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How to Easy Finance a Car.

You’ve found the car of your dreams. Now what do you do? How do you get the money for it? When an individual decides to buy a new or used car, he or she often needs to finance part of or all of the vehicle’s price. Because cars are such a big purchase, many buyers can't provide cash down for the vehicle, so they choose to finance a car over a period of time. There are two financing routes you can choose to go down — either getting a direct or a dealer loan. Before you choose to finance your next vehicle, you should do your homework to ensure that you get the best deal.


Method 1 Doing Your Homework.

Find out how much you can afford up front. If you know the ballpark value of what you want to pay for a vehicle, and how much you can afford to pay in cash, you will know about how much you will need to finance.

Maximize your down payment. A smart way to finance a car is to get as much of a down payment as you can. The more you can pay at the beginning of a deal, the less you will have to pay in interest. Even if you have to temporarily sell some assets to buy the car outright, that can be a better deal than financing a major portion of the cost.

Know your credit score. Much of the financing offer for a car is based on your credit score. Those with good credit will get better interest rates and cheaper car financing offers. This is important no matter who you finance your vehicle through.

Find out your credit score either through the dealer or online at websites like www.annualcreditreport.com, www.freecreditscore.com, www.creditkarma.com, or www.myfico.com.

If your credit score is higher than 680, you are considered a prime borrower and are eligible for the best interest rates available. The higher your score, the better bargaining position you will be in.

Compare loan rates online. There are many websites that compare deals at no cost. Additionally, it is a great way to get in contact with various companies.

Get the necessary materials together. Most lenders will want your name, social security number, date of birth, previous and current addresses, occupation, proof of income, and information on other outstanding debts.


Method 2 Getting a Direct Loan.

Contact certified lenders. Local and national banks, as well as credit unions can give you the terms and interest rates they are offering on used car loans over the phone and online. Shop around and find the best rate for you. You don't have to apply for financing through the dealer, though you certainly can. Oftentimes you can get a fairer deal when you figure out your financing first before you walk into the dealership. Apply for financing through a bank or an app that connects you to lenders.

Oftentimes, credit unions have the lowest interest rates, especially if you are a member. Check with your employer to see if they have any connections with local credit unions for you to take advantage of.

Many lenders offer 5 year loans on vehicles that are five years old at most. Older vehicles are often only eligible for 1 to 2 year loans. In many cases, the fear is that an older car will break down and then borrowers will default on their loans.

Additionally, lenders often impose mileage restrictions (often 100,000 miles) and will not finance salvage-titled vehicles. Typically, they will only fund loans for vehicles purchased through a franchised dealership, not through a private party or independent dealer. In these cases, you’ll have to get a deal loan. See below.

Solicit rate quotes from several lenders. The interest rates offered on used car loans are generally 4 to 6 percent higher than rates offered on new car loans. This is because lenders are fearful of financing used vehicles.

Be as specific as possible with a lender. Provide the lender with information about the vehicle you choose. You will need to provide the car's make, model and VIN number, among other things. The more detail you can give the lender, the more firm your rate quote will be.

Talk to lenders about any fees or extra charges. Some lenders offer low interest rates and make back the money by tacking on additional fees and charges to a loan deal. You'll want to know about these, as well as any other specific loan agreement aspects like prepayment penalties, which can trigger fees if you pay the loan off early.

Get prequalified. Fill out the paperwork ahead of time. Many banks or lenders will pre-qualify you for a car loan based on your credit score, the type of car you plan on purchasing, and your driving history.

Ask the lender with the best rate offer for a pre-qualification letter. It should outline the terms and conditions of the loan. Bring this letter with you to the dealership when shopping for the car. When you go to the dealer's lot, you can show them evidence pre-qualification from a reputable lender. This will expedite the car buying experience. It will also tell the car dealer you are ready to buy.

If you haven’t prequalified, you can get financing at the dealer's lot for a one-stop shopping experience, but having other lender alternatives helps you to get the best deal.


Method 3 Getting a Dealer Loan.

Get a loan through a new or used car dealer.

In general, interest rates offered by dealerships are higher than interest rates you can find directly from a lender. In many cases, smaller dealerships work with third party lenders to finance your vehicle. Because they play the middleman, they pass off the costs to you. Therefore, you may want to apply for a direct loan first and cut out the dealership middleman.

In some cases, financing lenders like local banks and credit unions won’t take a chance on used cars. For used cars, most dealers will finance used cars they sell, regardless of its age. Therefore, you may want to apply for a dealer loan if a direct lender denies you financing.

Bring leverage. Bring interest rates from direct loan lenders, even if you plan on financing with the dealer. Dealers are more likely to offer lower interest rates, if you show them that you know what other lenders are offering. Make sure you research competitive interest rates based on your credit score.

Offer a down payment in cash or trade equivalent to at least 10% of the vehicle's purchase price. The larger the down payment, the less money you will have to finance and the less interest you’ll have to pay on that loan.

