation/construction loans and HELOCs
Free mortgage calculator and how-to guides on their website
The Cons
Mortgage rates and lender fees aren’t listed online
We all know it’s hard to find a mortgage with zero down these days. You can thank everyone who got one a few years ago for that. This is why we can’t have nice things.
Heck, post mortgage crisis, most borrowers have to go with FHA loans if they’ve got little in the way of assets for a down payment, as the loan program allows financing with just 3.5 percent down.
But not all hope is lost for zero down. And you don’t have to travel to some distant planet to find it. In fact, it’s now available right here on Planet Earth.
Are You a Space Traveler?
One little known perk to being an astronaut
Is the ability to get a zero gravity err.. down mortgage
You may not even have to travel to space to get one
All NASA employees including those on the ground are probably eligible
If you travel to outer space often, or live with someone who does, you might be able to get your hands on a mortgage with zero down. This is one of the little-known perks afforded to astronauts, other than exploring new worlds and traveling at 18,000 mph.
That’s right; the folks over at the NASA Federal Credit Union are offering a so-called “High Loan to Value Mortgage” for a limited time to its people.
The “unique loan” allows 100 percent financing for loan amounts up to $650,000, and does not require costly private mortgage insurance (PMI is typically required for loans with LTVs over 80%). However, even when not charged, it’s typically priced into the mortgage rate. So compare the rate to other products.
For those spacemen and spacewomen with loan amounts between $650,001 and $850,00, they are offering purchase money mortgages with loan to value ratios up to 95 percent. Still pretty good given the current lending environment.
The program also offers cash out refinancing up to 95 percent loan-to-value up to $650,000 (and 90% cash out from $650,001 up to $850,000).
But financing is only available for primary residences in Maryland, Virginia, and Washington D.C.
As expected, the loan program is only available to well-qualified applicants, such as those with good credit and steady income.
It also makes me wonder how much we’re paying our astronauts. Are they not making enough to set aside cash for a down payment? Doesn’t seem fair given the tremendous value they’re providing to us simple Earthlings.
The D.C. area is infamous for its commuting and traffic gridlock. To avoid a stressful daily commute, you should choose an apartment that’s close to your workplace and has good access to public transportation. Weekday rush hour traffic is heaviest in D.C. between 6:30 to 9:30 a.m. and 3:00 to 7:00 p.m. Estimated driving times are unpredictable, as a minor accident can back up the highways for miles in either direction. Here are some tips for commuting in the D.C. area.
Driving
While all of the highways surrounding D.C. get congested during the morning and evening rush hours, driving is usually the most convenient option when traveling within the suburbs.
Check traffic alerts. Use a GPS to map the best route and stay flexible, taking detours and finding new ways to get around heavy traffic.
If you don’t mind the extra cost, use the HOT lanes in Virginia. These lanes use your EZ pass transponder to charge a toll and allow you to drive in the faster lanes.
Form a carpool. By sharing the ride, you will save money on fuel and car maintenance. Carpooling can also reduce time spent on the road, because you can use HOV lanes which usually move faster than the other lanes.
If you live in Virginia, you can use slugging, an organized system where commuters stop to pick up other passengers.
Subway and Bus
The Metrorail subway system includes six lines and serves 91 stations in D.C., Maryland and Northern Virginia. Metrobus operates 1,500 buses. Both transit systems connect to bus lines in the suburbs. The Yellow/Blue lines connect with Reagan National Airport and the Silver line is under construction and will eventually provide service to Dulles International Airport. The DC Circulator is a local bus system with 5 routes around the most popular areas of the city.
Purchase and register a SmarTrip card. You may add value to the card from the convenience of your computer by visiting www.wmata.com/fares/smartrip. Metro will also replace the cared if it is lost or stolen for a $5 fee and you won’t lose the value on the card. The same card can be used to pay for Metrobus fare.
If you have a flexible work schedule, avoid traveling at the most crowded times, Monday through Friday, 7:45 to 8:45 a.m. and 4:45 to 5:45 p.m.
Don’t transfer lines if you can walk the distance between stations. Many stations are near each other and within an easy walk.
Commuter Rail
There are two major commuter rail systems serving the D.C. area: Maryland Area Regional Commuter (MARC) and Virginia Railway Express (VRE). Both systems operate Monday through Friday and have cross honor agreements with Amtrak to offer reduced fares for commuters.
Operational times are limited. Be sure to know the schedules and plan accordingly.
Commuting by Bike
D.C. is a bike-friendly city with more than 40 miles of bike lanes and Capital Bikeshare, the largest bike sharing program in the nation. There are approximately 440 stations and 3,700 bikes throughout Washington, DC; Arlington, VA; Alexandria, VA; Montgomery County, MD; and Fairfax, VA.
Sign up for a membership and use the bikes for an environmental-friendly commute.
SEE ALSO: Insider Tips if you’re Moving to D.C.
SEE ALSO: 12 great cities for cycling
Commuter Connections is a great resource for learning about ridesharing and other commuting programs around the capital region. For more information, visit www.commuterconnections.org
Although inflation may be cooling, interest rates remain high. As a result, you may find yourself opting to rent rather than own, either by choice or by extenuating circumstances. The good news is that renters insurance is significantly cheaper than home insurance at around just $174 per year on average, according to the Insurance Information Institute (Triple-I). This is because renters insurance only provides coverage for the home’s contents along with the renter’s liability, rather than including coverage for the structure of the home. To help you identify which renters insurance company best meets your needs, Bankrate reviewed the largest renters insurance companies by market share based on a variety of key metrics.
Why renters insurance is important
Renters insurance is relatively inexpensive at around $15 per month on average, but its value can significantly outweigh its monthly cost in the event of a claim.
In addition to replacing your personal belongings, renters insurance also offers coverage for incidents that affect your guests. Perhaps a guest slips at your residence, sustaining an injury. In this case, renters insurance could help pay for their medical costs. If the injury results in legal action, renters insurance could also help pay legal fees. Insurers commonly offer coverage for relocation and food if your rental becomes temporarily uninhabitable due to a covered claim.
Add-ons are generally available for your renters insurance policy as well to help provide more robust coverage. For example, if you need extra coverage for your jewelry or other high-value items, you may be able to add additional coverage on top of your standard renters insurance.
Best renters insurance companies
Bankrate has researched more than a hundred companies offering renters insurance policies to narrow down some of the best renters insurance companies of 2023. The following companies have all been selected based on positive customer satisfaction ratings by J.D. Power, a leading third-party source for industry research, and have received “Excellent” or “Superior” credit ratings from AM Best. Having a positive rating from AM Best indicates that an insurance company has historically been able to meet ongoing financial obligations like operating costs and claims. Additionally, the companies below either include additional protections or offer them as add-ons for your renters policy, such as pet insurance and flood coverage.
