If you are retired and need to fill a gap in your monthly income stream, save for other medium- to long-term goals or supplement your existing investment mix, Certificates of Deposit (CDs)– including Discover’s CDs and tax-advantagedÂ Individual Retirement Account (IRA) CDs — can provide a safe and practical solution.
A simple way to reach your goals.
Watch your savings grow with aÂ CD.
Lock in Your Rate
Certificate of Deposit
Discover Bank, Member FDIC
Supplement cash flow. Â CDs can provide a steady source of income that also has the potential for growth. Discoverâs CDs, for example, offer guaranteed returns on terms ranging from 3 months to 10 years. The longer the term, the higher the interest rate. And since your rate of return is fixed, you know exactly how much income to expectâ and when to expect it (when your CD matures your principal plus interest accrued and not withdrawn is returned to you) âa major plus for retirees looking to close a gap in their cash flow.
One CD strategy for generating cash flow is called a CD ladder. Open a series of CDs that mature at different times. When the first CD matures, harvest the interest income, but reinvest the principal in another CD at the top of your âladder.â This approach can create a consistent and ongoing income stream to last throughout your retirement years. With Discover CDs, you always have convenient renewal options at maturity, making it easy to put this income-management practice into effect.
Fund medium- and longer-term goals.Â Open separate CDs with an eye toward funding different financial goals. Will you need to purchase a new car in the next three years? Are you planning an extended trip abroad to celebrate a special anniversary? Do you hope to help a grandchild with college costs? Time the CD maturity to match your savings goal. Again, Discover offers CDs with maturities as short as three months or as long as 10 years.
An alternative to bonds.Â Investors often choose U.S. Treasury bonds when seeking a safe haven for their investment dollars. Yet CDs should be on your list of worthy alternatives. Both Treasuries and CDs offer safety; however, in some cases, CDs offer more attractive yields.
CDs can provide a steady source of income that also has the potential for growth.
A home for excess IRA/401(k) distributions. Current IRS rules require individuals to begin taking distributions from their retirement accounts when they reach the age of 70Â½ in order to comply with required minimum distribution rules. To the extent that those distributions are more than you’ll need to spend, which may be the case for those who have delayed taking distributions, consider contributing them to a CD until you need to use the funds.
And remember, the safety of Discover’s CDs and IRA CDs being FDIC insured to the maximum allowed by law can be a big comfort when preserving your assets is more important than ever.
Regardless of your time horizon, risk tolerance, or savings goal, you can always find the right savings vehicle for your needs at Discover. Discover offers an Online Savings Account to help you with your short-term savings goals, a full range of CDs and IRA CDs with terms from 3 months to 10 years, and Money Market Accounts that have a competitive rate. Open a Discover account onlineÂ or call our 24-hour U.S-based Customer Service at 1-800-347-7000.
The article and information provided herein are for informational purposes only and are not intended as a substitute for professional advice.
The post Retiring: Turn to CDs For Cash Flow appeared first on Discover Bank – Banking Topics Blog.
No one intends to drop out of college. If you show up to campus for your freshman year, chances are you plan to graduate in four years and use your degree to land a job. Maybe you even have the whole thing mapped out, step-by-step.
But then life happens. Whether itâs a family emergency, deteriorating health, stress burnout, or just the realization that college isnât the right choice, plenty of people choose to drop out of their university every year. The problem is, your student loans donât go away just because you never ended up with a degree.
So how should someone in this position approach student loan repayment? Are there any unique considerations to take into account? Hereâs what you need to know.
Choose an Income-Based Repayment Plan
If you have federal student loans, youâre eligible for the same repayment options available to borrowers with a degree.
You may currently be on the standard 10-year repayment plan, which will have the highest monthly payments and the lowest total interest. You have the option of switching to a less expensive option if youâre struggling with those payments. Use the official repayment calculator to see which plan lets you pay the least.
When you choose an extended, income-based, or graduated repayment plan, youâll pay more interest overall than if you stuck with the standard plan. If youâre not working toward a specific forgiveness program, then itâs best to switch back to the standard plan as soon as you can afford it to minimize the interest.
Refinance Private Loans
Private student loans have fewer income-based repayment options than federal loans, and they rarely offer deferment or forbearance options. But you can refinance private loans for a lower interest rate, even if you dropped out.
There are a few lenders that service borrowers with uncompleted degrees.
These may include:
RISLA Student Loan Refinance
Advance Education Loan
To be a good candidate for a student loan refinance, you must have a high credit score and no recent bankruptcies or defaults on your credit report. You also need a low debt-to-income ratio, and some lenders may have income requirements.
Financial aid expert Mark Kantrowitz of SavingforCollege.com said borrowers are unlikely to be good refinance candidates immediately after college because lenders usually require a minimum amount of full-time employment.
If you dropped out recently, you may want to wait a year before trying to refinance private loans. During that time, check your credit score through Mint, pay all your bills on time, avoid opening new loans or lines of credit, and pay your credit card bill in full every month.
Explore Deferment and Forbearance
Once you leave school, youâre eligible for a six-month grace period where federal student loan payments are put on hold. You wonât accrue interest during this time if you have subsidized loans, but you will if you have unsubsidized loans.
If you still need more time after the grace period has expired, you can apply for deferment or forbearance. Borrowers have to apply for deferment and forbearance manually and wait to be approved.
Deferment and forbearance are both federal programs that let borrowers avoid paying their student loans while still remaining current. The main difference between the two options is that interest will not accrue on your loan balance during deferment, but it will accrue during forbearance. For that reason, itâs harder to qualify for deferment.
Be careful about putting your loans in deferment or forbearance for a long time. The interest that accrues will capitalize, meaning it will be added to your loanâs principal. This will increase your total monthly payments and could delay your debt payoff timeline.
Apply for Public Service Loan Forgiveness
Public Service Loan Forgiveness (PSLF) is a program that encourages borrowers to choose a non-profit or government job. In exchange, your remaining loan balance will be forgiven after 10 yearâs worth of payments, which do not have to be consecutive. Itâs even available to borrowers who dropped out and never finished a degree.
âPSLF is always an option because it’s employer-dependent,â said student loan lawyer Joshua R. I. Cohen.
PSLF is only available for federal loans, and only those loans that are part of the Direct Loan Program. If you have FFEL or Perkins loans, you’ll have to consolidate them as part of the Direct Consolidation Program. This process will render them eligible for PSLF.
