Financial matters

Investing in bonds is very safe, and the returns are usually very good. There are four basic types of bonds available and they are sold through the Government, through corporations, state and local governments, and foreign governments.

The greatest thing about bonds is that you will get your initial investment back. This makes bonds the perfect investment vehicle for those who are new to investing, or for those who have a low risk tolerance.

The United States Government sells Treasury Bonds through the Treasury Department. You can purchase Treasury Bonds with maturity dates ranging from three months to thirty years.

Treasury bonds include Treasury Notes (T-Notes), Treasury Bills (T-Bills), and Treasury Bonds. All Treasury bonds are backed by the United States Government, and tax is only charged on the interest that the bonds earn.

Corporate bonds are sold through public securities markets. A corporate bond is essentially a company selling its debt. Corporate bonds usually have high interest rates, but they are a bit risky. If the company goes belly-up, the bond is worthless.

State and local Governments also sell bonds. Unlike bonds issued by the federal government, these bonds usually have higher interest rates. This is because State and Local Governments can indeed go bankrupt ñ unlike the federal government.

State and Local Government bonds are free from income taxes ñ even on the interest. State and local taxes may also be waived. Tax-free Municipal Bonds are common State and Local Government Bonds.

Purchasing foreign bonds is actually very difficult, and is often done as part of a mutual fund. It is often very risky to invest in foreign countries. The safest type of bond to buy is one that is issued by the US Government.

The interest may be a bit lower, but again, there is little or no risk involved. For best results, when a bond reaches maturity, reinvest it into another bond.

Term Insurance can include critical illness cover, life insurance or a combination of critical illness and life insurance together.  This offers a few options for consideration.

Term insurance will cover critical illness.  This type of plan is designed to pay out a cash sum should during the course of the term, you are diagnosed with a specific disease.  For this  to apply, the disease you have been diagnosed with must be covered in the specified list outlined by your insurer.  Illnesses such as cancer, coma, heart attack, motor neuron disease, stroke, Alzheimer’s, HIV and AIDS are all normally covered by Term insurance.

Term Insurance on the basis of Life Insurance only, is a simplified method of protection which will pay out a specified cash amount in the event of your death, or if you are diagnosed as suffering from a terminal illness during the course of your term insurance plan.  The list of terminal illness covered will be included in your documentation after a plan has been taken out or a copy can be requested before you make any decisions regarding a plan.  Should a claim not be made for the duration of your term insurance, then once the term has finished no payment will be made and your policy will end.

The type of term insurance you decide on should also allow you the benefit of combining your life insurance and critical illness cover in the one policy.  This plan would pay out a cash sum if you were to die, or if you have been diagnosed as suffering one of the specified terminal illnesses during the course of  the term agreement.

The cost of Term insurance varies from insurer to insurer.  Make sure you shop around for the best deal before you make any important decisions.  The best deal does not necessarily mean the cheapest, so if for example there is a family history of a specific illness, then make sure this is covered in the list of diseases.

An example of the cost you can expect to pay is, Mrs Rogers is 30 years old and currently a smoker.  She has one child and would like to make arrange supplementary life cover of £50,000 over a ten year period.  This would normally cost Mrs Rogers around £19.10 per month.

General exclusions in regards to a Term insurance policy will normally include any existing illnesses which you had at the time of agreement.  Only new illnesses which are diagnosed during the term agreement will be covered for a claim.

Most Insurance companies allow people as young as 15 and people as old as 79 to apply for insurance.  Although this  does vary from 54 to 64 depending on what term insurance package you opt for.  The majority of policies will run for a minimum period of 5 years and can spread for a number of years depending on what level of term insurance is required.

There are several different types of investments, and there are many factors in determining where you should invest your funds.

Of course, determining where you will invest begins with researching the various available types of investments, determining your risk tolerance, and determining your investment style ñ along with your financial goals.