*Not rated by AM Best, but rated A (Exceptional) by Demotech for financial stability
**Not officially ranked by J.D. Power due to eligibility restrictions
Allstate
Best for: Discount opportunities
Allstate tied with USAA for Best Home Insurance Company Overall in the 2023 Bankrate Awards. Although the Bankrate Awards focus on homeowners insurance rather than renters, many of the same homeowners features also translate to the company’s renters insurance product. For instance, Allstate won partly thanks to its highly-rated mobile app and wide network of brick-and-mortar agencies. Additionally, Allstate offers even more savings opportunities with its multiple policy discount, 55 and retired discount and Easy Pay discount for scheduled monthly payments. However, Allstate received a slightly below-average rank in the 2022 J.D. Power Home Insurance Study for renters insurance customer satisfaction. While the score is not significantly lower than the industry average, customers seeking exceptional customer service may want to carefully weigh how the carrier stacks against other options.
PROS
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Access to other policy types for a multiple policy discount
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Easy-to-use mobile app and online web portal for policy management
CONS
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Slightly lower J.D. Power score than the other companies on this list
Learn more: Allstate Insurance review
Erie
Best for: Regional coverage with robust options
Erie Insurance has a stellar reputation built upon affordable rates and an easy-to-navigate claims service. Erie offers considerable discounts on bundles, additional living expenses if you need to find a temporary place to live and the option for extra coverage for things like identity recovery and your more expensive personal items. Unfortunately, Erie only offers renters insurance in roughly a fifth of the U.S., but could be an excellent choice if you live in one of the areas it services. States covered are Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and Wisconsin. Erie also offers coverage in Washington, D.C.
PROS
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Ability to work with a local insurance agent
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If requesting a quote seven days from policy start date, renters insurance could qualify for an additional discount
CONS
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Limited state availability compared to other national carriers
Learn more: Erie Insurance review
Liberty Mutual
Best for: Renters on a budget
Liberty Mutual could be a great choice for renters on a tight budget. The company advertises that its policies start at just $5 per month. Although the coverage options available are fairly basic, you might be able to add replacement cost coverage for your belongings, as well as jewelry coverage or earthquake coverage. However, Liberty Mutual does have a higher-than-average complaint index score with the National Association of Insurance Commissioners (NAIC). A score of 1.00 represents a baseline number of complaints. Liberty Mutual’s overall score is 2.66, indicating that the NAIC receives more than two and a half times as many complaints for the company than average.
PROS
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Option to add replacement cost, meaning personal belongings will be replaced without factoring in depreciation
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With blanket jewelry protection, renters have one set amount to cover their jewelry with no need for appraisal or deductible after a covered loss
CONS
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High NAIC score indicates Liberty Mutual receives more complaints than other similar-sized carriers
Learn more: Liberty Mutual Insurance review
Lemonade
Best for: Digital policy management
Lemonade is another 2023 Bankrate Award winner for Best Digital Home Insurance Company. Lemonade terms itself as “insurance for the 21st century.” Its mobile app, powered by Maya, its artificial intelligence bot, helps renters get a quote, manage their policy and file a claim all in one place. Renters who want an insurance company focused on global causes will appreciate that leftover premium is donated to many different causes like the Malala Fund, the Trevor Project and March for Our Lives. However, the all-digital experience means renters won’t be able to have in-person customer service. Additionally, Lemonade renters insurance is only available in 28 states and Washington, D.C.
PROS
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Simple mobile app interface for all your insurance needs
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Policies can be started in 90 seconds and claims paid out in as little as three minutes
CONS
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Renters insurance is only available in 28 states and Washington, D.C.
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Lemonade car insurance is only available in a few states, making it difficult for renters to qualify for a multiple policy discount
Learn more: Lemonade Insurance review
Nationwide
Best for: Customer service experience
If you’re looking for world-class customer service, then Nationwide might be worth checking out. Out of all the renters insurance companies that J.D. Power officially ranked in 2022, Nationwide earned the top spot. Although Nationwide might be a little more expensive than average (the company states that its renters policies start at $20 a month), the added expense could be worth it to the right shopper. Additionally, Nationwide offers a Brand New Belongings endorsement, which could help you replace your items for their replacement value rather than actual cash value (which takes into consideration depreciation).
PROS
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May get a bundling discount for purchasing renters and auto
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Optional coverage-add on could help make for a robust renters policy
CONS
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May be more expensive than average
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Customer service is not 24/7
Learn more: Nationwide Insurance review
State Farm
Best for: Local offices
State Farm offers renters insurance in every state throughout the U.S., making it a great option for renters in underserved rural areas or areas. But it’s not just State Farm’s wide availability that may make it a good option. The company also has exceptional ratings from companies like J.D. Power and AM Best, which could make it a safe bet for your renters policy. Although State Farm doesn’t offer nearly as many discounts as some of the other providers we’ve chosen, you might lower your premium if you insure your car with State Farm or if you have security devices installed in your apartment.
PROS
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Excellent customer service and financial strength ratings from third-party agencies
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Knowledgeable local agents to help you with your insurance journey
CONS
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Fewer discount opportunities compared to other carriers
Learn more: State Farm Insurance review
The Hartford
Best for: Policyholder perks
To qualify for The Hartford, you must be a member of AARP — and to be a member of AARP, you must be 50 or older. However, AARP members get exclusive access to a long list of discounts and perks as well as access to The Hartford renters insurance. The Hartford policyholders could save on hotels, gas, plane tickets, cell phone plans and more. The carrier’s New for Old protection also comes standard in its renters policies, which offers replacement cost for your items if they are damaged or destroyed in a covered loss. Additionally, The Hartford may give you a discount on your renters policy simply for living in a gated community.
PROS
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Flood coverage is standard on renters insurance policy
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If moving or deployed overseas, personal belongings would be insured with overseas coverage
CONS
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Not available to the general public
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Can only do business over the phone or online, no local offices
Learn more: The Hartford Insurance review
USAA
Best for: Military-centric coverage
USAA tied for Best Home Insurance Company Overall in the 2023 Bankrate Awards, partly due to its high J.D. Power scores and nationwide availability. The company has a stellar reputation among consumers and the insurance industry, and it offers renters insurance policies particularly supportive for those in a military lifestyle. The basic policy includes coverage for personal property, personal liability, medical payments and additional living expenses. Flood coverage is also included in standard USAA renters insurance policies, which is notable considering that flood insurance typically has to be purchased separately.