Be sure not to consolidate loans that are already part of the Direct Loan Program. If youâve already been making payments, consolidating loans will restart the clock on PSLF, and you could lose credit for eligible payments youâve already made.
The employer you work for must also be an eligible non-profit or government entity. Only full-time employees qualify for PSLF, which excludes part-time workers and independent contractors.
To be eligible for PSLF, you should fill out the employment certification form every year. This form asks for your employerâs contact information, your employment status, and more.
Once you submit the form, you should receive a notice verifying your employer and how many eligible payments youâve made. Doing this every year will make it easier when you apply for forgiveness after your 120 payments have been made.
âIt also gives borrowers an opportunity to dispute any errors or undercounts well before they reach eligibility for loan forgiveness, giving them plenty of time to address disputes,â said student loan lawyer Adam S. Minsky.
Borrowers can save money while working toward PSLF by choosing an income-based repayment plan instead of the standard 10-year plan. They also wonât owe taxes on the forgiven amount, so itâs best to choose the least expensive monthly option.
Try to Discharge Your Loans
If you couldnât complete college because the department you were studying in closed, or your school committed fraud, you may be a good candidate for discharging your student loans completely. If this happened to you, contact a student loan lawyer who can help you file a case.
The post I Dropped Out of College: My Student Loan Repayment Options appeared first on MintLife Blog.
Debt can feel like a terrible thing, but paying off your debts is how you demonstrate that you can successfully manage your finances. Whether you make your debt payments on time makes up 35% of your credit score. Making on-time payments is one of the smartest ways to use your debt to your advantage.
If you need a little help, debt management apps can help you organize and manage all of your debts in one place. Just input all debt data into your phone and manage them there. Here are a few options to consider.
Best Used For
Credit card management
Free to download
iOS and Android
Snowball Method, debt summary and tracking, progress bar
Pay Off Debt
Motivation to make your debt payments
iOS and Android
Budgeting for debt payments
Web, iOS, and Android
Student loan repayments
iOS and Android
Quick payoff calculator
Savings to apply to debt
iOS and Android
Credit Report Card
All-around financial wellness and credit score tracking
Web, iOS and Android
Tally is a debt management app that makes it easy to save money by automating your credit card payments to help you reduce your debt faster. The app is free to download, but the real value of Tally comes if you are approved for a Tally Line of Credit that consolidates your credit card debt with a lower APR. Youâll owe interest on that loan, but Tally will automate your credit card payments and determine the best way to save you money based on your credit card rates. Â
>> See our full review
Debt Book is an app for borrowers as well as lenders. It allows you to track and update your debt in a âMaster Book,â which shows your borrowed/lent amount, how much has been paid/collected, and how much remains. The app also gives you options to view this data in a statistical chart for a visual representation of your current debt situation. And if the borrower and lender are both on the app, they can communicate and send payments through the app. This makes it easier to stay in contact with one another and to stay on top of existing debt.
Debt Manager uses your debt information to create progress bar graphs to help you see how far along you are in paying off each debt, how much debt is remaining, and your interest rate. The application specifically focuses on the Snowball Method to track and pay off all debts quickly and efficiently. The interactive app gives hints and tips based on your debt situation. You can also track monthly payments within the app manually or automatically and test out different âWhat If?â scenarios.
Pay Off Debt
Pay Off Debt helps you choose the payoff method and order that works best for you. You can use the debt snowball method, debt avalanche method, or something else. Track your payoff progress and the interest youâve saved. Pay Off Debt also prioritizes keeping you motivated during your debt payment journey: the app provides a burst of motivation with a PAID icon each time you pay off a debt, and you can add pictures to symbolize your âWhy.â
Youâll need to budget in order to efficiently pay off your bills. Mint helps you do just that. Itâs one of the best-known budgeting apps for good reason. Itâs easy to use and is packed with extra features. Mint gathers everything in one placeâyour cash, credit cards, loans, investments, credit score, and more. Track your bill payments, budget for future payments, and get alerts when you overspend or a bill is due.
A round up app like Acorns, ChangEd is an easy way to automate regular extra payments to pay off your student loans early. Connect your loans and bank accounts and create an FDIC-insured ChangEd savings account. As you spend, ChangEd will roundup your purchases and transfer those roundups to your ChangEd savings account. Once you reach $100, theyâll send that money to the student loan you want to pay off first.
If you want a quick and easy way to visualize your debts and how long it will take you to pay them off, Unbury.me is a great tool. You donât need an account to use itâjust start entering your informationâbut you can sign up for a free account to save your information. Enter the principal remaining, interest rate, and monthly payment and see how long it will take to pay off those loans based on the payment methods you choose.
In order to pay off your debts, you need money. Thatâs where an app like Digit comes in. Itâs not a traditional debt management app, but itâs definitely a debt management tool. For $5 per month, it helps you save automatically without even thinking about it. You wonât miss the money it puts in savings for you, but you will benefit from it when itâs time to pay your bills.
Credit.comâs Free Credit Report Card
If you want to see how your debt management is improving your credit, sign up for Credit.comâs free Credit Report Card. Our Credit report CardÂ is an easy-to-understand breakdown of your credit report information that uses letter grades so you can track âplus you get a free credit score updated every 14 days.Â
Sign Up Now
Get Your Debt Under Control
Regardless of what approach you prefer to manage your debt, these apps have options for everyone. We suggest taking a look at which app works best for you and personalizing it to fit your needs.
Ready to take your finances to the next level? Sign up for ExtraCredit. This five-in-one financial tool will help you build, track, protect, and restore your credit profileâand reward you while youâre at it! Learn more about all the amazing benefits of an ExtraCredit account at Credit.com/Extracredit.
The post 9 Apps That Will Help You Manage Your Debt appeared first on Credit.com.
Short term investments are those investments that can yield their returns within a short period of time — usually within 1 to 3 years. (contrary to a long term investment such as saving for retirement).
In other words, short term investing are typically used to meet short-term financial goals (such as buying a house or go on a vacation).
A bank checking account is one of the best known and popular ways to save for such a goal.
But your traditional checking account only pays a meager return, if at all.
If you can’t find an alternative to a checking account, no need to fret.
There are plenty of shortterm investments that will help keep your money safe and earn a good return at the same time.
Below, we’ve curated the best short term investments to help reach your investment goals.
Get Matched With 3 Fiduciary Financial Advisors
Answer a quick question to start your matching process with advisors in your area.
When would you like to retire?
