Financial planning for retirement

Financial planning means making plans relating to finance in future and in this article after retirement. That is planning for the availability of finance to meet the requirement at that stage of time when the person feels the expenses may rise or the income may decline. Mostly such financial planning is done for the stage of retirement. Retirement means, the permanent holiday from job or work due to the coming of the age, which is considered maximum age limit for that particular work or job.

Factors or life experiences effecting thought and then decision making for financial planning for retirement:

The need of financial planning for retirement rises because of the many life experiences either sweet or sour, that a person goes through in the early stage of his/her life. Many factors or life experiences effect the thought and decision making of the person in regard to financial planning for retirement. Following are the three main factors that result in effecting the decision making of the person in the way of financial planning for retirement. Learning from the experiences of the senior's. Passing through a debt problem due to immediate need of finance that may be due to mishap or any other need. Availability of extra cash in the present that may be due to less expenditure or more income. When a person passes through any of the above stated life experience or factors than he/she is forced to think on the issue of financial planning for retirement.

Benefits of financial planning for retirement

 There are a number of benefits and hardly any loss in making financial planning for retirement. These numerous benefits of financial planning for retirement are as follows. A sense of self-dependence remains through out the life. Extra income source can be generated after retirement. The expenses on medical check ups, operations and medicines can be met easily without taking help of others. In case of trait by the children, a person can make full arrangements for his/her living and meet all the day to day expenses of food, shelter, and clothing. The savings for that time may help in meeting some immediate financial requirement that may arise due to some mishap or any other reason. The dream of looking for respect for us in the eyes of others fulfills for as long as we live.

Methods of financial planning for retirement: A number of methods are available for the financial planning for retirement. These are stated below.

Retirement plans

 A number of retirement plans are in available in our world. All these plans are meant to
give the best service to the person after retirement. These plans are as, Life insurance plans. A life insurance plan is a plan in which a person is expected to deposit a prefixed amount after fixed intervals. During these intervals, if the person dies due to accident or natural death than the total amount of insurance will be given to his/her life. After the maturity of the life insurance plan, the amount deposited is given back to person with good interest amount. After retirement, a person can use the whole amount to meet the day to day needs and other expenses of his/her own and the family. Thus a person is still stays as a pillar for the family and does not allow others to consider him/her as overweight for the family. Pension plans. A pension plan is a plan in which a person is expected to deposit a prefixed amount, but the difference from the life insurance plans rise here after the maturity, when the person is not given the whole amount. Instead a fixed amount is given to the person on monthly basis to meet the daily needs and other expenses. After retirement, a person may find unable to use the saved money for further income generation. Even the need of lump sum money may not arise at the time after retirement. In that case a fixed amount, good enough to meet the day to day expenses and other needs, is given to the person. It should be noted here that this is done as per wish of the person and the option can be given to the person to take out the whole amount when he/she may feel necessary.

 Good investments

 Making good investments can also help a person in generating good income even after retirement. The whole life experience of earning helps a person to earn better even after retirement. Many good investments that can be made to meet the financial planning for retirement are as follows. Investing in stocks. Investing in stocks helps in getting better returns in future. Although the requirement stays that the selected stock should be good enough to give better returns. Also the person investing in should have enough experience and knowledge of doing such work. Buying land or house.

Buying land or house helps in settling down easily after retirement. By buying a house, a person can live anywhere in the world where he/she wishes. And by buying a land a person can sell it for good profits or even can use it for doing some business.

 Medical insurance

 Medical insurance helps in aiding a person financially when any problem relating to health arise. Problem like a person may have to hospitalize, operate and even have to bear other medical expenses due to diagnosis, medicine etc. Through medical all the hospital and medicinal bills are paid by the medical insurance company.

Conclusion

 In the end, a number of factors effect the thought and decision making for the financial planning for retirement. A number of methods can be used for making financial planning for retirement and along with that a number of benefits and hardly any loss are seen in this process. Thus taking a decision on making financial planning for retirement always proves to be worth it.

Mortgage financing online

There is no doubt that the world of mortgage lending has changed drastically with the advent of the Internet. That's why where people shopping for a loan earlier used to look at lenders in the neighborhood, they now turn to the Internet and the mortgage financing online lenders there . Wise shopping for the ideal lender and online mortgage offer can result in thousands of dollars in savings. For this you certainly require knowing what to look for in an online mortgage lender and avoid the most common mistakes .

Few of the must effective ways to find the best mortgage financing online loan include : Check multiple lenders: Generally speaking getting a mortgage loan is no easy feat and you need to be sure to pick the best lender available . To implement this, you must check out more than one lender and the mortgage offers they provide . This is very straightforward on the Internet as you can explore all loan providers at the same time . It is of utmost importance that you collect mortgage loan offers from multiple vendors simultaneously to get started on your quest for the best online mortgage . Evaluate all lender fees: In an ideal scenario this should cover more than just the lenders\' interest rate and include the documentation fees, prepayment penalties as well as closing costs .

A good place to begin is by checking the APR and then getting an estimate from all lenders. Whereas a mortgage lender who is very cooperative and gives you the required information is always a good one to work with. On the other side of the coin, a lender who asks too many questions and still stalls at giving you information should be avoided. Furthermore always be sure to confirm about prepayment penalty clauses in the loan contracts - those with such inclusions should not be accepted . Most importantly compare your personal requirements against each lender : "The Bigger, The Better" does not hold correct for online
mortgages.

