fixed income http://www.artwoo.com Returned search results for fixed income Copyright 2008 Sun, 23 Nov 2008 06:14:42 +0000 http://www.artwoo.com/rss/fixed+income The Benefits Of A Fixed Rate Mortgage http://www.artwoo.com/article/the-benefits-of-a-fixed-rate-mortgage http://www.artwoo.com/article/the-benefits-of-a-fixed-rate-mortgage#comments Sun, 17 Dec 2006 10:27:40 +0000 fixed rate mortgageadjustable rate mortgagemortgage paymentsmortgage loaninterest rateloan interest ratesinterest rates drop http://www.artwoo.com/article/the-benefits-of-a-fixed-rate-mortgage mortgage loan for your home you have a choice between an and a .

There are many benefits in a fixed rate mortgage:

The primary difference between the two is that the with adjustable rate mortgage has the potential to go up or down depending on economic factors while the interest rate for a fixed rate mortgage remains the same throughout the life of the loan.

What's Good?

• With a fixed rate mortgage monthly payments remain stable over the course of the loan. Interest rates in the economy can go up or down, but the interest rate for your fixed rate mortgage remains the same. This means that your monthly interest and principal payments will not change as long as you are paying the loan.

• No unexpected increases in monthly payments due to interest rate increase. Since the interest rate does not change, you are not subject to increases with your monthly payment as you would be with an adjustable rate mortgage. With a fixed rate mortgage, you don't have to worry about income increases to ensure you will be able to cover future .

• Easier to budget because your monthly payments are stable. Since you always know what your monthly payments are going to be, it is easier to budget from year to year when you have a fixed rate mortgage.

What's No So Good?

• Higher initial monthly payments as compared to an adjustable rate mortgage. In the first few years of your fixed rate mortgage, your monthly payments will be higher than if you had an adjustable rate mortgage.

• A higher income is necessary to qualify for a fixed rate mortgage. This is because the fixed rate mortgage has a higher interest rate and subsequently a higher monthly payment. Lenders need extra assurance that you will be able to handle the monthly payment. Thus, the increased income requirement.

• May need to refinance if . If market interest rates drop and you keep your fixed rate mortgage, you will end up repaying much more in interest than if you refinance. Should the time come to refinance, compare the amount that you would pay in interest over the life of your loan to the cost of refinancing and the amount you would save.

Repaying in Half the Time

One of the factors that attracts borrowers to the fixed rate loan is the ability to repay in 15 years instead of 30.

All the characteristics of a 30-year fixed rate mortgage are present with a 15-year mortgage, but there are some key differences.

The interest rate with a 15-year fixed rate mortgage will be lower than that of a 30-year. However, since you are repaying the loan in a shorter period of time, the monthly payments will be higher.

Is the decrease in interest rate worth the increase in price? Usually, a borrower chooses a fixed rate mortgage, not because of the lower interest rate, but because of the decrease in time it takes to own the home. With a 15-year fixed rate mortgage, the homeowner gains home equity quicker than with a 30-year. Claim A Free e-book that will show you how you can claim free land and real estate: http://www.freelandproperty.com ]]> Fixed Rate Mortgage Advice http://www.artwoo.com/article/fixed-rate-mortgage-advice http://www.artwoo.com/article/fixed-rate-mortgage-advice#comments Fri, 11 Aug 2006 16:27:12 +0000 fixed rate mortgagevariable rate mortgagesfixed rate mortgagesmortgage termdefinitelyinterest ratedrawback http://www.artwoo.com/article/fixed-rate-mortgage-advice fixed rate mortgage seems appealing. But what exactly is a fixed rate mortgage, and why do so many people choose this option? If you are new to mortgages then this article will let you know a little more about and their benefits.

What does fixed rate mean?

A fixed rate mortgage is fairly straightforward, and does exactly as the name suggests. A fixed rate mortgage has an that remains the same throughout the , meaning that your monthly repayments will remain the same, allowing for inflation of course.

Why a fixed rate mortgage?

Many people choose fixed rate mortgages because of the security and peace of mind that they provide. If you have a fixed rate mortgage, then you know your monthly repayments will not change, meaning you can budget effectively for both the short and long term. If you have a mortgage with a variable rate of interest then your payments can change depending on market fluctuations. This can leave you paying less, but often leaves you paying more each month. The best times to get fixed rate mortgages are when competition is high, and the fixed interest rate is lower than that of the tracker or .

Are there any s?

There are drawbacks to getting a fixed rate mortgage. The biggest drawback is that the interest rate is usually higher than that of variable rate mortgages. The added security comes at a price, in that you have to pay more in interest over the length of the mortgage. Also, the 'fixed' rate is usually only fixed for a certain number of years, usually 2 or 3, after which the rate can be put up and then fixed for another period. This can mean that your mortgage will be cheap now, but in the future the rate could rise.

Who should get fixed rate?

Despite its drawbacks, there are many people that should opt for fixed rate mortgages. If you are on a tight budget and have a fixed income each month, then you cannot afford for your payments to rise. Having a fixed repayment each month means that you know you can make the payment even if national interest rates rise. Also, if you can get a deal whereby the starting interest rate is lower than that of a variable rate mortgage or even the same, then opt for the fixed rate mortgage.

How to decide?

If you are still unsure about whether or not a fixed rate mortgage is right for you, then consult an independent financial advisor. They will be able to help you find the best deal, as well as tell you whether or not the base interest rate is going to fall or rise. This will determine whether a fixed or variable rate mortgage is best for you. Peter Kenny is a writer for creditcards-gb For additional articles and an extensive resource for everything about credit cards, please visit us at http://www.creditcards-gb.co.uk and http://www.thriftyscot.co.uk/Mortgages/ ]]> Fixed Rate Credit Cards Explained http://www.artwoo.com/article/fixed-rate-credit-cards-explained http://www.artwoo.com/article/fixed-rate-credit-cards-explained#comments Tue, 14 Aug 2007 05:30:01 +0000 fixed rate credit cardstypes of credit cardsrate credit cardsrate cardsthis means thatfixed rate credit cardcredit card billing http://www.artwoo.com/article/fixed-rate-credit-cards-explained types of credit cards around that it can be hard to work out which is the best. However, one type of card that is quite popular is the . give you the peace of mind that your APR will remain the same for a given time, with all the benefits of a normal card. If you want to know more about fixed rate credit cards, then this article can help you.

