In this high-interest-rate environment, many prospective homebuyers are put off by high mortgage costs. Homes that might have been in your budget in the past might no longer be affordable when accounting for monthly interest payments.
But that doesn’t mean the situation is totally out of your control. While mortgage timing can be tricky, you might decide to wait to see if interest rates drop, as many experts predict will happen in the next year or so.
You can also take a number of steps to improve your financial situation and get a handle on the real estate market now as you’re figuring out when to buy a home.
See where today’s mortgage rates stand here.
What prospective homebuyers should do until interest rates drop
In particular, some action items to consider as you wait to see what happens with mortgage interest rates include the following expert-recommend tips:
Figure out what you want
If you’re waiting to see what happens with interest rates, use this time to do more research. That includes narrowing down what you want in a home and what you can realistically afford.
“Use this time to refine exactly what you’re looking for in your next home, including things like what your budget can buy you and what your ‘needs’ and ‘wants’ are,” says Merav Bloch, VP and GM of Opendoor Exclusives. “If you’re willing to trade a longer commute for your dream yard, but your partner wants to be within a 10-minute drive of their office, now is an opportune time to debate that trade-off.”
Even if you’re not necessarily ready to buy right away, you can still tour homes.
“I encourage buyers to see what’s out there and tour as many homes as possible to get a sense of what your budget will get you, what your non-negotiables are and what neighborhoods you’re open to,” Bloch says. “People typically don’t get married on the first date, and it’s usually better not to purchase the first home you tour.”
Start your mortgage search online now.
Talk to experts
As you figure out what you want in a home, it can help to talk to experts like mortgage consultants and real estate agents to narrow down what’s realistic for you.
Tanya Ball, home loans regional director at BOK Financial, suggests asking experts about down payment assistance options as well as “specialized loan programs if you are a veteran, Native American, first-time buyer or buying in a rural area.”
Plus, speaking with an expert like a mortgage professional “can let you know which items to focus on for better offers — for example, a higher down payment or paying off debt,” says Michael Merritt, mortgage servicing operations manager at BOK Financial. “The biggest benefit will vary based on your circumstances, so it is important to focus on the things that will help you the most.”
Improve your credit score
For some prospective homebuyers, improving your credit score can make a significant difference in the mortgage rate you qualify for.
“Lenders typically offer better interest rates and loan terms to borrowers with higher credit scores, so taking steps to improve your credit can help you get the best possible deal on your mortgage,” says Adie Kriegstein, licensed real estate salesperson at Compass Real Estate. “This might include paying down existing debt, making all of your payments on time and avoiding new credit inquiries or applications.”
Build up your down payment
Another way to take advantage of this time waiting for interest rates to stabilize or drop is to build up your down payment. The more you can put down, the less you have to borrow and therefore pay interest on. Plus, a higher down payment could potentially get you a lower interest rate.
“A strategy I recommend, especially for first-time home buyers, is to deposit the difference between your current housing payment and your projected payment into a high-yield account each month. This helps grow your down payment or the amount you can use to pay down debts and is a test for your expected budget to see if it is workable,” says Merritt.
Check out today’s mortgage offerings here.
Shop around
Don’t assume that what one lender offers you is the same as what all other banks and mortgage providers offer. Your borrowing limits, interest rates and terms can vary from lender to lender, so it pays to shop around.
You also might find that paying for mortgage points with some lenders (where you pay money upfront to lower your interest rate), or choosing adjustable-rate mortgages rather than fixed-rate loans, works out in your favor.
“It’s an interesting quirk of human nature that many of us would drive across town to save 30% on a sofa but not necessarily compare rates and financing options on a house-sized purchase,” says Bloch.
“If you’re waiting to buy, this is a great time to shop lenders and financing options, including lesser-known options like rate buydowns. In this market, buyers are acutely aware of interest rates, but they’re less aware of options to reduce their monthly payments,” Bloch says.
Improve your current home
Lastly, if you already own a home, you can use this time to improve your current home to try to get more money when you eventually sell. That can help offset the cost of high interest rates.
One idea is to get a home inspection now, says Jonathan Rundlett, a real estate agent and regional owner at EXIT Mid-Atlantic.
“This will allow you to take the time that you are waiting for interest rates to fall to make any repairs or updates that the inspector finds in your home,” Rundlett says. “Making any necessary repairs and updating your home so that it shows in move-in ready condition will allow you to get top dollar for your home when you are ready to sell.”
The bottom line
These action items can help many prospective homebuyers better position themselves as they wait to see what happens with interest rates. But it’s important to remember that the specific ways to improve your situation depend on personal factors
like your credit history, savings and income. And while you might try to time mortgage purchasing, it’s difficult to know when to buy a home, as it can be both a financial and emotional decision. Some people might be comfortable paying more for their dream home, while others might want to wait to get a good deal on a mortgage interest rate. Weigh the pros and cons, and consider speaking with experts for personalized advice.
This is final article of a three-part series on how he stumbled into real estate investing at age 23. Be sure to read part one and part two.
In the second part of this series, I discussed two mistakes I made when jumping into real estate investing. Despite running a successful property management company and knowing how the business worked:
I bought a negative cash flow property without an emergency fund
I got emotionally involved
In the conclusion of this series, I want to share three additional mistakes I made, and give my final thoughts on my experience. Let’s jump right in.
Mistake #3: I had a short-term mentality
I had just purchased an 8-unit apartment building, the value of which would take several years to restore. Despite knowing this, I was operating as if I could solve all the issues in the first four weeks. But it simply wasn’t going to happen. In real-estate slang, I had just bought the quintessential “buy-and-hold” property, but was approaching it as an aggressive “flip“.
On paper, I knew it was a long-term game all along. I had even cited the 2012 Super Bowl (being held in Indy) as having potential to add value to the area when we were pitching our buying plan. Once I signed the dotted line, I allowed my excitement to take control and I tried to inject value into the property as fast as I could. That almost never results in a positive outcome.
In my rush to make my first real estate purchase into a record-setting success story, I was actually doing serious harm. This unrealistic mindset:
caused me to rush decisions,
increased the stress of minor setbacks, and
encouraged more emotional attachment.
In hindsight, ensuring that I had a realistic mindset (on more than just paper) would have made a large, tangible difference. This was one of the few areas that I could have quickly corrected even after the purchase.
Mistake #4: I focused too much on price
As I outlined in part one, we had purchased 8 units for under $80,000. While only three tenants were paying, all units had occupants (meaning they were at least semi-livable). The price was so low, I couldn’t focus on anything else.
One of the main reasons for the low price was the neighborhood: It wasn’t just a low income area — it was one of the lowest income areas in the entire city. The units rented for an average of $450/month, which included all utilities.
Economically depressed neighborhoods bring plenty of unexpected issues for first-time real estate investors. I had factored in a higher vacancy rate and knew the average tenant would be more transient than normal. However, I hadn’t accounted for the emotional impact of dealing with issues like drug addictions or existing racial tensions.
I was especially naive of any racial issues. My race differed from the majority of my new tenants; I didn’t anticipate it, but this caused additional hurdles in many situations. As it turns out, you didn’t have to travel very far to find examples of racist landlords in the area. Whether I liked it or not, this was a real barrier that I had to work to break through.
Focusing too much on price also meant I skipped looking into problems with the paying tenants. One of the three paying tenants when we took over was named…Amber (at least that’s what we’ll call her here).
Amber had at least two, completely opposite personalities. The first was of a stereotypical southern belle. She’d greet me with a warm smile, invite me inside, and offer me something to drink or eat. She’d say things like, “I hope you have a Jesus day,” whenever I’d leave. The first three times we met, I assumed she was the best tenant of the whole building.
Unfortunately, Amber’s second personality was less friendly. It involved ranting, screaming, and at least three explicit words per sentence. She’d call and leave 17 voicemails within a hour, each one more incoherent than the last. At times it was so bizarre I felt like pinching myself to be sure I was conscious.
Despite annoying several of the other tenants and causing numerous problems for us, she paid her rent in full and on time. As I pointed out in part two of the series, our lack of emergency fund put us in a situation where kicking out any paying tenant was a very hard decision.
The final straw came one day when we were having a company install new furnaces in the building. Amber intentionally waited until the crew was almost done with the job and dialed the fire department. She claimed that the HVAC company was trying to kill her by piping gas straight into her apartment through the air ducts. As you would expect (and appreciate), the fire department takes any calls of gas leaks very seriously.