 Here, large corporations play at par with the friendly neighborhood loan provider. And that is where it is up to you to check out what special needs you have and accordingly get quotes from both big and small mortgage lenders covering a wide variety . More often this will give you a better idea about which mortgage lenders can meet your needs . An example of special requirements could be homeowners with credit challenges. Consider every available option: There is no denying that the internet is a fast growing and quickly changing world with new options opening up everyday. There are plenty of new online mortgage options available today then were just a few years back . All this has pretty much simplified the process of getting a mortgage loan . But whats more it has also increased the chances of homeowners getting scammed and cheated. In addition there are a million things that could go wrong . Moreover even the smaller mistake in selection could rob you of huge potential savings and the best online mortgage offer available . Therefore, it is very necessary to carefully consider all the options open to you . According to experts when you are looking for a bank to work with you on a mortgage, don't forget to look online.

 On the other hand when looking online for a bank, you have more options available to you . There are plenty of things you need to consider when looking for a bank . First and foremost you will want to find a bank that is willing to work with you . In case if you have talked to the banks in your area and do not like what you have found out, try looking on the Internet . When looking through online route, you may find a bank that has exactly what you are looking for . Just because of the simple reason that bank is not in your town does not mean you can\'t work with them. This gives you more choices when you are looking for a bank because you are not limited to the banks in your area . When you are looking mortgage financing online company, you will certainly require filling out an application just like at a local bank. The difference to be noted here is that online applications usually get submitted to more than one company . This in an ideal scenario allows you to compare banks with only one application . Online banks may also have more choices available to you. Quite a number of times these banks can offer you different kinds of loans than you can find at your local bank . Few of the banks can offer you interest only payments. In addition online banks may also be willing to loan you more money. No down payments, or as a matter of fact low down payments, or no closing costs may be something else that is available to you .

Generally speaking the time it takes to get the information to each other is cut down since you can use the Internet . This normally helps cut down on the time it takes to get approved and close on your house. The question now arises: Who wouldn't want to move into their new found house as soon as possible What's more online banks may also be able to give you a better interest rate too . Its your job to make sure you know what kind of interest rate you will be getting though . Working with online banks that give you more choices makes some people leery of their interest rates . As a matter of fact they wonder how a bank can offer you all these great things without a higher interest rate .

Just make sure you know what type of rate you will be getting. Another important thing that makes some people leery about working with online banks is the sharing of information . In theory when working with online banks you have to give all your information to the bank on the Internet, which makes some people nervous . When looking for a bank it is quite crucial that you make sure you check out all your options . You may find the ideal loan for you if you look online . Whereas if you are looking for a home mortgage, the Internet is a great place to start looking . In general choosing a home mortgage loan can be confusing as well because there is no end to the number of websites offering mortgage financing online information . The pivotal aspect is to use your brain and take your time.

Small business association loans

Business Loan is basically a bank loan granted for the use in business. Small business association loans is the most popular way of raising money for business. Business loans are offered as secured and unsecured business loans.

How to Apply for a Business Loan: Sufficient fund is needed for a successful business startup. Just forecast where the cost of your building (or a small space for a small business), equipments, or rents will take you, so everything must be properly financed. Many entrepreneurs seek for financial assistance from legal lenders to support their business. This is what you call a business loan. Commonly, business loan lenders base their decisions on the borrowers working capital or investments if the business is currently working. If this loan has a purpose to finance the capital, a documentation of how the income would get in and out of your target Small business association loans is compulsory. This means that it is an essential step to first manage your accounts and the amount and composition of your assets before applying for a loan. A report, in this case, is the key!

Now, we can move on to the financing decision.

Will your loan may be a short-term credit or a long-term credit. For small businesses having to need small funds, short-term loan is best as this can be arranged and then granted more quickly than the long-term. If higher fund are needed, then you have no other option but to go for the long-term agreement. This is more difficult to process because lenders may need more time for a thorough investigation of your accounts and examination of your business financial state before granting it. Another disadvantage of long-term is that even if the business finds that it no longer needs the fund and decides to repay the debt early, additional costs for repayment penalties will still incur. In short-term loan, you pay the funds early and there will be no more problem on penalties whatsoever.

Would you pledge collateral Your house perhaps or your car This must be thought many times before deciding whether you would pledge your assets in exchange for a loan. In this case, you must always look forward towards the future of your business. If you are sure that you can pay the loan in time then it is okay for a secured loan. If not, then it is best to find another option because in a secured loan, your inability to pay will mean a forfeit of your assets. Too inconsiderate and unsympathetic you may think, but this is business.
Now, where will your funds come from You have to choose: Will it be from a bank or a lending institution or from the assistance of the government Before choosing, it is advisable that you must first obtain an introduction from someone who has already a good relationship with the lending institution where you want to obtain your loan from. Lending institutions are easier to convince especially if only a small amount of fund is needed, just be sure that they are legal. Banks are the primary fund source for small companies or businesses, however, many limits themselves to only funding working-capital assets of the business. They are also more difficult to convince. Government assistance may always be readily available but may be difficult to acquire because many businesses apply for government assistance, so time and patience is needed. Wherever you transact for a loan, it is helpful to be prepared with a well-written presentation of your business plan. Everything must be clearly written and documented in detail from the loan agreement to the restrictions that apply. This may guide the lender to where the business has been and is going. It is important to always remember that in any financial transactions you do, your character will be scrutinized and evaluated. A bad credit record or any indication of unethical paying behavior will make your loan more difficult to process, so always keep your character as a borrower and as a clean payer. If you have a good account record, maintain it. If you have a bad credit past, then you may want to first patch it up before getting into another money transaction.

