Financial News for Business
Financial news for business have a big impact in modern global crisis, we will help you to understand what is happening.
Posted by Nathan Torres on March 18th, 2011 ~
0 Comments Back several years ago while working in financial services I ran into a couple that was interested in buying life insurance. They were both in their mid 30s, had a few kids, and a pile of debt. Because of this they decided that they should have some life insurance just incase the unthinkable happened.
So I drew up a few illustrations for them and found a couple of 30 year term policies with $100,000 in coverage for them that ran less than $20 each a month. I figured based on their current situation that this was all they would be able to afford.
When the time came for them to make a decision they decide the cost of life insurance was to much for them and that they just couldnt afford it right now. I explained to them that they didnt want to wait on something like this, but against my better judgement they decided not to do it.
A year later I got the news that she a severe stroke. I couldnt believe it, if I had only tried a bit harder they could have had the coverage. Thankfully though she didnt die but the chances of her getting life insurace are slim to none unless she can qualify for high risk life insurance.
The Cost Of Waiting
Every time I hear someone say, I dont need life insurance because its to expensive, I share that story with them and tell them, is it really worth the risk of waiting?
Truth is it isnt worth waiting, in fact the younger you buy a life insurance policy the cheaper it can be. Below is a 30 year term with a $100,000 worth of coverage for a 20 year old male.
As you can tell the cost for a 20 year old is very cheap, starting out at around $14 a month. However look what happens when you wait 10 years.
By waiting till age 30 you can still get a policy for around $15 a month providing you in good health and dont smoke. However
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Tags: Insurance, Life Insurance
Posted by Nathan Torres on March 1st, 2011 ~
0 Comments Just a week after the last draft outline was posted, NY has posted another draft for comments. This time it is the Individual Whole Life and Endowment Product Outline and comments are due by April 10, 2011. Updating these outlines was one of the major topics of the Life section of the Modernization Initiative committee and it is great to see it happening. Of particular note is that this outline contains a section on nonforfeiture.
The lack of actuarial information and guidance in the earlier versions of the life outlines left insurers in the dark about department interpretations and positions. A preliminary review of this outline suggests that there are still gaps in that area. Many of us who have seen PAR letters know that there are many interpretations and it is much better to know them before a product was submitted than afterward! This is a great step in that direction. Hopefully, the comment process will result in more PAR positions being included in the outline.
Tags: Draft Outline
Posted by Nathan Torres on March 1st, 2011 ~
0 Comments The question what is the best renters insurance is frequently asked, but is difficult to answer because there are many variables that makes one hold the best renters insurance title over another. Are you looking for the best renters insurance company? The best renters insurance rates? Or simply the most comprehensive coverage?
Instead of making generalizations or promotions this article is going to look at ways you can find the best renters insurance for you.
Finding the Best Rates
The first thing that most people look for when buying an insurance policy is how much it costs. While renters insurance is generally less expensive than other types of policies, there are always ways to cut back on your premiums.
The best rates are usually found as a result of shopping around. If you are looking for other ways to save when it comes to your renters insurance premiums check out this article for more in depth ways to cut back costs – Tips to Reduce Renters Insurance Costs. However, before you start trying to reduce those rates you need to find a few insurance companies to work with.
Finding the Best Renters Insurance Companies
Since you should be shopping around while looking for a good rate, you should know what to look for in the company that insures you. Si
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Tags: Insurance
Posted by Nathan Torres on February 22nd, 2011 ~
0 Comments Did you have a long weekend? How did you spend it? Me? I reviewed the newly posted 81-page Draft Individual Fixed and/or Variable Deferred Annuity Outline. I am in the process of drafting comments, which are due to the Department on or before April 3, 2011. Let me know if you’d like me to include a comment from your company or if you’d like to discuss anything in the proposed outline. Clients in the annuity market will likely be hearing from me with thoughts on how these proposed changes could impact your products or the way you do business today. There is a lot in the outline and it is much better to talk about the issues now than when we are all under the gun with a new product that needs to get out the door.
Tags: Annuity Outline, Outline
Posted by Nathan Torres on February 22nd, 2011 ~
0 Comments If your looking to purchase a home, car, or something of high cost in the near future you may have been asking yourself, I need a loan, but you may not know if you can get one. So in this article Ive put together a simple guide for beginners to help you get started down the right path, and in the end of this article you will be able to get a simple checklist to help you get started.