Within ten minutes, there were three fire trucks parked outside of the building. While examining Amber’s unit, she also took the liberty of informing the firemen that the HVAC crew had molested her cat. The biggest problem with her story was…she didn’t even have a cat.
While the fire department quickly realized the problem likely existed in Amber’s head, they weren’t taking any chances. It took almost 90 minutes to allow them to check every unit and for the HVAC company to demonstrate the condition of the new furnaces (which hadn’t been turned on yet). At the end of the day, the HVAC company had done everything 100% correct and there was no trace of even the slightest leak.
I left the property and drove straight to the courthouse to file the eviction. I had a long list of violations and tenant complaints against Amber and the on-time monthly payment was no longer worth the hassle. I had dealt with volatile tenants before, but nothing like what I had inherited in Amber!
Mistake #5: I should have partnered to eliminate my weaknesses
What I wanted to do was buy a property in decent physical condition with existing management issues. After all, management was (supposedly) what I was good at. However, I ended up buying a property with both management and physical issues.
While I had people that I trusted to do repairs and maintenance work, I had absolutely no experience in knowing what it would take to get certain jobs done. I was a relationships guy: I did a great job at acquiring clients, managing tenants, and finding dependable people to execute the repairs. What I couldn’t do was swing a hammer, let alone estimate what it would cost to replace the gutters.
And while I did have a partner, we had similar strengths and similar weaknesses. Looking back, we should have brought on an additional partner whose strength was in repairs and maintenance issues. This would have allowed us to focus on the management without distraction and would have lowered our need for money upfront.
An alternative solution would have been to partner with someone with deeper pockets who could properly fund our needs. It would have cost us more to outsource all the repairs (which we did anyway), but we could have made up the money by focusing more on our own strengths.
Concluding Thoughts
After a volatile year of management and countless hours of effort, I transferred the property for an amount that netted me around $10,000. To be fair, I had also made between $2,000-$4,000 throughout the year. But I’m actually terrified to think of what my hourly rate would be if I factored in the amount of time I spent researching, buying, managing, and eventually selling the units. All things considered, it could have turned out drastically worse. I consider myself very lucky.
Despite my turbulent experience, I’m not against real estate investing. In my experience (with both my own situation and many of my clients), most first-time investors rush into their purchases. My hope is not to discourage people from investing in real estate; instead, I hope that sharing my naive mistakes will help people evaluate whether they have the stability to invest and what type of property best fits their strengths and risk tolerance.
The property I bought was an amazing deal; I still believe that to be true. However, as you can tell from the series, I believe it was a terrible mistake on my part to purchase it. So if you take anything away from my experience, let it be this:
Real estate investing is subjective. A property or purchase can be a fantastic deal for one person and a horrible mistake for another. Crunching the numbers is essential, but you’ve got to take the steps to ensure it fits into your portfolio and life plans. Finally, keeping your emotions out of the process is going to be harder than you think. Prepare extra for this!
Despite everything, Courtney and I still plan to include real estate rentals in our long-term plans. It’ll be at least 5-10 years down the road for us. Once we’ve finished paying off debt and saved heavily for retirement and college, we’ll be ready for round two of real estate investing.
At the very least, we’ll have plenty of first-hand mistakes from which we can build!
J.D.’s note: Wow! As I mentioned when Adam started this series, I find myself drawn to real-estate investing. I have no experience with it, have no handyman skills, and have no spare time, but there’s just something about owning rentals that appeals to me. Unfortunately (or perhaps fortunately, depending on how you look at it), after Adam’s series on being a landlord, I don’t think Kris is ever going to let me own a rental!
The purchase of life insurance is an important piece of nearly anyone’s overall financial portfolio. Even though it’s important, doesn’t mean everyone has a plan.
Why is life insurance so important?
One reason is because this essential financial tool can help to protect the ones you love from having to spend other assets on things such as final expenses, paying off debt, and / or living expenses in the case of the unexpected. The proceeds from a life insurance policy can also help to keep those you care about from falling into drastic financial hardship and changing their lives at a time that is already emotionally difficult for them.
At the time you are buying a policy, there are several key factors to keep in mind. One, certainly, is to ensure that you obtain proper protection so that your survivors will have plenty of cash to go on. Another is to be mindful of purchasing coverage through one of the most financially stable life insurance companies.
This is because you will want to know that the underlying insurer is strong and stable financially and that it will be there in the future, if and when a claim needs to be made. With that in mind, it is important to do some research on the insurer that you are considering before moving forward.
One insurance carrier that is somewhat newer in the industry is Accordia Life and Annuity Company. This company, a subsidiary of Global Atlantic, provides security and income products to its customers.
Unlike some other companies, like Allstate or Progressive, Accordia isn’t a household name, but that doesn’t mean they are any less valuable.
Table of Contents
History of Accordia Life Insurance Company
Accordia Life and Annuity Company is located in Des Moines, Iowa.
It began with more than 200 agents who were already well-versed in the life insurance business.
In just the past decade, Global Atlantic has become known in the insurance and financial industry as a provider of insurance commodities, as it has grown to more than thirty billion dollars in assets. One reason for this company’s success is due to its long-term focus on its policyholders, as well as its emphasis on teamwork that is driven by its experienced leadership from the top.
Accordia Life Insurance Company Ratings and Better Business Bureau Grade
Thought to be a solid and steady company from an economic standpoint, Accordia is rated as an A- from A.M. Best. This is rated as “Excellent” and is 4th out of a possible total 16 overall ratings.
Accordia Life Insurance Company is not an accredited company by the Better Business Bureau, nor has it been given a grade by the BBB. There have, however, been forty objections filed given to the BBB about Accordia over the past three years, and all forty have been closed.
Of these 40 complaints that were filed, 18 centered on the company’s billing/collection issues, 17 centered on problems with the company’s product and/or services, four had to do with advertising and/or sales issues, and one focused on other issues. There are also three negative reviews posted by customers about Accordia Life Insurance Company on the Better Business Bureau’s website.
Life Insurance Products Offered By Accordia
The products that are offered by Accordia Life and Annuity Company are well designed, and they are focused on meeting the protection, wealth transfer, and small business needs of customers across the country.
The primary products that are provided by Accordia include term insurance, as well as universal life and indexed universal life insurance coverage. These offerings can help its policyholders to prepare for both short and longer needs.
Accordia Life offers various kinds of life insurance protection to its customers. Doing so allows for its policyholders to create the protection that works the best for them, as well as to revise support as their requirements evolve over time.
Coverage that is provided via Accordia includes:
Term Life Insurance
One of the primary products that is offered through Accordia is term life insurance coverage. This product gives pure death benefit protection only, without any cash value or savings component. Due to this, term can be pretty decently priced – and a good way for those who need a large quantity of protection such as a $1 million dollar life insurance policy to obtain it at a lower rate. This is especially the case for people who might be young and in great health at the time of application.
Term life insurance is often thought of as being temporary coverage because it is purchased for a certain length of time such as for ten, twenty, or thirty years. There is also a 1-year annual renewable term life option. Typically, the premium rate for this will remain level within the policy’s “term” and then the policyholder will either need to re-qualify for coverage or the policy will naturally expire.
In some cases, a term life insurance policy will provide the option to convert over into a permanent form of coverage such as a universal life insurance policy. This way, the insured will not need to worry about the policy expiring at any certain time in the future (unless they stop paying the policy’s premium).
Universal Life Insurance
Accordia Life also offers universal life insurance coverage. This is a form of permanent life insurance protection, so in addition to death benefit coverage, there is also a cash value component in these policies.
The cash in the policy is allowed to grow on a tax-deferred basis. This means that the policyholder will not need to pay taxes on the gain or growth of the funds in this account unless or until the time of withdrawal. This can allow these funds to build and increase exponentially over time.
Universal life insurance coverage is thought to be a more flexible form of permanent life insurance than whole life insurance. This is because the policyholder may choose (within certain parameters) how much of their premium dollars will go into the cash value, and how much will go towards the death benefit of the policy. They may also be able to change their premium due date, based on their needs.