If you were going to purchase a new car, you would do quite a bit of research before making a final decision and a purchase. You would never consider purchasing a car that you had not fully looked over and taken for a test drive. Investing works much the same way.

You will of course learn as much about the investment as possible, and you would want to see how past investors have done as well. It’s common sense!

Learning about the stock market and investments takes a lot of time, but it is time well spent. There are numerous books and websites on the topic, and you can even take college level courses on the topic which is what stock brokers do. With access to the Internet, you can actually play the stock market  with fake money to get a feel for how it works.

You can make pretend investments, and see how they do. Do a search with any search engine for Stock Market Games or Stock Market Simulations. This is a great way to start learning about investing in the stock market.

Other types of investments outside of the stock market do not have simulators. You must learn about those types of investments the hard way or by reading.
As a potential investor, you should read anything you can get your hands on about investing but start with the beginning investment books and websites first. Otherwise, you will quickly find that you are lost.

Finally, speak with a financial planner. Tell them your goals, and ask them for their suggestions - this is what they do! A good financial planner can easily help you determine where to invest your funds, and help you set up a plan to reach all of your financial goals. Many will even teach you about investing along the way but make sure you pay attention to what they are telling you!

The telephone has become such an integral part of our daily lives, that it is hard to imagine what we would do without it.  Thankfully, we need not worry about such an occurrence, and with the introduction of more companies offering cheaper rates on our telephone calls, we can now take advantage of this by making sure we are getting the best value for our money.

In the UK, telephone customers only have 2 types of supplier companies to consider: Indirect access and Direct access companies.  An indirect company will redirect all your calls to their network, but you still have to pay your direct company a line rental charge.  Companies such as Alpha Telecom, Planet Talk and One.Tel are all such Indirect Companies.
A Direct Access company provide you with both a telephone line and network.  Companies such as BT, Telewest, Kingston Communications and ntl are all such companies.
The only decision left is which one will offer you the best service and value for money?

For an age it seems, we have lived with old faithful, BT.  Bt are an efficient and reliable company which offers it’s customers a first class service at a very reasonable price.  That being said, due to customer demand, there is now other options available to telephone users where BT might not be the best choice.

Companies such as Telewest and Talk Talk are making a big impact due to their very competitive rates and high quality of service.  Telewest is quickly growing into a major player in telecommunications today.  Especially since those customers who have internet access , telephones and cable TV can then combine the whole package into one monthly payment which more often than not makes a considerable saving.

Talk Talk are another reputable company which offer money saving incentives to entice you to change supplier.  Talk Talk are a relatively new company from The Carphone Warehouse and have the major attraction that all calls between Talk Talk customers are free.  Most calls are somewhat cheaper than that offered by BT and it is also free to join.
When you do sign up with Talk Talk, you can take your old telephone number with you, thus alleviating any added hassle of contacting everyone you know to let them know you have a new phone number (guaranteed, you would forget old auntie Betty and would never hear the end of it!)
Another advantage to Talk Talk is the fact that you do not need to contact your old supplier and let them know you are switching, Talk Talk does the dirty work for you.  The will simply switch the calls to Talk Talk, although you will still receive your bill from BT.

So, if changing supplier is so easy and can save you a lot of money on the long run, why aren’t more people doing it?   Could it be that the information isn’t available to people?  Well, by simply contacting an online service and entering a few simple details, they can search all suppliers for you and see if you would be cheaper switching supplier.

In the world we live in today, more and more people are considering the long term benefits of Private Health Insurance.  With the increasing strain on the NHS recourses, many people are looking to obtain the best health care insurance they can find.  Safeguarding against future illnesses makes sense and with the large number of reliable health insurance providers, it comes as no surprise that more people are opting for the private alternative.

BUPA is a private health insurance provider with over 27 years experience.  Known throughout the world as one of the leading private health insurance providers, this reliable and competent company can offer peace of mind for those people looking to protect their own health.  BUPA can offer thorough and steadfast policies together with leading medical knowledge at your disposal.  With over 8 million members in over 190 countries, BUPA provide worldwide care with a variety of flexible and affordable cover options.