What does 'fixed' mean?

A fixed rate credit card is a card that has an APR that will remain constant for a certain period of time. Most fixed offer a fixed APR for around 3 to 5 years. your interest payments will remain the same during this period.

Why get a fixed rate card?

If you have a fixed income and cannot afford your repayments to rise, then getting a fixed rate card would be a good choice. Even before you spend any credit you can work out what the charges will be over the next months and years. This will help you to budget more effectively and know exactly what you will be paying each month. If you want the peace of mind that your repayments will not change, then a fixed rate card is a good idea.

What are the costs involved?

Although fixed rate cards are by no means expensive, they do generally have higher interest rates than variable rate cards. The lender is taking a risk by offering a fixed rate card, because the base interest rate could rise and they could lose out. This is why the interest rates offered on fixed rate cards are on average 2-3% more than regular cards.

Not everything fixed

Although your APR will remain fixed for the next few years, it is important to remember the other charges involved in . The lender might not be able to change the APR, but they can always change the late payment fees or balance transfer charges. If interest rates rise you might find that your charges rise too, leaving you with a card that isn't beneficial.

Variable rate cards

The alternative to fixed rate credit cards are variable rate cards. These cards have an APR that can change, usually in line with the base interest rate changes. Although a card issuer is much less likely to reduce your interest if rates fall, they do have to remain competitive and so this could happen. However, more likely is that your rates will rise year on year.

Is a fixed card the answer?

Although fixed cards have the benefit of keeping your repayments at the same rate over the years, they do have higher interest and unless you really want to keep the interest fixed for budgetary reasons, you would be better to stick with a lower APR card and switch cards if the rate rises too much. Peter Kenny is a writer for The Thrifty Scot, please visit us at http://www.loanwize.co.uk and http://www.thriftyscot.co.uk/money/compare-loans.html ]]> Life Annuities Overview http://www.artwoo.com/article/life-annuities-overview http://www.artwoo.com/article/life-annuities-overview#comments Thu, 01 Mar 2007 20:27:06 +0000 joint life annuityannuity incomeguarantee periodlife annuitiesrest of your lifeceaseinterest rates http://www.artwoo.com/article/life-annuities-overview rest of your life.

When it comes time to consider buying a life annuity, you have a number of choices.

Retirement Income Planning

Most companies have a long history of providing a range of options to secure your income in retirement. You can select the most competitive ways to make the best use of your pension funds, whether registered or non registered.

Factors That Influence

- Life Annuities are influenced by interest rates and other market factors.

Mortality - Your life expectancy and that of your spouse affects the life . The older you are the higher the income you will receive.

Life Annuity Options - The options you choose from the start will affect your life annuity income. Choosing a longer will reduce the amount of income.

Gender - The starting income is higher for a man than a woman as, on average, women live longer.

LIFE ANNUITY OPTIONS

Single life annuity - Pays you an income for the rest of your life.

- Pays you an income for your lifetime. Upon death, your surviving partner will continue to receive an income at a level agreed upon. The level is a percentage of your income, normally 100%, rarely another figure. The partner's life annuity pension will continue for their lifetime.

Level Income - Pays you a fixed income, which is agreed upon at issue.

Increasing Income - Pays you a life annuity income that increases each year by a fixed percentage.

Guarantee Period - Your life annuity income will continue to the beneficiary of your estate on your death if you die within the guarantee period.

No Guarantee Period - Your life annuity income will on death unless a joint life plan, where the income will cease at the second death.

Payment Frequency - Monthly or Annually Ivon T. Hughes of The Hughes Trustco Group is the author of the Life Insurance Handbook: How To Get The Best andamp; Cheapest Life Insurance available FREE to all new subscribers at: http://www.hughestrustco.com ]]> Your Fixed Rate Credit Card Could Cost You More. http://www.artwoo.com/article/your-fixed-rate-credit-card-could-cost-you-more http://www.artwoo.com/article/your-fixed-rate-credit-card-could-cost-you-more#comments Wed, 14 Feb 2007 12:27:02 +0000 credit card issuerfixed rate credit cardsfixed rate credit cardcredit card issuersrate credit cardsrate credit cardcredit card holder http://www.artwoo.com/article/your-fixed-rate-credit-card-could-cost-you-more Fixed appear like an attractive option, especially if the credit card with fixed rate of interest is set low. There are many s who offer , and combined with a really low introductory rate followed by a low fixed rate, it looks like the best thing to go in for. It could be, as long as the credit card with fixed rates stays that way. But that is not what happens.

Banks and hold the right to alter this fixed rate of interest -- all they have to do is provide the fixed rate a written notice before a specific period. Make sure that you read this clause in the card agreement that you sign with the issuer. Also don't ignore the flyers that look like promotional material that you receive with your fixed rate credit card statement -- they might be a means to let you know that your credit card with fixed rates are being increased.

If the market lending rates fluctuate, your fixed rate credit card issuer may just inform you that your fixed rate credit card is being converted into a variable rate card. Benefits of a fixed rate credit card

What can you expect when you choose a fixed rate credit card? Your monthly repayments can be lowered, giving you better scope to reduce your debts. There are fixed rate credit cards that promise you zero annual percentage rates that appear very attractive. But no rate is fixed forever; so don't be surprised when you realize that your annual percentage rate is higher than when you began using the card!

Fixed rate credit cards are mainly beneficial because they seem stable. You feel secure when you know that your credit card with fixed rate will stay that way for a particular time. It helps you plan your personal finances according to your budget.

Used with discretion, fixed rate credit cards are convenient when your aim is to maintain good credit rating and clear off your monthly dues in full. You even get perks like cash back offers, travel discounts etc. In fact when you hold a fixed rate credit card, if you have a watchful eye on your spending habits, you ought not to worry at all about whether the fixed rate credit card interest rates will go up or not. Steve Szasz is a publisher of numerous finance related articles and webmaster of 6 finance themed websites on loans, insurance and investment. His website url is called http://www.creditcardcompany.com.au ]]> Life Insurance Settlement - How Beneficiaries Get Paid http://www.artwoo.com/article/life-insurance-settlement-how-beneficiaries-get-paid http://www.artwoo.com/article/life-insurance-settlement-how-beneficiaries-get-paid#comments Thu, 16 Oct 2008 14:08:20 +0000 northwestern mutual life insurancenorthwestern mutual life insurance companynorthwestern mutual financial networknorthwestern mutual lifelife insurance companymutual life insurancemutual life insurance company http://www.artwoo.com/article/life-insurance-settlement-how-beneficiaries-get-paid life insurance company at that point.