Accordia Life Insurance Company offers some different additional riders to their universal life insurance policies. These include the following:
Accelerated Access Rider
Wellness for Life Rider
Return of Premium Rider
Terminal Illness Accelerated Death Benefit Rider
Accidental Death Benefit Rider
Children’s Insurance Rider
Primary Insured Rider
Overloan Protection Rider
Waiver of Premium Rider
Waiver of Monthly Deductions Rider
Indexed Universal Life (IUL) Insurance
Another form of permanent life insurance coverage that is offered by Accordia is indexed universal life. With this type of universal life, the growth in the cash value component is based on the production of an underlying market index such as the S&P 500.
While the policyholder has the chance to increase his or her funds significantly based upon market performance if the market should decline, the principal in the account is preserved.
There are numerous choices for indexed universal life insurance that can be chosen through Accordia Life Insurance Company. These incorporate the:
Lifetime Builder IUL
Survivorship Builder IUL
Accordia Life Provider IUL
Get Best Life Insurance rates from Accordia
When looking for top quotes, work with multiple insurers. This is true not only for life insurance but for auto insurance and health insurance as well. That way, you will be able to compare benefits and from there you can determine which will work the best for you.
When seeking life insurance protection – along with policy quotes – we can help. We work with many of the best life insurance companies in the market today, and we can assist you with obtaining all of the important details that you require.
We understand that finding the best life insurance plan for your needs can sometimes feel overwhelming. There are many things to contend with – and you want to ensure that you are getting the right coverage for your specific requirements. But now you have an ally on your side. So, contact us today – we are here to help.
It’s never fun to consider declaring bankruptcy. But, believe it or not, bankruptcy can be a smart financial decision in certain situations. Bankruptcy’s designed to give people a fresh start when they need one. And if you file for bankruptcy, you’re taking a big step towards getting your finances under control. That’s always a responsible goal.
But it’s a serious decision with consequences. Your credit rating takes a big drop (as you may know already) and your spending habits may need to change. How do you know when the pros of bankruptcy outweigh the cons?
First, know the basics of what bankruptcy does. Bankruptcy usually does not eliminate all your debt. The courts treat different kinds of debts differently.
Here are the debts bankruptcy will NOT erase:
Student loans, whether public or private. You can get relief from student loan payments, but that’s a separate process
Income taxes you owe. There are payment options for back taxes. Just like student loans, though, income tax payments have a process all their own
Child support and alimony
Court fines or other legal penalties (such as traffic tickets)
Debts to government agencies
Debts for personal injury or death caused by drunk driving
Any debts you forget to list in bankruptcy papers
Here are the debts bankruptcy CAN erase or make easier to pay over time:
But debt itself doesn’t automatically make bankruptcy the best option. If any or all of the following circumstances apply to you, it might be time to file:
Creditors are suing you for unpaid debts
If creditors have already passed your debt to a collection agency, they may take the next step—a lawsuit. Debt collection lawsuits usually aren’t worth fighting in court. You’ll end up with court costs to worry about.
Bankruptcy will place an automatic “stay” on your account. This is a court order requiring creditors to cease all collection activity, including lawsuits.
Credit card debt is “unsecured” debt. This means creditors can’t repossess any items if you don’t pay it. Bankruptcy usually erases credit card and other unsecured debts.
If your utilities are about to be disconnected, bankruptcy can keep them from being cut off as well.
What’s Ahead:
You’re facing home foreclosure and/or car repossession
Bankruptcy can issue a stay on any repossession or foreclosure activity, just like it can for credit card collections. But this stay’s a little more complicated.
Money you owe on homes and cars may be a “secured” debt, or a debt where a creditor can repossess the property. This is the case if a creditor has a lien on your home or car. A lien is basically a claim on your property saying the creditor can take it back if you don’t make payments. You may have to read the fine print or consult a professional if you’re not sure whether creditors have a lien on your home. Bankruptcy can erase what you owe—but it can’t keep creditors with liens from repossessing property.
Don’t panic! In many cases you can keep your home even after you file. One type of personal bankruptcy, Chapter 13 bankruptcy, gives you time to catch up on mortgage payments. The property you get to keep also depends on your state’s bankruptcy “exemption” laws—each state has different rules about which properties are exempt from creditor claims.
Your wages are being garnished
Wage garnishment, or creditors taking a certain percentage of your paycheck, may be the result of a lawsuit or court order. Bankruptcy’s automatic stay will stop the garnishment.
You pay for everything on credit cards
If you’re paying off debt by digging yourself deeper into debt, bankruptcy can help you break the cycle. Chapter 7 bankruptcy, the most common type of individual bankruptcy, usually erases credit card debt.
You’re dipping into a retirement account to pay bills
Thought it may be tempting, think twice before you turn to retirement funds. Most states protect your pensions, life insurance, and retirement accounts like IRAs and 401(k)s in bankruptcy. You can file, get the rest of your bills under control, and keep the retirement funds. Check the specific legislation in your state to find out what’s protected.
Paying off your debts will take five years or more
To get a full financial picture, calculate how much you owe, to whom, and when you think you can repay—or how long you can manage modest regular payments without going underwater. Focus on the debts bankruptcy can possibly discharge, like credit card debt.
If you don’t see yourself making a dent within five years, much less paying everything back, bankruptcy may give you much-needed relief.
Your revolving debt exceeds your annual income
Revolving debt is any debt with an open-ended term or no end date. Credit cards, personal lines of credit, and home equity lines of credit are all sources of revolving debt. The debt “revolves” from month to month, though you pay a percentage each month.
You’ve tried everything else
Maybe you’ve already negotiated with creditors for a better payment plan. You’ve refinanced loans. You’ve done your best to budget and search for more income sources. And you’ve explored debt consolidation, management, and settlement.
Been there, done all of the above? Keep reading.
Since declaring bankruptcy takes time and affects your credit, it’s often considered a last resort. But the resort is there for a reason. Life happens. Overwhelming medical debt, for example, is a frequent cause of bankruptcy. If medical bills are stressing you out, though, you may have more options than you realize.
You’re eligible to file
We’ll discuss the two types of individual bankruptcy—Chapter 7 and Chapter 13—in detail below. But first, find out if you qualify.
For either type of bankruptcy you should be 90 days overdue on all the debts you need to discharge.
Chapter 7 bankruptcy requires filers’ monthly income to be below the median monthly income for their state (and a household of their size). To figure out your median income, add your gross income from the past six months and divide by six. Then deduct “reasonable and allowable expenses”. This includes what you spend each month on essentials like groceries, housing, and transportation. The number remaining is the income you have available to repay debts.
Here’s a 2016 estimate of the median annual household incomes per state—divide this number by 12 to see if you’re below the average.
If your income’s over the limit, you might still qualify for Chapter 13 bankruptcy.
So how are the two types different? And which one should you choose?
Chapter 7 bankruptcy
Otherwise known as “liquidation bankruptcy,” Chapter 7 is designed for individuals with no way to pay their bills otherwise. This type of bankruptcy pays off as much of your unsecured debt as possible, including credit card debt and medical bills. The court “liquidates” your assets by converting them into cash to pay off your creditors.
The process takes anywhere from three to six months. It’s usually much quicker than Chapter 13 bankruptcy. You can keep any assets your state marks as “exempt.” Your house or car, for instance, may or may not be exempt depending on the state you live in. If they’re not exempt, they can be collected. You’re more likely to lose assets if their equity—the value of the property minus the amount still owed—is high.
What if you have little to no income and few (if any) assets? Chapter 7 bankruptcy may be the best choice for you. Be aware, though, Chapter 7 doesn’t erase the obligations of any co-signers you may have on a loan.
Chapter 13 bankruptcy
Also known as “reorganization bankruptcy” or “wage earner’s bankruptcy,” Chapter 13 is designed for people who have a consistent income and who want to keep their property. Chapter 13 bankruptcy gives filers a “grace period” of between three to five years to make payments on their debts. Any debts that remain at the end of the grace period are discharged.
The Chapter 13 plan is similar to debt consolidation. Unlike Chapter 7, this plan lets you keep your assets. It can erase the same debts Chapter 7 can erase, along with any debts from a divorce (except for alimony and child support). The court will determine the value of your equity in assets, look at your income and expenses, and figure out a repayment amount and schedule.
If you have money coming in but you need to buy some time—and you want to ensure you keep your house—Chapter 13 bankruptcy may be the best choice for you. Chapter 13 also protects any co-signers, as long as you make payments on time.