What can the funds be used for Loans can be used for virtually any legitimate business purpose. Examples include: Purchase real estate, make improvements to your business property, purchase equipment, expand a business, consolidate debts, purchase another business, construct a new facility and finance a franchise.

About SBA: The Small Business Administration (SBA) offers a wide variety of educational materials and seminars for both current and aspiring small-business owners. They also provide financial assistance through loans and loan guarantee programs. In recent years, these programs have become significantly more user friendly, and today the Small business association loans is an excellent resource for the capital-seeking small-business owner who has trouble finding funding through the conventional private-sector sources. An SBA loan is a loan made by a local lender (bank or nonbank) that is, in turn, guaranteed by the Small Business Administration (SBA). The SBA provides its back-up guarantee as an inducement for banks to make loans that otherwise may be a little too risky from a banker's perspective. Only in rare cases does the SBA actually provide the money itself. SBA loans usually provide longer repayment terms and lower down payment requirement ratios than conventional bank loans. They are available to most for-profit small businesses that do not exceed the SBA's parameters on size (which can vary depending on the industry).

SBA loans can be used for a number of reasons, including (in infrequent cases) start-up monies, if you have sufficient collateral in long-term, tangible assets, such as real estate, machinery, and equipment. Getting an SBA loan is not a slam-dunk occurrence. To the contrary, the agency is extremely selective about whom it approves.

Take a look at the primary criteria the Small business association loans looks for when considering guaranteeing a loan: The owner must have invested at least 30 percent of the required capital and be willing to guarantee the balance of the loan. The owner must be active in the management of the business. All principals must have a clean credit history. The business must project adequate cash flow to pay off the loan, and the debt/net worth ratio must fall within the SBA's approved guidelines.

Personal Financial Planning

 Meaning of personal financial planning. A proper meaning of the phrase separately and there common meaning needs to be understood carefully. Personal means somebodys owned thing or a personal affair. Financial means the position of a person or a company in monetary terms. Planning means thinking of future. Now together Personal Financial Planning means thinking of future in monetary terms by a person for himself.

Personal financial planning is needed in the today's world, because the expenses are rising of a person due to many reasons, but the income that a person earns is fixed. Thus it becomes necessary for a person to make such arrangements or use such a methodology that helps in meeting all the financial requirements within the earnings circle. Thus personal financial planning refers to the making of plans or policies or decision or strategies that may affect the future in monetary terms or monetary position in comparison to present position by a person for him or his family. The need of personal financial planning, method of making personal financial planning possible and the benefits are necessary to be identified and understood. All these concepts are given below. 2. Need of personal financial planning. The need of personal financial planning arise due to limited income of a person and rising expenditure, that may be due to any of the following reasons.

1. New born in the house.
2. Price hike of the commodities used in the day to day life like bread, butter etc.
3. Emergency expenditure rising out of mishap.
4. Saving for the future expenditure of studies or marriage of the children.
5. Painting the house.
6. Relatives coming to the house.
7. Buying new vehicle.

New admissions required to be made. In any of the above cases the monthly budget of the persons income may rise. In such case a person cannot arrange for credit every time. It also does not look good to a person himself/herself to ask for money and decrease his/her self-respect in the social circle. As the following quote says, God has given hands for giving and not for taking. Therefore it becomes a question of self-esteem for a person to ask for financial aid all the time from friends or relatives. Thus it becomes necessary for a person to make personal financial planning in such a way that all the expenses can be easily met. And along with that self-respect can be maintained. Therefore in todays world it is suggested that instead of becoming help-taker, its better for a person to become help-giver, than only survival is easy. Making personal financial planning easy.

A simple and result oriented method for personal financial planning is to make estimates in the start. Therefore an amount nearly the required amount should be kept separate to meet such expenses. Also amount should be kept to meet emergency requirements. In simple words the Income should be saved as suggested below so that personal financial planning can be made possible. Suppose an Income of a person is 10,000 $, then the possible or suggested budget is as follows. 1. Day to day expenditure on eatables. 6,000$ 2. Expenditure of medicines. 5,00$ 3. Saving for new vehicle or any other demand of the family. 1,500$ 4. Keeping some money at home. 5,00$ 5. Saving for future of the children. 1,000$ 6. Saving for unforeseen requirements that may arise in future. 500$ 10,000$ Methods of personal financial planning. Today various methods of personal financial planning are available. That is if a person finds he/she unable to make personal financial planning than the Policies or Schemes available in the todays world should be fetched.

For instance, for saving for the future of the children, a children plan offered by the insurance policies should be availed. Similarly for saving for some unforeseen requirements, that may arise in the future, a life insurance policy should be made. For saving money from unnecessary expenditure by keeping at home, a saving account can be opened in the bank and with the help of the ATM card, we can get our money at any time. Thus if a person is willing to make personal financial planning then there are many methods available that makes it possible. In case a person has much more extra money as saving than the amount can be invested in buying some property, making fixed deposits etc. Benefits of personal financial planning. There are unlimited benefits of personal financial planning, the need is just the willing of a person to take steps in this way. Following are the various benefits of personal financial planning. 1. Future of the children gets secure. 2. No need to take credits money and pay interest. 3. Unforeseen expenses can be met easily. 4. Saving can be increased. 5. Loopholes in the income can be figured out. 6. All the day to day expenses is met comfortably. 7. New vehicle or any other demand of the family can be achieved easily. 8. The savings in banks generate interest. Extra income can be earned, as property bought at some time, helps in big earning tomorrow.