To make certain that I don't miss anything I confirm everything with the claims department of the company before I go on the appointment. I then advise them that I will call from the beneficiaries home or place of business to to make certain all will goes well. As long as all the requirements are met the proceeds will be paid in a very short period of time. Most of my time on the field I was with the Insurance Company, now . Because they are so thorough at the time of application for the policy when the time comes to pay it takes about one week.

There are several choices an insured has when it comes to the payment of proceeds.

One Lump Sum

More often than not the proceeds of the policy is paid in one lump sum. If the policy is small that is fine. When the policy is for a large amount I don't recommend payment in this manner. It is much better to provide an income rather than a lump sum. Income can be paid in many different ways. There are many options.

Interest Income Option

Putting a large sum of money into the hands of one who is not used to handling large sums can result in waste. As a result the intentions of the insured goes for naught. His or her plan is not achieved. The beneficiary of the policy can leave the principal with the company just taking the interest earned at intervals. The principal remains in tact until you decide to take it.

Fixed Amount Income Option

The beneficiary has the option of taking the money in the form of a fixed income. The insured can stipulate that this is how it should be paid or s/he can leave that up to those who receive the money. S/he may say, "pay out $x per month to my family, named person or persons, until the proceeds are exhausted". The actual amount paid is usually considerably more than the lump sum death benefit itself.

Fixed Period Income

This option is similar to the fixed amount option in that the amount paid out is the same. You say to the life insurance company - "pay this money to them in equal amounts over the next 10 years", for example.

Life Income Option

Some people may choose to have life insurance proceeds paid in life income form. This is particularly effective when dealing with large amounts. There are several life income options.

You can have income paid for life but when the beneficiary dies no more income is paid. This is a way of providing the largest life income but I see it as a gamble. I much prefer to have the beneficiary take an income for life but with a certain, or guaranteed period. Let us say the person receiving the income wants a life income 20 years certain. The income will be paid for as long as the beneficiary lives but if s/he dies after 5 years, for example, the income still must be paid out to an heir for an additional 15 years. 20 years certain was an example you may choose 5 years, 10 years, or 15 years certain.

More details: Life Insurance SettlementFor more than 40 years Donald has been known for his extensive knowledge of the life insurance business. He has represented some of the largest and most admired life insurance companies in the United States as well as Canada. His advice is invaluable. Donald's website is: LifeInsuranceHub]]> Refinance Options - Fixed Rate vs. Adjustable Rate Mortgages http://www.artwoo.com/article/refinance-options-fixed-rate-vs-adjustable-rate-mortgages http://www.artwoo.com/article/refinance-options-fixed-rate-vs-adjustable-rate-mortgages#comments Sat, 22 Jul 2006 00:27:09 +0000 fixed rate mortgagerefinanceprime interest ratemortgage brokercontactupsfixed rate loan http://www.artwoo.com/article/refinance-options-fixed-rate-vs-adjustable-rate-mortgages refinance your mortgage to a ?

The very best time to refinance is when the interest rates are at an all time low. If you're waiting for this option, you'll want to follow the market and keep an eye on what direction our financial leaders are heading. Usually it's based on the status of our economy and there is a lot of discussion about it before the moves in either direction. Keep your ear to the ground.

It's also a good idea to refinance to a fixed rate if you plan on living in your home for the life of the loan. Ninety percent (90%) of our population moves to a new or different home for one reason or another within 5-7 years. But, there are those who stay put and want the stability of steady payments. It makes financial planning much easier to know for certain how much your expenses are from month to month. If you are one of these people, your best refinance option is a .

By all means... if you can't sleep at night worrying about the and downs of your mortgage payment, then a good and start the refinance process right away. It's not worth the stress!

When is a good time to consider an ARM?

When you DON'T qualify for the purchase of a home or refinance to a fixed rate mortgage. Sometimes this is the only way to qualify for a purchase due to credit history, debt to income ratio or not enough income. Later on you can refinance into a fixed rate loan if the ARM loan makes you nervous.

When your monthly payment, after the refinance, will be significantly less than the total of your current payment plus the payments of all your credit cards and loans. If you're in a home for 5-7 years and you are paying 10, 15 or even 20% interest rate on consumer debts, refinance your mortgage and use your equity to pay off your high interest debts. This will make a significant impact on your monthly cash flow and may give you the necessary breathing room you need.

When you DON'T plan on staying in your home for more than 5-7 years due to family size increasing, kids going off to college, job relocation, etc. Why pay for a higher fixed rate long term mortgage if you are only going to move or refinance in a few years anyway.

Homeowners who refinance with long term fixed rates pay between 1.00-2.00% higher than those who refinance with an ARM. That may not seem like a lot but when you have a $250,000 mortgage, it makes a BIG difference in your payment.

When you CAN anticipate increases in your income due to promotions and raises. Some employees receive a raise each year based on a percentage of their current income and can come relatively close to determining what their raise will be. If you're due for and expect to get a promotion, you'll probably know ahead of time what that new position will pay you. These are perfect opportunities to consider a refinance.

When you ARE comfortable with moderate adjustments in your mortgage payment. Some people are just more relaxed about finances than others. Most often this is due to not having to worry about their basic survival needs and having a steady, generous income.

What it all boils down to is level of risk. If you can't sleep at night unless you know your mortgage payment is $XXX.00 every month, then a long term fixed rate mortgage is the best option for you.

If you can sleep at night taking some calculated risks, other options may be available to you.