What to know before you file
This is not a decision to be taken lightly (obviously), so consider the following before filing.
Your credit will be affected
A Chapter 7 bankruptcy stays on your credit report for 10 years. A Chapter 13 bankruptcy stays on your credit report for seven years. Scores can drop anywhere from 50 to 200 points (higher scores will drop more steeply). You may have trouble getting certain loans or will pay higher interest rates. But people have successfully obtained credit and even purchased homes after declaring bankruptcy. Good money management practices, from here on out, go a long way.
You’ll have a meeting or two in court
For Chapter 7 bankruptcy you only have to go once, to a hearing called a “Meeting of Creditors.” The trustee will ask you questions about the paperwork you filed, including your assets and debts. Creditors may or may not attend—they usually don’t. For Chapter 13 bankruptcy you go to court twice, for the Meeting of Creditors and an additional confirmation hearing.
You need a lawyer
Technically you can represent yourself, but experts don’t recommend doing this. Filing becomes complicated and takes time and research to get all the facts right. Especially with a Chapter 13 bankruptcy, the more complex kind, there are details of bankruptcy law only an attorney can navigate. Fees range between $2,000 and $4,000. The fee may seem steep, but you’ll save on the penalties you might pay otherwise. The American Bar has a directory of bankruptcy lawyers. Some lawyers offer free first consultations, and you may even be eligible for pro bono representation. The American Bankruptcy Institute keeps a list of pro bono bankruptcy attorneys in each state.
Bankruptcy becomes part of a public record
Potential lenders will know you’ve filed for bankruptcy in the past. Your employer, however, can’t fire you for declaring bankruptcy.
There’s a fee of around $300 to file
If your household income is less than 150% of the poverty line, the fee can be waived.
You’ll have mandatory financial counseling
The process of filing for bankruptcy includes mandatory lessons on financial literacy. You take one class before you file and one class before your bankruptcy is discharged.
Your spouse won’t be affected
Your spouse does not have to file for bankruptcy, and your filing won’t affect their credit. The exception is if you need relief from debts you acquired together. In that case you can jointly file for bankruptcy.
You’ll need to simultaneously stop bill payments
Once you file you’ll probably be required to stop all bill payments at once. This may feel strange, but any payment can show you favor one creditor over another, which creditors don’t like.
Filing bankruptcy, first steps
If you think you may be a candidate for bankruptcy, start gathering as much information as you can as early as possible. Although you can learn a lot online about the pros and cons of bankruptcy—and what to expect if you file—you’ll want a lawyer that specializes in bankruptcy to actually go through with filing.
Bankruptcy filing fees and your lawyer’s fees are apt to cost anywhere from $1,000 to several thousand dollars, which is another reason why the decision to file bankruptcy should be made extremely carefully.
If, however, creditors are already pursuing you in court, and bankruptcy will help keep the roof over your head and food on the table, those costs—and the other downfalls to bankruptcy—may just be worth it.
Summary
Filing for bankruptcy is a last resort and can be frustrating. But the end result should give you a little breathing room and a chance to rebuild your finances. Take advantage of this chance if you need to.
Whenever I first started in the financial services industry when I was 24 none of my friends wanted to talk to me about life insurance. Most of them didn’t see the point and they had too many other financial goals on their mind. Buying new cars, buying big screen TVs, paying off debt.
Now that they are in their 30’s and their family has become more of a priority life insurance has taken on a more serious role. If you’re in the beginning stages of starting a family, life insurance in your 30’s is vital. There’s no more just worrying about you. Now you have to worry about a spouse and possibly young children.
If you feel like I feel turning 30 is not the end of the road. So it’s never too late to think about life insurance planning.
How Much Does Life Insurance Cost When You’re 30?
One of the common misconceptions when it comes to life insurance is people think it costs too much and that is not the case. Life insurance in your 30’s doesn’t cost that much either.
Just out of curiosity I ran a quote for $1 million for term life insurance coverage and the lowest rate is only $695 for the entire year.
So that’s $1 million of coverage to make sure that your family is taken care of and it costs you as little as $57.91 per month. That’s it and that’s for $1 million of coverage. If you’re a 30- year- old female, the cost is going to be that much less. The important thing is to not wait any longer for your term life insurance. The younger that you are, the cheaper your monthly premiums are going to be.
Additionally, you never know what tomorrow is going to bring (cheery, right?) if something were to happen to you, how would your family be able to recover? Not only will buying life insurance today let you know that your family will be covered, but it can also save you money in the long-run.
Life Insurance In Your 30’s Will Not Break You
The point is life insurance in your 30’s does not cost a lot. You will not break that bank by making sure that your family is taken care of should something happen to you. You can’t put a price tag on the peace of mind that this policy will bring to you. There is nothing like knowing that your family will have the funds they need if anything tragic were to happen to you.
If you’re not sure exactly how much you need check out my other post Term Life Insurance for a 30 Year Old, as I take you through my process where I decide how much of term life coverage I needed for my family.
If you want a quick answer on how much you should get, look at your total debt and how much you would leave behind. Add all of that up and that is a good starting point. Also, include your annual salary.
Saving Money on your Monthly Premiums
Nobody wants to spend more money than they have to, especially when it comes to life insurance. There are a few ways that you can easily save money on your monthly premiums.
The first way is to use the company that you already have insurance plans with. If the company that you have your car insurance through also offers life insurance, you can probably get a “multi-policy” discount for purchasing your plan through them.
But don’t automatically go with the same company because you already have purchased an insurance product from them. Another way to ensure that you have the best rates possible is to shop around with several companies before you decide on one. Because each company is different, they are all going to look at applicants differently. Your rates could be significantly different depending on the insurance company.
Second, if you want to save money, it might be time to hit the gym. One of the biggest factors in determining your insurance rates (aside from age, which you, unfortunately, can’t change) is your health. After you apply for the insurance policy, the company will send out a nurse or paramedic to do a health exam. The results from the exam can save you hundreds of dollars, or cause your premiums to go through the roof.
A healthy diet, regular exercise, and quitting smoking are some of the best ways that you can save money on your insurance. Any applicant that is overweight or obese could expect their monthly premiums to double. If you’re a smoker, your premiums are going to be doubled or even tripled, regardless of the rest of your health. Before you apply for a life insurance policy, spend a couple months losing a few extra pounds and kicking the cigarettes. Your waistline and wallet with thank you.
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The Importance of Life Insurance
An adequate life insurance policy is one of the best things you can purchase for you and your family. Every year we hear stories of families that lost a loved one unexpectedly. On top of all of the emotional strain they are feeling, they are left with thousands of dollars of debt because of a mortgage payment, student loans, credit card bills, and funeral expenses that they can’t pay for.
Life insurance provides a safety net for your family that you hope to never use. Most people put off life insurance because they don’t want to think about their own death, but that is one of the worst mistakes that you can make.
If you’re trying to save, you might be struggling with some common challenges: How do I work towards multiple financial goals at the same time? How can I make sure my financial objectives don’t get lost in day-to-day expenses or impulse buys? How can I ensure I hit my savings goal by a certain date? Let’s dig into these questions and more ways to make sure your savings goals remain a top priority. If you’d like individualized help with your savings strategy, consider working with a financial advisor.
Determine Your Personal Goals
One of the most effective ways to make saving a habit is to understand what you want to save for. Everyone has their own savings goals, but here are some of the most common and most impactful.
Building an emergency fund: One of the best ways to feel more secure financially is to have a backup fund for unpleasant surprises. Whether it’s car trouble, an illness or something else, having a savings account that can cover these expenses can help you navigate the ups and downs of life without racking up debt or getting behind on other bills. Many experts suggest you save enough to cover about three months of expenses, but every little bit will help when the unexpected happens.
Saving for retirement: If you’re one of the many who dream about retiring and living life on your terms, starting your retirement savings early is key. The good news is that there are retirement vehicles that offer tax savings and many employers will help you build your savings. If your employer offers a 401(k) match, take full advantage of it. Experts often advise that you save at least 15% of your pre-tax income, but again, saving a smaller percentage is better than saving nothing.
Paying off debt: Paying off debt may not be “saving” in the traditional sense of squirrelling money away for the future, but paying off high-interest debt faster will often save you thousands of dollars over time. Once you pay off debts, you have more income that can then be directed to emergency funds, retirement accounts and more.