However, USAA is not available for everyone, which could be considered a major drawback of the company. Only military members, veterans and immediate family members may be eligible for coverage. Unless you fit one of these categories, you will not be able to purchase a USAA policy.
PROS
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May get a bundling discount for purchasing renters and auto
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Optional coverage-add on could help make for a robust renters policy
CONS
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May be more expensive than average
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Customer service is not 24/7
How to compare renters insurance companies
With so many renters insurance companies on the market, how do you choose which provider is right for your needs? Finding the best renters insurance policy will depend largely on your particular living situation and coverage preferences. The first step to finding a provider who can best cover your unique circumstances is to take some time to consider what you may want from a company.
For example, if you run a business or keep business-related items in your home, you may find that an add-on for extended coverage or business personal property is necessary. This may cause you to look for a provider which specializes in renters insurance for business personal property.
Additionally, it may be helpful to review third-party reviews from companies like J.D. Power and AM Best. J.D. Power runs numerous studies each year, including evaluating renters insurance companies. Scores are out of 1,000 points and evaluate customer satisfaction based on a number of factors. AM Best rates the financial strength of insurance companies based on their historical ability to meet financial obligations and pay claims. This measure may be comforting when predicting how future claims are likely to be handled, especially if a company is inundated with numerous claims at once.
Once you have identified a handful of companies that could meet your needs, you can start requesting quotes. This can often be done online or by phone, or you could contact a local agency. Getting quotes from several different insurance carriers allows you to compare premiums, coverage options, discounts and policy features.
Additional considerations before choosing a renters insurance policy
Like any insurance policy, renters insurance is not one-size-fits-all. No two rental circumstances are the same, and neither will the insurance for them be. When choosing a renters insurance company and personalizing your policy, you may want to consider:
The value of your belongings. To help ensure you do not over- or under-insure your belongings, you could create a home inventory. This exercise could help you estimate the total value of your belongings so that you choose an appropriate personal property coverage amount.
If you have any high-value items. Possessions like fine jewelry, collectibles, fine art, guns or antiques often have set coverage limits included within a policy. For example, without alterations to a policy, you might only have $1,000 in coverage for jewelry, regardless of how much personal property you buy. Scheduling your high-value possessions can provide more accurate and broader coverage.
If you have a pet. You might not consider your pet when you buy renters insurance, but you should. While many pets are covered for liability, some dog breeds and exotic animals are often excluded. If you have one of these animals, you probably want to look for a company that will extend liability insurance to it. That way, if your pet injures someone, your insurance can step in to help pay for the bills.
How often friends and family visit. If you like to host events at your home, or often host large parties of people, having this in mind could help you determine the right amount of liability insurance for your needs.
What company insures your vehicle: Many car insurance companies also offer renters insurance. When you bundle your policies together, you could see significant savings. Plus, there’s the added convenience of having all your insurance policies in one place.
If you aren’t sure where to start in your search for renters insurance, sitting down with a licensed insurance agent can be helpful. An agent can listen to your needs, circumstances and concerns and help recommend companies, coverage types and policy features that fit your situation.
Life insurance is a major component of most any overall financial plan – regardless of one’s age or employment status. That is because loved ones could be faced with massive debts to pay – including the cost of a funeral and other financial expenses – if the unexpected should occur.
The proceeds that are received from life insurance policies are income tax-free, so loved ones can use the entire amount of the funds for their needs. This can help them to avoid a financial hardship, at an already difficult time in their lives.
When you are in the process of seeking life insurance coverage, several key factors are essential to keep in mind before making a long-term commitment to a policy. These should include obtaining the proper type and amount of insurance coverage, as well as making sure that the insurance company that you are purchasing the policy through is secure and stable financially and that it has a good, solid reputation for paying out its claims to policy holders and beneficiaries. One company that meets these criteria is Geico Insurance Company.
The History of Geico Insurance Company
Geico has been in business since 1938. Over the past 80 years, the company has grown and expanded exponentially, and today the company is ranked as the second largest private passenger auto insurance company in the United States.
The name Geico is an acronym for Government Employees Insurance Company, which goes back to the company’s beginnings. The founder of Geico, Leo Goodwin, initially targeted a customer base that consisted primarily of United States government employees and military personnel.
The company now insures military and government personnel, as well as private consumers. In 1996, Geico became a wholly owned subsidiary of Berkshire Hathaway, which is headed by the world’s most famous investor, Warren Buffett. For the past several years, Fortune magazine has named Berkshire Hathaway’s property casualty insurance operation as the most admired in the U.S.
Presently, Geico is made up of its primary unit, the Government Employees Insurance Company, along with several affiliates, including:
Geico General Insurance Company
Geico Indemnity Company
Geico Casualty Company
Geico Advantage Insurance Company
Geico Choice Insurance Company
Geico Secure Insurance Company
Geico is headquartered in Chevy Chase, Maryland (near Washington, DC). The company also has some regional offices that are dotted throughout the U.S., including locations in:
Buffalo, New York
Dallas, Texas
Frederickson, Virginia
Lakeland, Florida
Macon, Georgia
San Diego, California
Tucson, Arizona
Virginia Beach, Virginia
Woodbury, New York
There are also several services centers, which are in Iowa, Indiana, and Hawaii, as well as some claims centers, which can be found in Houston, Texas, as well as in Seattle, Washington, and in Marlton, New Jersey.
Geico Life Insurance Review
Today, Geico insures more than 15 million auto insurance policies – and growing – and the company has more than 24 million vehicles insured. It is one of the fastest growing major auto insurers in the country, employing more than 36,000 associates, and providing customer service 24 hours per day, seven days per week, and 365 days per year. As of year-end 2016, Geico had assets under management of more than $32 billion.
The company has also earned a long list of various awards and accolades over the years. For example, Geico was named to Ward’s 50 top group of financially high-performing insurers for the 21st consecutive year in 2011. This award recognizes that Geico achieved outstanding financial results in the areas of safety, consistency, and performance.
Also, Geico was rated as being superior by consumers in 2007, for its customer advocacy. Forrester defines this as being “the perception by customers that a firm (Geico) does what’s best for them, and not just what is best for its bottom line.”
Geico was also rated as #1 by the Kanbay Research Institute for being the most desired insurer amount consumers based on the following factors:
High regard for customer service
Focus on staff training and development
Likewise, the owner of Geico, Berkshire Hathaway, was named as being a leading company in world insurance markets. These rankings include:
#1 global insurance company by revenues in 2013, based on an analysis of companies in the Global Fortune 500.