One of the most popular and comprehensive cover options which BUPA offer is the Classic health insurance.  This will cover you for all out patient consultations and any diagnosis test which may need performing.  Any other tests which can be carried out in the out patient department is also covered.  The Classic health insurance can offer peace of mind for families, knowing that they are covered for any specialised medical treatment you may require after the initial diagnosis has been made.

Another popular private insurance offered by BUPA is the Essential plan.  This is designed with the specific hospital treatment in mind.  Meaning that you will be covered for all forms of treatment you receive for the duration of your hospital stay.  This policy is ideal for people who want cover when the medical treatment is expensive, this is when you need the Essential cover the most.

The Gold health insurance plan is an all inclusive plan offered by BUPA, and provides cover for treatment made in either in or out patient departments.  As well as this, you are also covered for any doctors bills which you may have incurred while receiving any medical treatment from a family doctor.  This can include prescription drugs, or home nursing help.

The cost of all hospital accommodation is included in each and every health insurance policy, plus any specialists fees which have been incurred, sports injury and cover for emergency road ambulances.

There are many advantages to taking out private health insurance with a reputable provider.  BUPA in particular can offer unsurpassed medical advice, together with first class care.  There is a 24 hour, 365 days per year multilingual helpline on hand, to assist with any queries you might have about your policy.
Or for those with internet access, then the MembersWorld web site gives you all of the above services, plus the added benefit of being able to keep track of any claims you are making.

When it comes to utilities, it can be to your advantage to make sure you are getting  the best deal available.  More often than not, it is a matter most people do not give too much thought to.  After all, it is just something that keeps your home warm, cooks your food and enables you to have a nice relaxing bath in the evening, so why take the time to compare prices?  Well, although the small amount you pay each month or quarter may not seem a lot, when you do take time out to compare prices from alternative companies, that small amount doesn’t seem so small after all.

It may seem like a nice idea to stick to what you are used to and show some loyalty to your gas supplier, but when you get down to it, money is what motivates your supplier and money is what you should be concerned with.  By making sure you are getting value for money, you will not only save yourself money in the long run, but also improve the level of service you receive.

Some times it can be hard to find the time from out hectic lifestyles to compare prices of other gas and utility suppliers.  It can take an age contacting each supplier directly and try to get a straight answer from them.  One of the easiest ways around this is to simply go directly to an internet site which does all the hard work for you.

Internet sites such as Uswitch Price Comparison Service and Find One can all help find an alternative supplier for you.  By switching Gas and other utility suppliers, you can potentially save yourself up to £140 per year.  Just think what you can do with that extra cash?

Uswitch Price Comparison Service and Find One will take you through a very quick and easy process which simply requires your average amount of expenditure on your current utility supplier.  After you offer this piece of information, the website will do a full search on all other utility suppliers in your area and compare prices.  You will then be given details on how much you can potentially save when switching supplier and how you go about switching.

This process can take no time at all and due to the fact that you can save yourself a lot of money in the process, it is well worth taking the 5 minutes to offer your details and see if you can start saving some money.

With gas being one of the main utilities in households across the UK, there is always a demand for a cheaper and more reliable service.  So by taking steps to make sure you are being offered the best value for money, you are creating the competition required to guarantee better value for everyone else.

No one likes to think about it, but we are all getting older.  The times when we knew a pension would be waiting for us has have all but gone, and it is vital to start thinking about our financial standing in the future.  With State pensions a thing of the past for most people, it is now our own responsibility to take matters into our hands in regards to our finances when we retire.

We work our whole lives and as the retirement age approaches, it would be nice to think that we could look forward to our “golden years”, without the dread of wondering how we are going to live on very little money.  That is why it is never to early to start thinking about our retirement.  By starting to save a little towards our future each month now, when the time does eventually come, we can live our lives comfortably and do all the things we dreamed of doing when we were younger.