Permission is granted to reprint this article as long as no changes are made, and the entire resource box is included. This article is Copyright © 2006, Heather Colman. Find more refinance resources at: http://www.aboutrefinancemortgage.info ]]> Fixed Rate Mortgages - The Benefits http://www.artwoo.com/article/fixed-rate-mortgages-the-benefits http://www.artwoo.com/article/fixed-rate-mortgages-the-benefits#comments Sat, 14 Jul 2007 11:20:00 +0000 fixed rate mortgagebest fixed rate mortgagefixed rate mortgagesmortgage paymentsthis article discussesmortgage professionalsmortgage plan http://www.artwoo.com/article/fixed-rate-mortgages-the-benefits This article discusses how a can assist you in planning your finance over the next few years. A fixed rate mortgage can help you to get rid of financial worries associates with as the payment you make is fixed over a number of years

As the interest rate that you are charged for a mortgage remains the same for a fixed amount of time. Thus, your budgeting becomes very easy since you can easily plan by knowing exactly how much your monthly repayment will be. These mortgages are brilliant especially for people who have steady jobs. Many graduates apply for when buying their first home. They have a clear idea of how much money to pay for a period of time. They can accordingly formulate a budget that suits their needs and circumstances.

Many reputed lenders help people buy their first home or remortgage from their existing l mortgage lender. They arrange fixed rate mortgages that are specific to each client so that their clients can easily meet their financial obligations.

It is important to understand that each one of us faces different circumstances and have different needs. Therefore, the experts work out suitable range of fixed rate of mortgages for the customers. Qualified can guide you with their expertise in deciding the plan available for you.

Fixed rate mortgages are helpful especially for the first time buyers or those who are looking for some stability by working out some fixed monthly repayments.

Where other mortgages may increase depending on the base rate, you can rest assured that with a fixed rate you know the precise amount which you will be repaying on a month-to-month basis. This is irrespective of any change in the interest rates since fixed rate mortgages are unaffected by them. Ian Duncan writes for http://www.dm-loans.co.uk and http://www.1clickfinance.com ]]> Why Get Paid For Your Opinions? http://www.artwoo.com/article/why-get-paid-for-your-opinions http://www.artwoo.com/article/why-get-paid-for-your-opinions#comments Sun, 05 Nov 2006 04:27:08 +0000 online surveyspaid surveyspaying surveysstay at home momsdelvebasicallyerrands http://www.artwoo.com/article/why-get-paid-for-your-opinions stay at home moms and people seeking a supplementary income stream are asking today. Often it can be difficult on a family's financial state to have only one income and sometimes just a little more income could make a huge difference.

You can earn income from . You can work as long or short a period of time as you want, and they are especially easy to work into people's busy schedule.

Just about every big and small company conducts online surveys. Surveys into the minds of people to reveal how well a company's product or even service, is doing out in the market. With the help of these surveys a company is able to make an assessment concerning their current status (or demand in the market) and also the potential of their product/service via these feedback.

There are and trials that moms can take quickly and still have time to care for their children and run all the many they have to do each day. Most moms want something to bring in a little cash that will not take hours of their time.

There isn't such a thing as a fixed day or even a fixed timing from which an individual is required to work. The job can be taken up part time or as a full time occupation. In fact, people from any background -- from a housewife and mother of 3 kids, a graduate, an individual working in a corporation, to a retiree who's able to participate in these surveys.

The answer to a stay-home mom's financial problems can be as simple as earning income from online surveys. A few minutes online, and a few questions later you have earned some money for the family. It is that simple.

like the ones above are available all over the internet, but the problem has always been that it takes too much time to track down the really good ones that will pay well. For the latest in reviews and articles on http://www.articledirectoryzone.com/online-surveys/income-from-online-surveys.html and web businesses. ]]> The Benefits Of A Fixed Rate Remortgage http://www.artwoo.com/article/the-benefits-of-a-fixed-rate-remortgage http://www.artwoo.com/article/the-benefits-of-a-fixed-rate-remortgage#comments Thu, 20 Dec 2007 11:25:01 +0000 fixed rate mortgagefixed rate loanfixed rate mortgagesfirst time home buyer loantypes of interest ratestime home buyerfirst time home buyer http://www.artwoo.com/article/the-benefits-of-a-fixed-rate-remortgage fixed rate mortgage. When looking for a mortgage it helps to understand the differences in each mortgage and what certain terms, like fixed rate, mean. This can help a home buyer choose the mortgage best suited for them. It can help them to make an informed decision. As the home buyer will find out have some benefits over other mortgages.

First of all, there fixed rate refers to the interest rate. In the mortgage world there are two . There are fixed rate and flexible rates. Fixed rates stay the same for the life of the loan. The home buyer locks into the current interest rate that id offered when they sign the loan agreement. A flexible rate mortgage has a mortgage rate that changes.

With a fixed rate mortgage the home buyer has the benefit of having a mortgage payment that will be the same every month for the life of the loan. They will also know exactly the amount they are going to pay.

With a flexible rate mortgage the home buyer will have different payments each month as the interest rate goes up and down. They will not know the total amount of their loan overall nor will they know ho w much they owe each month beforehand.

Now the term fixed rate can apply to different types of loans. A loan, for example, can be a . Any loan except a flexible rate loan can be a fixed rate loan. This is important for a home buyer to understand so they do not get confused or otherwise tricked by a lender.

Additionally, a fixed rate loan can be a bad choice if the market is currently in a trend where interest rates are dropping. If a home buyer is buying a home during a market like this their better choice would be to get a flexible rate loan and then lock in once interest rate bottom out.

A flexible rate loan can often be changed to a fixed rate, but it is very hard to switch a fixed rate to a flexible rate. The reason for this is that with a fixed rate the bank knows what they are earning and they like it when the interest rate of the fixed loan is higher then the current rate because they are making more money off it. To change a fixed rate loan to get a different interest rate would require a refinancing of the mortgage.

A fixed rate remortgage can be a good idea, but it can also be a bad choice. It is up the home buyer to know what to watch out for and to make sure they are making the best decision possible. The home buyer is going to be the one paying for their decision in the end. The lender may be willing to explain the options, but they are not likely to push a buyer into choosing the cheaper option. They simply sit back and let the home buyer decide. James Copper is a writer for http://www.any-loans.co.uk/fixed-rate-remortgage.shtml ]]> Annuities QandA: Understanding Types Of Annuities http://www.artwoo.com/article/annuities-qa-understanding-types-of-annuities http://www.artwoo.com/article/annuities-qa-understanding-types-of-annuities#comments Sun, 16 Apr 2006 18:50:10 +0000 tax deferred annuityimmediate annuitiesvariable annuityvariable annuitiesfixed annuitiesstock market performancemoney market securities http://www.artwoo.com/article/annuities-qa-understanding-types-of-annuities
There are basically two types of annuities -- fixed and variable.