A person can use it for setting up business, or giving on rent, mortgage or selling at higher price. Self-dependence is achieved. Thus just by taking some steps, personal financial planning can be set up in our life. A person becomes ready to lead a safer and hassle free social life, by making arrangements for all the financial requirements. Conclusion. Thus in conclusion, by making personal financial planning a person can meet all the expenditure coming his/her way that may be in near future or after some big time gap. Various methods for making personal financial planning are available in the todays world. There are unlimited benefits of setting up such process in life. Then only it becomes easy to lead a no-wobbling social life.

Online stock trading newsletter

The news is what people look out for. News keeps you updated about what you need to know, sometimes more than you need to know. News is the conveyor of all that is informative and education, entertaining and reflective. Without news, we would never know just what had happened or be prepared for what happens next. In a world that is changing by the hour, it is now more important than ever to know the news. Television and radio media are great for the ears, but you need to be around a television or radio to catch the drift of the current happenings. It is not easy to cart a television along or pocket a radio on a plane.

It is this where the reading media- the books, the journals and the newspapers come in handy. You get to read the news whenever you want. It is right there waiting for you at your convenience and it is easy because it gives you the personal touch. You get to read what you wish to know at your own pace and time. What started with Joseph Addison and Richard Steele with the informative essays grew into the trendy newsletters. The newsletters are the news-watchers for a particular product, incident, event, research, etc. Newsletters can be monthly, quarterly, annually, semi-annually, fortnightly or even weekly, depending on the topic that is being covered.

WHAT STARTED THIS ONliNE NEWSLETTER?

With the boom of the Internet into our world of technology and advanced connections, newsletters have made their mark on the net too. Especially the newsletters carrying information on finance.

Talk about making droves of money at short notice and the industry of Trade pops into your head. Trading has been the financial leader that started the money ball rolling. Trading in the various markets and for various products has now increased because of the internet. With only the click of a button and the connection with the net, you can trade online!

Trading has become that simply although it does take efforts on your part to learn the market and apply your knowledge when you trade. Of course there are many devices that help you get started. There is so much to learn about trading from the Internet.

With the information that a trader needs to possess when he places his financial stakes in the market, it is imperative that he be updated from time to time.

The Newsletter found that they could fulfill what the traders needed and found a place on the internet for the world to see, ready, apply and be prepared.

THE IMPORTANCE OF THE ONliNE NEWSLETTER

To draw your attention, to benefit you and the newsletter company, they take extra special effort to give you messages that make you stop, think and pursue their further unfolding of the information tale. For a trader who is looking eagerly to make his financial mark in the stock markets, the newsletter is one of the best ways he can prepare himself to become a successful trader.

Messages that run to the effect of telling you that if you spend 5 minutes in 24 hours, you can become richer and be a more successful trader is bound to catch the eye of the inexperienced trader and click on the message to open up to the world of the informative online stock trading newsletter.

HOW THE NEWSLETTER WORKS

A newsletter or news anything needs its readers to survive. Therefore the more informative a newsletter, the more readers it will attract. It is the same with the trader?s newsletter.

To establish themselves, they provide good offers that benefit both the reader and the newsletter company. Of course, one has to take precaution about the information that they generate over the net. There are many competitors who are likely to steal their information for their magazines or other news media.

So the aim of the newsletters is to protect their information to select customers who are interested in the information that they generate and at the same to establish their name in the trading market so that their clientele expands.

To get the benefit of both the worlds, there are certain comprises.

WHAT THE NEWSLETTER OFFERS

The newsletters offer information on the stock market trading online. To encourage more readers the newsletters offer the following:

Investment information given free for traders and investors

The deliverance of the newsletter to your email

The periods that the information will be emailed (daily, weekly, etc.)

Offers sensible moves that help protect your trading account when the market is rising or declining.

Messages pertain to simple short informative statements and advises the trader to make more money at a very light risk.

WHY DO YOU NEED THIS NEWSLETTER

It is important for you to subscribe to one of these newsletters because they are experienced and information comes from a very particular group of experts related to the stock markets. Their various styles of trading can be useful to the new and inexperienced trader. It doesn?t matter if you plan on being a trader for a long time or just throw in your stakes for a shorter period or simply be a cautious speculator, this information and guidance can you when you make your trades.

The times of today and the stock markets change continually and that is why it is important to be a step ahead. So subscribing to a newsletter of such experience is a wise decision.

Wall Street becomes a close neighbor in your environment when you get to receiving your news from the stock trading newsletter in your email box.

SUBSCRIPTIONS FOR THIS ONliNE NEWSLETTER

The wonderful part is that the online newsletter offers you a free subscription. All you need to do is to give them your email address, your name and request a subscription of the newsletter.

WHAT YOU CAN EXPECT FROM THIS NEWSLETTER

Once you sign up you can expect the following information:

Pre-mature opportunities in technology, exploring resources, the information on currencies, the growing economies, etc.

Charts to help you keep a watch on the trend in the markets and precise information on this

To help you understand the overall scenario, there is minute analysis on the economic, political and geographical issues

The investments to make that will help you earn proper money and appreciation for the funds that you invest.

How to play in the upcoming markets

What are the positions to adopt with regards to bonds, commodities, real estate, cash, etc?

The information that a newsletter provides regarding online stock trading is invaluable to the inexperienced trader. Information is what builds knowledge and knowledge is what builds success. So subscribe today for your own online stock trading newsletter. Read the difference to believe it.

Finance help

Finance help in business plans. Scheming our finance help is central throughout life. As we grow older, changes in lifestyle can make it even more important that we know where our money goes. Things like lower income, more leisure time, different needs reduced mobility or the loss of a partner may all affect how we use our money.

