Your Window Savings

February 9, 2011 · Cash Savings Bonds · (No comments)

Consider your windows. Are they everything that they can be to you?

There is no doubt that windows in a home are necessary, but they can cost you a great deal of money when it comes to energy. The fact here is that windows allow for air to pass through them easily. In effect, they can be a huge part of you energy usage.

In fact, those that have windows that are not providing a good amount of insulation can be looking at up to 35 percent of their loss to come from their windows. 35 percent of the energy that you use can be due to your windows.

Should You Replace?

To repair this problem, there are several things that you can do. First off, this is one case when you will want to carefully consider the benefits of replacing your windows. If you have older windows, it may be necessary to replace them.
Windows on a home should be replaced any place from every ten years to every twenty depending on the type of window and its insulation. It is not so much their age, though, as the way in which they work.

What you are looking for is a good level of protection. You want the heat to stay in during the winter months and the cold to stay out. Flip flop that for the summer months. Nevertheless, this can be hard to do for older windows.

Those that have fewer than two panes of glass should be replaced for additional energy efficiency, if your budget allows for it.

If there are cracks, breaks and other areas where the window is compromised, these too should be replaced beyond a doubt.

But, when it comes to replacing windows, it is not necessary about purchasing the most expensive one out there. Because the windows in your home make up such a large, large faculty of the energy that you use, you want to purchase the highest quality, energy efficient windows that you can.

They should look the way that you want them, but it is more important to get those that will keep temperatures even throughout the home instead.

The cost of replacing windows is a large one, yet the fact is that they can save you a great deal.

It may be that you wish to wait a couple of additional months before purchasing windows and that is just fine. In the meantime, why not consider any of these other window tips to save you money?

Young, Self Employed, No Accounts And No Savings. How

February 2, 2011 · Cash Savings Bonds · (No comments)

Young, Self Employed, No Accounts And No Savings. How Did I Get A Mortgage?

I was having considerable problems getting a mortgage to buy my first home about four years ago. If I was to believe everything I had heard, I was the ideal candidate for a mortgage – young, a first-time buyer and with an annual income of about 30k. Easy!

No, not easy, actually. Being young with a leaning towards enjoying myself, I had no savings – nothing to use as a deposit. But what about these 100% mortgages I had been hearing about? Surely I qualified? Oh, there was something else – I was also self employed with no accounts.

Self employed with no accounts and no savings.

Could I get a mortgage? It was virtually impossible. Not a single High Street lender would give me a mortgage. Even my bank who have had my services for ten years turned me down; even though my bank knew exactly how much I earned each year and how much I spent each week; even though my bank knew that making the monthly payments on a repayment mortgage would not be an big problem for me.

Then I heard about Self Certification Mortgages.

What is a Self Certification Mortgage? It’s essentially a mortgage whereby you decide whether or not you are capable of making the repayments. And that is when the penny dropped, because you see the entire process of applying for a mortgage is premised upon an institution (such as your bank) deciding whether or not you are able to make the monthly repayments.

And what is the formula for working this out? Well, if you are employed it is your salary – a bank will lend you, say, 3 or 4 times your annual salary. Normally they will ask you for a small deposit, say 5%, to demonstrate that your intentions are serious.

Obviously, if you are self employed, and particularly with no accounts, you often do not have an annual salary and you are unable to demonstrate regular monthly income. Many self employed people – notably me – live hand-to-mouth, regularly waiting for reluctant clients to settle outstanding invoices. So how can your ability to repay a mortgage be judged? I discovered that self certification was the answer – i.e. YOU. You make a judgement as to whether or not you are borrowing too much money and whether or not you will be able to afford the monthly repayments. After all, if you are bright enough to run your own business, manage your own tax affairs, handle purchasing and invoicing, surely you are bright enough to work out whether you can repay your mortgage!

Think about it – conventional, salary-based mortgages are judged on the basis of what a person has earned in the past, but a person could be made unemployed within hours of securing a mortgage. On the other hand, Self Certification puts the onus on you predicting what you will earn in the future. Sure, you could go out of business, but a salaried person could also lose their job.