Select an answer
Things to consider:
First thing first, before you make any short term investments, you should know about the risk, return and investing time frame of short term investments.
Average return to expect: 1 to 4% per year;
Risk: very low to low risk of losing money;
Time frame: 0 to 3 years
Best short term investments:
If you’re saving and investing money for the short term, i.e., to use it as a down payment on a house, you will not invest that money in stocks or mutual funds, right?
That’s because, stocks are high risk investments. And if you need the money for a certain time, it might not be available due stock market volatility.
Instead, a smart choice is to save that money in a low-risk investment where you can protect the capital invested and earn interest/income at the same time.
If you have a different investing goal, such as saving for retirement, it’s best to look at stocks or mutual funds. Investing in stocks or mutual funds is considered a long term investment as opposed to short term investing.
If you’re interested in investing for the long term, here’s how the stock market works.
So, what are your options? Here are some of the best short term investments to consider to earn some interest on your money.
1. Savings account.
A savings account at a bank is an excellent choice. And they usually pay more interest than a regular checking.
They are quite safe. Savings account are insured by the FDIC, but only for up to $250,000.
That means if a bank goes bankrupt, the government will step up and give you your money back.
In addition, they are very liquid. You have access to your money fairly easy.
CIT Savings Builder – Earn 0.85% APY. Here’s how it works: Make at least a $100 minimum deposit every month. Or Maintain a minimum balance of $25k. Member FDIC. Click Here to Learn More.
2. Certificate of deposit (CDs).
If you want a good rate of return on money that you don’t plan on using within the next couple of years, CDs is a safe place to do invest it.
Banks sell certificate of deposit for a specific dollar amount and length of time. As an investor, you agree to leave a certain amount of money with the bank for a specific time.
When the time is up, the CD matures. Then, you get your money back, plus interest.
CDs are also FDIC insured for up to $250,000. They provide a safe and competitive yield. That makes them some of the best short term investments to consider.
The minimum deposit requires to open a CD depends on the bank. But it usually ranges from a few hundred dollars to thousands.
The CIT Bank is paying 1.30% for an 11-month CD. There is an opening minimum of $1,000. With most CDs, if you tap into your money before maturation, you will get hit with an early withdrawal penalty.
However, with this CIT Bank CD, there is no penalty if you withdraw early.
CIT Bank has various types of CDs. If you prefer longer terms CDs, check them out now at the CIT Bank website.
3. Money market fund
While you can keep your cash at a bank in a savings account because they’re safe there, you don’t have to.
You can try a money market fund. They are safe as well.
A money market fund is a type of mutual fund (but thy don’t focus on stocks or bonds).
Mutual funds companies such as Vanguard offer money market funds.
Money market fund is not insured by the government, so there is a possibility you can lose money. However, they are quite safe.
They’re safe, because they have a dollar invested in securities for every dollar you deposit in your fund.
The principal money you invested does not change in value. When you invest in a money market fund, you earn dividends. That’s a good advantage.
Another advantage of a money market fund as a short term investment is that it provides higher yield than bank savings account.
It also allows you to write checks without incurring any charges.
So, if you’re saving money for a home that you’re going to buy soon, a money market fund is a safe place to grow your money.
4. Short-term corporate bond funds.
Bonds, in general, are similar to CDs. An exception is that they, just as stocks, are securities that trade in the market.
So, they may fluctuate in value, but not as much as stocks.
Bond funds are a collection of bonds from companies (large, medium, or small) from different industries. Hence, the name “corporate bond funds.”
Investing in bond funds can be used as a short-term investment. Sometimes, investors consider corporate bond funds to diversify their investment portfolio.
Just like a money market fund, corporate bond funds are not FDIC insured. But they are just as safe as a money market fund.
Plus, you don’t just invest in one bond or two bonds. If one bond in your investment fund takes a hit, it only affects a small amount of your money.
So while they are riskier than money market funds saving accounts, CDs, short term corporate bonds pay you more. That makes them one of the best short-term investments out there.
5. Treasury bonds.
One of the best ways to invest money in the short term is to buy treasury bonds. Treasury bonds are issued by the U.S. government.
There are three types: treasury bills, treasury notes, and treasury bonds. They are like CDs. Once the bond matures, you get the full money invested, plus interest.
Treasury bonds may provide the same or a better interest rate than CDs. But a big advantage is that, while they’re not FDIC insured, they are backed by the U.S. government.
In other words, the government promises to repay your money, which is considered to be very safe.
So if you have more than $250,000, you should consider a treasury bond.
Another advantage is that while interest on a CD is fully taxable, Treasury’s interest is state-tax-free.
In conclusion, short term investments are those in which you make for a certain and short period of time for a specific goal.
Short term investments aren’t the best if you’re seeking high returns.
But if you’re a beginner investor you should consider placing some of your money into these best short term investments.
Remember: don’t invest your money in stocks when you plan to use it within the next five years, because a stock market drop can dry out your investment portfolio.
The Best Ways to Invest $1000 For Good Return
How to Invest With Little Money (Even With $5)
How to Invest 100k to Build Real Wealth
Speak with the Right Financial Advisor
If you have questions beyond short-term investments, you can talk to a financial advisor who can review your finances and help you reach your goals (whether it is making more money, paying off debt, investing, buying a house, planning for retirement, saving, etc). Find one who meets your needs with SmartAssetâs free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.
*TOP CIT BANK PROMOTIONS*
CIT Bank Money Market
CIT Bank Savings Builder
CIT Bank CDs
0.75% APY 1 Year CD Term
CIT Bank No Penalty CD
The post 5 Best Short Term Investments to Grow Your Money appeared first on GrowthRapidly.
When it comes to making a 401k early withdrawal, there are a number of reasons why it might be tempting. With millions still unemployed due to the pandemic, unexpected expenses are taking a particularly hard toll. One reason why early withdrawal isnât uncommon in the U.S. might be because itâs easy to assume youâll have time to rebuild your 401k nest egg.
However, is the benefit of withdrawing your retirement savings early truly worth the cost? For many people, their 401k is their primary method of investing in their financial future. Before making a decision about early withdrawal, itâs important to consider the penalties and fees that could impact you. Read on to learn exactly what happens when you decide to dip into your 401k so you wonât be surprised by the repercussions.
How Much Are You Penalized for a 401k Early Withdrawal?
On the surface, withdrawing funds from your 401k might not seem like a bad option under extenuating circumstances, but you could face penalties. Young adults are especially prone to early withdrawals because they figure they have plenty of time to replace lost funds.