The plans can be classified as follows:

STANDARD OR REPEATED USE PLANS A. Objectives. Objectives are the ends for the achievement of which managerial activities are directed. Effective management is possible only through the setting up of objectives and all managerial efforts should be directed to achieve these objectives. Objectives constitute the purpose, the attainment of which is necessary for the business. An organization can grow in an orderly way if well defined goals have been set. Objectives are a pre-requisite for planning. No planning is possible without settings up of objectives are not only helpful in planning but also in other managerial functions like organizing, directing and controlling.

Clear out objectives help in proper decision making and in achieving better results. Profit earning was considered to be the only objective of the business in the recent past. But it is no longer true now. No doubt, profit is the main objective of a business concern but it is not the only objective. The awareness of social responsibility has exploded the myth of profit. B. Policies. Policies are the general statements which are formulated by an organization for the guidance of its personnel. The objectives finance help are first formulated and then policies are planned to achieve them. Policies are a mode of thought and the principles underlying the activities of an organization or an institution. Though objectives and policies are used to achieve organizational goals but both are different in essence. The objectives are the goals and the policies are the ways to achieve them. The objectives are the end points of planning and policies prescribe the broad ways for achieving them. A policy gives a guideline and leaves scope for interpretation for the person implementing them. This means that a policy has the flexibility for interpretation. A rigid policy becomes a rule. C. Procedures. Procedures are details of action or the guidelines for the achievement of business objectives. Procedures give details of how things are to be done. No room is left for judgment. These should help in implementation of policies. Procedures also determine the policy of responsibility and accountability. Procedures should be distinguished from policies. A procedure is a guide to action where as policy is a guide to thinking. Policies are guidelines for taking decisions and procedures consist of various methods to accomplish each phase of work. Policies offer scope for interpretation in order to see that they fit in a particular situation whereas procedures are tailor made and do not offer any scope for interpretation. A procedure is explained with the help of taking the case of purchasing raw materials for a concern. D. Rules. A rule is a plan that lays down a required course of action with regard to a situation. A rule is in the nature of a decision made by management regarding what is to b e done and what is not to be done in a particular situation. A rule is definite and rigid and allows no deviation or discretion to the subordinates. Like procedures, rules do not prescribe a chronological sequence of steps to be taken to achieve a given objective. A rule may or may not be a part of the procedure. E. Strategies. A strategy is a technique of our maneuvering the opponent.

A planner should see the plans and policies of his competitors and then modify or readjust his plans so that he may prove the superiority of his product or service. It is difficult to distinguish between policies and strategies, sometimes both are used interchangeably. A strategy is a finance help policy in the respect that it is a broad guide to thinking but a strategy is a particular kind of policy.

III. SINGLE USE PLANS A. Programs. A program is a sequence of activities designed to implement policies and accomplish objectives. It is devised to meet a particular situation. Program may be taken as a combination of policies, procedures, rules, budgets, task assignments developed for the specific purpose of carrying out a particular course of action. Separate program are prepared for accomplishing different tasks. The same program may not b e used for achieving other goals. It is a single use plan laid down for new and non-repetitive activities. B. Budgets. A budget is the monetary and quantitative expression of business plans and policies to be pursued in the future period of time. The term budgeting is used to preparing budgets and other procedures for planning, coordination and control of business enterprise.

CLASSIFICATION AND TYPES OF BUDGETS The budgets are usually classified according to their nature. The following are the types of budgets which are commonly used. A. Classification on the basis of time 1. Long term budgets. The budgets are prepared to depict a long term planning of the business. The period of long term budgets varies between five to ten years. The long term planning is done by the top level management, it is not generally known to lower level of management. Long term budgets are prepared for some sectors of the concern such as capital expenditure, research and development, long term finances. These budgets are useful for those industries where gestation period is long. 2. Short term budgets. These budgets are generally for one or two years and are in the form of monetary terms. The consumers goods industries like sugar, cotton, and textile use short term budgets. 3. Current budgets. The period of current budgets is generally of months and weeks. These budgets relate to the current activities of the business. Classification on the basis of functions 1. Functional or subsidiary budget. These budgets are related to different functions, the number of these budgets depends upon the size and nature of the business. The commonly used functional budgets are: a. sales budget b. Production budget include: i. Raw material budget ii. Labor budget iii. Plant utilization budget c. Purchase budget d. Cash budget e. Finance budget 2. Master budget. These budgets are prepared by the budget office and it remains with the top level management. This budget is used to coordinate the activities of various functional departments and is also helping as a control device. C. Classification on the basis of flexibility 1. Fixed budget. The fixed budgets are prepared for a given level of activity the budget is prepared before the beginning of the financial year. Fixed budgets are suitable under static conditions. If sales, expenses and costs can be forecasting with greater accuracy, this budget can be advantageously used. 2. Flexible budget. A flexible budget consists of a series of budgets for different levels of activity. It, therefore, varies with the levels of activity attained. A flexible budget is prepared after taking into consideration unforeseen changes in the conditions of the business. A fixed budget is defined as a budget which by recognizing the difference between fixed and variable cost is designed to change in relation to the level of activity. The flexible budgets will be useful where level of activity changes from time to time. When the forecasting of demand is uncertain and the undertaking operates under conditions of shortage of materials, labor then the budget will be more suited.

Buy health insurance

Health Insurance An Intelligent way of coping with escalating medical costs Health insurance is basically an insurance whereby the insurer pays for medical and health costs of the insured if the insured becomes sick due to illnesses covered in the plan or due to accident. Advancement in technology and medicine has made medical treatment more expensive The states, world over, have failed to meet the demand of the public medical and health care system. The long wait for specialised treatment has forced people to look for viable and affordable alternate. To meet this growing and urgent demand, several government and private insurance field in the field of health and medical care have come up.