So I thought, well this is good, but I bet that a Self Certification Mortgage is the stuff of loan sharks, with huge interest rates, crushing monthly repayments and Guantanemo-style penalties.

But there was something else I discovered about mortgages. Although the High Street is swamped by lenders, there are only actually a very small number of ‘actual’ lenders: the majority are intermediaries acting on their behalf, because the number of mortgage applications is so great that intermediaries are required to perform the process of judging each applicant and assessing risk.

So I discovered that whereas a High Street lender would turn me down, a smaller lender might accept me. But get this: the mortgage that I actually received from the small lender at the end of the day was exactly the same as the mortgage which had been refused me by the High Street lender! Only the forumla for judging my ability to repay the mortgage was different, not the mortgage itself!

So what’s the catch with Self Cerftification? There is always a catch in my experience, and in this instance it was a very big catch. Whereas a regular mortgage requires the borrower to contribute a deposit of, say, 5%, my Self Certification Mortgage required a deposit of 15%. Fifteen percent!! Of course I can see why they ask for this, why if you are not being judged using the conventional formula you are expected to show some serious committment. But I didn’t have any savings. I was young and self employed for crying out loud.

So what did I do? Okay, I would not recommend this to everybody, but I was desperate for my own home and I knew that I could afford the repayments. I took out a Personal Loan shortly before my mortgage application and, supplemented with a timely invoice payment, I was able to pay the deposit and afford the key refurbishment costs on the property (roof, re-wiring, plumbing etc).

On the High Street this would be called a Home Improvement Loan and acquired AFTER you have obtained a mortgage and purchased the property. I simply borrowed a little more in the form of a Personal Loan before I had acquired a mortgage. I was fortunate in that I could afford to carry the costs of these repayments for the forseeable future and I had bought on a rising market – the value of my property was already more than the mortgage and personal loan combined before I had even finished the refurbishment (ie. 4 months after buying the property). I would not recommend this to everyone, and you have to be very, very clear about how much you are borrowing and what the total repayments will be.

However, getting on the property ladder and having my own home was the most important thing to me, and it just goes to show that if you look beyond the High Street you can actually find the same or similar financial products but with less of the hassle. The High Street had always made me feel inadequate, a financial failure

You might be interested to know that, because I was still looking for the catch in my Self Certification Mortgage, I went to a respected, independent financial advisor recently (on the High Street as it happens) and asked if I should change my mortgage to something better. His advice was that I had got a very good mortgage deal and that I should stick with it for the forseeable future. So I have.

Richard

Upside potential with convertible bonds

January 19, 2011 · Cash Savings Bonds · (No comments)

Convertible bonds are bonds issued by corporations that are backed by the corporations’ assets. In case of default, the bondholders have a legal claim on those assets. Convertible bonds are unique from other bonds or debt instruments because they give the holder of the bond the right, but not the obligation, to convert the bond into a predetermined number of shares of the issuing company. Therefore, the bonds combine the features of a bond with an “equity kicker” – if the stock price of the firm goes up the bondholder makes a lot of money (more than a traditional bondholder). If the stock price stays the same or declines, they receive interest payments and their principal payment, unlike the stock investor who lost money.

Why are convertible bonds worth considering? Convertible bonds have the potential for higher rates while providing investors with income on a regular basis. Consider the following: 1. Convertible bonds offer regular interest payments, like regular bonds.

2.Downturns in this investment category have not been as dramatic as in other investment categories.

3.If the bond’s underlying stock does decline in value, the minimum value of your investment will be equal to the value of a high yield bond. In short, the downside risk is a lot less than investing in the common stock directly. However, investors who purchase after a significant price appreciation should realize that the bond is “trading-off-the-common” which means they are no longer valued like a bond but rather like a stock. Therefore, the price could fluctuate significantly. The value of the bond is derived from the value of the underlying stock, and thus a decline in the value of the stock will also cause the bond to decline in value until it hits a floor that is the value of a traditional bond without the conversion.

4.If the value of the underlying stock increases, bond investors can convert their bond holdings into stock and participate in the growth of the company.

During the past five years, convertible bonds have generated superior returns compared to more conservative bonds. Convertible bonds have generated higher returns because many companies have improved their financial performance and have their stocks appreciate in value.