If youâre not experiencing a significant hardship, 401k early withdrawal probably isnât the right choice for you. Ultimately, you could lose a substantial portion of your retirement savings if you choose to withdraw your 401k early to use the money to make other risky financial moves. Below, letâs delve further into the penalties that usually apply when you withdraw early.
1) Your Taxes Are Withheld
When you prematurely withdraw from your retirement account, your first consideration should be that youâll have to pay normal income taxes on that money first. This means youâre losing at least roughly 30 percent of your savings to federal and state taxes before additional penalties.
Even if you only have $10,000 you want to withdraw, consider that youâre automatically giving $3,000 of your cash to the government. In the best case scenario, you might receive some money back in the form of a tax refund if your withholding exceeds your actual tax liability.
2) You Are Penalized by the IRS
If you withdraw money from your 401k before youâre 59 Â½ , the IRS penalizes you with an extra 10 percent on those funds when you file your tax return. If we use the example above, an additional $1,000 would be taken by the government from your $10,000 â leaving you with just $6,000. If youâre 55 or older, you could try to get this penalty lifted by the IRS through the Rule of 55, which is designed for people retiring early.
Also, there are exceptions under the CARES Act, which is designed to help people affected by the pandemic. There are provisions under the act that state individuals under the age of 59 Â½ can take up to $100,000 in Coronavirus-related early distributions from their retirement plans without facing the 10 percent early withdrawal penalty under certain conditions.
3) You Lose Thousands in Potential Growth
Even if youâre not deterred by tax penalties, think twice before you sabotage your long-term retirement savings goals. When you withdraw money early, youâll miss out on potential future savings growth because you wonât gain the perks of compound interest. Compounding is the snowball effect resulting from your savings generating more earnings â not only on your principal investment but also on your accrued interest.
Also, if you make a 401k early withdrawal while the market is down, youâre doing yourself a disservice because youâll be leaving thousands on the table. Itâs unlikely youâll fully recover the lost years of compound interest you would have benefited from. You might need to get creative with a passive income stream to help support you later in life.
When Does a 401k Early Withdrawal Make Sense?
In certain cases, it actually might be strategic to move forward with 401k early withdrawal. For example, it could be smart to cash out some of your 401k to pay off a loan with a high-interest rate, like 18â20 percent. You might be better off using alternative methods to pay off debt such as acquiring a 401k loan rather than actually withdrawing the money.
Always weigh the cost of interest against tax penalties before making your decision. Some 401k plans do allow for penalty-free early withdrawals due to a layoff, major medical expenses, home-related costs, college tuition, and more. Regardless of your strategy to withdraw with the least penalties, your retirement savings are still taking a significant hit.
401k Early Withdrawal, Hardship, or Loan: Whatâs the Difference?
Knowing the differences between a 401k early withdrawal, a hardship withdrawal, and a 401k loan is crucial. Due to the many obstacles to make a 401k early withdrawal, you may find you want to keep it untouched. If youâre convinced you still need to use your 401k for financial assistance, consult with a trusted financial advisor to figure out the best option.
When Does ThisÂ Apply?
Your funds are withdrawn to pay off large debts or finance large projects.
Your 401k fund is typically subject to taxes and penalties.
Youâre only eligible for this type of withdrawal under circumstances such as a pandemic or natural disasters.
Withdrawals canât exceed the amount of the need and the funds are still subject to taxes and penalties.
The loan must be paid back to the borrowerâs retirement account under the plan.
The money isnât taxed if the loan meets the rules and the repayment schedule is followed.
If youâve left a job and donât know what to do with your Roth IRA, a 401k transfer is a good option. Most likely, you will save money and have a wider range of investment options when you transfer your funds. 401k fees can be high, and rolling over your funds to a Roth IRA account could be wise in the long run. Also, be aware that the process is more complicated for indirect rollovers.Â
If youâre one of the millions of Americans who rely on workplace retirement savings, early 401k withdrawal may jeopardize your future financial stability.
There are very few instances when cashing out a portion of your 401k is a smart move.
In most cases, any kind of early 401k withdrawal is detrimental to your retirement plans.
Stick to your budget and bulk up your emergency fund to stay one step ahead.
In short, 401k early withdrawals are usually counterproductive. Prevent compromising your hard-earned savings by using a free budgeting tool that will set you up for success. After all, being prepared and informed are two of the most important parts of maintaining financial health.
The post 401k Early Withdrawal: What to Know Before You Cash Out appeared first on MintLife Blog.
For individuals who are young and in good health, shopping for life insurance is often easy and stress-free. Most of the time, young people only need to decide how much coverage they want and apply for a free quote online. Some companies that market term life insurance coverage even let qualified applicants start their policies without a medical exam.
Once you have reached the age of 50, however, your options for life insurance may not be quite so robust. You may have to buy a lower amount of coverage in order to secure a monthly premium you can afford, and itâs more likely youâll need to undergo a medical exam and face increased scrutiny over your life insurance application.
Fortunately, you can get life insurance in your 50âs and even in your 60âs. Youâll just need to adjust your expectations, and you should be willing to shop around to ensure youâre getting the most coverage for a price you can afford.
Unique Challenges for Individuals Over 50 Buying Life Insurance
As you start shopping for a life insurance policy, youâll probably notice a few factors that are working against you. These factors arenât your fault, but they still affect your ability to qualify for life insurance coverage or affordable monthly premiums.
Your Age: Where life insurance can be downright cheap when youâre young and healthy, policies only get more expensive as you age. Once youâve surpassed the age of 50, the price youâll pay for a meaningful amount of coverage can easily balloon. This is why itâs more important than ever to spend time shopping around and comparing life insurance quotes.
Your Health: The older you are, the more likely you will have acquired a chronic health condition that can make getting life insurance coverage a challenge. Youâll need to answer health questions when you apply for a life insurance policy, and the answers you provide could set off alarm bells with the life insurance provider or bar you from purchasing a policy at all.
Policy Length: Another issue when youâre older is the term of coverage you can qualify for and purchase. A 30-year term policy will likely be fairly expensive if youâre already 55, for example, whereas a 10-year term policy that only provides a decade of coverage will likely be more affordable. Many older individuals opt to buy permanent coverage that lasts a lifetime, yet permanent coverage like whole life or universal life can also be incredibly expensive.