Tips.

If you have a low credit score, consider asking someone with a high credit score to co-sign on a loan. A co-signor with a high credit score may help you to secure a lower-interest loan.

If your loan application gets rejected, don’t feel bad. Most likely, the lender doesn’t think you are able to pay back the loan on time. Reassess your budget and try again or try a different lender.

Warnings.

If you finance a used car, be prepared to pay for comprehensive insurance on the vehicle, which is more expensive than collision insurance commonly applied to used cars. Lenders require that you carry comprehensive insurance to protect their investment. Lenders often fear that if you damage the car, you will default on the loan, so they make you take out better insurance.

Be wary of dealers who advertise financing with "no credit check." Typically, these car lots sell high-mileage vehicles with inflated down payments and interest rates.




November 22, 2019




How to Easy Finance a Car.



You’ve found the car of your dreams. Now what do you do? How do you get the money for it? When an individual decides to buy a new or used car, he or she often needs to finance part of or all of the vehicle’s price. Because cars are such a big purchase, many buyers can't provide cash down for the vehicle, so they choose to finance a car over a period of time. There are two financing routes you can choose to go down — either getting a direct or a dealer loan. Before you choose to finance your next vehicle, you should do your homework to ensure that you get the best deal.







Method 1 Doing Your Homework.



Find out how much you can afford up front. If you know the ballpark value of what you want to pay for a vehicle, and how much you can afford to pay in cash, you will know about how much you will need to finance.

Maximize your down payment. A smart way to finance a car is to get as much of a down payment as you can. The more you can pay at the beginning of a deal, the less you will have to pay in interest. Even if you have to temporarily sell some assets to buy the car outright, that can be a better deal than financing a major portion of the cost.



Know your credit score. Much of the financing offer for a car is based on your credit score. Those with good credit will get better interest rates and cheaper car financing offers. This is important no matter who you finance your vehicle through.

Find out your credit score either through the dealer or online at websites like www.annualcreditreport.com, www.freecreditscore.com, www.creditkarma.com, or www.myfico.com.

If your credit score is higher than 680, you are considered a prime borrower and are eligible for the best interest rates available. The higher your score, the better bargaining position you will be in.



Compare loan rates online. There are many websites that compare deals at no cost. Additionally, it is a great way to get in contact with various companies.



Get the necessary materials together. Most lenders will want your name, social security number, date of birth, previous and current addresses, occupation, proof of income, and information on other outstanding debts.









Method 2 Getting a Direct Loan.



Contact certified lenders. Local and national banks, as well as credit unions can give you the terms and interest rates they are offering on used car loans over the phone and online. Shop around and find the best rate for you. You don't have to apply for financing through the dealer, though you certainly can. Oftentimes you can get a fairer deal when you figure out your financing first before you walk into the dealership. Apply for financing through a bank or an app that connects you to lenders.

Oftentimes, credit unions have the lowest interest rates, especially if you are a member. Check with your employer to see if they have any connections with local credit unions for you to take advantage of.

Many lenders offer 5 year loans on vehicles that are five years old at most. Older vehicles are often only eligible for 1 to 2 year loans. In many cases, the fear is that an older car will break down and then borrowers will default on their loans.

Additionally, lenders often impose mileage restrictions (often 100,000 miles) and will not finance salvage-titled vehicles. Typically, they will only fund loans for vehicles purchased through a franchised dealership, not through a private party or independent dealer. In these cases, you’ll have to get a deal loan. See below.



Solicit rate quotes from several lenders. The interest rates offered on used car loans are generally 4 to 6 percent higher than rates offered on new car loans. This is because lenders are fearful of financing used vehicles.

Be as specific as possible with a lender. Provide the lender with information about the vehicle you choose. You will need to provide the car's make, model and VIN number, among other things. The more detail you can give the lender, the more firm your rate quote will be.

Talk to lenders about any fees or extra charges. Some lenders offer low interest rates and make back the money by tacking on additional fees and charges to a loan deal. You'll want to know about these, as well as any other specific loan agreement aspects like prepayment penalties, which can trigger fees if you pay the loan off early.



Get prequalified. Fill out the paperwork ahead of time. Many banks or lenders will pre-qualify you for a car loan based on your credit score, the type of car you plan on purchasing, and your driving history.



Ask the lender with the best rate offer for a pre-qualification letter. It should outline the terms and conditions of the loan. Bring this letter with you to the dealership when shopping for the car. When you go to the dealer's lot, you can show them evidence pre-qualification from a reputable lender. This will expedite the car buying experience. It will also tell the car dealer you are ready to buy.

If you haven’t prequalified, you can get financing at the dealer's lot for a one-stop shopping experience, but having other lender alternatives helps you to get the best deal.







Method 3 Getting a Dealer Loan.



Get a loan through a new or used car dealer.