A fixed annuity earns an assured interest rate in a definite period of time. If the period of times expires, there will be a new interest rate for the next period.

have more funding options than since their performance depends on the option of investment of the principal and return vary.

What is a tax-deferred annuity?

Tax-deferred annuity allows you to not pay taxes until after you make a withdrawal or until you start receiving an annuity. Having a tax-deferred annuity permits you to collect a bigger amount of money over an extended period of time.

What is the difference between a fixed and ?

Fixed annuities are investments from government securities and corporate bonds. They are offered a fixed or guaranteed rate usually over a period of one to ten years. So, when you receive payments, the monthly release of funds is set to a fixed amount and already guaranteed. This type of investment is preferred by investors who value safety and stability of their money and for those retirees who want their money to be protected against the possible instabilities of the stock market.

Variable annuities allow you to put your investment into a variety of securities like and interest accounts offering fixed rates. will decide the annuity's value and the return of your money that you have invested. Though there is a great risk because of unprecedented movement of stocks in the market, some still consider investing in a variable annuity because they are comfortable of fluctuations in the market and get rid of their investment in static position.

What are deferred and ?

A deferred annuity is a pay-out plan offered to investors who are willing to receive payments at some later date, commonly at the retirement of the investor. This type of pay-out is advantageous for long-term retirement plans for the following reasons:

• Deferred income taxes payment until withdrawal of the money • No limits on yearly annuity contributions • Death benefits are readily available. If the investor dies before he collects his annuity, the beneficiaries get the amount you have put in plus investments earnings.

In an immediate annuity, the investor automatically begins to receive lump sum pay-outs immediately upon investing your money. Payments start usually a month after you have invested into the annuity. This offers financial security in a sense that you will receive income payments for the rest of your life. Also, this annuity permits you to:

• Add your pay-outs received in your current income • Pay taxes on the portion of the annuity payments that are considered to be earning

Immediate annuities can be fixed or variable. Fixed immediate annuity payments are attached to the amount that you have contributed, your age, and the existing interest rate at the time you have purchased the annuity. These said payments are already fixed. Variable immediate annuities vary according to the type of investments you purchased.

What is a tax-sheltered annuity?

Tax-sheltered annuity is a retirement savings program limited to public educational institution employees and members of non-profit organizations. Contributions to a tax-sheltered annuity are made by the employers of the participating employee. These are deducted from the participant's income payments and sent to the insurance agency or mutual fund guardian elected by the participant.

What is a lifetime annuity?

A lifetime annuity is a type of immediate annuity wherein upon investing you automatically receive guaranteed income payments for the rest of your life. The income you will receive from the lifetime annuity plan will depend on the amount of money you will invest and the existing rates at the time you made the investment. Ammon Yorke is a regular contributor to financial and investment sites such as http://www.WhyAnnuities.com ]]> Fixed Rate Mortgages More Popular Than Ever http://www.artwoo.com/article/fixed-rate-mortgages-more-popular-than-ever http://www.artwoo.com/article/fixed-rate-mortgages-more-popular-than-ever#comments Tue, 17 Oct 2006 20:27:14 +0000 council of mortgage lendersfixed rate mortgagemortgage dealsaverage mortgagefirst time buyer mortgagesrate dealsremortgages http://www.artwoo.com/article/fixed-rate-mortgages-more-popular-than-ever Council of Mortgage lenders recently reported that an amazing 71% of all mortages and in April 2006 were arranged on fixed rate terms, that's 17% higher than the same period last year. The increasing attraction of fixed is a product of the attractive offers being made by lenders together with a desire by consumers to lock-in to the current low rates for as long as possible.

The balance shifted slightly towards new mortgages and away from remortgages, possibly a symptom of lenders making the benefits of remortgaging less attractive to existing borrowers -- the recent increases in exit fees almost certainly a factor here. (That increase is currently under regulatory investigation by the way) First-time buyer mortgages grew in size slightly to an average of £106,400, that's almost £12,000 higher than April last year. First buyers are now borrowing an average of 3.21 times their earnings, which is also slightly up on last month. The payer now spends 16.2% of their income repaying their mortgage, slightly less than previously and probably caused, the Council says, by the increased take up of fixed rate deals.

There has also been a crop of new deals where lenders are offering to fix rates for as long as 15 years. That sounds crazy until you work out that it indicates supreme confidence in the stability of the money markets lokking forward. Heartening information for all of us.

In my opinion all these mortgage factors are reaching worrying levels with people borrowing not only more and for longer, but are also committing to repayment figures that are higher proportions of their income than ever before. All this is driven by the spiralling increase in house prices over recent years and a general worry by some people that if they don't get on the housing market now, they never will. Marcus Brooks writes for the http://www.reviewmortgages.co.uk website www.reviewmortgages.co.uk, a source of information on mortgage offers and cheap mortgages. ]]> Retirement Plan Withdrawals - How to Safely Take the Money Out With These Five Options http://www.artwoo.com/article/retirement-plan-withdrawals-how-to-safely-take-the-money-out-with-these-five-options http://www.artwoo.com/article/retirement-plan-withdrawals-how-to-safely-take-the-money-out-with-these-five-options#comments Wed, 15 Oct 2008 10:57:24 +0000 money market accountcertificate of depositsretirement incomecost of healthcarewithdrawal planpersonal situationcapital gain http://www.artwoo.com/article/retirement-plan-withdrawals-how-to-safely-take-the-money-out-with-these-five-options cost of healthcare doesn't help those who depend only on a fixed income. A mix of guaranteed income and income that has the potential to increase annually is ideal. That kind of mix will also help keep your taxable income down as you will draw from a mix of taxable income and dividends. It will also help diversify your risk at retirement.

Here are five options for an easy . Choose one or more depending on your :

1. Don't take more than a 4% withdrawal of all assets. Studies have shown that if you withdraw more than that, you will spend down principal. Spending down principal may be okay if you are 70 years old or older, but not when you are 55.