It is also true that you cannot predict what your medical costs would be if you or one of your family member falls sick or meets an accident and your bills could be really high! If you have medical insurance, most of your cost is covered by third party which could either be your employer or insurance company.

Hence health insurance is one of your most important needs. Without it, one serious illness or accident could wipe you out financially.

Ensuring credibility of the insurance companies

The insurance companies in the field of health and medical care have some form of rating system whereby they are rated by their performance and efficiency. So it would be in the benefit of the customers? interest that he opts for minimum ?A?level.

Besides this, he should ensure that company?s panel of doctors and medical experts include experts from a wide range of fields

The company should also be backed by good financial status and solid experience in the field

Types of medical insurance

Today, with medical insurance costs rising dramatically each year, even relatively simple medical procedures can run into the thousands of dollars. In addition, the type of care available and various policy options are also becoming more complex

These plans differ widely in terms of coverage, costs and benefits. It?s important to know the difference. At first glance, different medical insurance plans and policies may seem the same. However, after going through the entire thing and breaking through the technical jargon, you may discover they are quite different. Buying medical insurance is one of the most confusing and things consumers purchase because of the often difficult-to-understand terminology, exclusions, and limitations, contained in these medical insurance polices.

Medical policies and plans pay expenses incurred for diagnosis and treatment of medical conditions

Payments may be made to either YOU or your medical provider directly. If it?s your provider, you must "assign" your benefits to them. The policy benefit booklet will detail the terms and conditions of what is covered and what is not covered under the medical insurance plan. Its important to read this contract BEFORE you need to use your medical insurance plan and ask your agent or to explain anything that may be confusing. It is always better to prefer that payments are made directly to medical help provider so that you are spared the initial financial worries!

?freedom-of-choice? plans allow you to choose any doctor and hospital. These policies call for a "deductible." This means that you must pay a stated amount first, before the medical insurance company begins paying benefits. The deductible can be anywhere from 15% to 25% of the total cost. The general rule here is: the higher the deductible you are willing to accept, the lower the cost of your overall medical insurance premium.

The other plans allows you to choose a doctor or hospital from a list of "preferred" providers in order to receive maximum benefits. If you go to a doctor or hospital that is not a member of the preferred list, the medical insurance plan will cover a lesser percentage of the costs. It?s a good idea to check with the medical insurer BEFORE you use the plan to determine if your physician or hospital is a contracting provider with your plan. Also, it is your responsibility under these types of medical insurance plans to make sure your doctor refers you to other "preferred" providers.

A good insurance should cover Doctor visits, Lab tests, Hospital stays and Diagnostic tests. There are quite a few companies covering health risks with good Insurance policies

You must decide the total sum insured as per the premium affordable. The premiums are generally calculatd on the basis of age and family medical history.

Compensation up is normally to the extent of sum insured

Points to remember before buying

With several private players in this field it becomes all the more important for the public to be aware of the salient features of the various insurance health schemes and plans. But before the customer decides to take up any schemes/plans he should be absolutely certain about his exact needs and be open to suggestions about his health by health counselors! With so many insurance companies in the market, he just might become easy target for some unscrupulous agent and end up buying wrong plan altogether!

1 .First and foremost, if he has family, it advisable that he or she take family health package taking into consideration the critical diseases and accidents which should include operation cost as well as pre and post hospitalisation costs are covered. But then make sure, what is more cost effective, individual health package or family.

2. Cost isn't the only thing to consider when buying health insurance. You also need to consider what benefits are covered. You need to compare plans carefully for both cost and coverage.

2. The company should have tie up with a wide number of hospitals and specialists so that if and when the need arises, the customer is immediately able to get the requisite medical care.

3. If the customer has family history of some disease, he should make it a point t include that particular disease in the package irrespective of the fact whether at that point of time he has it or not!

4. That he gets ?cashless cards? or the facility whereby, when required, he is provided with medical attention without shelling out hard cash!

5. Make sure that policy protects you from large medical cost

6. Make sure and check properly to see that the policy states the dates from which it would start paying. Also read carefully what is covered and what is excluded from the coverage.

7. Almost all plans have some sort of managed care program to help control costs. For example, if you need to go to the hospital, one form of managed care requires that you receive approval from your insurance company before you are admitted to make sure that the hospitalization is needed. If you go to the hospital without this approval, you may not be covered for the hospital bill.

8. If you currently being treated for a medical condition that may not be covered under your new plan? Are there limitations or a waiting period involved in the coverage?

Benefits

Looking at the present scenario, we can safely say that taking health and medical insurance will definitely go a long way in easing our worries at unexpected medical emergencies. The cost of medical treatment is rising dramatically each year and one must make it his priority worth paying special attention to!

Best auto insurance rates

Auto insurance finances protect the vehicles from the event of an accident, theft and damage. But, it has to insure a minimum amount of liability coverage. Before approaching any insurance company one must decide how much insurance they needed. The insurance depends on several factors including how much they own, how much the assets are worth, the driving history, vehicle type and annual mileage etc are used to calculate the insurance to put on their vehicle. There could be several reasons for the variation in auto insurance rates based on their insurance history.

For best auto insurance rate, one has to check the insurance company?s rates periodically. Search in internet for a lower insurance rate and discounts for the premium. First, understand everything about the current auto insurance policy, that is:

When the coverage begins and ends?

