Showing posts with label Banking. Show all posts
Showing posts with label Banking. Show all posts


Payday loans is a very controversial topic recently because critics argue that the lack of regulation leads to unscrupulous lenders taking advantage of the most distressed borrowers.

In fact the main advantage of these short-term loan can become a major issue if they are not used properly.
Indeed the benefit of payday loans are that it is very easy to obtain one as long as you are employed and receive a regular pay check. If so anyone can fill an application online and receive cash directly transferred into his account, usually the same day, often in just a few hours. And this is true even for people with a bad credit history as no credit check is conducted. So for example even people who are barred from getting a credit card or people who have filled for bankruptcy could get a quick cash advance this way.

It sounds good and at the core there is nothing wrong with payday loans. It should be used by people who have a sudden need for cash like a medical bill, who have not enough cash now but will get cash soon from their employer. The problem is that a number of users are households which are already financially distressed and opponents say that these credits make the situation worse because of very high rates.

Yes the cost is higher than other forms of borrowing, but this is understandable given that no credit history is necessary plus it is nearly instantaneous. This solution should only be used by people who earn money, are financially balanced but have an unforeseen need for a few hundred dollars or pounds. Not by people who are on the cusp of poverty with no understanding of how to balance their own personal books.
Because you do not want to miss a payday loan payment, as this is how fees and added cost start to compound. Let’s say someone does not pay on time, so now he may use another payday loan just to pay for the first one, and he will have to pay in total twice the fee, so he needs to reimburse even more. If this continues to happen there is a snow ball effect where his debts keep on rising. And if he uses multiple lenders and multiple loans, plus other loans like car loans or personal credit, then you see the picture.

For all the above we have created this site, because it is clearly important to only use the top of the class lenders. You do not want to be charged hidden fees and you want to be able to speak to someone in case of a problem. This is what the best lenders provide. Do not use any operator except the best ones and your borrowing experience will be a walk in the park.

Retirement Plans For The Self Employed

Being self employed has many benefits. However, it also has drawbacks. One challenge many self employed people face is retirement. Without a company to provide for them, entrepreneurs must form their own retirement plans. Here are some of the best retirement plans for the self employed.


Simplified Employee Pensions (SEP IRAs) are simple, but they can get the job done. With a SEP IRA, self-employed people can contribute up to 25% of their net income, with a $49,500 (2011 numbers). Since all SEP contributions must be made by the employer, this is only the net income from being self-employed, not from a second job at a company. The reports required for a SEP IRA are fairly simple, which will save an entrepreneur precious time. Unfortunately, the SEP IRA does not have a Roth option.

Solo 401(k)

The Solo 401(k) is slightly more complicated than the SEP IRA, but it also have some added benefits. Solo 401(k)s are limited to business owners and their spouses. Through the individual contributions and company matches, business owners can reach the same ceiling that the SEP IRA has. For business owners over 50, this is actually increased by $5,000. A loan can be taken out against one’s Solo 401(k), but this is rarely advisable due to interest and fees. The Solo 401(k) is simple to set up, and many financial institutions charge less than $100, if anything, to create one.


The SIMPLE IRA, also called the Savings Incentive Match Plan for Employees IRA, is extremely easy to create. It should take anyone about 20 minutes. The SIMPLE IRA is a great way for anyone who owns a business to provide for their own retirement, as a self-employed entrepreneur, as well as their employees’ retirement. It has much lower limits than the SEP IRA and 401(k). In 2001, the maximum contribution was $11,500. For those over 50, it increased to $14,000.

The SIMPLE IRA is suitable only for small, but financially well-grounded companies. Any business that offers this to its employees must match the employee contributions. Typically, this has been a 100 percent match on up to three percent of the employee’s pay. It also is not available to anyone who has another retirement account, such as a 401(k) at a day job.

Other Investments

When considering retirement plans for the self employed, one must not exclude traditional retirement plans. Traditional IRAs, Roth IRAs, annuities and other investment accounts can all play an integral role in one’s overall retirement. The above plans offer many advantages over personal ones. Matches can be made by one’s company. Some plans have high contribution limits. The SIMPLE IRA does not have an income limit. However, entrepreneurs must not forget to also consider personal retirement accounts as well.

By understanding these plans, the self-employed individual can prepare for retirement. It may seem daunting, but retiring is possible. Anyone needing assistance in planning has many resources to help them learn about self employed retirement plans. There are tax-advantageous plans to help entrepreneurs along the way.

IRA Retirement Accounts

For many years I had heard about 401(k)s, IRA’s and the like, but was never sure of what they meant until I started this project. Use my research below to put you further along in your journey as well.

When saving for retirement, people are can choose from an array of investment vehicles: 401(k)s, 403(b)s, IRAs, savings accounts, brokerage accounts and others. Of these, the IRA is one of the most utilized investment accounts. These are five advantages of Traditional IRAs.

For Anyone

Anyone can open an IRA. Many investment accounts are restricted to a specific demographic. 401(k)s are only available to employees of companies that offer them. 403(b)s are only available to non-profit employees, clergy and public school teachers. This is not true with an IRA. IRAs can be open by everyone.

Tax Deductible Contributions

For most people, the contributions made to an IRA can be deducted from that year’s taxes. This is dependent upon income, and is not true for the extremely wealthy. However, the majority of Americans can deduct their IRA contributions. To avoid wrath from the IRS, everyone should check with a professional tax advisor before taking these deductions.

Defer Taxes

Taxes are only paid when money is withdrawn from an IRA. This is one of the major reasons to save for retirement in an IRA, instead of a standard brokerage account. The contributions made to it are not taxed when they are made. Growth is not taxed either. For decades, a nest egg can grow tax-free. It is only taxed when withdrawals are made.

NOTE: This is the major difference between Traditional IRAs and Roth IRAs. The above applies to Traditional IRAs only. When investing in a Roth IRA, taxes are paid on the contributions, but not when money is withdrawn. In a Roth IRA, money can grow for years, and tax is not paid on it. Which is more suitable for an individual often depends on one’s age. Consulting a professional investment advisor can help people decided if a Traditional IRA or Roth IRA is more appropriate for their situation.

Withdraw Before 60

The standard retirement age has been 65 in recent years, although it is slowly being moved back. With an IRA, people do not need to wait until 65 to withdraw their earnings. At 59 ½, money can be withdrawn without a penalty. (Withdrawals before that age incur a 10% penalty). For people who want to retire early, IRAs can be very attractive.


IRAs offer the greatest flexibility of all tax-sheltering investment accounts. Unlike 401(k)s, which cannot hold individual stocks, or 403(b)s, which have strict restrictions, IRAs can hold a variety of investments. People can use IRAs to hold individual stocks, bonds, certificates of deposit (CDs) and other common investments. While employer-controlled accounts offer many advantages, they do not have the flexibility of an IRA.

There are few reasons not to have an IRA. Saving for retirement is important, and they are the IRS’s way of encouraging all Americans to save for the future. In an IRA, people’s savings are sheltered from taxes. The specific way is determined by the format of the IRA. With an IRA, people can invest how they want to. Everyone should consider having an IRA.