#2 writer of private passenger auto insurance by direct premiums were written in 2013. (Before reinsurance transactions, includes state funds. Based on U.S. total, includes territories).
Geico has also been named a leader in ethical practices in the property/casualty industry, and Berkshire Hathaway was appointed as a leader in ethical practices in the financial services sector by Ethisphere Magazine.
Also, Geico achieved the highest overall score in Forrester Research’s 2014 U.S. Mobile Auto Insurance Functionality Benchmark. With perfect scores in policy information and management categories, Forrester proclaimed Geico as “The pocket auto insurer.”
Geico’s Mobile App and insurance site received a #1 ranking on Keynote’s 2015 Mobile Insurance Scorecard, competing against top insurers. Geico is also ranked first for technical quality, according to Keynote KCR (Keynote Competitive Research).
While the company has traditionally been known for its vehicle coverage options, Geico doesn’t just offer auto insurance. The insurer offers a broad range of coverage products and services, including life insurance, home owner’s insurance, and even identity theft protection.
Insurer Ratings and Better Business Bureau Grade
Due to its stable financial footing, as well as its timely payment of customers’ insurance claims, Geico has been given high ratings from the insurer rating agencies. These include the following:
AA+ from Standard and Poor’s
Aa1 from Moody’s
A++ from A.M. Best Company
Also, although Geico is not an accredited company through the Better Business Bureau (BBB), the company has been given a grade of B by the BBB. This is on an overall grade scale of A+ to F.
Throughout the past three years, Geico has closed out a total of 2,514 customer complaints – of which 158 have been closed out within the previous 12 months. Of these total 2,514 complaints, 1,655 regarded as the company’s product and/or services, while 658 were regarding billing and/or collection issues. Another 125 considered advertising and/or sales issues, 55 were concerning guarantee and/or warranty issues, and the remaining 21 complaints focused on delivery issues.
Life Insurance Products Offered Through Geico
Customers of Geico can obtain life insurance coverage via Life Quotes, Inc. The company offers term life insurance policy, which provides pure death benefit protection, without any cash value or savings build up. Because of this, the premiums for term life insurance can typically be quite affordable – especially for those who are young and in good health at the tie of policy application.
As its name implies, term life insurance is purchased for a set period – or term – such as five years, ten years, 15 years, 20 years, or even for 30 years. In most cases, the amount of the death benefit coverage, as well as the sum of the premium, will remain level throughout the term of the policy.
And, provided that the premiums are paid on time, the company that issues the term life insurance policy will not be able to cancel the coverage. Once the term of a policy reaches its end, the insured may opt just to purchase a new policy (if he or she qualifies based on their then-current health).
As with its other forms of insurance coverage, getting life insurance via Geico can be a natural process. For example, by teaming up with Life Quotes, Inc., customers can expect the following benefits:
Easy paperwork/application process
Natural customer service process
Convenient payment plans for paying the premium, which include monthly, quarterly, or annual payment options
A full range of coverage limits to meet each customer/policy holders’ needs
When applying for life insurance through Geico / Life Quotes, Inc., an applicant’s health is considered. Once approved, the life insurance policy will typically cover death due to any cause, other than that of suicide within the first two years of policy ownership.
Once an individual has been approved for life insurance coverage through Geico / Life Quotes, policy holders can access their policy directly through the Geico website. This can make it easy to check coverage, as well as to make changes to one’s account, such as address and other contact information, and the name of the policy’s beneficiary.
The Geico website also helps to prompt a policy holder with various information that may assist them in reviewing their life insurance coverage, and in deciding whether to alter their coverage limits in the future. For example, some of the reasons why someone may want to change the amount of their coverage include:
A change in household income/employment status
Marriage, divorce, or becoming widowed
The birth or adoption of a child
Retirement
New grandchild(ren)
Serious illness and disability
Caring for an aging parent
Starting a new business
Selling off one’s home and purchasing another
New Drivers under 25
Now, Geico does not offer permanent life insurance coverage – which includes whole life, universal life, indexed universal life, variable life, or variable universal life – all of which include both death benefit protection and a cash value component.
Purchasers of many of the insurance plans that are offered through Geico may qualify for a premium discount.
Other Products and Services Available
While Geico is a primary insurer of automobiles, it also provides a wide selection of other products such as life insurance and other types of coverage, such as:
Motorcycle insurance
ATV insurance
Umbrella insurance
Home owner’s insurance
Renters insurance
Condo insurance
Co-op insurance
RV (Recreational Vehicle) insurance
Boat insurance
Personal watercraft insurance
Flood insurance
Mobile Home insurance
Overseas insurance
Travel insurance
Commercial Auto insurance
Ridesharing insurance
Business insurance
Identity Protection insurance
Snowmobile insurance
Collector Car insurance
Mexico Car insurance
Pet insurance
Jewelry insurance
How to Get the Best Rates on Life Insurance From Geico Insurance Company
If you have been seeking the best rates on term life insurance from Geico – or from any insurer – it can be beneficial to work with an independent life insurance agent or broker. In doing so, you will be better able to compare side-by-side the policies and the premium prices from numerous different insurance carriers. From there, you will then be able to choose which one will be the best for you.
When you are ready to move forward with the life insurance purchase process, we can help. We are an independent life insurance brokerage, and we work with many of the top life insurance carriers in the market place today. We can assist you with obtaining all the pertinent details that you require for making a well-informed buying decision, and we can do so for you quickly, easily, and conveniently – all without you having to meet in person with an insurance agent. If you are ready to get started, then all you should do is just simply fill out our quote form.
We understand that the purchase of life insurance coverage can be somewhat overwhelming. There are many different variables to consider – and you want to be sure that you are making the best decision regarding type and amount of coverage for your specific needs. The good news is that the life insurance purchasing process can be done so much easier when you are working with an expert on your side. So, contact us today – we’re here to help.
Before you rush out to buy a home, consider the fact that inventory levels are beyond dismal at the moment, though there’s a good chance that could all change rather quickly.
If you’ve already begun your property search, you probably already know inventory is virtually non-existent in your desired neighborhood. If you haven’t, prepare to be shocked.
There’s even concern that the shortage of inventory could be further exacerbated by the recent surge in mortgage rates, as would-be buyers jump off the fence and rush to buy before affordability gets any worse.
But I don’t believe things will go that way – in fact, I think it’s going to be quite the opposite.
And there are already signs that housing inventory is rising. A recent report from Redfin revealed that active listings increased 6.4% between March and April, and 4.2% between April and May.
Compare that to last year, when inventory peaked in January and drifted lower much of the year.
Assuming more homes keep hitting the market, year-over-year levels of inventory may actually be positive at some point this year.