In general, interest rates offered by dealerships are higher than interest rates you can find directly from a lender. In many cases, smaller dealerships work with third party lenders to finance your vehicle. Because they play the middleman, they pass off the costs to you. Therefore, you may want to apply for a direct loan first and cut out the dealership middleman.

In some cases, financing lenders like local banks and credit unions won’t take a chance on used cars. For used cars, most dealers will finance used cars they sell, regardless of its age. Therefore, you may want to apply for a dealer loan if a direct lender denies you financing.



Bring leverage. Bring interest rates from direct loan lenders, even if you plan on financing with the dealer. Dealers are more likely to offer lower interest rates, if you show them that you know what other lenders are offering. Make sure you research competitive interest rates based on your credit score.



Offer a down payment in cash or trade equivalent to at least 10% of the vehicle's purchase price. The larger the down payment, the less money you will have to finance and the less interest you’ll have to pay on that loan.





Tips.

If you have a low credit score, consider asking someone with a high credit score to co-sign on a loan. A co-signor with a high credit score may help you to secure a lower-interest loan.

If your loan application gets rejected, don’t feel bad. Most likely, the lender doesn’t think you are able to pay back the loan on time. Reassess your budget and try again or try a different lender.

Warnings.

If you finance a used car, be prepared to pay for comprehensive insurance on the vehicle, which is more expensive than collision insurance commonly applied to used cars. Lenders require that you carry comprehensive insurance to protect their investment. Lenders often fear that if you damage the car, you will default on the loan, so they make you take out better insurance.

Be wary of dealers who advertise financing with "no credit check." Typically, these car lots sell high-mileage vehicles with inflated down payments and interest rates.




November 17, 2019


How to File a UCC Financing Statement.


If you funded your business through startup or small-business loans, the lender may require you to file a UCC financing statement. These documents are filed when you secure the loan with personal or business assets, and create a lien on those assets. While the UCC financing statement doesn't necessarily impact your day-to-day business, it may affect your ability to get additional funding.



Part 1 Completing the Form.

1. Download the UCC-1 form. A PDF version of the UCC-1 form typically is available on the website of the state's Secretary of State office. Download the form for your state. Although these forms are for the most part universal, some states have additional fields or requirements.

The state form's instructions also tell you what the filing fees are, which vary among states.

To find the correct website, do an internet search for "secretary of state" with the name of your state.

2. Provide direct contact information if desired. The first part of the form allows you to provide a phone number, email address, and mailing address if you want to make it easier to be contacted. These fields are optional.

Once filed, the form is a public record, so be careful about the identifying information you include.

3. Fill in the debtor's name and mailing address. The debtor is the person who took out the loan. It may be an individual, or it may be in the name of a business or organization. If the loan is in the name of the business, include the business mailing address.

There is space for additional debtors. Include them exactly as they appeared on the loan agreement. If there are additional named debtors that won't fit on the main form, you can file an addendum to include them.

4. List the name and address of the secured party. The secured party is the lender who made the secured loan. Usually this will be the name of the bank or lending company. Check to find out what address they prefer to be listed on UCC financing forms – don't just list the name of your local branch, for example.

5. Indicate the collateral covered by the financing statement. Following the name and address of the secured party, there is space to identify the collateral that secures the loan. Be as specific as possible.

For example, if the loan is secured by real property, provide the legal description of the property that is listed on the property's deed.

If you need additional space for collateral, you can fill out an addendum.

6. Include applicable descriptions of the transaction. At the bottom of the UCC form, there are several boxes you can check if any of them apply to the particular transaction. If nothing suits the loan covered by the statement, you can leave this section blank.

7. Fill out an addendum if necessary. If there was extra information that wouldn't fit on the original form, you can include it on an addendum. This form is also available from the website of the state's secretary of state, and may be included with the main UCC financing statement form.

Some states require additional information for specific loans or transactions. If so, you'll enter this information on the addendum as well.



Part 2 Recording the Form.

1. Identify the proper location to file the statement. UCC financing statements are filed based on the residence of an individual debtor, or the location of the main offices of a business debtor. Usually the form is filed with the state's UCC office.

If real property is used as collateral, you may also need to file a copy of the UCC financing statement with the register of deeds in the county where that property is located.

2. Complete an Information Form if you want copies. While you may receive an acknowledgement copy when your statement is recorded, the information form allows you to order additional copies of the official recorded statement.

For example, if there are multiple debtors, you may want to order a copy for each debtor's records.

You can download an information form from the website of the state's secretary of state.

3. Submit form and fees online if possible. It's usually easier to file your UCC financing statement online with the UCC office, and often the fees are lower than if you file print forms. Check on the website of the state's secretary of state office to see if this option is available.

If the loan is secured with real property, you may still need to file a paper copy with the register of deeds for the county where the property is located.

4. Mail your financing statement with filing fee. If you don't want to file online, or if that option isn't available, you can mail paper copies to the state's UCC office. You may want to check for acceptable methods of payment. Typically you can pay by check or money order.