How much the coverage is provided?

How much will be paid for premium?

How to report a loss or file a claim by comparing the amounts of coverage, deductibles and any extras like rental car coverage or emergency repair services.

Start contacting insurance companies through online, by phone, or through an insurance agent after making a decision. Provide proper information about you, your family if share your insurance with family, annual mileage you covered, and other details such as vehicle type and model, etc. This helps to ask about discount in insurance rates. Some insurance companies offer discount for multi policy.

For example, take insurance for a car and home from the same company, it will qualify a discount. And some companies offer discounts for car features that decrease the chances of injury or theft, such as air bags, anti-lock brakes, and anti-theft devices.

Factors affecting Auto Insurance Rate:

Best auto insurance rate, considers the factors like; your age, driving record, family?s driving record, gaps in coverage, credit score, annual mileage and the place you live. These factors only affect your insurance rate cause to be high or low.

Your age: Most insurance companies charge higher rate for younger drivers under the age of 25. Drivers over 55 years get discount in their insurance. Teenage males have higher insurance rate than teenage females, because they take high risk while driving and drive often more than females.

Driving Record: Driving record is the main factor which affects your insurance rate. Having clean driving record in past, one can receive a good driver discount. If you have a record of multiple collisions or traffic violations, can expect higher auto insurance rates.

Sharing an auto insurance policy with the family, you may eligible for a multi-driver auto insurance discount. But it will also mean that you share in your family's driving record. If any violations present on the family's driving record may cause higher auto premiums.

Gaps in Coverage: Auto insurance companies allowed discounts for drivers who have maintained their coverage. Avoid causing a gap in auto insurance coverage, even for a day, because a gap in your coverage will cause your auto insurance rates to go up in the future.

Your vehicle: Insurance companies base on auto insurance premium on the value of your car and the expense to repair or replace it. Expensive vehicles are pricey to repair or to replace. As a result, high-performance vehicles are generally more expensive to insure. Also, some of the equipment on your vehicle may make you eligible for reductions in auto insurance rates; security systems, alarms and vehicle tracking systems are all valuable when it comes to calculating insurance rates.

Your Credit Score: Most insurance companies use credit-based insurance scores to determine insurance rates. If you have a high credit score, you can generally expect lower auto insurance rates than someone with a low credit score.

Annual Mileage: If the annual mileage is low, you will pay lower insurance rate. Insurance companies charge drivers with high annual mileage more for auto insurance, because the more they drive, the more opportunities to be involved in accidents.

Where do you live? Drivers from rural areas get lower insurance rate, because in rural areas the traffic is lesser, which cause lower accidental rate. If you live in an area with a lot of traffic, your risk of an accident claim increases. So the insurance rate also increases. And also if your area has a history of theft or vandalism, it could lead to higher auto insurance rates too.

How to choose a best Auto Insurance Company?

Many insurance companies issue automobile insurance, so you should have little trouble finding a good one. Shop online to compare multiple companies and rates at once. It will save time and probably money. One can also purchase insurance from a company that sells directly to consumers rather than through agents.

Shopping around will help to find the auto insurance rate that is right for you. Compare premiums offered by various companies and look for high customer service standards and financial strength. The ability to pay a claim promptly will be important if you are ever involved in an accident. Take the time to compare multiple companies and rates to make the decision.

Financing A Vehicle

Understand vehicle financing :

With costs averaging above 20,000 dollars for a latest motor vehicle and thousands of dollars for a four-year-old automobile, the majority of customers requires financing or hires to obtain an automobile. In a few cases, purchasers use direct lending i.e. they get lend directly from a finance corporation, bank or credit union.

In direct loaning, a purchaser agrees to disburse the amount financed, in addition an agreed-upon finance charge, over a time period. Once a purchaser and an automobile dealership go into an agreement and the purchaser agrees to a vehicle cost, the purchaser uses lend proceeds from the direct loaner to disburse the dealership for the motor vehicle. Also, consumers may arrange for a motor vehicle lend over the Internet.

For the vehicle purchaser, dealership financing proffers:

Expediency: Dealers proffer purchasers vehicles and financing in a single place.

•  Multiple financing relations: The dealership's associations with a range of banks and funding companies mean they can proffer purchasers a variety of financing alternatives.

•  Special plans: Occasionally, the dealerships may proffer manufacturer-sponsored, low-rate plan to the purchasers.

Prior to arriving to a dealership you should do some study like :

Find out how much you can pay for to finance and expend on a monthly defrayal by using the monthly spending plan worksheet in this brochure.

Obtain a copy of your credit report hence you are alert of what creditors will see. The faults or exact negative data can crash your capacity to obtain the credit and/or your finance rate.

Recognize your transport requirements:

Make sure auto trade guides, the Internet and other sources are available to realize the price range and other data for the motor vehicle you desire to buy.

Evaluate present finance rates being offered by contacting a range of banks, credit unions or other loaners. And evaluate bank quotes and trader quotes; there may be limitations on the most eye-catching rates or the terms from any credit source.

What Happens When You Submit an Application for Financing

The majority of dealers have a Finance and Insurance (F&I) Department that provides one-stop shopping for financing. The F&I Department director will request you to complete a credit application.
The information on
this application may comprise: your name; Social Security number; date-of-birth; present and earlier addresses and the time-span of reside; present and previous manager and their time-span of service; profession; sources of profits; total gross monthly profits; and monetary data on existing credit accounts. Additionally, the dealers will get a copy of your credit report, which encloses data regarding present and past credit responsibilities, your disbursement record and information from public records.