So why is inventory slated to rise? Well, allow me to highlight five reasons:
Homeowners Gaining Equity and Getting Out
Here’s an oldie but goodie. As home prices continue to increase, more and more homeowners will get back in the black.
We all know scores of homeowners are stuck with underwater mortgages, but many of those who held on are now finding themselves with some sliver of home equity thanks to recent hefty home price gains.
Additionally, a lot of the mortgages on these properties were taken out in 2005-2006 or earlier, so for those who didn’t go with an interest-only loan, a decent chunk of the mortgage is already paid off.
As time goes on, this trend should become even more prevalent, and many of these homeowners just want out. They aren’t necessarily looking to turn a profit; they just want to avoid a short sale or foreclosure.
Sure, some will argue that they’ll need “X” amount of home equity so they can purchase another home after they sell, but plenty of owners may decide to downsize, or simply rent instead.
Not everyone is so bullish on housing, and with interest rates rising, existing homeowners know today is a great time to sell, especially with bidding wars forcing prices up to future levels.
After all, it will be a lot easier to sell at a premium now, and with far less scrutiny, when inventory is still low.
More Foreclosures Coming to Market
Another interesting trend of late is the rise in foreclosure activity, which was steadily falling up until last month, according to RealtyTrac.
After hitting a six-year low in April, foreclosure activity increased two percent in May, thanks to an 11% rise in bank repossessions.
Foreclosure starts increased four percent from April, and rose substantially in judicial states, where the process takes a lot longer.
Still, it looks like lenders are beginning to cut through the red tape, with foreclosure starts up 229% in Maryland, 122% in Connecticut, 108% in Hawaii, 84% in Arkansas, and 82% in New Jersey from a month earlier.
Foreclosure activity increased to a 33-month high in Maryland and a 20-month high in hard-hit Nevada, and Florida saw a 20% monthly rise in foreclosure activity, meaning there will be much more distressed inventory making its way to market.
The takeaway here is that as home prices rise, banks and lenders will actively pursue foreclosure because they know the demand is finally there to offload the properties.
Banks Will Take Advantage of Rising Prices Too
This has been a concern for years, with many pondering when the banks will dump their massive distressed inventory, which continues to grow.
Though they’ve held on for quite a while, it could soon be time for them to ditch their stable of homes and get back to what they do best, banking.
And they could begin to do it a lot more quickly, seeing that home prices have chalked some massive gains of late, especially if the housing rally doesn’t have the legs many think it does.
Banks aren’t typically in the business of acquiring and selling residential real estate, so if they can get out at a decent price, they probably will.
Unfortunately, if they all get the same idea at once, it could spell disaster for the recent home price gains.
Speculators Starting to Lose Interest
At the same time, many of those who purchased properties on the cheap lately were Wall St. investors and hedge funds, such as Blackstone and Colony American Homes.
As home prices rise, they will probably do two things that will hurt the residential real estate market.
For one, they will stop buying houses, seeing that they’re in it strictly to make a certain return in a relatively short period of time.
If the price point isn’t there anymore, they’ll stop buying, point blank. At the same time, they’ll begin dumping their properties for tidy profits to mom and pops that missed the housing bottom.
This could get nasty, seeing that these hedge funds purchased a ton of single-family homes over the past few years.
And we all know how Wall Street works – pump and dump, with no concern for collateral damage.
Home Builders Getting Back to Work
While existing housing inventory increases, so too will the number of new homes built.
Yesterday, the Census Bureau revealed that single-family permits increased 1.3% to 622,000 units in May, the highest level in five years.
At the same time, builder confidence for newly-built single-family homes surged eight points to a reading of 52 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI), the first time it has been over 50 since April 2006.
NAHB Chief Economist David Crowe said the report is in line with expectations for a 29% increase in total housing starts this year, which will see them top the one million mark for the first time since 2007.
In other words, home builders are gaining confidence and getting back to work. New developments will be sprouting up all over the place as demand for homes continues to increase.
Of course, it’s just a matter of time before they build too many homes and repeat history once again. But hopefully that’s a long way out.
By the way, mortgage rates are only expected to rise about a half a percentage point or so between now and the end of 2014, so why fight tooth and nail for a home today, especially with future home price gains already baked in?
Patience may be the play here if you want to land a property you actually like.
Understanding the average salary of a profession can help you make a variety of important decisions, from what field you want to enter to where you want to live and work. In California, the average physician makes more than $200,000 per year. Knowing that, medical students have a better idea of what they could make when they get out of school. Likewise, physicians looking to relocate to a new state have a better sense of how their salary can change based on where they decide to move.
Here’s a closer look at how much medical doctors make a year in California, regional differences in salary, and the top-paying medical specialities in the state.
What Is the Average Salary for a Medical Doctor in California?
The average salary of a physician in the state of California is $229,420 per year, according to data from the U.S. Bureau of Labor Statistics (BLS). This figure doesn’t account for a physician sign on bonus, which some doctors receive. Interestingly, California is squarely in the middle when it comes to average physicians’ salaries, along with Oregon, Texas, Maryland, and New York. The average salary in California lags more than half of states, including Arizona, Florida, Wyoming, Kentucky, and South Carolina.
Though many consider anything more than $100,000 a good salary, California’s relatively low pay may come as a surprise to some. However, there are some possible explanations. For one, California spends the most on Medicaid among U.S. states. Medicaid — and Medicare, for that matter — both reimburse physicians at rates lower than their usual fees. Doctors who are seeing a lot of elderly or low-income individuals may see their incomes reduced.
Note that early in your career as a doctor, while you’re in your residency or fellowship, you’ll likely make considerably less than you will later in your career. Explore ways to get by on a medical resident’s salary.
You may also want to consider using a spending app, which can help you set financial goals and a budget and track where your money goes.
Recommended: Budgeting as a New Doctor
How to Become a Doctor in California
Doctors are health care professionals who are charged with meeting with patients, diagnosing their conditions, and managing their care plans. They perform tests and prescribe medications. And they must coordinate with a range of other health care professionals, including other doctors, nurses, and emergency medical technicians. That’s a lot of responsibility, and as a result, it takes a lot of training to become a doctor.
First, you’ll need to complete a bachelor’s degree in a field that relates to medicine, such as pre medicine, biology, or biochemistry.
Next, you’ll need to go to medical school, where you will receive classroom and practical training to advance your knowledge in the medical field. Medical school is typically a four-year program. While in school, you’ll complete the first and second parts of the U.S. Medical Licensing Examination (USMLE). The average cost of medical school can be high, running more than $50,000 a year at private institutions.