How and Where to Find a Life Insurance Policy if Youâre Over the Age of 50
Regardless of the challenges youâll face while buying life insurance over the age of 50, you can still purchase this important coverage. With that being said, youâll never know which insurance company is best unless you compare the best life insurance companies, such as Banner Life Rates.
When working with only one insurer, you are locked into just that insurance companyâs underwriting requirements â as well as that insurerâs prices. And, while it may sound strange, not all life insurance coverage is underwritten or priced identically.
For example, an applicant who applies to one insurance company may be accepted as a âstandardâ policyholder and charged an average premium rate, while he or she may be accepted only as a âsubstandardâ policyholder at another carrier and charged a higher rate of premium â even though they submitted the same answers to the questions on the application for coverage.
This is why it is essential to work with an expert in the insurance field that can submit your information to numerous insurance carriers. Just like when shopping for any other important item, itâs always best to compare prior to making your final determination.
This is where we come in. When shopping for insurance, we can help you compare dozens of plans and companies in a matter of minutes. This way, you can compare pricing and coverage amounts without having to apply with each individual insurer.
Regardless of your age or health, itâs important that you get the insurance coverage that your family will need. You can start comparing quotes from the best life insurance companies by clicking your state below.
No matter where exactly you are in your 50âs, we can definitely get a policy that meets your needs. We know that planning for your death is not a fun task, but itâs one of the most important things that you can do. You donât want to leave your family struggling to cover your final expenses at a time when they should be grieving and celebrating your life.
Do People Over the Age of 50 Still Need Life Insurance?
You may be wondering if people still need life insurance coverage once theyâre in their 50âs. After all, life insurance coverage is geared to people who need income replacement during their working years, as well as those with children and other dependents at home. By the age of 50, you should be winding down your working years, and itâs possible your kids have moved out to begin their adult lives. Why would you need life insurance at this point?
The thing is, consumers can easily need life insurance at any age, and this includes those who are over 50. Although your children may be grown and are no longer depending on your income for their living expenses and needs, there are numerous other reasons for having â or for keeping â this essential financial protection.
Some of the most important reasons can include:
Burial Insurance: Regardless of your age, youâll eventually need burial insurance to cover your final expenses. Today, the average cost of a funeral can easily exceed $10,000 when factoring in items such as the funeral service, burial plot, headstone, transportation, flowers, and a casket or urn. If there are final medical and hospice costs incurred, this could add significantly to the total.
Estate Taxes: Estate taxes are another potential area of concern for those who are over age 50. For those who are faced with having to pay estate tax upon death, this liability can erode up to 50% or more of a decedentâs assets. If there is no plan in place, such as life insurance proceeds, for paying these taxes, survivors could end up selling off other assets such as retirement investments or even precious family heirlooms in order to come up with the money. And unfortunately, when such assets are sold in this manner, they are often done so at far below market value.
Pension or Retirement Income Replacement: When a retiree dies, their pension may not continue on for their spouse. Buying a life insurance policy can ensure your spouse has some income to keep up with living expenses and enjoy life once youâre gone.
Business Succession: Life insurance can help business owners who are over age 50 to use as a business succession tool. Proceeds from a life insurance policy could be used to keep a company running while a replacement owner or partner is located, or while a suitable buyer for the business is found.
These are just a few of the reasons individuals over the age of 50 may want to purchase life insurance, but there are plenty of others. Just keep in mind that, no matter what age you are, itâs only natural to want to leave something behind. A life insurance policy can help you do exactly that, which is why consumers in nearly every age group purchase this important protection each year.
Which Type of Life Insurance is Best if Youâre Over the Age of 50?
When shopping for a life insurance policy at any age, itâs easy to become overwhelmed by all the options youâll find online. Before you commit to shopping for life insurance policies, you should know and understand how each type of coverage works.
Term Life Insurance
Term life insurance is sold for a certain length of time or a âterm,â which means that the policy will cover you for only a certain period before it expires. Most term policies are sold for 10 years, 15 years, 20 years, or 30 years. With a term life insurance policy, you are purchasing basic âno frillsâ coverage. This means that you are obtaining pure death benefit coverage without any cash value or savings component.
Even though the coverage on a cheap term life insurance policy runs out after a given period, these policies can be beneficial in certain situations. For example, term policies are often considered for âtemporaryâ needs such as providing protection during the length of a 15- or a 30-year mortgage balance. In other words, if an individual wanted to make sure that the balance of their home mortgage was paid off for his or her survivors in the event of death, they could purchase a term life policy for the same length of time in which they will have a remaining mortgage balance.
If a term life insurance policyholder wishes to continue their coverage upon the policyâs expiration, they will need to reapply at their current age and health condition. This will typically mean that the premium amount for the new coverage will be higher, and thatâs true even if the face amount of the policy remains the same. For many people, this is no problem because the premiums on term policies are much lower than the alternative options.
Related: How Much Does a Million Dollar Term Life Insurance Policy Cost?
Permanent Life Insurance
If you donât like the idea of your life insurance expiring, then go with a whole life insurance plan. Permanent life insurance plans never expire, but they are more expensive.
The money that accrues in a permanent life insurance policyâs cash value component can typically be borrowed or withdrawn by the policyholder for any need that he or she sees fit. This can provide the policyholder with additional funds for the down payment on a home, the purchase of a car, debt repayment, or even for supplemental retirement income in the future.
Although the premiums for permanent life insurance can be more expensive than premiums for a term policy, the amount of the premium on a permanent policy will typically be locked in for life. This means that the policyholder will not need to worry about his or her premiums increasing in the future â even if they get sick or wind up with a chronic health condition.
In addition to all of the other uses of life insurance for those who are over age 50, a permanent life insurance policy can also be used for the simple purpose of supplementing oneâs savings.
For example, a whole life insurance policy can help you to build up cash on a tax-deferred basis that can be drawn upon in the future in a number of different ways. Unlike money that is invested in the unpredictable stock market, funds that are inside of the cash value of a whole life insurance are provided with a guaranteed rate of growth. In addition, because of their tax-deferred nature, funds are allowed to compound over time with no tax due on the gain until the time they are withdrawn in the future.
This can provide not just safety, but also peace of mind in knowing that the principal is protected regardless of what is happening in the market, as well as in the economy overall. In addition, the death benefit on these life insurance plans is also tax-free to the named beneficiary (or beneficiaries). This means the money can be used by survivors for their financial needs, and all without having to hand over a portion of it to Uncle Sam.