The filing fees are minimal, typically less than $20. Some states may charge a per-page fee if you file a paper statement.

5. Receive your acknowledgement letter. When your financing statement is recorded by the state's UCC office, you'll receive a letter in the mail along with an acknowledged copy of the official statement.

Keep these documents for your records. You may want to file them along with the documents related to the loan they cover.
February 10, 2020


How to File a UCC Financing Statement.


If you funded your business through startup or small-business loans, the lender may require you to file a UCC financing statement. These documents are filed when you secure the loan with personal or business assets, and create a lien on those assets. While the UCC financing statement doesn't necessarily impact your day-to-day business, it may affect your ability to get additional funding.



Part 1 Completing the Form.

1. Download the UCC-1 form. A PDF version of the UCC-1 form typically is available on the website of the state's Secretary of State office. Download the form for your state. Although these forms are for the most part universal, some states have additional fields or requirements.

The state form's instructions also tell you what the filing fees are, which vary among states.

To find the correct website, do an internet search for "secretary of state" with the name of your state.

2. Provide direct contact information if desired. The first part of the form allows you to provide a phone number, email address, and mailing address if you want to make it easier to be contacted. These fields are optional.

Once filed, the form is a public record, so be careful about the identifying information you include.

3. Fill in the debtor's name and mailing address. The debtor is the person who took out the loan. It may be an individual, or it may be in the name of a business or organization. If the loan is in the name of the business, include the business mailing address.

There is space for additional debtors. Include them exactly as they appeared on the loan agreement. If there are additional named debtors that won't fit on the main form, you can file an addendum to include them.

4. List the name and address of the secured party. The secured party is the lender who made the secured loan. Usually this will be the name of the bank or lending company. Check to find out what address they prefer to be listed on UCC financing forms – don't just list the name of your local branch, for example.

5. Indicate the collateral covered by the financing statement. Following the name and address of the secured party, there is space to identify the collateral that secures the loan. Be as specific as possible.

For example, if the loan is secured by real property, provide the legal description of the property that is listed on the property's deed.

If you need additional space for collateral, you can fill out an addendum.

6. Include applicable descriptions of the transaction. At the bottom of the UCC form, there are several boxes you can check if any of them apply to the particular transaction. If nothing suits the loan covered by the statement, you can leave this section blank.

7. Fill out an addendum if necessary. If there was extra information that wouldn't fit on the original form, you can include it on an addendum. This form is also available from the website of the state's secretary of state, and may be included with the main UCC financing statement form.

Some states require additional information for specific loans or transactions. If so, you'll enter this information on the addendum as well.



Part 2 Recording the Form.

1. Identify the proper location to file the statement. UCC financing statements are filed based on the residence of an individual debtor, or the location of the main offices of a business debtor. Usually the form is filed with the state's UCC office.

If real property is used as collateral, you may also need to file a copy of the UCC financing statement with the register of deeds in the county where that property is located.

2. Complete an Information Form if you want copies. While you may receive an acknowledgement copy when your statement is recorded, the information form allows you to order additional copies of the official recorded statement.

For example, if there are multiple debtors, you may want to order a copy for each debtor's records.

You can download an information form from the website of the state's secretary of state.

3. Submit form and fees online if possible. It's usually easier to file your UCC financing statement online with the UCC office, and often the fees are lower than if you file print forms. Check on the website of the state's secretary of state office to see if this option is available.

If the loan is secured with real property, you may still need to file a paper copy with the register of deeds for the county where the property is located.

4. Mail your financing statement with filing fee. If you don't want to file online, or if that option isn't available, you can mail paper copies to the state's UCC office. You may want to check for acceptable methods of payment. Typically you can pay by check or money order.

The filing fees are minimal, typically less than $20. Some states may charge a per-page fee if you file a paper statement.

5. Receive your acknowledgement letter. When your financing statement is recorded by the state's UCC office, you'll receive a letter in the mail along with an acknowledged copy of the official statement.

Keep these documents for your records. You may want to file them along with the documents related to the loan they cover.
February 10, 2020

How to Find a Buyer for Your Annuity.

Although an annuity is meant to provide steady income, particularly when you retire, there are circumstances under which you might decide to sell your annuity. For example, you might decide to sell your annuity in order to buy a home, invest in a business, or to cover the costs of an emergency. Perhaps you've done the math and discovered that your annuity isn't the best most profitable option for you, and you'd like to reinvest. To find the right buyer for your annuity, look for buyers who can give you the terms you desire. If time permits, get competing offers rather than going for the first buyer you find.