2. Keep two years of needed in cash. This is especially good when we have a bond market that is volatile like we have today. Have all income (including dividends, cash, pension, etc.) go into a money market or savings account to replenish the income that you take out. Keep two year's worth of income in the or savings account.

3. Keep one year of laddered (3 month, 6 month, 1 year) that you use to take income from (when they come due) and replenish those Certificate of Deposits with income from other sources. This is labor intensive since you must continually look for new Certificate of Deposits as they come due but it assures you the highest interest on your cash holdings while you are also taking withdrawals.

4. Take a combination of withdrawals that produce taxable income, tax-free income, and capital gain income to keep your tax rate down while you withdraw. Remember, you get to spend only that amount that you withdraw after tax so don't take everything out that is taxed at ordinary income rates. Split it up if you can with Roth withdrawals (potential tax-free income), muni -bond dividend income (tax-free income), or sell a portion of investments each year (potential tax-favored capital gain income).

5. Some people invest in an immediate annuity for their income needs. This becomes the fixed income portion of their portfolio and they don't have to worry about cash, Certificates of Deposits or bond income. They get an income for life, but the downside is that few have an inflation rider and many have high internal fees.

Withdrawal plans don't need to be confusing. With these five options you can choose a plan that will give you the income you need while maintaining growth and keeping your taxes down. Pick a program that you feel comfortable with so when you need money, you will know how to withdraw with minimal downside.2008© Fern Alix-LaRocca CFP® All Rights Reserved Interested in more wealth building tips by Fern Alix LaRocca, a fee-only Certified Financial PlannerTM with over 24 years in the industry? Get this and 4 free wealth building strategies at Whole-Hearted-Way]]> Should I Get A Fixed Rate Home Loan? http://www.artwoo.com/article/should-i-get-a-fixed-rate-home-loan http://www.artwoo.com/article/should-i-get-a-fixed-rate-home-loan#comments Tue, 14 Aug 2007 22:25:00 +0000 rate home loanhome loan ratesthis means thatrate home loansvariable rate loansvariable interest ratesinitial interest rate http://www.artwoo.com/article/should-i-get-a-fixed-rate-home-loan rate home loan or to go with a variable rate home loan. Here are some of the questions that you might have about a fixed rate home loan:

1) What is a fixed rate home loan?

It basically is what it sounds like it is. With a fixed rate home loan, the interest rate on your loan does not fluctuate. the market and economy might change but the interest rate that you locked in at with your fixed rate home loan remains the same.

2) What are the pros and cons of a fixed rate home loan?

At the outset, fixed usually have a higher interest rate than those being offered by variable rate home loans. Those individuals who aren't able to pay higher monthly payments on their loan may find that the give them better payment options initially. However, since variable interest rates go up and down, there are times when the fixed rate would be cheaper.

Individuals who are able to do well with budgeting and planning often find that the benefits of having a fixed rate home loan payment outweigh the benefits of a lower . This is because the amount of the payment on a fixed rate home loan can always be anticipated, allowing for budgeting. vary enough to make this planning difficult for some people.

3) Is it possible to adjust the rate on my fixed rate home loan?

What most people want to know when they ask this question is whether it is possible to get a fixed rate loan and then lower that rate when the market changes and lower interest rates become available. The answer is yes, and no. It is possible to refinance your home in order to obtain a lower interest rate at the time that it is being offered. However, there are usually fees associated with changing your fixed rate home loan. These fees almost always outweigh the costs saved on trying to get the lower rate, so it's not often done.

4) How long will it take to pay back my fixed rate home loan?

The term of repayment on your fixed rate home loan depends upon the amount of time that you need to repay the loan as determined by your lender. Fixed rate home loans are almost always either fifteen year loans or thirty years loans, with the latter being more common for most buyers.

That sums up the basic questions that most people have about getting a fixed rate home loan. Basically, if you want to have a stable monthly payment throughout the duration of your home loan, then you should get a fixed rate loan. If you would rather take your chances on playing the market with a variable interest rate in the hopes of paying a lower loan rate, well, that choice is up to you." Kinan Beck is the Broker and co-owner of One Source Realty in Austin Texas. Visit Kinan's http://www.kinanbeck.com Guide, visit his http://www.ericbramlett.com/steinerranch.php company's website. ]]> Fixed Rate vs. Variable Rate Credit Cards http://www.artwoo.com/article/fixed-rate-vs-variable-rate-credit-cards http://www.artwoo.com/article/fixed-rate-vs-variable-rate-credit-cards#comments Tue, 30 May 2006 09:33:00 +0000 fixed rate credit cardprime lending ratecredit card balancerate credit cardsrate credit cardfixed rate periodpercentage rate http://www.artwoo.com/article/fixed-rate-vs-variable-rate-credit-cards percentage rate above , it is possible, these days, to obtain a . So, when would you want to apply for a fixed rate credit card over a variable rate credit card?

The answer to this may not actually sound as simply as you may think. Two factor need to be borne in mind: first, what is the Prime Lending Rate at the moment; and second, what are the chances of the percentage rate plus Prime Lending Rate going above the fixed rate?

If you feel that borrowing rates are cheap at the moment and that it is unlikely that Prime Lending Rate is going to go up in the near future, then in all likelihood having the variable rate credit card is going to be more of a benefit to you than having a fixed rate credit card. However, if the opposite is true, and you believe that there is a good chance that Prime Lending Rate is going to up in the near future, there may be a very good reason for you to want to lock-in your interest rate at the current fixed rate being offered by the card provider.

One exception to the fixed rate vs. variable debate comes into play if you can manage to obtain a fixed rate with a card provider on the transfer of your to a new card provider. In this circumstance it could prove to be a very useful money saving policy to agree to the fixed rate for the initial 6 or more month period as, traditionally, fixed rates for transferring balances are very low. You do, however, need to be extremely careful that any variable rate that comes into play following the is not excessive.

Alternatively, you need to ensure (a) that you have made as much of a repayment as is possible during your fixed rate term that you only have a minimum outstanding balance on the day the balance transfers over to a variable rate; or (b) you have the option of transferring the credit card balance outstanding to another new card provider who is also offering a very low fixed rate of interest.