While whole life is the most popular type of permanent life insurance coverage, you can also look into universal life insurance, variable life insurance, or even variable universal life. These niche policies tend to work better for consumers who have a specific financial goal, but they could work well for your needs depending on your situation.
Life Insurance with No Medical Exam
Many who have severe health issues may have to look into the option of no medical exam life insurance. This is often the only option for those who have been declined for life insurance in the past.
Each time an individual applies for life insurance coverage, the underlying insurer is essentially taking a risk on whether or not it will be required to pay out a claim. If the insurance carrier feels that the risk is too great, it will either charge the insured a higher rate of premium or it will deny the applicant for coverage altogether.
The good news is that people over 50 in the market for life insurance still have plenty of options â you just need to know where to look. You may assume that you wonât be able to get affordable coverage, but thatâs why we suggest that you look into a no medical exam plan from Haven Life to get your life insurance protection.
A healthy man who is 50-years-old can pay as little as less than $15 a month for $100,000 in term life insurance coverage, whereas a healthy 59-year-old can pay as little as $27 a month for the same policy. Even at the age of 59, a $400,000 policy can cost less than $100 a month. Note that these are non-smoker rates for a 10-year term policy.
If you have health conditions like cancer, heart disease, or diabetes while looking for life insurance, you can expect increased rates. Smoking will also increase the rates for life insurance for individuals who are ages 50 to 59.
The Bottom Line
At the end of the day, youâll never know how much you might need to pay for life insurance unless you shop around. And really, thatâs the main piece of advice I hope to impart on individuals ages 50 and older.
Purchasing life insurance coverage can be more challenging when youâre over the age
The post Life Insurance Over 50 appeared first on Good Financial CentsÂ®.
When purchasing or leasing a new car, you have several insurance coverage options. When selecting coverage, you will likely know if you want to have collision coverage or not, but will you know what gap insurance and whether to select that option? If you are driving your owned vehicle or a leased one, and it is totaled, your collision coverage insurance will cover your vehicleâs cash value. The coverage will help you to purchase a another car. However, what if you owe more on your car than itâs worth? That is where gap insurance comes in. Hereâs what you need to know about this type of coverage.
What is Gap Insurance?
Gap insurance protects you from not having enough money to pay off your car loan or lease if its value has depreciated, and you owe more on your car than it is worth. It is optional insurance coverage and is used in addition to collision or comprehensive coverage. It helps you pay off an auto loan if a car has been totaled or stolen, and you owe more than its worth. Gap insurance might also be known as loan or lease gap coverage, and it is only available if you are the first owner or leaseholder on a new vehicle.
Some lenders require individuals to have gap insurance. In addition to collision and comprehensive coverage, gap insurance helps prevent owners and leasers from owing money on a car that no longer exists and protects lenders from not getting paid by a person in financial distress.
How Gap Insurance Works
If you buy or lease a new car, you may owe more on the vehicle than it is worth because of depreciation. For example, letâs say you purchase a new car for $35,000. However, a year later, the car has depreciated and is only worth $25,000, and you owe $30,000 on it. Then, you total the car. Comprehensive insurance coverage would give you $25,000, but you would still owe $5,000 on the vehicle. Gap insurance would cover the $5,000 still owed.
Without gap insurance, you would have had to pay $5,000 out-of-pocket to settle the auto loan. With gap insurance, you did not have to pay anything out of pocket and were likely to purchase a new car with financing.
What Gap Insurance Covers
Gap insurance covers several things and is meant to complement collision or comprehensive insurance. Gap insurance covers:
Theft. If a car is stolen and unrecovered, gap insurance may cover theft.
Negative equity. If there is a gap between a carâs value and the amount a person owes, gap insurance will cover the difference if a car is totaled.
Gap insurance also covers leased cars. When you drive a new, leased car off the lot, it depreciates. Therefore, the amount you owe on the lease is always more than the car is worth. If you total a leased car, youâre responsible for the fair market value of the vehicle. If you lease, you can purchase gap coverage part way through your lease term, although many dealerships require both comprehensive and collision coverage and strongly recommend gap coverage.
What Gap Insurance Doesnât Cover
Gap insurance is designed to be complementary, which means that it does not cover everything. Gap insurance does not cover:
Repairs. If a car needs repairs, gap insurance will not cover them.
Carry-over balance. If a person had a balance on a previous car loan rolled into a new car loan, gap insurance would not cover the rolled-over portion.
Rental cars. If a totaled car is in the shop, gap insurance will not cover a rental carâs cost.
Extended warranties. If a person chose to add an extended warranty to an auto loan, gap insurance would not cover any extended warranty payments.
Deductibles. If someone leases a car, their insurance deductibles are not usually covered by gap insurance. Some policies have a deductible option, so it is wise to check with a provider before signing a gap insurance policy.
Reasons to Consider Gap Insurance
There are several situations you should consider gap insurance. The first is if you made less than a 20% down payment on a vehicle. If you make less than a 20% down payment, it is likely that you do not have cash reserves to cover them in case of an emergency and that they will be âupside downâ on the car payments.
Additionally, if an auto loan term is 60 months or longer, a person should consider gap insurance to ensure that he or she is not stuck with car payments if the vehicle is totaled.
Finally, if youâre leasing a car, you should consider gap insurance. Although many contracts require it, the vehicle costs more than itâs worth in almost every situation when you lease.
Is a Gap Insurance Worth It?
Gap insurance keeps the amount that a person owes after buying a car from increasing in case of an emergency. Therefore, if someone does not have debt on his car, thereâs no need for gap insurance. Additionally, if a person owes less on his car than it is worth, thereâs also no need for gap insurance. Finally, if a person does owe more on a vehicle than it is worth, he may still choose to put the money that would be spent on gap insurance every month toward the principal of his auto loan.
If a person owes more on his car than it is worth and would be financially debilitated by having to pay the remainder of his car payments if his vehicle was totaled or stolen, then gap insurance might be a saving grace.
If the extra cost of gap insurance strains your budget then consider ways to keep your vehicle insurance costs down without skipping gap insurance.
Gap insurance covers the amount that a person would still owe on a vehicle after it is stolen or totaled, and after comprehensive insurance pays out. It prevents people from continuing to owe on a car that no longer exists. While it doesnât make sense for everyone to purchase gap insurance, it is often smart for people who have expensive vehicles that are worth far more than a person owes. It is also something to consider when you are leasing a vehicle.