Part 1 Evaluating Your Annuity.
1. Determine whether or not your annuity is transferable. If your annuity is not transferable, then you cannot sell it under any circumstances. Check your contract to see if it is transferable. If you are trying to get immediate funds, list your nontransferable annuity as an asset or form of income and apply for a bank loan.
2. Determine if your annuity is a structured settlement. Check your contract or consult your accountant to learn about the laws in your state. Most states have laws that protect people trying to sell their structured annuity. If your state has a Structured Settlement Protection Act, your transaction will have to be approved by a state court. The Periodic Payment Settlement Act protects those who received a cash sum as a result of personal injury and wrongful death lawsuits, from spending the awarded money too quickly, which may then force them to turn to public assistance to meet their needs.
Don’t try to sell a structured annuity by yourself, especially if you are living in a state that does not have a structured annuity protection law. Talk to a trusted broker and attorney before you proceed.
3. Evaluate your annuity. Before you shop around for annuity buyers, find out what the resale value of your annuity is. Hire an accountant if you are unclear on the details of your investment and its relative worth. Keep in mind that selling your annuity always result in your receiving a lower amount of money from your annuity. You will get a lump-sum payment that is adjusted with a discount rate, meaning that you'll get about 8 to 14 percent less than you would if you waited for the payments.
4. Understand the tax implications of selling your annuity. All annuities offer tax-deferral from the time of your initial investment. Your distributions, however, are taxable. This means that your annuity grows tax-free in the accumulation phase, but is taxed as distributions are made to you. These payments are taxed as ordinary income.
Gains made by selling your annuity before it matures are taxable as ordinary income. However, losses on the sale are not tax-deductible as investment losses.
If you withdraw from an annuity before age 59.5, you are also charged a 10% tax penalty. However, exceptions are made in various cases, such as the death or disability of the annuity holder.
You can also trade your annuity for another qualified annuity contract without paying taxes on the first annuity. These "1035" exchanges can be tricky, so check with a tax accountant or investment adviser before proceeding.

Part 2 Finding a Buyer.
1. Search for potential annuity buyers. Your best source for locating a potential buyers is the insurance agent that first sold you the annuity. They understand the market well and will likely have contacts for this sort of transaction. Additionally, they may also charge you a reduced commission for finding a buyer, as you already paid them a commission when you purchased the annuity. Alternately, you can search for an annuity buyer online. Before working with any of these companies, make sure that they:
Have positive, independent reviews of their services.
Have excellent customer service.
Can make a competitive offer for your annuity.
Are licensed to conduct business and follow all appropriate regulations.
Communicate timelines and figures in a transparent way.
Recommend that you first consult with a financial professional before selling.
Try checking with the Better Business Bureau (BBB) to identify whether or not the company is reputable. Companies with poor ratings from the BBB should be avoided.
Some reputable buyers of annuities include JG Wentworth, Catalina Structured Funding, Peachtree Financial, and Stone Street Capital. These companies can be contacted by phone or through their respective websites.
2. Hire a broker. If you are having trouble finding potential buyers, or if you can't find the price you think is reasonable, hire a broker. You’ll have to pay a brokerage fee, but you may stand to gain from the expertise of the broker's negotiations. Choose your broker carefully. Check their certifications to ensure that they are licensed to negotiate the sort of sale you want to make.
Ask the broker you want to hire for a quote. If they quote you a percentage, calculate it before you agree.
Look up the name of a broker you haven't worked with before. Any violations or complaints they have might be online.
3. Get offers for your annuity. Try to obtain offers from at least five companies before you choose. When you find companies online, use their quote form to get a free quote from them. A quote is not necessarily the amount you would receive, and it may not include the fee that may be deducted when a settlement is reached.
When you fill out the free quote form, give them only the standard information. Your name, email address and the name of your annuity should be the only information they ask for.
Do not give your social security number, bank information, or pay any fees to obtain a free quote.
Give yourself as much time as you can to make the sale. A rushed sale is less likely to get you a good deal.
4. Pick the best offer. Getting an offer of about 80% of the value of your annuity would be considered a good deal. Do not take a deal in which your buyer expects you to pay fees out of pocket before a settlement is agreed upon. Once you have finalized your agreement, all agreed upon court costs, legal fees and commissions should be deducted from the final settlement.
5. Gather your paperwork. To sell your annuity, you will need copies of your original annuity application and your annuity policy. If you are already collecting on your annuity, you will need your most recent disbursement check and tax return. If you have a settlement agreement, you will need a copy of that. Bring your valid government issued id, such as a passport or driver's license, and a written declaration that you are selling your annuity of your own free will.
Gather any other documentation your buyer requires, such as a copy of a court judgment for a structured annuity, or copies of any release agreements.