Specific funds: Whether it’s a college fund, a vacation fund or a down-payment fund for a house, setting aside money for a specific purpose is an excellent goal to have.
Make a Savings Plan
So you know your goals – now how do you get there? Here are seven steps to kick off your savings journey.
Make specific goals: Even if your financial goals don’t differ substantially from the list above, put your own unique number to it. If your monthly expenses come to $2,500 and you want an emergency fund that covers three months of expenses, you need to save $7,500. If you have two credit cards you want to pay off, each with a $500 balance, you’ll need to set aside $1,000 plus any interest payments and fees you’ll incur. If you want to save for a down payment, what price range can you afford for a home and what percentage are you hoping to put down? Get granular on the details.
Rank your goals by priority: Which goals are the most important to you? While financial advisors will often recommend you work towards multiple financial goals at the same time—especially building an emergency fund, saving for retirement and paying off debt—you will need to determine what percentage of your income you want to direct to each fund.
Break down your goals into monthly steps: Let’s say you’ve decided your top goals are to build an emergency fund, save for retirement and save for a down payment for a house. How much money can you devote to savings per month? If you have $500 of income that you can allocate to savings on a monthly basis, you could put $200 in your emergency fund, which means you would reach your goal of saving $7,500 in a little over three years. You could allocate another $200 to retirement savings and put the final $100 towards your down payment savings goal.
Create a budget: You may already have a budget, but it’s time to officially add your savings goals to your spreadsheet, app or whatever you use to track your spending. By making your savings goals a part of your overall financial plan rather than something you always mean to do and never get around to, you can keep those goals high on your priority list.
Cut spending: One of the quickest ways to accelerate your progress towards your savings goals is to cut your spending in another area and redirect that money towards savings. Are there subscriptions you don’t use? Are there services you could do yourself? Are there luxuries that you don’t enjoy enough to justify the money you spend on them?
Automate your savings: Another way to make your savings goals a reality rather than a pipe dream is to automate them. Set up an automatic 401(k) contribution with your employer. Set up an automatic monthly transfer from your checking to your savings account. Automate your credit card payments. By taking away the opportunity for you to decide to skip it, you can solidify the habit with minimal effort.
Use mistakes as learning opportunities: Let’s say you impulse bought a new pair of shoes with money that could have—and maybe should have—been put towards your savings goals. Rather than beat yourself up about it, ask yourself why you made that decision. Was it emotional? Did you feel peer-pressured? Did you actually get joy out of the purchase or did you just feel bad for not making a better financial decision?
Check In With an Expert
If you feel a little overwhelmed by your financial situation and haven’t been able to make headway toward your goals, you might benefit from working with a financial advisor. Experts are often able to open your eyes to things you wouldn’t otherwise have noticed and strategies you may not have otherwise tried. Financial advisors often understand the emotional side of financial decision-making as well and can help you stick with your financial priorities even when it’s tough.
It’s not just the expertise that can be valuable. Sometimes the accountability of working with a financial advisor can go a long way. If you knew someone was looking at how you spent your money and measuring it up against the goals you shared with them, would you be more likely to stick to your plan instead of splurging on something outside of the plan?
If you don’t think you can afford an advisor’s fees and you belong to an underserved group (including low-income people, military personnel, veterans and more), you may be eligible for pro bono financial planning services through the Financial Planning Association. Reach out to your local chapter to see what services they offer.
The Bottom Line
Many people have trouble prioritizing their savings goals, but you can start by fleshing out the specifics of your goals and making a plan to reach them. If you need expert help, consider working with a financial advisor, who can share new strategies and provide accountability that will help you meet your goals that much faster.
Tips for Saving Money
Not sure what investments and strategies will help you meet your long-term goals? For a solid financial plan, consider speaking with a financial advisor who can help you think through details you may not be aware of. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Use SmartAsset’s budget calculator to see how your spending breaks down and how your budget stacks up against the average person in your neighborhood.
Reliance First Capital out of Melville, NY says it makes custom mortgages to ensure its customers obtain a home loan that fits their specific financial goals.
In short, they want you to rely on them and their years of experience for your home loan needs.
And they seem to be achieving a high level of customer satisfaction, recently making it into the coveted top-10 list for customer satisfaction on the LendingTree platform.
They’re also one of the few “certified lenders” you’ll find on LendingTree, which is an accolade given out for outstanding performance. Read on to discover more about this direct mortgage lender.
Reliance First Capital Fast Facts
Retail direct-to-consumer mortgage lender
Founded in 2008, headquartered in Melville, NY
Offers home purchase loans and refinance loans
Licensed in 41 states and the District of Columbia
Funded over $1 billion in home loans last year
Nearly 75% of total volume was cash out refinances
Did the most business in their home state of New York
Reliance First Capital is a retail direct-to-consumer mortgage lender that operates six regional loan origination centers throughout the country.
Those offices are in Charlotte, Cleveland, Dallas, Nashville, Pittsburgh, and their headquarters in Melville, NY.
To that end, they basically operate remotely like an online lender so you won’t be visiting a branch to get your mortgage. Instead, you’ll deal with someone over the phone, via email, etc.
At the moment, they are licensed to do business in 41 states and D.C., with Iowa, Nevada, North Dakota, Oklahoma, Missouri, South Dakota, Utah, West Virginia, and Wisconsin the exceptions.
Based on their HMDA data, they are big on cash out refinances, with nearly 75% of total volume coming from such transactions.
This means they mostly serve existing homeowners with plenty of equity who wish to tap into it by way of refinance.
However, they also offer home purchase financing and rate and term refinances as well, they just aren’t as prevalent.
The company is most active in its home state of New York, unsurprisingly, followed by North Carolina, Pennsylvania, Ohio, and Tennessee.
The remainder of their loan volume is scattered across the United States, with lending taking place in nearly all 50 states.
Applying for a Mortgage with Reliance First Capital
They say they’ve got a proprietary loan origination system
It’s a digital mortgage loan experience with a personal touch
You must first fill out a contact form on their website, then a mortgage analyst will contact you
Once signed up you’ll be able to access a borrower portal to upload documents and check loan status
Reliance First Capital offers a digital mortgage experience with a personal touch, aka a human loan officer standing by to assist.
They strive to provide superior customer service and work to determine your desired level of service (e.g. lots of personal interaction, mostly borrower portal, or a mix).
From what I gathered, you first need to fill out a short contact form on their website, at which point you’ll be contacted by a member of their team.
They say you’ll be matched with one of their licensed mortgage analysts, who will be your main point of contact throughout the loan process.
This individual will work alongside your loan processor to evaluate and gather the items needed to submit your loan to underwriting.
Their online customer portal known as myReliance allows borrowers to view/manage their loan application and upload necessary documents.
You can fill out the loan application online, save your work, and revisit it along the way to check loan status.
The same goes for scanning and uploading documents, signing disclosures, and so forth. They refer to this process as a “proprietary loan origination system.”
It’s also possible to simply give them a call to get the balling rolling. In any case, you will likely need to speak to someone before you begin, which these days isn’t always the norm.
There are online mortgage lenders that let you get going right away without any human interaction.
In summary, your unique needs will dictate how much of the loan process is self-serve versus directed by their lending team, but you get options either way.
Loan Programs Available at Reliance First Capital
Home purchase loans
Refinance loans: rate and term, cash out, and streamline
Conforming home loans backed by Fannie Mae and Freddie Mac
Government-backed loans: FHA, USDA, and VA
Jumbo home loans
Manufactured home loans
Reverse mortgages
Fixed-rate and adjustable-rate loans with various loan terms
While Reliance First Capital offers home purchase loans, they seem to specialize in refinance loans, and cash out refis specifically.
That means they might be best-served for the existing homeowner looking to tap their home equity to pay for other expenses and/or reduce more expensive debt.
However, they offer a full slate of loan programs, whether you want a conforming loan backed by Fannie/Freddie, a government loan with zero down, or a jumbo home loan.
They say they offer FHA loans and VA loans with credit scores as low as 500, along with jumbo loans as large as $3 million.
Additionally, they offer both manufactured home loans and reverse mortgages, so they’ve got something for just about everyone.
It’s unclear if they offer home renovation loans, such as the FHA 203k or the Fannie Mae HomeStyle renovation loan.