Tips for Reducing Insurance Costs
If you need a little additional help weighing your insurance options, you might want to consider working with an expert. Finding the right financial advisor that fits your needs can be simple. SmartAssetâs free tool will match you with financial advisors in your area in five minutes. If youâre ready to learn about local advisors to help you achieve your financial goals, get started now.
You may want to consider all the insurance options available that are suitable for your unique situation. By doing so, you save money. A free comprehensive budget calculator can help you understand which option is best.
The Federal Reserve recently lowered interest rates in an effort to stimulate the economy during the coronavirus pandemic. As a result, more and more people are becoming interested in refinancing their mortgage. Depending on the situation, refinancing your mortgage can prove to be a savvy financial decision that can save you massive amounts of money in the long-term. But is it right for you?Â
If youâre curious about refinancing your mortgage, this article should answer many of your questions, including:Â
How Does Refinancing Work?
When Should I Refinance My Mortgage?Â
What is the Downside of Refinancing My Home?Â
How Do I Calculate if I Should Refinance My Mortgage?Â
What are My Refinancing Options?Â
How Does Refinancing Work?Â
âRefinancing your mortgage allows you to pay off your existing mortgage and take out a new mortgage on new terms,â according to usa.gov. So when you refinance your mortgage, youâre essentially trading in your old mortgage for a new one. The new loan that you take out pays off the remainder of the original mortgage and takes its place. That means the terms of the old mortgage no longer apply, and youâre instead bound by the terms of the new one.Â
There are many reasons why homeowners choose to refinance their mortgage. They may want to secure a loan with a lower interest rate, switch from an adjustable rate mortgage (ARM) to a fixed-rate, shorten or lengthen their repayment term, change mortgage companies, or come up with some cash in order to pay off debts or deal with miscellaneous expenses. As you can see, there are a vast number of reasons why someone might be interested in refinancing.Â
There are also a couple of different ways to go about refinancing. A standard rate-and-term refinance is the most common way to do it. With this method, you simply adjust the interest rate youâre paying and the terms of your mortgage so that they become more beneficial to you.Â
However, you could also do a cash out refinance, where you pull equity out of your home and receive it in the form of a cash payment, or take out a new loan thatâs greater than the remaining debt on the original mortgage. Even though youâll get an influx of cash in the short-term, a cash out refinance can be a risky option because it increases your debt and itâll likely cost you in interest payments in the long-term.
When Should I Refinance My Mortgage?
Maybe youâve been wondering, âShould I refinance my mortgage?â If you can save money, pay off your mortgage faster, and build equity in your home by doing so, then the answer is yes. Whether you can achieve this is dependent on a variety of things. Take a look at these refinance tips in order to get a better idea of when you should refinance your mortgage.Â
Capitalize on Low Interest RatesÂ
When mortgage rates go down, a lot of people consider refinancing their mortgage in order to take advantage of that new lower rate. And this makes perfect senseâby paying a lower interest rate on your mortgage, you could end up saving thousands of dollars over time. But when it comes to refinancing your mortgage, there are a number of other factors you should consider as well.Â
Regarding interest rates, you should take a look at how steeply they drop before making any refinancing decisions. It might be a good idea to refinance your mortgage if you can lower your interest rate by at least 2 percent.Â It ultimately depends on the amount of your mortgage, but anything less than that amount likely wonât be worth it in the long run.Â
Switch to Fixed-Rate Mortgage
Itâs also very common for people to refinance in order to get out of an adjustable rate mortgage and instead convert to a fixed-rate. An adjustable rate mortgage usually starts off with a lower interest rate than a fixed-rate, but that rate eventually changes and it can end up costing you. Thatâs because the interest rate on an adjustable rate mortgage changes over time based on an index of interest rates. It can alter based on the mortgage market, the LIBOR market index, and the federal funds rate.Â
By converting to a fixed-rate mortgageâwhere the interest rate is set when you initially take out the loanâbefore the low rates on your adjustable rate mortgage increase, you can minimize the amount you have to pay in interest. If youâre able to lock in a low fixed interest rate, youâll be less susceptible to market volatility and more capable of devising a long-term payment strategy.Â Â Â
When debating the question of âShould I refinance my mortgage or not?â, you should also keep in mind what lenders will look at when determining the terms of your loan. In order to come up with an interest rate and approve you for a refinancing loan, lenders will take the following factors into consideration:Â
Payment history on your original mortgage: Before issuing a refinancing loan, lenders will review the payment history on your initial mortgage to make sure that you made payments on time.Â
Credit score: With good credit, youâll have more flexibility and options when refinancing. A high credit score will allow you to take out loans with more favorable terms at a lower interest rate.Â
Income: Lenders will want to see that you generate a steady, reliable income that can comfortably cover the monthly mortgage payments.Â Â
Equity: Home equity is the loan-to-value ratio of a borrower. You can calculate it by dividing the amount owed on the current mortgage loan by the homeâs current value. Before you consider refinancing, you should ideally have at least 20% equity in your home. If your equity is under 20% but your credit is good, you still may be able to secure a loan, but youâll likely be charged a higher interest rate or have to pay for mortgage insurance, which is not ideal.