When you graduate from medical school, you’ll enter a residency program that helps you choose a medical specialty. These programs usually last three years, and under the supervision of an experienced physician, you’ll work full time as a resident doctor. You’ll complete your residency by passing the third and final part of the USMLE.
After your residency, you can choose to complete a fellowship that gives you further training in the specialty you’ve chosen. Though fellows tend to make more than residents, their salary isn’t as high as new doctors. The good news is, there are ways to budget on a medical fellowship salary.
Finally, you’ll need to obtain a California medical license from the Medical Board of California. You can renew your license every two years, which requires 50 hours of continuing medical education.
Recommended: What Is the Average Medical School Debt?
Reasons to Become a Doctor
Becoming a doctor can involve a lot of challenges, but it can also be immensely rewarding work. Here are a few reasons you might become a doctor:
• To help others: Doctors diagnose and treat medical conditions, helping to save and improve patients’ lives. They are often involved in ongoing treatment, ushering patients down the path to recovery. Being a physician is a people-centric profession that involves working closely with patients and their families to explain medical conditions and treatment options.
• To work in the sciences: If you’re interested in a variety of scientific fields, from biology to chemistry to anatomy to pharmacology, being a doctor is a way to explore these subjects while also helping others.
• To find purpose: The responsibility toward patients and coworkers and the ability to better people’s health and well-being often provide doctors with a sense of satisfaction and meaning in their work.
• To become a teacher: Becoming a doctor requires a lot of schooling and ongoing training. Doctors may pass on this knowledge by educating patients on how to lead healthier lives, educating medical students in teaching hospitals, and supervising residents.
• To have job security: The job outlook for physicians is relatively low, with the field expected to grow 3% through 2031. That said, there are still 23,800 openings for physicians projected each year, according to BLS data.
• To make a good salary: The annual average wage for all workers in the United States is $58,260, according to the BLS — quite a bit lower than the $229,420 average annual pay for physicians in California.
Best-Paying Medical Doctor Jobs in California
The medical speciality you pursue in California will have a big impact on your salary. According to BLS data, here are some of the highest-paid physicians in California:
Psychiatrist
Psychiatrists help diagnose and treat mental disorders. Unlike psychologists, they are allowed to prescribe drugs for medical treatment.
Average salary: $305,290
Obstetricians and Gynecologists
OBGYNs provide medical care related to childbirth and diagnose and treat diseases of the female reproductive organs. They also specialize in women’s health issues like hormone problems, infertility, and menopause.
Average salary: $309,610
Anesthesiologist
Before, during, or after surgery, anesthesiologists administer anesthetics (which reduce sensitivity to pain) and analgesics (which act as pain relievers).
Average salary: $318,030
Cardiologists
Cardiologists diagnose and treat conditions of the cardiovascular system.
Average salary: $343,370
Radiologists
Radiologists use medical imaging techniques, such as x-rays, MRIs, and ultrasounds to diagnose and treat diseases and injuries.
Average salary: $345,100
Pathologists
A pathologist helps diagnose diseases by running tests on organs, tissue, and bodily fluids, such as blood.
Average salary: $350,980
Surgeons
Surgeons are medical doctors that may have to perform surgery, a procedure that physically changes a patient’s body.
Average salary: $351,580
Recommended: Starting (and Keeping) an Emergency Fund
The Takeaway
Being a doctor can be fulfilling, as it allows you to help people through work in the medical sciences. It can also be monetarily rewarding, and understanding average salaries can help you make decisions about where you want to live and what you want to specialize in. Though income varies by speciality, the average salary for physicians in California is $229,420 per year.
As you build your practice and earn a salary, a money tracker app can help you get your financial house in order. The SoFi Insights app connects all of your accounts in one convenient dashboard. From there, you can see all of your balances, spending breakdowns, and credit score monitoring, plus you can get other valuable financial insights.
Stay up to date on your finances by seeing exactly how your money comes and goes.
FAQ
What is a doctor’s yearly salary in California?
In California, a doctor can expect to make $229,420 per year on average, according to data from the U.S. Bureau of Labor Statistics.
What is the highest-paying medical specialty?
Among the highest-paid doctors in California are pathologists, surgeons, and radiologists.
Who earns more: a dentist or a doctor?
In California, doctors tend to make more than dentists, who earn $165,950 per year on average.
Photo credit: iStock/Drazen Zigic
SoFi’s Insights tool offers users the ability to connect both in-house accounts and external accounts using Plaid, Inc’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score provided to you is a Vantage Score® based on TransUnion™ (the “Processing Agent”) data. Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances. Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article. SORL0323016
If you are familiar with peer-to-peer (P2P) investing through sites such as Lending Club and Prosper, then you may be interested in learning about NSR Invest. The company provides a software service that works with major P2P lenders in helping investors on those platforms to better manage their portfolios.
NSR Invest will be particularly beneficial for people who want to invest in P2P loans, that don’t fit the do-it-yourself investor mold, and prefer to have a generous amount of help and support in the process.
In addition to helping individual investors, NSR Invest also enables financial advisors to offer plug-and-play Marketplace Lending investment opportunities to their clients.
About NSR Invest
Based in Denver, Colorado, NSR Invest began operations early in 2015, through the merger of Lend Academy Investments and Nickel Steamroller. The company is a registered investment advisor, bringing innovative financial products centered around a private fund and individually managed accounts. NSR Invest now assists thousands of clients managing more than $100 million in P2P loan investments.
The company specializes in the investing side of P2P lending sites. P2P lending is sweeping the lending world, by bringing borrowers and investors together on the same platforms to create loans without using the services of traditional banks. That direct relationship is resulting in what are often lower interest rates for borrowers, yet higher returns for investors. The elimination of the “middle man” – a.k.a., the bank – makes that possible, because it eliminates the lending costs that are part of mainstream banking.
NSR Invest works to streamline the investment process for P2P investors. Investors on P2P platforms must sift through hundreds of loans in order to find those that meet their own personal lending criteria. They must also build a portfolio of loans – or slivers of loans referred to as “notes” – that will minimize their downside risk.
That’s where NSR Invest comes into the picture. They provide the following resources to P2P investors:
Proprietary credit algorithms that target a higher rate of return, while reducing default risk
Auto-investing execution speeds allow faster access to the best quality loans
The ability to make P2P lending a totally hands-off effort for the investor
They provide a team committed to providing you with an “awesome experience” at every point in the investing process
In short, NSR Invest takes the mystery out of P2P investing, empowering you to improve your returns, while expending less effort in the process. They act as an investment management service for P2P investing, which frees up your time for better things.
Due to regulatory issues, NSR Invest is not yet available in the following nine states: Alabama, Maryland, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Pennsylvania, and Tennessee.