Part 3 Deciding What Kind of Sale to Make.
1. Decide what type of funding you are trying to get from your sale. Investigate the various ways annuity buyouts are made. Remember that no matter what kind of deal you make, the buyer will get the better deal in the long term. You will likely be offered anywhere from 60% to 85% of the value of your annuity. With this in mind, consider alternatives to selling your annuity.
If you are just selling your annuity to free up some cash, taking out a loan might better serve your purposes.
2. Consider selling as a straight purchase. If you sell as a straight purchase, the buyer will give you one lump-sum payment for your annuity. You will not go on to collect future payments. Choose to sell as a straight purchase if you are trying to get the largest immediate sum possible, or if you have determined that your annuity is not serving its purpose.
If you sell an annuity contract, you will have to pay ordinary income tax on your annuity's earnings.
3. Consider selling as a partial purchase. In this case, the buyer purchases your immediate annuity payments for a set period. At the end of that time, you once again collect your annuity payments as scheduled. Consider this option if you have a temporary shortage of cash, but would like to continue investing in your retirement.
4. Consider selling as a reverse purchase. Sell several years of your annuity. For example, if you are now receiving $1,000 per month for the next 15 years, sell your payments from years 5 through 10 only. You will get a lump sum for those years, but still receive your current payments up through year 4. You will then receive no monthly payments in years 5 through 10, but they will resume in years 11 through 15.
Know that this will result in a lower overall payout from your annuity. You will get the money for the sold years up front, but it will be lower than the total value of the payments from those years.
You also need to be sure of the value of the future payments before any deals are made.
This might be a good option if you need money now, but know you will be able to support yourself during an upcoming time period.
5. Consider selling as split purchases. If your buyer makes a split purchase, they will receive part of your monthly payment. If you only need $500 a month and your annuity payment is $1,000, sell half your annuity; you will get an immediate lump sum for the half you don't need, and continue to receive monthly payments of $500.
Even though you've only sold half the annuity, you will still pay ordinary income taxes on the deferred earnings and any gains made on the sale.

Tips. 

Give yourself as much time as possible to make the best sale. Let the companies you deal with know that you are making casual inquiries. If you appear to be shopping around without rushing, you will be more likely to get better, more competitive offers.
May 04, 2020


How to Ask Rich People for Money.

Fundraising for charity is an important part of any nonprofit group's work. In the U.S. alone, donors gave almost $287 billion in 2011. Many people who work for nonprofits feel uncomfortable asking donors for money, but without their help most nonprofit groups would not be able to carry out their missions. Learning how to effectively and respectfully ask wealthy individuals for money can help you ensure your charity or favorite nonprofit, federally recognized as 501 (c) (3), group prospers and is able to help those in need.

Part 1 Planning Your Donation Request
1. Compile a list of donors. Before you begin asking for money, it's best to have an idea of who you're going to ask for donations. If you're going door-to-door, that may be as simple as deciding which neighborhood(s) to work in. If you're soliciting donations by phone or by mail, though, you'll need a list of prospective donors to contact.
If you can identify past donors on your list of people to call or write to, you may want to prioritize those individuals as "best bets" - these are people who, given their history of donating in the past, will most likely contribute again to your cause.
Try to identify which people on your list are the most financially stable. You can do this by interacting with the individual to get a sense of his or her finances, or if going door-to-door, look at the houses residents live in and the cars in their driveways. People with large, elaborate homes or flashy sports cars most likely have more disposable income. (Though of course this doesn't guarantee that they will give donations.)
You can also look for potential donors by their other areas of spending. For example, does the prospective donor attend fundraisers for other organizations or individuals? If so, that prospective donor probably has the means to donate to your organization, if properly persuaded.
Consider using analytical software and services, such as Donor Search, to identify which potential donors are more wealthy and more likely to donate.
Remember to think "ABC" when identifying donors: Able to make a gift, Belief (known or potential) in your cause, and Contact/Connection with your organization.
2. Get to know your donors. If your organization has dealt with donors in the past, you or a colleague will probably know what strategies work best in making your appeal. Some people want to know how the money from last year was spent, while others may simply want to know how much is needed. Certain donors may have fears or reservations about donating, and it's important to learn to recognize those fears/reservations so you can address them in advance.
Some donors may need to hear particular terms or phrases in order to be persuaded to donate. If you know this to be the case, make some indication of this on your list so that when you call or approach that person, you'll know what to say.
Any time a donor seems reluctant to give but gives anyway, make a note of that situation on your list or in that donor's file (if you have one). Listen to what the individual says when he or she is reluctant, and try to find ways to assuage those fears - not just for this year's fundraiser, but for future years as well.
Be aware that many well-known philanthropists hire other individuals to manage donations and contributions. Because of this, you may not get to speak to the actual donor himself/herself. However, the employees hired by a philanthropist probably have the same concerns that the philanthropist does, and you may have some luck appealing to the philanthropist's interests through his or her employees.
3. Find ways to present your organization. People who have donated to your organization will no doubt be familiar with who you are (as an organization) and what you do. But what about people who have never donated before? How will you describe what you do to an outsider? This is important, as it may determine whether the individual will listen to the rest of your pitch. If possible, try to compile some data on what your organization has done in the past, the problems you hope to address after this fundraising drive, and how that prospective donation would help your cause.
Try to present your organization in a way that both explains what you do while also highlighting the issue you seek to change. For example, you might say something like, "Did you know that [the issue your organization addresses] affects a significant portion of the city, and we are the only organization solely committed to addressing these issues in a comprehensive way?"
It's not a requirement to have data compiled, but for individuals who aren't familiar with your organization, it may be very helpful to know that information.
Consider printing out a brochure or having a reusable chart to illustrate both the improvements you've made and the improvements you hope to make.
Think about what you might say if someone doesn't understand your organization's goals, or what you might say if someone was dismissive of your organization. Try putting yourself in those shoes - imagining that you were someone who didn't want to help the organization - and what you might say to the organization. Then imagine how you might respond to hearing those words.
The better your donor base understands your organization - and the better you understand your donors - the more likely you'll be to build a long-term relationship with that donor.
4. Practice your appeal. One of the best things you can do to strengthen your appeal for donations is to practice what you're going to say. That doesn't just mean knowing how to actually ask for money, but also knowing how to initiate the conversation, practicing scenarios, anticipating potential responses, and knowing how to direct (or re-direct) the conversation.
Remember that the best appeal will educate the potential donor, rather than making a simple sales pitch.
Practice your appeal out loud. Get comfortable with the speech, and learn to adapt it to your own style of speaking. Make it your own speech, and try to make it feel comfortable and unrehearsed (even though this may take a lot of rehearsal).
Practice in front of a mirror if you will be interacting with donors face-to-face.
Try recording yourself, either with a tape recorder or on video, and study your mannerisms and your speech patterns. Does it sound honest? Do your vocal patterns and your physical mannerisms communicate the message of your organization, and the urgency of what you're trying to solve?