In any case, these days the debate over fixed rate vs. variable rate credit cards is certainly more interesting than was ever the case previously! Joe Kenny writes for the loan and credit card information sites http://www.ukpersonalloanstore.co.uk and also http://www.cardguide.co.uk.. Visit them today for some great offers. ]]> What You Need To Know About Fixed Rate Mortgages http://www.artwoo.com/article/what-you-need-to-know-about-fixed-rate-mortgages http://www.artwoo.com/article/what-you-need-to-know-about-fixed-rate-mortgages#comments Tue, 05 Feb 2008 06:30:00 +0000 graduated payment mortgagefixed rate loansfixed rate mortgagefixed rate loanadjustable rate mortgagesadjustable rate mortgageleast five years http://www.artwoo.com/article/what-you-need-to-know-about-fixed-rate-mortgages fixed rate loan. These loans are actually pretty simple to understand and preferable to many consumers. Before you accept one of the s that are out there and really appealing at first, you should consider what a will bring to your life and if it is something that will work for you.

The Fixed Rate Mortgage

A fixed rate mortgage is a mortgage loan that offers the same interest rate through the duration of the term of the loan. It seems like this would be the way that all loans are, but today there are many different types of loans, many of which feature interest rates that will adjust, float, or change over time.



A fixed rate mortgage should also not be confused with an interest only mortgage, a , and adjustable rate mortgage, negative amortization mortgages, or balloon payment mortgages. Some of these other mortgages may have periods of fixed interest but then they all change and fluctuate.

When you take on a fixed rate mortgage you should be aware that your payments will stay about the same but there may be some things that will change the amount of your monthly payment from year to year. While your home will be being paid off and your interest will stay the same there may be changes in your escrow plan such as the cost of property taxes and insurance that will change, and therefore change the amount of money that you pay each month. These changes have nothing to do with your interest rate and should be easily explainable.

are generally the best for those that plan to stay in their home for a good while, if not the whole term of the loan. If you buy a home and you only plan to stay in it for two of the 30 year mortgage than you might want to consider an adjustable rate mortgage that may offer a lower interest may not change at all during this time. If you plan to stay in your home for at than a fixed rate is a good idea because you do not want to have to worry about what your interest rate will be in four years.



Many consumers have found themselves in trouble five, ten, or even 15 years down the road when their adjustable rate mortgage has an interest rate that is so high that they simply cannot make the payments. For this reason, if you believe that you will be staying long term you should go for the fixed rate.

Many people believe that fixed rate mortgages are not as good because their rates are not as good as the introductory rate of an adjustable rate mortgage, but this is not the case. When you compare the average interest rate of the other mortgages to the fixed interest rate, you will likely see that the fixed rate ends up saving the homeowner more in the long run. Each consumer is unique and needs to consider their options and what will work them but many find that the fixed rate mortgage is most advantageous. Given the economic climate that we live in, people are interested in fixed rate mortgages at http://www.comparethem.co.uk/mortgages/fixed-rate-mortgages/ Get mortgages at http://www.comparethem.co.uk/mortgages/ Visit http://www.comparethem.co.uk/ ]]> New Home Mortgage - Common Mortgage Types http://www.artwoo.com/article/new-home-mortgage-common-mortgage-types http://www.artwoo.com/article/new-home-mortgage-common-mortgage-types#comments Tue, 08 Jul 2008 08:01:22 +0000 mortgage interest rateadjustable rate mortgagestandard mortgagemortgage typesballoon paymentprofitable dealrising interest rates http://www.artwoo.com/article/new-home-mortgage-common-mortgage-types mortgage types. Knowing and understanding this information can save your hard-earned housing loan dollars.

A new home mortgage is an important financial decision in the lives of most people, yet there is an appalling lack of understanding in many instances of just what the various terms associated with applying for and obtaining a mortgage. If you are considering making this type of financial commitment, it behooves you to spend some time educating yourself about the process, the terms and the consequences.

In the course of such self-education, you may find that you have been able to gain a much more for yourself. Here are a few terms to review and understand on the subject of mortgages.

Fixed rate

A fixed rate for a new home mortgage was the norm until a relatively short time ago. The fixed rate, particularly when interest rates were high kept all but a few wealthy or stable borrowers out of the market. Fixed rate, as the name implies, fixes the rate of interest for the entire term of the mortgage. The rate doesn't increase due to fewer homes on the market, or , or a high rate of inflation. It is helpful in structuring long term budgets and stable expenditures. The fixed rate tends to be somewhat higher than the other types of mortgages, at least during the early phases of the loan term.



An adjustable rate mortgage (ARM) is a common type of new home mortgage. Because of the nature of the mortgage, it allows people who would not be eligible for a mortgage loan under a fixed rate or to be approved for a mortgage loan. It also allows borrowers to obtain a much larger loan than would be acceptable under a standard loan. It provides for a that starts out lower than standard and can be increased over the following months or years to a much higher interest rate.

Balloon

A new home mortgage with a is one in which the rates are usually fixed for a period of two to four years, at which time the entire balance become due and payable. It is expected that there will be a new mortgage or refinance negotiated at that time which will take into consideration any significant change in interest rates. A possible disadvantage to this type of mortgage is when the creditworthiness of the homeowner has changed significantly, making it difficult or perhaps impossible to qualify for the new loan at the time of the balloon payment due date.

Negative Amortization

A recently used type of new home mortgage is known as negative amortization or sometimes Option ARM (Adjustable Rate Mortgage). This type of loan works well when the individual has variable income that fluctuates during various seasons or times so that the income is not fixed. With an Option ARM, the mortgage payment is set at a rate that is the lowest common denominator, so to speak. When income increases, the borrower can pay more than the minimum payment so that the loan balance drops. Otherwise, the loan balance continues to increase in spite of the monthly payment.If you are looking for a New Home Mortgage or for information about almost any type of mortgage loan, the best location to find it is at http://www.homemortgageloan-refinance.com.]]> Stock Investing For Dummy - What Are Operating Expenses, Operating Income And Operating Margin? http://www.artwoo.com/article/stock-investing-for-dummy-what-are-operating-expenses-operating-income-and-operating-margin http://www.artwoo.com/article/stock-investing-for-dummy-what-are-operating-expenses-operating-income-and-operating-margin#comments Thu, 30 Aug 2007 16:30:04 +0000 also commonly referredoperating marginoperating incomeincome statementoperating expensesebitvariable costs http://www.artwoo.com/article/stock-investing-for-dummy-what-are-operating-expenses-operating-income-and-operating-margin
are part of the overhead costs attached to selling products on the market. They are not necessarily directly connected to the cost of the specific product being sold but must be included when figuring the operating expenses of a company. These include fixed costs of salaried employees (administration, sales, etc.) and (labor, research and development, etc.). Operating expenses are found on the .

determines a company's earning power from ongoing operations. This is the figure equal to earnings before deduction of interest payments and taxes. This is another figure commonly found on the income statement. This figure is to as operating profit or earnings before income and taxes (). Operating income is a direct result of a company's efforts to turn a profit.