Convertible bonds can play an important role in a well-diversified investment portfolio for both conservative and aggressive investors. Many mutual funds will invest a portion of their investments in convertible bonds, but no fund invests solely in convertible bonds. Investors who want to invest directly could consider a convertible bond from some of the largest companies in the world.

Understanding Bonds

January 12, 2011 · Cash Savings Bonds · (No comments)

There are certain things you must understand about bonds before you start investing in them. Not understanding these things may cause you to purchase the wrong bonds, at the wrong maturity date.

The three most important things that must be considered when purchasing a bond include the par value, the maturity date, and the coupon rate.

The par value of a bond refers to the amount of money you will receive when the bond reaches its maturity date. In other words, you will receive your initial investment back when the bond reaches maturity.

The maturity date is of course the date that the bond will reach its full value. On this date, you will receive your initial investment, plus the interest that your money has earned.

Corporate and State and Local Government bonds can be called before they reach their maturity, at which time the corporation or issuing Government will return your initial investment, along with the interest that it has earned thus far. Federal bonds cannot be called.

The coupon rate is the interest that you will receive when the bond reaches maturity. This number is written as a percentage, and you must use other information to find out what the interest will be. A bond that has a par value of $2000, with a coupon rate of 5% would earn $100 per year until it reaches maturity.

Because bonds are not issued by banks, many people dont understand how to go about buying one. There are two ways this can be done.

You can use a broker or brokerage firm to make the purchase for you or you can go directly to the Government. If you use a brokerage, you will more than likely be charged a commission fee. If you want to use a broker, shop around for the lowest commissions!

Purchasing directly through the Government isnt nearly as hard as it once was. There is a program called Treasury Direct which will allow you to purchase bonds and all of your bonds will be held in one account, that you will have easy access to. This will allow you to avoid using a broker or brokerage firm.

The NS&I and Premium Bonds

January 5, 2011 · Cash Savings Bonds · (No comments)

Premium bonds were conceived in 1861. It was set up so that ordinary people could save and invest their money if case of accident or death. The original name of the program was called the Post Office Saving Bank. It popularity spread an soon the Chancellor was borrowing money from the funds so that he could support public projects. This gave the premium bonds a duel purpose. First the bond where considered a source of a secure investment that could not go bankrupt or could not loose value. Second the bonds were seen as a way to give the government a source of funds when taxes and other monies were not enough.

The Post Office Bank sold saving certificates that did offer a lottery system to go with them. In 1957 a lottery was issued once a month to persuade British citizens to invest more money. In 1967 the Post Office management changed hands and the Treasury Department took over. The program was renamed the National Savings and the Post Office became the major supplier of premium bonds. The National Savings part of it became a source of other investments besides premium bonds. In 1996 the post office became the store of the agency and the National Savings and Investment became more aligned with the Chancellor. All a citizen had to do was to go to the post office and make a hundred pound investment toward a bond purchase. They could invest until they reached the cap of thirty thousand pounds.

Siemens Corp became apart of the operation in 1999. In an attempt to modernize the agency over 4000 agency employees were sent to Siemens schools for business to learn new investing techniques. Since then the employees have become more professional in the delivery of investment services. New call centers were added and more technology was used in the handling of investment portfolios. Siemens will end its contract with the National Savings and Investments in 2014 and the agency will be self-sufficient in its own affairs.

Through their training, the employees of the National Savings and Investment have met goals of improved customer care and the professional implication of investment opportunities. The use of the internet has made the communication between provider and customer easier to facilitate and information about the company can be found at the stroke of a keyboard. As the popularity of premium bonds grows so will the commitment of National Savings and Investment to provide their customers with professional, friendly service.

The growth of premium bonds has skyrocketed in the past decade. The negative impact of the growth is that the chances of having your bond picked by the random number generator is widening. Statistically the bigger the population of numbers the gap grows wider for the individual investor to be selected. Many people are pulling their premium bonds investment and putting them into traditional low interest savings accounts. This pull back from impatient investors may reverse the numbers so the chances of winning will grow.