Based on their HMDA data, they mostly originate fixed-rate mortgages, but ARMs are also available if you’re looking for something a little different.
My assumption is you can get financing on a single-family home or condo/townhome, and the occupancy can be primary, secondary, or investment.
Reliance First Capital Credit Coach Program
One neat feature that Reliance First Capital offers that others might not is their free Credit Coach program, which can help borrowers boost their credit scores prior to application.
For example, if your credit scores are just shy of good enough to get approved for a certain type of home loan, they might be able to offer suggestions to improve them.
The Credit Coach program features a one-on-one conference call that involves an in-depth credit report analysis.
This expert will work to explain how credit scoring works, what’s on your credit report, and what you might be able to do to raise your credit scores.
They apparently provide “time-tested recommendations” that can lead to a credit score boost, whether that’s paying off debt or attempting to remove negative information.
Regardless, it can certainly be beneficial to raise your scores over certain key thresholds because of the many pricing adjustments related to credit scores and mortgages.
Reliance First Capital Mortgage Rates
You won’t find mortgage rates posted on the Reliance First Capital website. Instead, you’ll need to call them and speak to a mortgage analyst to discuss pricing.
The same goes for lender fees – while making that call, be sure to get both mortgage rate quotes and a list of lender fees they charge, such as loan origination fee, processing/underwriting, application, and so.
Once you’ve got all these numbers, you can determine your mortgage APR and use it to shop your home loan with other banks, brokers, and lenders.
While it’s unclear how competitive Reliance First Capital is relative to other mortgage lenders, their customer reviews on both LendingTree and Zillow are favorable, with many reviews indicating lower interest rates than expected.
But don’t just take anyone’s word for it – put in the time and truly shop to ensure you get the best deal on your loan.
Reliance First Capital Mortgage Reviews
They are one of just nine certified lenders on the LendingTree platform and currently have a 4.8-star rating out of 5 from over 2,000 customer reviews.
A certified lender is apparently “recognized for outstanding performance on the LendingTree network.”
Additionally, they landed in the top-10 list for customer satisfaction in the first quarter of 2020 and currently have a 96% recommend rate.
On Zillow, they have a 4.81-star rating out of a possible 5 from about 70 reviews, with many saying the interest rate received was lower than expected.
Their Google reviews are somewhat mixed based on physical location, with a 4.3-star rating in Charlotte, a 4.8-star rating in Dallas, a 2.9-star rating in Franklin, TN, a 4.1-star rating in Pittsburgh, a 4.8-star rating in Independence, Ohio, and a 3.2-star rating at their Melville headquarters.
So you may want to check your local office first and scour individual loan officer reviews if you want to work with someone specific, as experiences seem to vary.
They are accredited with the Better Business Bureau and currently have an ‘A+’ BBB rating based on customer complaint history.
To sum it up, they might be a good fit if you’re an existing homeowner looking to refinance, but be sure to get multiple quotes from other lenders to ensure they offer a competitive rate and lender fees.
Reliance First Capital Pros and Cons
The Good
Online borrower portal to manage your loan
Plenty of loan programs to choose from
A+ BBB rating, accredited business
Free mortgage glossary on site
Free Credit Coach program to help boost borrowers credit scores
They may service your loan as opposed to transferring it
I made my last credit card payment this week! That final payment ends more than ten years and $20,000 of credit card debt.
Getting out of credit card debt is a familiar story to readers of Get Rich Slowly. You wake up to that fact that your finances are a sinking ship, so you learn to track your spending, and that helps you figure out where your money goes. From there, you scale back your expenses and spending. You look for ways to boost your income. You start a debt snowball. Pretty soon, you’re paying off debt like it’s going out of style.
And then one day you make the last payment. What next?
Beyond credit card debt For me — and probably for a lot of people — that answer is simple: keep that debt snowball rolling. Many perpetual debtors have managed to pick up loans as well as credit cards. I’ve paid off my credit cards, but I still have a car loan, student loans and a family loan to repay.
Even though I’m still in debt, this is a milestone for me. It represents a huge emotional step, and freedom from high, variable interest rates. I’m delighted. Paying off that last credit card has loosened a lot of emotional energy. I’m making progress in areas of my life where I’d been stalled. I’m going running almost daily, cleaning my house and tending my garden. Kissing that credit card balance good-bye didn’t free up any time or money, but the weight it lifted has energized me.
“Keep the debt snowball going” seems so straightforward I almost expected this moment to pass by unnoticed, with simply a change of address to where I was sending my money each month.
In fact, it needed a little more deliberation. Which debt do I pay off now? How quickly? The standard approach is pay off the debt with the highest interest first, or the debt with the smallest balance. In my case, I put the student loans last because the interest on those is tax deductible.
Using the debt snowball spreadsheet available through this site, I’ve ordered my remaining debts in a custom priority that works for me. Applying the money I was using to pay off credit cards to extra payments on my loans will get me clear of debt in another two years. I have a confidence I never had before that I will do this. I’ll be facing a debt-free life.
Then what? This is the real “beyond debt” question. The answer is as simple and complicated as my questions about what to do next with my debt payments.
A debt-free future Roughly, following Dave Ramsey‘s roadmap for financial success, my debt-free future looks like this:
Build up an Emergency Fund. You should have the beginnings of an emergency fund already, wherever you are in your financial journey. Emergencies will always happen, and having a cushion to help you deal with them can get you off the hamster wheel of debt. Once those debts are paid, it’s time to bulk up the emergency fund. I have my starter emergency fund sitting in an ING account, but almost any high interest savings account will do. Ramsey suggests saving $1,000 before mercilessly attacking your debts. I’ve put by about $5,000 because I’m freelancing for most of my income these days. I want a bigger cushion since I have less job security. Ultimately, every household should have three to six months of living expenses in savings, available to help you weather any financial storm.
Save for Retirement. We all need retirement savings, and the sooner we begin saving for our retirements, the harder those dollars saved can work at building wealth for us. Depending on how long it’s taken you to get to this stage, you may have some catching up to do. Figuring out what to save for retirement is complex. There are plenty of good retirement calculators that will tell you how much to save given the particulars of your situation. It’s an important and confusing enough issue, though, that it’s probably also worth seeking the advice of a seasoned professional financial advisor.
Save for College. If you have kids, your next priority will be their educations. Saving for college is like saving for retirement: the sooner you do it, the more bang you’ll get from your saved bucks. Most parents won’t be able to save all the money they’ll need for their kids tuition. Try to save a third of the cost before they start, expect to pay a third out of pocket while they’re in school, and let your children pick up a third of the tab through their own work, scholarships or loans.
Save for Fun. Now comes the fun part. You’re an expert saver, and you’re financially secure. Save for that vacation you’ve always wanted to take. Save for the custom built road bike of your dreams. Save for a vacation home. This might be a long way off for those of us, like me, still swimming upstream against debt, but it’s the light at the end of the tunnel. On days when living on a tight budget feels like a burden, it’s nice to remember that way off on the horizon is not only freedom, but a whole lot of fun.
I’m speaking here of things I’ve read about but never lived. I’d love to hear from readers on this topic, since a lot of you are doing these steps, or have done them already. How has moving beyond debt changed your life? What do you do with the money that used to go to interest payments?
J.D.’s note: I gave up my coveted Monday spot in order to publish Sierra’s article today instead. Why? Because I think today’s discussion will be a natural lead-in to the post I was going to share. Tomorrow, I’ll reveal my answer to Sierra’s questions. I’ll share what I call “the rewards of frugality and thrift”, the reasons I’ve been scrimping and saving. I’ll show what I’ve been doing with my money since I became debt-free.
It allows people to provide a certain amount of money after death to a beneficiary, an individual that is chosen in advance.
It is not necessary but recommended that life insurance for cancer survivors be obtained. The life insurance policy pays differently depending on the type of life insurance purchased.
There are more than 300 insurance companies on the market today. Not all of them provide life insurance for cancer survivors. In addition, those that do serve cancer survivors require a higher cost to be paid. There are several types of insurance an individual can purchase. The one chosen will depend on the need of the individual. Before you start looking for insurance coverage, there are several things that you need to know first.
Common Types of Insurance Coverage
Universal life Permanent insurance. The price remains fixed for the lifetime of the holder. In addition, as long as payments are made at proper intervals, the customer will still be covered under the policy. At certain time intervals, the individual can pay less or more to change the coverage provided.