What is the Downside of Refinancing My Home?Â
Refinancing a mortgage isnât for everyone. If you donât take the time to do your research, calculate savings, and weigh the benefits versus the potential risks, you could end up spending more money on refinancing than you would have had you stuck with the original loan.Â
When refinancing, you run the risk of placing yourself in a precarious financial position. This is especially true when it comes to a cash out refinance, as this can put you on the hook for even more money and bury you in interest payments.Â
Donât refinance your home and pull out equity just to get quick cash, make luxury purchases, and buy things you donât needâdoing this is an easy way to dig yourself into a deep financial hole. In reality, you should only refinance your mortgage if you know that you can save money doing it.Â
How Do I Calculate if I Should Refinance My Mortgage?Â
Before you refinance your mortgage, itâs crucial to crunch the numbers and determine whether itâs worth it in the long-run. To do this, youâll first have to consider how much refinancing actually costs.Â
Consider Closing Costs
So how much does it cost to refinance? One of the most significant expenses to take into account when refinancing is the closing costs. All refinancing loans come with closing costs, which depend on the lender and the amount of your loan, but average around three to six percent of the principal amount of the loan. So, for example, if you took out a loan of $200,000, you would end up paying another $8,000 if closing costs were set at 4%.Â
These closing costs are most often paid upfront, but in some cases lenders will permit you to make the closing costs part of the principal amount, thus incorporating them into the new loan. While closing costs generally donât cover property taxes, homeownerâs insurance, and mortgage insurance, they do tend to include the following:Â
Refinance application fee
Home appraisal and inspection feesÂ
Escrow and title feesÂ
Determine Your Break-Even Point
To make an informed decision as to whether refinancing your mortgage is a sound financial decision, you should calculate how long it will take for the refinancing to pay for itself. In other words, youâll want to determine your break-even point. To calculate your break-even point, divide the total closing costs by the amount youâll save on a monthly basis as a result of your refinance loan.Â
The basic equation for figuring out your break-even point is as follows:Â [Closing Costs] / [Monthly Savings] = [# of Months to Break Even]Â
Taking this into consideration, you can see how the length of time you plan on staying in a home can make a big difference as to whether or not refinancing your mortgage is the right option for you. If youâre thinking of moving away and selling your house in a few years, then refinancing your mortgage is probably not the right move. You likely wonât save enough in those few years to cover the additional costs of refinancing.Â
However, if you plan on remaining at the house youâre in for a long stretch of time, then refinancing could potentially save you a lot of money. To make an informed decision, you have to do the math yourselfâor, to make the calculations even simpler, use Mintâs online loan repayment calculator.Â
What are My Refinancing Options?Â
As stated above, you have options when it comes to refinancing loans. You could refinance your mortgage in order to secure a lower interest fee and a change in the terms of your loan; or you might opt for a cash out refinance that lets you turn your homeâs equity into extra income that you can use to pay for home improvement, tuition costs, high-interest debt payments, and more.Â
In order to actually start refinancing your home, youâll have to find a lender and fill out a loan application. Shop around at large and small banks alike to see who will offer you the lowest interest rates and the best terms. How long does a refinance take? The timeline depends on a few things, including the lender you borrow from and your own financial situation. But, in general, it takes an average of 45 days to refinance a mortgage.Â
You might also consider forgoing the traditional banks and dealing with an online non-banking company instead. Alternative lenders often offer greater flexibility in terms of who qualifies for a loan and they can, in some cases, expedite the refinancing process. For example, Freddie Mac is a government-sponsored mortgage loan company that, in addition to offering no cash out and cash out refinancing, has a third option available for borrowers whose loan-to-value ratio is too high to qualify for the traditional refinancing routes. Learn more by visiting freddiemac.com.Â
When tackling any big financial decision, itâs important that youâre informed and organized. Learn the facts, do the calculations, and research your options before beginning the refinancing process to make sure itâs the right choice for you.Â
The post Should I Refinance My Mortgage? When to Refinance appeared first on MintLife Blog.
A fiduciary deposit account is an account thatâs owned by one or more persons but managed by another. The owner is known as the principal, while the manager is known as the fiduciary. These accounts are sometimes used to handle estate or trust assets, among other purposes. Their legal status and their insurance coverage are determined by the Federal Deposit Insurance Corporation (FDIC). Hereâs what you need to know about this type of account.
Fiduciary Deposit Account, Defined
A fiduciary deposit account, also known as a principal account, is a deposit account that a person or other entity, acting as a fiduciary, establishes to benefit one or more persons who own the assets in the account, according to FDIC rules. The individual who opens the account doesnât have ownership of it nor any ownership interest.
Some examples of fiduciaries of these accounts are trustees, agents, nominees, custodians and guardians. Fiduciary accounts are used in various ways:
Uniform Transfers to Minors Act (UTMA) accounts
Uniform Gifts to Minors Act (UGMA) accounts
Decedent estate accounts
Real estate and other escrow accounts
Accounts with a power of attorney
When FDIC Pass-Through Insurance Coverage Applies
All deposits managed by a fiduciary on behalf of the accountâs owner or owners are insured by the FDIC for the full $250,000 on a pass-through basis. This means that all the deposits are considered to be deposits made directly from the principal as long as three requirements are met:
The owner of the funds must be the principal and not the fiduciary who set up the account. The FDIC may review the fiduciary and ownerâs agreement on the account as well as state laws to confirm this.
The record of the insured depository institution (IDI) account must indicate the agency nature of the account. For example, the ownership of the account may read ABC Company as custodian, ABC for the benefit of (FBO) or Sally Rowe UTMA John Rowe, Jr.
The IDI, fiduciary and third-party records must show the ownersâ identities and the ownership interest(s) in the deposit account.
For example, letâs say XYZ Brokerage firm establishes an account for Sally Rowe at ABC Bank. In this example, Sally Rowe is the owner, or the principal, of the money in the account. This account would then be added with any other single accounts she owns at ABC Bank, which would be insured as a single account for up to $250,000.
If we assume Sally has more single ownership accounts at ABC Bank, she will not receive additional coverage because XYZ Brokerage firm opened the account for her. With a fiduciary account, coverage is provided as though the actual owner opened the account at the IDI, assuming all responsibilities are met.
Pass-through coverage is also possible if a guardian retains part of the interest paid by the IDI as a guardian fee.
When FDIC Pass-Through Insurance Coverage Doesnât Apply
If requirements of a fiduciary account are not met, the account will be insured under the fiduciary, not the intended principal. In this case, the fiduciary will own the deposits and the account will be categorized as a single account or corporate account. These deposits will then be combined with other deposits the fiduciary holds in the same ownership at the IDI where funds are held. The total sum will be insured up to $250,000.
For example, letâs say a customer of a deposit broker is assured by the guardian (fiduciary) that he or she will earn 5% on a deposit when the IDI is paying only 3%. The guardian would not be a guardian then; he or she would be a borrower with an independent responsibility to pay 5%. In this case, the deposits are no longer eligible for pass-through coverage for the principal. Instead, the deposits are now considered corporate deposits belonging to the guardian.
A fiduciary deposit account is an account set up by someone for another person, who actually owns the money. The one who sets up the account and manages it is known as the fiduciary, while the owner of the money is known as a principal. This kind of arrangement is used to handle assets in trusts, escrow accounts, brokerage accounts and decedent estates, among other uses. Itâs important that these arrangements carefully follow all the FDICâs legal requirements, as well as applicable state regulations, to qualify as a fiduciary deposit account.
Estate Planning Tips
Consider talking to a financial advisor about your estate plans. Finding a financial advisor doesnât have to be hard. SmartAssetâs free financial advisor matching service can connect you with several in your area in minutes. If youâre ready, get started now.
If you have an agent, they may make decisions about your 401(k) account. Find out how much money youâll have in your account by the time you retire with our free 401(k) calculator.