How NSR Invest Works
NSR Invest works with Lending Club, Prosper, and Funding Circle, and you can add those platforms to your NSR Invest platform right from the NSR Invest site. The site has full API integration with all three P2P platforms.
Fully-managed accounts. As the name implies, these accounts are directly managed by NSR Invest. They provide higher target returns, with lower target risk and volatility, all with a hands-off investment strategy, that requires little effort from the investor.
Fully managed accounts provide three account strategies:
Conservative – this strategy targets a 5% net return (after fees and expenses)
Balanced – this strategy targets a 7% net return
Assertive – this strategy targets a 10% net return
As of October 31, 2015, NSR Invest has achieved net performance of 5.48% on the Conservative strategy, 10.44% on the Balanced strategy, and 11.42% on the Assertive strategy. If these are better than the returns that you are now getting through your investments with Prosper or Lending Club , you need to check out NSR Invest.
Self-directed accounts. With these accounts you can choose to either use pre-built NSR Picks credit models, or fully customize your own investment strategy. You can also use a combination of methods.
Minimum account balance. Fully managed accounts require a minimum of $10,000. Self-directed accounts require a minimum of $5,000.
Accounts with NSR Invest can be canceled at any time, but require 14 days notice.
NSR Invest Features and Benefits
NSR Invest offers several advantages to the person who wants to invest in P2P loans, but either doesn’t fully understand that process, or doesn’t want to put in the time and effort that are necessary to build a large, well diversified portfolio of loans and notes, especially across several P2P platforms.
Back-test filter. This tool allows you to create and test your own filtering strategies. And once tested, you can use these strategies to create an auto investing capability.
Pricing and fees. NSR Invest charges fees only on the amount of idle cash and any investments made by NSR Invest, and only then when the aggregate balance of your account exceeds $20,000. For example, let’s say you have $100,000 in cash, and $50,000 in notes invested through Lending Club before signing up with NSR Invest. The fee would be charged only on the $100,000 in uninvested cash, and not on the existing $50,000 in notes that you already hold.
There are no setup fees of any kind when you begin the program. The annual fee on self-directed accounts is calculated on an account-by-account basis, and uses a mathematical equation to determine specifically what that will be. No estimated ranges are provided.
On Fully Managed Accounts, the annual fee is 0.60% of the account balance.
IRA and Trust accounts. You can set up an IRA through NSR Invest, and even roll over an existing 401(k) account into the IRA. You may also be able to set up a trust account, depending on the P2P platform that you are working with.
P2P Fund. This is something of a mutual fund for P2P investment platforms that is available through NSR Invest. The fund invests in loans originated by Lending Club, Prosper, Upstart, and Funding Circle. The fund targets a 10% net return after fees and expenses.
The minimum to invest in the fund is $250,000 – you must be an accredited investor in order to invest in the fund. The fund charges an annual fee equal to 1.5% of the investor’s account balance, charged on a monthly basis (0.125%).
Will NSR Invest Work For You?
If you have been attracted by the interest rate returns on P2P loan investments – and who wouldn’t be – you may want to consider doing it through NSR Invest. The service can handle investment selection for you, as well as the execution of purchases and the maintenance of your portfolio.
P2P investing can be highly rewarding, but it does require a considerable amount of time and attention. NSR Invest can remove that burden from you, and help you to best accomplish a low risk, high return portfolio balance.
If you have been toying with the idea of investing in P2P loans, or you are already doing it now but finding it tedious and time-consuming, give NSR Invest a try. Whether you are ready to invest 20,000 dollars or need to know what would be the best way to invest 500000 dollars, Good Financial Cents is here to help you!
When you look at Peerform reviews you first need to understand the difference between conventional loans and peer to peer loans. While traditional loans come from a bank and can take months to get done, P2P loans are done through a platform that connects investors and borrowers.
Peer-to-Peer lending sites are rapidly becoming preferred destinations for both borrowers and investors. Peerform is a newer member of the P2P Market and it provides opportunities for both borrowers and investors to get better rates than what they can get from banks or other traditional loan and investment sources.
About Peerform
Peerform was founded in 2010 by Wall Street executives with backgrounds in finance and technology. They started the platform because they realized that traditional lenders like banks seemed unwilling to provide loans for individual and small business owners.
The solution was to create a peer-to-peer lending platform that would bring both borrowers and loan investors together. This would also give investors an opportunity to earn much higher interest rates on their investments than what they could get through traditional bank investments like savings accounts, money market accounts, and certificates of deposit.
The platform is able to offer lower rates to borrowers, and higher rates to investors, because it lacks the physical infrastructure and employment base that banks have. The reduction in operating costs from running a technology driven online lending platform could be passed on both borrowers and investors.
Peerform is headquartered in New York City and has been featured in major media outlets, such as Time and The Street. Peerform is currently eligible to make loans to residents in the 36 following states: Alaska, Alabama, Arkansas, Arizona, California, Delaware, Florida, Georgia, Hawaii, Illinois, Kentucky, Louisiana, Massachusetts, Maryland, Michigan, Minnesota, Missouri, Mississippi, Montana, North Carolina, Nebraska, New Hampshire, New Jersey, New Mexico, Nevada, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, Vermont, Washington, and Wisconsin.
Loans made on Peerform are underwritten by Cross River Bank, a federally insured New Jersey chartered bank and FDIC member.
Borrowing Through Peerform
The Peerform borrowing process is quick and simple, and you can use the loan proceeds for just about any purpose, including for business related needs.
Here are the highlights of the Peerform lending process:
Loan purpose. Peerform makes personal loans that can be used for a wide variety of purposes, including debt consolidation, credit card refinancing, home improvement, major purchases, car financing, business purposes, medical expenses, moving and relocation, wedding expenses, vacation, home buying, or other needs.
They also have a category referred to as a “green loan”. That’s where you take a personal loan and use it to purchase alternative energy equipment for your home. This typically can be something like solar panels for heat and hot water, or even the generation of electricity.
Loan amounts. Peerform will make loans that range in size $1,000 and $25,000.
Loan terms. All loans made through Peerform are for a term of 36 months. All loans are also fixed rate, installment loans that will be fully paid off at the end of the term. Peerform does not offer any other loan terms at this time.
Minimum borrower qualifications. In order to qualify for a loan with Peerform, you must have:
A minimum credit score of 600
No delinquencies, bankruptcies, tax liens, judgments, or non-medical related collections in the past 12 months
A minimum of one revolving account ever opened
A maximum debt-to-income ratio (DTI) of not more than 40% (not including mortgage debt)
A minimum of one open bank account
Although you don’t need to be employed, you do need to have an income which can be documented and verified. Also in regard to income, if you’re married, your spouse’s income cannot be used to qualify for the loan. Peerform provides personal loans, so you cannot include a cosigner for qualification purposes, nor make joint applications.