Part 2 Asking for Donations.
1. Start a conversation. Don't just call and start running in with your pitch. Work on creating a dialogue with the potential donor, which may mean making some polite small talk at the start. It can be as simple as asking the person how his or her day is going. Anything to start a conversation should help disarm the individual, and make the person realize that you're a caring and concerned member of the community.
If the prospective donor is a known philanthropist, he or she may prefer to have someone who heads the foundation ask for a donation. Statistically, donors are more likely to give money to a recognizable figure affiliated with an organization, rather than to a fundraiser who contacts them on the organization's behalf.
Initiate the conversation by getting the prospective donor to acknowledge an existing problem. If you're raising money for a local organization, you might open the conversation by asking what he or she thinks is the greatest crisis facing your region.
2. Make your intentions known. You shouldn't just introduce yourself by asking for money, but you should make your intentions known near the end of your small talk. Start by asking how the person is doing, or commenting on the weather, and then use that as a lead-in to say, "I'm working with _______, and we're trying to help _______ be able to ________."
If the individual feels like you're just having an aimless conversation and then suddenly he or she is asked for money, it may create tension and cause the person to feel like you're shaking them down. Be calm, friendly, and casual, but don't drag your feet about making it clear that you have a purpose.
3. Let the other person speak. Chances are, if you launch into your usual appeal to a person on the street who's never donated before, that person will walk away. But if you have created a dialogue, and made room for the other person to speak, you may be able to get that individual to feel engaged and a part of the solution.
Try asking a Question : . Say something like, "What do you think is the biggest problem our community faces?" Once the person has answered, instead of simply saying, "Yes, you're right. Will you consider donating?" try a more nuanced approach. After the person says what he or she sees as the problem, just say, "How interesting!" and keep silent while remaining interested.
People fear silence, and the person will probably fill that gap by elaborating on why that issue is important. That potential donor may go on to talk about how a family member has been affected by those issues. This gives you an in to take the specific concern he/she has and run with it. It's no longer an abstract concern, but a specific problem that may have affected the individual personally.
4. Make a specific request. If you leave a donation appeal open-ended, the person may not end up donating, or may only give a few dollars. But if you ask for a specific amount, it takes a lot of guess work out of the equation for that individual, and makes it easier to commit to your request. For example, if the person seems interested, say something like, "Well, we can make a difference. For just _____ dollars, you can help accomplish ___________."
Another way to ask for a specific amount is to put the ball in their court. Ask something like, "Would you consider a gift of _____?" or "Is ______ something you'd be willing to consider to help tackle the problem of __________?"
5. Be persistent. Many people will say no right off the bat, but others may simply need to be persuaded a bit more. Perhaps someone might say that the amount you requested is too high. If that happens, let the person know that any donation amount would be a big help, and ask if there's a slightly lower amount that the person would be willing/able to donate.
Don't be aggressive with your appeal, but do be insistent that your cause is worthy and that any donation amount would help that cause.
6. Thank the person either way. If the individual is willing to donate, then it's cause for celebration. You can thank the person and let him or her know that that donation will go a long way towards solving or addressing the issue at hand. But even if the person is not interested in donating, you should still be polite and appreciative of their time. Simply say, "Well, thank you for your time and have a wonderful day."
Expressing gratitude and courtesy can go a long way. Just because someone isn't interested in donating, that doesn't mean the situation won't change. Perhaps next year the people who said no will have heard or read more about your organization, or perhaps the individual will have been personally affected by the issue you're seeking to address. Making a good impression now, even when turned down, may be what helps you get a donation next year.
7. Follow up with donors. If someone gave a donation, you should absolutely express gratitude. Send the donor a thank-you letter and a gift receipt (in case they want to write it off on their taxes or simply have a record of the donation). It's best to send these items as quickly as possible so that the donor knows that the contribution was greatly appreciated and will be put to good use.