Why Do You Need A Loan
The first thing you need to do is question the reason you need the loan. Often times we get a loan even when we really may not need it. The first thing you must do is consider if you really need a loan now or if you can wait.
If you want to get the best rate and deal a little preperation can go a long way. For example, currently Im in the process of planning to build my own house, but before I considered buying some land I decided it would be much easier to save money first. This way I will have more cash to put down when I buy, giving me a lower interest rate in the end.
The reality is saving money doesnt cost you anything, but once you buy something using a loan it will cost you a monthly payment. For example I recently had a conversation with a friend of mine who said he saved an extra $50 a week back into a car fund over a 5 year period. By the end of five years he had around $13,000 to by a new car. Doing this allowed him to buy a car with cash and avoid getting a car loan.
So before you say you need a loan now consider the option of saving first.
What Is Your Financial Situation
The next thing you need to consider is what your current financial situation is like. This means reviewing you financial situation and looking at things like how much debt you have and what your current credit standing is.
First off when considering your debt situation, if youre looking to get a loan you will not want to have any more than a 36% debt to income ratio. This means when you divide the total amount of debt over the total amount of income you have you will not exceed 36%.
Next you need to consider what your credit report and score are. Your credit score will give you an idea of how good your credit really is. Scores usually range from 400 to as high as 850, however to get a loan you will need at least a 650 or higher to qualify. The big benefit to having a high credit score is that it can get you a lower interest rate.
If your interested in checking out your credit read my article on how to get a cheap credit report with Credit Karma.
Where You Should Not Get A Loan
Third, once youve saved up some money, checked your debt to income ratio, and looked up your credit report its time to start searching for a place that will give you a loan. Howver before I cover the best places to get a loan I want to cover one place you should definalty stay away from, the monster mega banks.
The monster mega banks are the biggest banks in are country like County Wide, Bank Of Amercia, Fannie Mae, and Freddie Mac. The reason I suggest you stay away from these banks is because they charge high fees for the little service they give.
For example back several years ago I refinanced with Country Wide and learned after the fact that the closing cost fees would run me around $3500. This is a complete rip off. My suggestion is to avoid them all together.
Where You Should Get A Loan
Now that know where we should not get a loan at, lets look at a few places that would be the best place to get a loan at.
- Local Banks. First, check out your local bank. Local banks tend to have little more leeway when it comes to getting a loan. For example, when I was getting a loan with my local bank they wanted me to put 20% down on my home, however I did not have the full amount so they worked out a deal with me to cover it with a secondary loan in order to pay down the full 20%. A bigger bank would have never done this.
- Credit Unions. Second, check out your local credit union. The great benefit about credit unions that they usually have very competitive rates and their closing cost can be extremely low. On top of that as a credit union member you are also part owner as well giving you more authority and control.
- Social Lending. Third and finally, a new option to consider is social lending such as Lending Club. The great thing about social lending is that the laws are a bit more relaxed. However their is one downside to this option though, and that is you can only barrow up to $25,000 to $35,000 in most cases. However if your looking for a car l
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Tags: Loan, Loan Guide
Posted by Nathan Torres on February 18th, 2011 ~
0 Comments Many people may find it surprising, but there is no easy answer to the question. How much does motorcycle insurance cost. Like anything else you are looking to insure, motorcycle insurance costs are dependent on many different things, some you have control over and some you dont. Also, the decisions you make when purchasing a policy can have a huge impact on the cost of motorcycle insurance.
Average Motorcycle Insurance Costs
There are many things that can change what motorcycle insurance costs you, but before you look at what can influence the price it is always good to have a baseline idea. Typically, a person who is looking to purchase a motorcycle insurance policy should expect to spend anywhere from $150 per year to well over $500 a year. Of course like automobile insurance, these base policies do not provide collision, liability or comprehensive insurance coverage.
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Tags: Cost, Insurance Cost, Motorcycle Insurance, Motorcycle Insurance Cost
Posted by Nathan Torres on February 18th, 2011 ~
0 Comments More and more discussion of the proposed Department of Financial Regulation is focusing on the overlap of regulatory authority with the Attorney General’s office, rather than any cost-savings impact it might have on future budgets. I found this article by Jacob Gershman from the Wall Street Journal, Cuomo Reaches for Power, interesting in that it puts this proposed agency into a larger context about the role of the Executive in NY. There isn’t anything new on the DFR here, but I think it is always a good exercise to see any new development in a larger context, in this case, a possible reallocation of power between the Executive and Legislative branches of government.
Tags: Financial Regulation, Regulation