The loan application process. Peerform’s loan application uses a five step process:
Registration – This is an online registration that you can complete within a few minutes
Personal loan selection – After completing the online registration, the platform will review your information, and offer loan terms or alternatives.
Personal loan listing – After you have selected the loan terms that you want, your loan request is listed on the platform so that it can be evaluated by potential investors.
Verification – You will be asked to submit documentation that supports the information that you supplied in your registration form, or that will be needed to verify your identity.
The loan registration process will ask you to provide basic information, such as the loan amount you are requesting, the purpose of the loan, your credit score range, your full name, address, phone number, date of birth, email address, and annual salary and wages. You will then be asked to create a password.
Once you complete the registration form, you will be informed immediately if you qualify for a loan, and what the rate for that loan will be. Again, all loans are for a term of 36 months.
If you accept the offer, your loan request will be placed on the platform for investors to review and consider if they want to invest in it. You will also be taken through a step-by-step process to complete your application. Making application does not have any impact on your credit score.
Identity verification will involve you uploading copies of one of the following: your drivers license, military ID with photo, passport with photo, or US federal or state government ID. You will also be asked to verify your income. This will include two recent pay stubs, but they may also request recent tax returns and/or a copy of your bank statements.
Loan funding. In a best case scenario, your loan funds will be available shortly after the loan is put on the personal loan listing platform. However, all listed loans can remain on the platform for up to two weeks, which is known as the two-week listing period. You can track investor interest in your loan during the process.
But it is possible that your loan will not be fully funded within the two-week listing period. If it isn’t, you can either accept a lower loan amount (up to the amount funded), or you may need to reapply.
Interest rates and fees. Just like Lending club loans, interest rates with Peerfrom range between 7.12% APR and 29.99% APR. Rates are based on your Peerform Grade, and broken down into four alphabetic groups, each with its own rate range:
AAA, AA+, AA, A+ and A: 7.12% APR to 13.94% APR (credit score range: 700+)
BBB, BB+, BB, B+ and B: 14.86% APR to 19.44% APR (credit score range: 680 – 699)
CCC, CC+, CC, C+ and C: 20.87% APR to 26.92% APR (credit score range: 600 – 679)
DDD and DD+: 28.33% APR and 29..99% APR (credit score range: not indicated)
There are no application fees. There are however origination fees, typically 5.00% of the loan amount on all loans grades, except Peerform Grade loans AAA (1.00%), AA+ (2.00%) and AA (3.00%). The origination fee is deducted from your loan proceeds. For example, if your loan is $10,000, and the origination fee is 5.00%, you will receive net loan proceeds $9,500. The origination fee is payable only if the loan is issued.
The preferred loan repayment method by Peerform is by direct debits from your bank account. But you do have an option to pay by paper check. If you do, there is a $15 check processing fee for each check.
Late payments are assessed a fee of 5% of the monthly payment, subject to a $15 minimum per occurrence. There is also an unsuccessful payment fee in the event that your payment is refused. That fee is $15 per unsuccessful attempt, or a lesser amount as determined by state law.
There are no prepayment penalties in the event that you want to make a partial or full early payment on your loan.
Loan payments. You can repay your loan either by automatic draft from your bank account, or by mailing in monthly checks. However, Peerform does charge a fee of $15 per payment if you pay by check. There is no charge if you pay by automatic bank draft.
Site security. Peerform follows bank level security protocols, which includes encrypting and storing sensitive data in dedicated 24 hour maintain servers, which are protected with firewalls and housed in a secure facility. Servers are equipped with Secure Socket Layer (SSL) certificate technology to ensure encryption.
You also don’t need to concern yourself with the fact that investors will have access to your personal information. They will get only the information needed for investment purposes, but will not have access to any information that personally identifies you. In that way, you can apply for a loan anonymously, and not concern yourself that the information is available to someone who is either unintended or inconvenient, and certainly not for general public consumption.
Investing Through Peerform
If Peerform is a great place to get a loan, it’s also a rich source of investment opportunities.
Here is how investing through Peerform works:
Investor qualifications. In order to invest on Peerform, you must be an accredited investor. That’s an investor who is either high income or high net worth, or both, and who is generally recognized as a sophisticated investor who understands risk, knows how to invest into it, and is prepared to lose all of his or her investment (the temperament factor).
According to the US Securities and Exchange Commission, an accredited investor is defined as anyone who…
earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year, OR
has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence).
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Investments offered. Peerform offers two types of investment products, whole loans and fractional loans. Whole loans are just what the name implies – you’re buying an entire loan. These investments are typically offered to institutions. Fractional loans are portions of loans, that are offered to individual investors.
These are not unlike investments on other P2P sites in which you can either invest in an entire loan, or in small pieces of many loans, commonly called notes.
All loans available for investment on Peerform are subject to analysis by the Peerform Loan Analyzer. The tool uses a highly advanced and dynamic algorithm for pricing loans. It uses empirical methods rather than filters (which are used on most P2P platforms) in order to better calculate consumer credit risk.
Custom portfolio. The portfolio enables you to diversify by customizing your investments to meet your needs. You can set investment goals, and the customization tool will outline how to invest your capital in order to reach your investment goals in the most concise way.
Fraud protection. Loan fraud is not uncommon and increases loan defaults, so Peerform takes extra steps to weed it out. In addition to requiring documentation to verify the borrower’s identity and income on the loan registration form, Peerform also uses both proprietary methods and commercially available licensed technologies and solutions to both detect and prevent fraud.
This includes third-party services such as Lexis Nexis for user identification, TransUnion for credit checks, and OFAC compliance.
Peerform also verifies that there is a variation of no more than 10% in the income stated by the borrower on the registration form, and that which is proven by the income documentation. If needed, IRS Form 4506T will be completed and sent to the IRS to verify the borrower’s income tax records. A small debit is taken from the borrower’s bank accounts, and verified by the borrower to make sure that the bank account is valid. The borrower’s phone number and email IP location are also verified.
Investment returns. Peerform offers rates of between 6.44% and 28.33% (net of origination fees). This rate range refers to returns before deducting for loan defaults, so your actual returns will be something less. .
Summary
Peerform is one of a growing number of P2P lending sites that also offers investment opportunities. The platform is using cutting edge technology to set the most accurate loan rates, which will also reduce the number of defaults that lowers the investment return on so many P2P lending sites.