Reverse mortgages let you use your house as a piggy-bank?

Reverse mortgages will gain popularity as more baby boomers are approaching retirement. This kind of loan is indeed the opposite of a regular mortgage as it allows seniors to borrow against the equity in the house. Debt does not have to be repaid as long as the senior lives. The…

Beating Inflation Possible With Stock Index Funds

One of the best, though little practiced, ways to outrun a mild loss of purchasing power is through stock index funds. Taylor Larimore and his wife Pat believe in low-cost index funds, although it took an experience with a stockbroker to become a convert. Taylor is an 80-year-old Miamian who…

Understanding Interest-Rate Risks and Yields

Like all bonds, corporates tend to rise in value when interest rates fall, and they fall in value when interest rates rise. Usually the longer the maturity, the greater the degree of price volatility. By holding a bond until maturity, you may be less concerned about these price fluctuations (which…

Do you qualify for a mortgage?

Lending institutions that will decide on your mortgage application will look at a variety of factors, such as your employment record, the number of credit cards you have and your credit record, which is why you should start the process by requesting a copy of your credit report from a…

Top Basic Facts that you need to know to Invest

Interest Payments Corporate bond interest is usually paid semiannually. Zero-coupon bonds pay no periodic interest. Forms of Issuance Corporate bonds are issued in several forms: Registered Bonds: Some corporate bonds are issued as certificates, with the owner’s name printed on them. There are no coupons attached for the owner to…

The Benefits Of Term Life Insurance

Many people may not realize that an affordable alternative to costly permanent life insurance policies even exists. They hear the often steep rates that come with a permanent (or whole) life insurance policy, and think they cannot afford life insurance, and may consequently leave their dependents uncovered. But an affordable…

Types of Fixed Income Securities

There are a few types of Fixed Income Securities. Corporate Bonds Corporate bonds (also called corporates) are debt obligations, or IOUs, issued by private and public corporations. They are typically issued in multiples of $1,000 and/or $5,000. Companies use the funds they raise from selling bonds for a variety of…

Basics of stock market

Financial markets provide their participants with the most favourable conditions for purchase/sale of financial instruments they have inside. Their major functions are: guaranteeing liquidity, forming assets prices within establishing proposition and demand and decreasing of operational expenses, incurred by the participants of the market. Financial market comprises variety of instruments,…

Where should you start with your insurance?

It wasn’t too long ago that most people simply bought whatever insurance was mandated by the government and lenders, or recommended by insurance agents and friends. Sure, diligent Fools have always purchased books and magazines on the topic, but given the pace of ever-present change, it used to be tough…

Getting to know investment process

The key point of investing funds is minimizing risks and getting income. To know more, it is important to distinguish between different processes investment comprises. We begin with the simplest terms, yet most likely unknown for the majority of the readers, winding up with the most optimal for managing funds…