Operating income is required to determine along with net sales. Net sales is another figure that can be obtained directly from the income statement. By determining operating margin we can know the proportion of a company's revenue that is left over after paying for variable costs of production (labor, raw materials, etc.). This figure helps the investor know the overall health of the company and how well managed the firm is. A firm must have a healthy operating margin to pay for the fixed costs involved in doing business like interest on debt. Operating margin is most valuable when tracked over time and compared to the operating margin of its competitors within the same market sector. Companies competing in different market sectors have different cost structures, of course. Visit http://www.tradingsphere.com now and get the best tips and strategies for your stock market investing. There are tons of tutorials as well as resources in stock investing for dummy. Check out now. ]]> A Fixed Rate Home Equity Line Of Credit http://www.artwoo.com/article/a-fixed-rate-home-equity-line-of-credit http://www.artwoo.com/article/a-fixed-rate-home-equity-line-of-credit#comments Sun, 24 Sep 2006 22:27:08 +0000 equity linehome equity line of creditfixed rate loaninterest ratesborrowwhimsinterest rate http://www.artwoo.com/article/a-fixed-rate-home-equity-line-of-credit equity line of credit, a fixed rate is probably a good idea. This is because when you have a fixed rate, it is not subject to the of rising s. Additionally, a can be a good idea anyway, since you have the ability to get money as you need it, rather than worrying about whether or not you have ed an appropriate amount with a lump sum regular home equity loan.

What is a home equity line of credit?

A home equity line of credit is one that works a lot like a credit card. The account is a revolving account, meaning that as you pay it down, you can borrow more. Just like a credit card, you have a specific limit. However, the limit on a home equity line of credit is based upon the amount of equity that you have in your home. You can borrow up to a certain amount, and as you pay it back, as long as the line of credit is still open, you can borrow more.

The advantages of a

One of the biggest advantages of a fixed rate loan is the fact that the interest rate is fixed. This means that the rate does not change, no matter how interest rates are rising or falling. While it is possible the interest rates will fall during the time of your loan, if you get a low fixed rate, they are not likely to get much below, and far more likely to rise quite a bit above your original rate. If you have a variable rate, this can mean paying thousands of dollars more over the life of your loan.

Advantages of a fixed rate home equity line of credit

When it comes to getting a home equity line of credit, it is advantageous to get a fixed rate if you can. This is because you can combine the advantages of having ready access to your home's equity with an interest rate that will stay steady. You will have the ability to borrow what you need, when you need it, without worrying about having to reapply for a new loan each time, and without having to worry about varying interest rates. Visit http://www.homeequitywise.com for more information on the pros and cons of a Fixed Rate HELOC. ]]> What You Need To Know About Debt-To-Income Ratios http://www.artwoo.com/article/what-you-need-to-know-about-debt-to-income-ratios http://www.artwoo.com/article/what-you-need-to-know-about-debt-to-income-ratios#comments Wed, 16 Aug 2006 14:27:12 +0000 debt to income ratiodebt to incomedebt paymentdebt paymentscar paymentowehouse payment http://www.artwoo.com/article/what-you-need-to-know-about-debt-to-income-ratios
If you want to identify your overall financial situation and keep your debt in check, you need to establish your debt-to-income ratio. Your debt-to-income is the relation between what you and what you make. To calculate your ratio, take your monthly s (such as house, credit card, and payments) and divide it by your monthly take-home income. Monthly are considered anything you can't pay off in 6 months. Items such as monthly food expenditures, utility bills, and entertainment expenses should not be considered when calculating your debt-to-income ratio. These expenses can be paid off within a month's time. A , however, can not, so be sure to include that amount in your total monthly debt payment. Anything that is a payment for a monthly service or one-time expense does not need to be considered when establishing your debt-to-income ratio.

Example of Debt-to-Income

If you make $4,000/month, this is your monthly income. If you have a car payment of $400/month and a of $1,200/month, and a boat payment of $250/month, when you add these monthly amounts together, the end result is your monthly debt/fixed expenses.

To establish your debt-to-income ratio, divide your monthly debt payment by your monthly income. The end result is your debt-to-income ratio.

Monthly income: $4,000 Monthly debt payment: $1,850 Debt-to-income ratio: $1,850/$4,000 = 46%

After you calculate your debt-to-income ratio, it's time to discover what your ratio is telling you. If you have a ratio of 10% or less, it means you have a great debt-to-income ratio, meaning your income is significantly more than what you owe. However, if you have a debt-to-income ratio of 55% or higher, it means you are taking on too much debt in relation to your income -- anything over 55% is considered very risky since it will be difficult to continue to cover your monthly debt obligations with your current income.

Debt-to-Income Ratio and Lenders

Lenders calculate and analyze your debt-to-income ratio to determine the size mortgage you can afford. In fact, your DTI and your loan-to-value (LTV) are frequently the most important numbers that lenders look at when quoting you a mortgage amount and interest rate.

So as you can see, your debt-to-income ratio can tell you a lot about your debt and your chances of qualifying for a mortgage loan. So in the end, the best thing to do is to keep your debt under control and not to take on too much debt. It could hinder your ability to qualify for a mortgage and send your finances plummeting. Brad Stroh is currently co-CEO of Freedom Financial Network and http://www.Bills.com. If you would like more of Brad's articles, please visit the Bills.com information on http://www.Bills.com/debthelp/. ]]>