Term Life. Covers only a certain period of someone’s life. For example, it can cover a 10,20 or 30-year time interval. Once these time periods have passed, the policy is no longer effective. Because of the defined limit on these policies, they tend to be the least expensive life insurance option. Payment is required at either a monthly, quarterly, or annual basis. At the end of each coverage time period, the policy can be renewed. During the renewal, it is necessary to provide update health information with which the insurance providers may or may not decide to renew coverage.
Whole Life. Whole Life insurance is similar to universal life insurance. However, the individual cannot change the amount paid for premiums to change the amount of coverage provided. There is also a cash value attached to Whole Life insurance. During the course of coverage, money can be borrowed. However, by borrowing the money, the amount obtained after the policyholder’s death decreases.
Guaranteed Issue Whole life. Typically, only individuals that are at least 40 years old can purchase this type of life insurance. It is for individuals with preexisting health concerns. Typically only $25,000 for death benefit is available but it can also be partially withheld if the policyholder dies within three to four years of purchasing the insurance. This is the type of life insurance for cancer survivors.
Each policy has different pros and cons that you’ll have to weigh. There is no “one plan fits all” for applicants. Each person is different and has various needs and preferences in their insurance coverage.
Life Insurance Approval With Cancer
In order to obtain life insurance as a cancer survivor, it is important to be honest. You should reveal all medical records to the life insurance company. By withholding or forging information, there is a risk of denial by the insurance company. An existing policy can also be canceled. Trying to hide any information, or lying about any of your health could lead to serious complications later. As a cancer survivor, some additional qualifications need to be met among insurance companies.
Usually, being in remission or cured is necessary. A person must also be between 3 months or 5 years since last treatment, depending on the type of insurance company. The individual must be in good health and between 21-90 years old. It is important for survivors of cancer to get insurance especially if there are others that depend on them.
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Common Cancer Insurance Cases
We’ve been able to get cheap coverage for a variety of cancer survivors. Some of the more common cases we’ve helped with are breast cancer, prostate cancer, uterine cancer, skin cancer, thyroid cancer, testicular cancer and many more.
The type of cancer that you have, and how long you’ve had it are going to impact your rates and being approved for the policy, but regardless of the type, there is a life insurance policy out there for you.
The Importance of Life Insurance
It might seem obvious to you, but a lot of Americans miss the real value of a quality life insurance plan. A lot of people assume it’s not worth the premiums.
Although you might not realize it, you could leave behind more expenses than you think. Think about your mortgage, car payments, student loans, hospital bills, etc. all of that would be left to your family members. For a family that just lost a loved one, all of these unpaid expenses can be difficult to cover, especially in this difficult time. This is where life insurance comes in. Your family would have the money they need.
Paying off debt isn’t the only purpose of a policy, they should also be used to replace any salary that your family would lose. If you have loved ones that rely on your income, would they be able to replace that income? Would they suffer because of the loss of salary? Life insurance can not only give them money, but also give them time to find more sources of income. It also allows them time to grieve without having to worry about getting back to work.
Getting the Best Rates
Even as a cancer survivor, a life insurance plan shouldn’t break your bank. You should be able to get affordable coverage that you and your family deserve.
One way is to focus on your health. This is could be a variety of different things, but a majority of applicants end up paying more because of being overweight. Carrying extra weight, or being considered obese, will cause your monthly insurance rates to increase. Start a healthy diet and a regular exercise routine, these are the best ways to shed a couple of pounds and keep more money in your wallet.
Similar to being listed as overweight, being categorized as a smoker on your application is going to cause your rates to go through the roof, regardless of your health. Smoking cigarettes or using tobacco will immediately cause your monthly rates to double or triple.
To save money, you need to compare policies from several different companies before you pick the one that works. While life insurance for cancer survivors isn’t the most popular insurance product that companies sell, there are still dozens of companies that you’ll be able to choose from.
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Have you ever wondered what it would be like to have a million dollars?
The first thing that comes to mind might be the ability to purchase whatever you want, whenever you want. But do not let your imagination run wild just yet! There are many things beyond material goods that come with this kind of money.
We will dive into the life experiences that come with being independently wealthy. Plus, everyone will have a different number to be classified as independently wealthy.
You have probably heard that it is impossible to be rich and independent. While others truly believe they are capable of being wealthy.
Becoming financially independent might sound like an impossible goal, but with a little bit of hard work and determination, you are capable of reaching your dreams.
Independent wealth is a life state that you can have and maintain without having to rely on your job or family.
This post will help newbies become financially independent, so you will be able to live their best lives without any external pressures.
In the last few years, many people have taken up the idea of becoming wealthy on their own, without relying on a company or organization to make money. There are numerous ways in which one can become wealthy, but oftentimes it requires a great deal of time, effort, and dedication.
Let’s make sure you enjoy a life of independent wealth with these tips for success.
What Is Independently Wealthy?
Independent wealth is a term often used to describe people who are wealthy enough that their personal finances are not impacted by the economy.
These individuals have a certain level of financial independence, which can be accomplished in a variety of ways, including through saving, investing, or business ownership.
Financial Independence vs. Independently Wealthy
Financial Independence is when you are able to live a life of your choosing (with or without a job) and not need any support from external sources.
Independently wealthy is when individuals do not have to work another day and do not need financial support from any external sources.
Either way, you are in complete control of your money and not living paycheck to paycheck. It is possible to be financially independent without being independently wealthy.
To become independently wealthy, you need to have assets that generate income whether or not you are working.
The benefits of being independently wealthy
Many people believe that becoming independently wealthy is not just a pipe dream but is possible. There are many benefits to being rich, like being able to do anything you want with your money or help others in need.
The benefits of being independently wealthy are clear.
It is possible to achieve financial wealth, and the time and patience it takes to create such wealth are well worth it. Not only that, but those who amass great wealth can also create a powerful financial legacy for their loved ones.
Here are the benefits to enjoy the most:
You can freely pursue your passions without fear of having to conform to a certain type of lifestyle or do certain things in order to be successful.
Your mental and physical health will improve. There is less stress and more time to dedicate to your health.
You have a clear vision for the future. You know it is possible to reach your full potential.
You can experience time freedom.
There are very hardly any downsides to pursuing independent wealth. More often than not, you are the one blocking your path.
Misconceptions About Being Independently Wealthy
There are some misconceptions about what it means to be independently wealthy.
Though some may think that independently wealthy people must look a certain way or act in a certain way, this is not always the case. In fact, many of these people blend in with everyday society and go about their lives just like everyone else.
Furthermore, they are still human and have feelings; they simply have more money than most.
An independently wealthy person typically lives a comfortable life but nothing too showy. They drive nice cars that most people drive, that are reliable and affordable. They work hard and put their savings first always, so they can maintain their wealth over time.
You Don’t Need Millions
You don’t need to be born into a wealthy family or have millions of dollars to be financially independent.
It is possible to build your own wealth with consistency and time.
The amount you need depends on your current expenses and the number of people in your household.
Have All The Luxuries In Life
Wealth is relative and means different things to different people. People often think of flashy things when they think of rich people, but that is not always the case.
A person can be wealthy without having a lot of material possessions.
Money gives you options in life.
Signs You are Independently Wealthy
If you are able to support yourself with a portfolio of investments that pay for your lifestyle without having to work, you are considered to be independently wealthy. This typically means having a solid net worth and not needing to rely on a day job.
What qualifies as independently wealthy? Here are many signs that you may be independently wealthy including:
More free time
No bills to pay
No mortgage
Money saved in the bank
Practice random acts of kindness
You quit your day job.
More than anything, you have built yourself a nice cushion (AKA liquid net worth) and you are able to live off your savings.
You understand how to FI.
How to Become Independently Wealthy
There is no one-size-fits-all answer when it comes to becoming independently wealthy, but there are a few basic principles that hold true for most people.
The first is that money is a tool to be used, and should not be hoarded or worshipped.
Next, realizing wealth accumulation takes time and effort.
Lastly, it’s important to remember that financial independence is about more than just money – it’s about having the freedom to do what you want with your life.
Now, let’s dig into the steps to take to be independently wealthy.
#1 – Set Goals
Goal setting is a powerful tool that can be used to achieve anything you want in life.