Surety Bonds with Low Premium Rates to Credit Worthy Applicants

December 29, 2010 · Cash Savings Bonds · (No comments)

Surety Bonds with Low Premium Rates to Credit Worthy Applicants

www.southcoastsurety.comSurety Bonds with Low Premium Rates to Credit Worthy Applicants

www.southcoastsurety.comSouth Coast Surety, a nationwide bond only agency, has redesigned its website to better meet the needs for national surety bond production. Along with a new look, the web based applications add to South Coast Surety’s ability to provide fast responsive support to its growing www.southcoastsurety.comcommercial-bonds.htmcommercial and contract surety portfolio.

San Clemente, CA, January 10, 2007 — South Coast Surety is a surety bond only agency that provides surety support on a national basis. The firm’s strong web presence at www.southcoastsurety.com makes available the largest scope of surety bond agency products on the internet. South Coast Surety has seen a continuing growth in their commercial bond portfolio of www.southcoastsurety.comcommercial-bonds.htmlicense bonds, www.southcoastsurety.comsurety-bond-brokers.htmbroker bonds and many other www.southcoastsurety.comsurety-bond-applications.htm#miscellaneoussuretymiscellaneous surety bonds. To meet the production needs of their expanding commercial surety bond business, South Coast Surety has designed the web site to allow their many insurance agents and the general public easier access to surety bond applications, rates and forms.

Among the features of the recently reformatted site is the Newly Required Bonds section. Currently listed is the

Success Stories About Premium Bonds

December 22, 2010 · Cash Savings Bonds · (No comments)

Premium bonds are a great way to invest for your future. Not only do you get the chance to store your money in a secure environment but you get a chance to win a million pounds. Some people doubt the system but there is a plethora of success stories that prove that premium bonds are a good investment and is a great way to have fun playing the monthly lottery. Each month bond numbers are randomly picked and if are the lucky investor, you could win a prize from fifty to a million pounds. The following are some testimonials about the success for premium bonds.

One lady had a one pound bond purchased for her by her grandparents. Even though the bond was purchased in 1965, this single bond has been picked twice for a fifty pound and a hundred pound cash prize. This has spurred the woman to invest heavily in the program and she encourages her children to invest also. These two wins have created a saving culture within the family and with other wise financial decisions; this woman will be set up in her retirement age. Her family also will be able to save for college and their retirement also.

Another lady in Liverpool stated that she had twenty thousand premium bonds and that she was disappointed that she didn’t win anything after a few months. She had only won one fifty pound prize after the purchase. She was so up set that she wrote the National Savings and Investment agency and complained. Not only did she get a reply and an explanation but she also was notified that she had won another fifty pound prize and ironically the same bond number she won on the first prize was the same bond number that was picked for the second time.

This was picked up by a conspiracy theorist who spouted the odds that if one bond is bought for one person, that person will have a chance of winning every three thousand years or so. Also that person has a chance of winning the million dollar prize at the odds of twenty three million to one. He is skeptical about the ladies story, but refuses to pull out his premium bonds because he knows it is a safe place for saving and he still has faith that he will earn a prize, maybe the million dollar prize for his investment. He says not only he will save but will invest more until he gets to the cap of thirty thousand pounds.

Another lady supports the theory that newer bonds have a better chance to win than older bonds. She bought her son a bond in the 1961. Her son never won a prize for the bond since the purchase. The gentleman bought a new bond last year and won a fifty pound prize the first month. The theory that newer bonds win more frequently can be explained by the fact that the population and the popularity of bonds has increased since the sixties. Therefore the statistics are slanted more toward the new bonds than the ones bought decades ago.

Savings,Fixed deposits in India

December 15, 2010 · Cash Savings Bonds · (No comments)

Tax saving is one of the prime important issue for an individual as we are paying up to 40% of our hard earned income as tax.