Stakeholder Pensions are a relatively new idea, consisting of a low cost pension that can be taken out to enhance our incomes in retirement.  The Stakeholder pension was made available to practically everyone since April 2001.
The Stakeholder Pension is a tax efficient method to allow you to buy a lifetime income when you do finally retire.  Meeting all Government standards, the Stakeholder pension has very low charges which the Inland Revenue contributes to after each payment you make.  For example, for every 78p you pay, this will actually be worth £1, regardless if you pay tax or not.
For those people who fall into the higher band of tax rates, you can apply to claim back more tax through your tax return.

There are several reputable banks which are offering Stakeholder pensions.  Contact your own branch to see if they have this on offer.  Quite often your own bank will offer you better rates for your Stakeholder pension.

One bank which has built quite a solid reputation as supplying the public with a quality Stakeholder pension is Halifax.  By starting a Halifax Stakeholder pension, you are rewarded by no initial charges and 0.9% annual charge which reduces as your entire contributions exceed £49,999.  You are also allowed to choose your own combination of investment funds and have a no minimum contribution level.

One of the key features of the Halifax Stakeholder pension is the fact that you can stop and start your contributions whenever you like.  So should your money be tight one month, you can always hold off for a while, then make up the difference later.  Like wise, should you suddenly find yourself with some extra funds, then you can put it to your Stakeholder pension.

The Stakeholder pension is an investment made by you and is based on the performance of the stock market or other investments.  By investing your money this way, you do run the risk that your money may fluctuate somewhat and not always in the direction you would hope.  Sometimes your money may go down and the money is not guaranteed.  These factors should always be taken into consideration before you make any decisions.

Credit card debt is a very big problem that is being faced by a lot of people who have been irresponsible and undisciplined in the use of their credit card. Though some might have landed up with credit card debt due to some unfortunate event/emergency in their life, most people carry a credit card debt due to their own wrong doings (i.e. wrong usage of their credit card debt). There are a lot of ways to pay off credit card debt and a lot of people do achieve this feat (i.e. are able to pay off credit card debt). Surely, to be able to pay off credit card debt is really a great achievement in itself for not everyone is able to pay off credit card debt. It takes a lot of discipline, restraint, planning and perseverance to finally pay off credit card debt. However, there is more to paying off credit card debt then just being able to pay off credit card debt.

Here we are talking about the life after you pay off credit card debt successfully. As mentioned before, of all the people that try to pay off credit card debt not everyone is able to pay off credit card debt i.e. there are some failures too. However, some people fail after they have succeeded in paying off credit card debt. These are those people who let themselves loose and go on a spending spree as soon as they pay off credit card debt. Soon, these people again land up with a credit card debt and are again trying to pay off credit card debt. So, its not enough to just pay off credit card debt, its equally important to maintain a debt-free status even after you pay off credit card debt; only then can you enjoy a stress-free life in the world of credit cards. So learn your lessons well and do not let yourself loose on the path to another credit card debt. Most of the rules that you followed when you were trying to pay off credit card debt, will also hold good after you have paid off your credit card debt. Here is a quick synopsis of things that you should take care of even after you pay off credit card debt:

1)    Do not overspend. Yielding to the sale offers for something that you dont really need, is a big mistake that leads to overspending

2)    Always remain within 70% of your credit limit.

3)    Make credit card bill payments in time and in full.

4)    Dont hold more than 2 credit card accounts (two are enough for anyone)

These are just very basic points to note about credit card debt recovery; you can add more based on your own experience and knowledge.

Protecting you and your loved ones in the event of your death or being diagnosed as suffering from a critical illness can provide financial stability and reassurance. Although this is a fact of life most people do not want to spend too much time considering, it is vital to take at least the time required to set in place sound mortgage protection. After which, you can be comforted with the fact that should the worse happen, your family will be taken care of financially.