By setting a specific date to achieve your goal, writing down what you need to do to achieve the goal, and taking action, you are well on your way to reaching your goals!
If you do not know where you want to go, then how can you use money as a tool to get you there.
Learn: How to set SMART financial goals.
#2 – Pay Yourself First
Pay yourself first is a financial concept that suggests you should save and invest most of your income before paying personal, living expenses. If you pay yourself first and don’t overspend, the money you save will be available for future use.
People find it difficult to save money because they tend to pay everybody else first, including bills, rent, and other necessities. By committing to “paying yourself first,” you make it a priority to put money away in savings or investments so you can cover your own costs down the road.
To become independently wealthy, you should start by saving at least 15% of your income.
Choose: one of our money saving challenges to kickstart your savings journey.
#3 – Increase Your Income
Increase your income in a few steps and move your life ahead. You can do this in one of three ways: find a higher paying job, start a side hustle, or create passive income.
Most people, look to increase their income as the best way to make money. This is definitely the fastest way to make more money. You can ask for a pay raise or look for another job that pays more.
Another option is starting a side hustle, which can be anything that doesn’t take up too much time and can be monetized. A simple way to bring in more money each week.
Passive income streams are income that does not require any effort from the individual who creates it. Passive income is generated by assets such as rental properties, stocks, or investments that produce a cash flow that is higher than the person’s expenses. This is a great way to diversity and increases your income at the same time.
Learn: how to make more money fast.
#4- Know Your Net Worth
Your new worth is a financial snapshot of your personal finances.
It will tell simply calculate your assets minus your liabilities to find your net worth.
Knowing your net worth is important, even if it’s negative. This number will give you an idea of how much debt you have and what assets you own. It can help you make better financial decisions in the future.
Knowing your net worth is important because it measures how wise with money you are. As you pay off debt and invest money into solid assets, your net worth will grow over time- so make sure you’re keeping track!
Figure out your net worth with Empower!
Empower Personal Wealth, LLC (“EPW”) compensates Money Bliss for new leads. Money Bliss is not an investment client of Personal Capital Advisors Corporation or Empower Advisory Group, LLC.
#5 – Invest your Money
Investing in retirement and non-retirement funds is a way to finance your future. Though the investment strategy differs, both are considered to be asset investments because they provide you with a return on your money.
For way too many people, they shy away from investing which means they will never be able to become independently wealthy.
When it comes to investing for retirement, there are a variety of different options available. One popular option is to invest in a mutual fund. Mutual funds are collections of stocks, bonds, and other securities that are managed by a professional investment company. They offer investors the opportunity to buy into a diversified portfolio without having to purchase individual securities.
Another common retirement investment option is purchasing individual stocks or bonds. While this can be riskier than investing in mutual funds, it can also provide greater returns if done correctly.
Regardless of which option you choose, it’s important to start investing as early as possible. Compounding interest can make building wealth over time much easier.
Learn: how to invest in stocks for beginners
#6 – Educate Yourself on Personal Finance Topics
A great way to understand the complexities of personal finance is to educate yourself on how money works.
This can include learning about the following topics:
Budgeting/Finance Budgeting
Debt Management/Paying Off Debt
Investing
Retiring Early
Taxes
Income and Employment
Estate Planning (Wills, Trusts, and Estates)
Financial Freedom
This is one of the most important personal finance tips that I can give you. If you want to become a millionaire, you need to learn how money works. Period.
Check out: one of the top finance books.
#7- Stay Out of Debt
It might seem like common sense, but it is important to stay out of debt. In today’s world where credit cards are easily accessible and loans can be taken out without much thought, it is easy to find yourself in debt, and it can be difficult to get out of.
You have to make a plan to get out of debt and stay out of debt.
Until you have your debt paid in full, you will always be shackled by interest payments and unable to get much further ahead.
Learn: how to get out of debt.
#8 – Live Below Your Means
One of the most important things to understand is you must spend less than you make.
Live below your means is a phrase that was coined in the United States during the Great Depression and describes how it is possible to live on less than you earn. Live below your means refers to living on less than you make.
Living below your means is a great way to become independently wealthy.
You should spend money on the things that make your life more comfortable and enjoyable, rather than frivolous things that you don’t need.
Find out: how to live below your means.
#9 – Minimize Lifestyle Creep
Lifestyle creep can often be a subtle and dangerous thing.
As your income goes up, you may find yourself spending more money in other areas like vacations or entertainment. Most people do not even recognize it until it is too late.
Minimize lifestyle creep by setting specific boundaries and sticking to them.
However, it’s important to remember that you don’t need to completely avoid lifestyle creep and live on the same budget forever – you just want to make sure that your expenses are rising much slower than your income is rising. This will give you the best chance of reaching your long-term goals.
Learn: the signs to watch for lifestyle creep.
#10 – Think Long Term
The key to wealth is thinking long-term. When you have a clear vision for the future and are able to plan accordingly, you set yourself up for success both financially and in other areas of your life.
If you want to be successful in the long term, you must study and learn as much as you can.
Furthermore, if you’re looking to amass wealth over a period of years or decades, playing the long game is your best bet.
There will be ups and downs along the way, but with patience and perseverance, you can achieve great things.
Understand: the difference between rich and wealthy
How to Know if You’re Independently Wealthy?
The first step to knowing if you are independently wealthy is to determine your net worth.
There are a few signs that can help you determine if you are independently wealthy.
For one, you have enough money to cover all of your expenses without having to rely on anyone else. Additionally, being independently wealthy means that you can afford anything and everything you want without needing to rely on any type of income – whether it be passive or active.
You can go out and buy something just because you want to and not worry about the price tag.
Reasons to Strive for Becoming Independently Wealthy
There are many reasons to strive for independent wealth.
Achieving independent wealth is not impossible. Though it takes time, hard work, and patience, any person can do it by following a plan and taking specific steps.
Reason #1 – Enjoy Time Freedom
It’s a very rewarding feeling to be financially independent and know you’ll never have to work again.
You’ll gain more control of your life and finances, which will allow you more freedom to do what you want when you want.
This is something very few people actually get to enjoy.
Reason #2 – Less Stress
One of the main reasons people want to become independently wealthy is to avoid the stress that comes with full-time jobs.
Wealth can provide a sense of freedom and control that reduces stress and allows people to live happier lives.
Financial independence is a goal that many people strive for and when they achieve it, they find that the stresses of money-related problems are no longer a part of their lives. While achieving financial independence doesn’t mean all stress goes away, it does help with the stresses of not having enough money
Reason #3 – More Control
When you become financially independent, you gain a sense of control over your life and your finances. You are no longer at the mercy of others to provide for you or make decisions about your money. There are many ways to gain control over your finances, including creating a budget, investing in yourself, and automating your finances.
There are a lot of benefits to having more control over your finances.
One of the most important is that you can set money aside for emergencies without having to rely on credit cards. This means you won’t have as much stress if something unexpected comes up, and you’ll be less likely to fall into debt.
In fact, check out these billionaire morning routines to find quick success.
How Much Do You Need to Become Independently Wealthy?
It is difficult to determine how much money you would need to become independently wealthy because the amount of wealth that different people have requires an estimate.
For example, someone who earns $50,000 per year and has $100,000 in savings would be considered financially independent. However, they would need investable assets to cover their living expenses to be independently wealthy. Many experts say 20x your income, so approximately a million dollars.
There is no exact amount of how much money should someone have to be considered wealthy.
Everyone’s situation will be unique to them. Thus, your number will be different than mine as well as everyone around you.
Becoming independently wealthy does not happen overnight. It takes work, dedication, and a lot of patience. The first step to becoming an independent millionaire is by saving money in the bank account; this is the most important step in becoming an independent millionaire.
How to Become Wealthy in 5 Years?
Independent wealth means having the freedom to make choices based on what you want, not what you need. And that’s a goal worth striving for.
This is something you can achieve in 5 years or even 10 years.
In order to become wealthy in five years, the first step is to get a good education in personal finance.
In addition, one must work hard and avoid making dumb decisions. In order to become wealthy, you should be able to prioritize your goals and work towards them instead of wasting time on distractions.
There are many ways to become independently wealthy, but it takes time and patience to build up your assets.
You are in control of your destiny, so you must be willing to save more money and spend less money.
We gave you tips to make it happen. You must take action to make it a reality.
Know someone else that needs this, too? Then, please share!!