Various banks are offering different tax saving fixed deposits scheme with high interest rates plus abundant saving of taxes. Tax-saving is no longer the secured domain of Public Provident Fund and National Savings Certificate. Tax-saving Fixed Deposits offered by banks are also eligible for deduction under Section 80C. The deposits are subject to a 5-Yr lock-in period. Currently, the returns on tax-saving Fixed Deposits vary between 7.50-8.50 per cent per annum. The minimum and maximum investment amounts (per annum) have been pegged at Rs 100 and Rs 100,000 respectively. Introduction of tax-saving Fixed Deposits offers risk-averse investors the opportunity to broaden your horizons across mechanisms while conducting the tax-planning work out. A fixed deposit account allows you to deposit your money for a set period of time, thereby earning you a higher rate of interest in return. Fixed deposits also give you a higher rate of interest than a savings bank account. IDBI is launching a five year IDBI Suvidha Tax Saving Fixed Deposit with effect from August 4. The rate of interest on the five year deposit is 8.5 per cent. For senior citizens, the rate of interest would be higher at 9 per cent. Under the scheme, an Undivided Family can invest up to a maximum of Rs. 1 lakh. On a pre-tax basis, the return on the deposit works out to over 12 per cent.

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Title:

December 8, 2010 · Cash Savings Bonds · (No comments)

Title:
Savings Bonds

Word Count:
612

Summary:
Savings bonds are a great way to save money for your future. Either purchased yourself, or given as a gift, savings bonds ensure you that you will have at least some amount of savings later on.

Although you may already know a little about savings bonds, either owning them yourself or having given one as a gift, you may not know that there are different types. Each type has its own set of rules and also different ways that they can be used.

I Bonds are saving bonds that …

Keywords:
finance,savings,bonds

Article Body:
Savings bonds are a great way to save money for your future. Either purchased yourself, or given as a gift, savings bonds ensure you that you will have at least some amount of savings later on.

Although you may already know a little about savings bonds, either owning them yourself or having given one as a gift, you may not know that there are different types. Each type has its own set of rules and also different ways that they can be used.

I Bonds are saving bonds that are low-risk and also a liquid savings product. During the time that you own them they earn interest and also protect you from inflation.

I Bonds can be purchased at just about any local financial institution, or also through payroll deduction.

What are they used for? I Bonds savings bonds can be used to finance education, supplement your retirement income, or also given as a gift.

With I Bonds, you are guaranteed a real rate of return since they are an accrual-type security. Each month interest is added to the savings bond, and that interest is paid to you when you cash in the bond.

They are sold at face value. For instance, you pay $50 for a $50 I Bond.

You must own an I Bond for a minimum of one year, its interest-earning period is 30 years, and there are early redemption penalties. Interest earnings are tax-exempt from both State and local taxes, but they are subject to State and local estate, inheritance, gift, and other excise taxes. Interest earnings are subject to Federal income tax, but they may be excluded from Federal income tax when they are used to finance education.

Another type is the EE savings bonds. They are safe and low-risk savings bonds that pay interest based on market rates. As with I Bonds, EE savings bonds can be purchased at just about any financial institution or, if available, through your employers payroll deduction plan.

EE Bonds can be used to finance education, supplement your retirement income, or even given as a gift.

Any EE/E savings bond that were purchased between May 1997 and April 30, 2005 are set to earn a variable market-based rate of return. Those issued May 2005 and after are set to earn a fixed rate of interest.

EE savings bonds are also an accrual-type security, having interest added monthly and paid when it the bond is cashed in. However, unlike I Bonds, EE savings bonds are sold at half of its face value. For example, a $50 bond is purchased for $25.

There is a minimum of one year ownership, a 30-year interest period, and also early redemption penalties. The Tax Considerations for EE savings bonds are the same as those for the I Bonds.

Lastly are HH savings bonds. Unlike both I and EE savings bonds, HH are used only to supplement retirement income. They are available only in exchange for Series EE/E savings bonds or upon reinvestment of any matured Series H bonds.

As with I Bonds, HH savings bonds are sold for its face value. For example, you pay $500 for a $500 bond. HH/H savings bonds pay a fixed interest rate that was set on the day it was purchased. The interest rate will change to the current HH Bond rate on the 10 th anniversary of its issue date.

You must own HH savings bonds for a minimum of 6 months, and the interest-earning period is 20 years.

Interest earnings for HH savings bonds are exempt from State and local income taxes. However, they are subject to Federal, State, and local estate, inheritance, gift, and other excise taxes. Its interest earnings are also subject to Federal income tax.

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