Usually, these finance companies or other possible assigners will weigh up your credit application using automated techniques such as credit scoring, where a range of elements, like your credit history, time-span of service, profits and operating expense may be prejudiced and scored.

While the bank, funding corporation or the credit union does not contract straightforwardly with the potential vehicle buyer, it bases its assessment upon what appears on the individual's credit report and score, the finished credit application, and the sales terms, such as the sum of the down payment. Every finance corporation or other prospective assigner determines whether it is eager to purchase the contract, notifies the dealership of its choice and, if valid, offers the dealership a comprehensive price at which the assigner will purchase the contract, often called the purchase rate.

Annual Percentage Rate:

Your credit history, present finance rates, rivalry, marketplace circumstances and unusual offers are among st the elements that influence your Annual Percentage Rate.

Hire a vehicle:

If you are bearing in mind about hire, there are a number of things to remember. Generally the monthly defrayal's on a lease are under monthly finance payments on the same motor vehicle since you are paying for the vehicle's predictable reduction during the rent term, plus a lease charge, taxes, and fees. However at the last part of a rent, you must return the motor vehicle if the rent allows you to purchase it and you agree to the buying expenses and conditions. To be certain the rent terms fit your state of affairs: think about the beginning, middle and end of rent costs. Additionally, evaluate several rent offers and conditions, including mileage restrictions, and besides think how long you may desire to keep the motor vehicle.

While you rent a motor vehicle, you have the right to make use of it for a contracted number of months and miles. At the rent ending, you may return the motor vehicle, pay any end of lease cost and charges, and walk away. You may purchase the automobile for the extra agreed-upon price if you have a buying choice, which is a typical stipulation in retail rent contracts. Remember that in most cases, you will be in charge for an early termination charge if you finish the lease before time. Moreover, that fee could be considerable.

An additional significant thought is the mileage limit i.e. the majority of standard leases are intended based on a particular number of miles you can drive, usually 15,000 or less per year. Hence you can discuss a higher mileage limit, but you will usually have an increased monthly disbursement as the vehicle's reduction will be superior during your lease term. If you go beyond the mileage limit that is set in the lease contract, then you will almost certainly have to disburse extra charges when you return the automobile.

Also, when you lease, you are in charge for surplus wear and break, and missing tools. Additionally, you must service the automobile in agreement with the manufacturer's testimonials.

At last, you will have to uphold the insurance that meets the leasing company's principles. Be confident to realize the cost of this insurance.

How Much You Can Afford Determine:

Prior to financing or hire an automobile, confirm you have enough earnings to cover your present monthly living operating expense. Then, finance new purchases only when you can pay for to take on a new monthly defrayal. The monthly spending plan is a means to assist find out a reasonable payment for you.

The only time to think taking on extra debt is when you are spending less every month than you take house. The extra debt load should not cut into the amount you have dedicated to saving for emergencies and other top priorities or life objectives. Saving cash for a down disbursement or trading in a vehicle can decrease the amount you want to finance. In a few cases, your trade in automobile will ensure of the down payment on your automobile.

Information about financial services and functions

Leasing is a contract granting or letting the possession of a fixed asset such as land, buildings, machinery etc for a specified period for a stated consideration. The agreement between lessor and lessee in the lease agreement by the Lease Company. Lease facility provides an opportunity to use the asset without owning it.

 Hire Purchasing: Arrangement wherein the buyer pays some advance and takes the possession of the asset from the seller with an undertaking that the balance amount along with interest will be paid to the seller owes an agreed period in equal installments. The buyer becomes the owner only after paying the last installment.

 Bill Discounting: When the banker provides ready money against an endorsed bill to the customer before the date of maturity by charging some commission (discount) the bill is said to be discounted.It offers financial services commission.

 Venture Capital: Provide start-up finance to the entrepreneurs who have just set up or are in the process of setting a company. They also finance for existing high risk small businesses suffering from capital inadequacies but having growth and profit potential especially in various fields of high technology. In public sector, state and central governments, nationalized banks and development financial institutions provide venture capital.

In Private Sector, wealthy individuals either individually or in groups or as financial services provide venture capital. Normally, the venture capital companies take part in the ownership of the start-up company. The entrepreneur welcomes such a move because he finds shortage of capital at the time of starting his venture and he finds it difficult to raise his resources as he is new to the business. The venture capital companies remain with such enterprising firms till they reach a take-off stage. When the firm starts making profits the venture capital companies sell their share-holding in the firm at the market price, make profits and then search for another enterprising firm is also know as financial functions.

Housing Finance Companies: Housing Finance Companies Provide financial services for acquiring the house property against the security of the same. The housing loan along with the interest is to be repaid inequated monthly installments (EMI) over a given period of time.

 Financial Services for Mutual Benefit: The companies whichFinance for
mutual benefit are called Mutual Benefit Finance Companies. These companies are not allowed to advertise solicitDeposits from their members.

 Residual Non-Banking Servicer : These companies accept Deposits under schemes similar to recurring deposits of banks and Invest in safe and relatively liquid securities.

 Factor in : Factoring is an arrangement to purchase the book debts of a company. It is a relationship between financial institution (factor)and a business concern (supplier) that sells/provides goods or financial services to its customer.The factor purchases book debts either with or without resource to theSupplier. He also controls the credit extended to the customers and administerssales ledger of the supplies. On purchasing the book debts/ bills receivables fordiscount, the factor pays the trader a balance in case. The factor collects themat the end of the maturity. The trader funds arrangement conveniently as hisfunds are not blocked in bills receivables or book debts and flow of funds isensured to take care of working capital required.