Mortgage protection can provide you with either a life insurance only policy, a critical illness only policy or a combination of both.

If you were too choose a life insurance cover only policy, this would effectively mean that a cash sum will be paid out if you are to die, or if you are diagnosed as suffering a terminal illness, before the end of your insurance plan. For example, should your mortgage protection be in the amount of £120,000, this sum will reduce each month until the plan ends. The reducing amount is always in line with your outstanding mortgage.

If you were to choose critical illness cover only, this would mean that a cash sum would be paid out only if you are diagnosed as suffering from a range of illnesses specified in your document. A list of the illnesses can be requested before you agree to any terms and should be read in full. The cash sum will only be paid out in the event that after a diagnosis has been made, you are still alive 21 days later, before the end of the plan. Again, the cash amount reduces each month in line with your mortgage.

Or, you can choose to combine life insurance with critical illness for a fully comprehensive mortgage protection insurance. By taking out both life insurance cover and critical illness cover, a cash amount will be paid out in the event of your death or if you are diagnosed as having a terminal illness or one of the specified illnesses, whichever happens first, before the end of your insurance plan. Just like the separate critical illness and the life insurance policy, the combined option lump sum also reduces in line with your mortgage.

When applying for mortgage protection, a simple application form is required to be filled out in order to make an assessment. General questions in regards to your health, age and lifestyle will be made to obtain a current and relevant profile.

As with most types of insurance, exclusions will apply. For example, all illnesses must be declared when completing your application, as most policies do not allow current illnesses to be included in the cover. That means that only new illnesses can be claimed against.

There are several reputable mortgage insurance providers available. Companies such as Scottish Widows, Norwich Union and Standard life all have good reputations for supplying quality mortgage cover. Although it is always advisable to look into all other options to make sure you are getting the best possible deal for your requirements.

It comes as no surprise that the average household would like to save some money on their utility bills.  By taking the time to make sure you are with the best supplier, you can potentially save yourself up to £140 per year.

When asked if you are happy with the level of service or the amount of money paid towards electricity each year is acceptable, the majority of people would answer no.  It is simply not knowing enough about switching supplier which can sometimes keep us with our current supplier and hinder us from switching to a better, more cost effective electricity supplier.

An easy way around this dilemma is to get in touch with an independent financial adviser.  From doing this you can be sure to get impartial and confident advice.  Your independent financial adviser can take you through the process of assessing how much you are currently paying your electricity provider and look into alternatives to see if you would be better off switching supplier.
Although an independent financial adviser seems like the ideal solution, we are not all fortunate enough to have one.

Another option available is to research the information ourselves.  This is a less appealing solution and can be both boring and extremely time consuming.  A practical and efficient answer is to try an internet site which can do all the hard work for you.  Companies such as uSwitch and Find One can easily find the right supplier for you in no time at all.

Find One and uSwitch simply require your average yearly expenditure on your current electricity supplier.  By providing this information, Find One or uSwitch will search all other electricity suppliers to make sure you are getting good value for money.  You will then be given a list of other suppliers and how much you could save by switching.

The uSwitch service is completely free and you are under no obligation to change supplier at any time.  All it takes is a few minutes of your time and the rewards can be plenty.  The electricity suppliers are large firms which have good reputations and are regulated to make certain excellent standards of service.  So you can be sure that the company you do switch to, if at all, is trustworthy and will have high standards of service.

Many of the internet sites looking to find you an alternative and cheaper electricity supplier can also help you to save money on other aspects of your day to day life including gas, telephone an digital TV tariffs.  Maybe doing more than one search might be another way to save you even more money and at no extra hassle.

As electricity is such a huge part of our lives, we should never just take it for granted.  Electricity keeps our food refrigerated, then cooks it, keep us warm and provides light in our homes.  For something that important, it is worth taking 5 minutes out of our day to make sure we are getting the best service.