Community Q&A.

Question : How do I ask a rich person for 50,000 dollars?
Answer : Follow the instructions listed in the article above. However, they will likely say no.
Question : How can I get money if I need it urgently?
Answer : Get a job, start a blog, make something, or ask for a small loan.
Question : How can I get help with my power bills and the foreclosure on my house?
Answer : There are probably social services nearby that can help.
Question : How can I raise money for my wedding?
Answer : Ask friends and family members if they are willing to pitch in some money to help fund your marriage. In return, send them invitations.
Question : How can I find money for my daughter's marriage?
Answer : Loans, relatives, friends, or you could try planning a wedding that won't cost you much!
Question : Where can you apply for a small business loan with bad credit?
Answer : You can try becoming a member of a credit union and try for a loan there.
Question : How do I ask for money if I am about to be homeless with an autistic son?
Answer : Ask family and friends, and tell them your situation. Look for government programs that can help, and depending on the age of your son, you may be able to get financial help for him. You can also ask family and friends if the two of you can stay with them while you get back on your feet. That way, you have an address while you look for a job.
Question : I need a loan to deal with a parent's sickness, what can I do?
Answer : Loans are not the only solution to sickness, there are organizations that provide affordable medical care. Search for these in your area. You might also consider launching a donation campaign through Kickstarter or another fundraising website.
Question : How can someone fund me to help me spread the word of God?
Answer : Try doing a simple fundraiser, like a lemonade stand or a car wash.

Tips.

Many people are more motivated to help you with money if they sympathize with your goals or interests. Try to tailor your appeal to each individual donor, based on how that donor seems to respond to the issues you address.
Always send a thank-you note to your donors, regardless of how much they sent you.
July 02, 2020


How to Write a Proposal Letter.

A proposal letter is a professional letter that states, in an abbreviated form, why an organization, institution, or company should support a professional venture of yours. You might write a proposal letter for a number of reasons—for example, to request a grant, a business loan, or that a publisher accept your book idea. There are general formats, details, and arguments you should make in each instance, although the specifics will vary based on the recipient’s requirements. In all cases, however, you must be succinct, informative, and persuasive.

Method 1 Writing a Grant Proposal Letter.
1. Review the eligibility guidelines so you can offer proof throughout the letter. Most public and private organizations that issue grants for research or other projects have a detailed list of eligibility requirements. You must meet these requirements to be eligible, and you must confirm to the organization that you meet these requirements.
Check the organization’s website or call or email them to get complete and up-to-date eligibility guidelines.
Instead of dedicating an entire paragraph to explaining how you meet each requirement, weave this information into the body of your letter as you write it. For instance, if the organization has certain requirements concerning the types of projects the money can be used for and separate requirements for how that money will be allotted, describe these issues in separate paragraphs instead of trying to cram all the information into one.
2. Introduce your organization to an appropriate degree in the first paragraph. If you are not in regular contact with the grant organization, you should introduce your organization in fairly substantial detail in the first body paragraph of your letter. For instance, provide the name of your organization, what it does, why it does it, and who benefits from your organization's work.
If you have had previous contact with the grant agency or organization, don’t rehash basic information the recipient already knows. Instead, mention any changes or developments your organization has made since you were last in contact.
3. Explain your need for the grant and its importance to your organization. Make this the central focus of the second body paragraph. Tell the recipient what your organization hopes to accomplish and what group or groups in society are the focus for your efforts. Also explain why your research, charitable effort, or venture is important and what sort of outcome you are expecting to have.
Balance optimism and realism in this section and throughout the letter. Don’t make outlandish claims like “ending poverty” with this grant. Instead, explain how the grant will help “alleviate food insecurity for at-risk children both before and after school hours.”
4. Provide a timeline and other practical details on how the grant will be used. In the third paragraph, include realistic content about the timeline your project will require, the locations you will operate in and/or impact, and similar information.
State when the project will begin and how long you expect it to run. Be as precise as possible: “If the grant is approved, we intend to operate the program from August 25, 2020 through August 24, 2021.”
Some grants are location-specific. If this is true of the grant you apply for, you will need to indicate where your organization is based, the geographic area that will be studied during your project, or the geographic area that will benefit from the project.
5. Mention how much the project will cost and how much grant money you are requesting. Be as specific as possible so that the grant organization can get an idea of how crucial its funding is. Provide this information in its own paragraph or integrated into the prior paragraph on grant use details.
Particularly if you are applying for a grant without a pre-determined funding amount, be sure to state precisely how much money you are requesting.
Be precise in your cost estimates and provide supporting documentation as enclosures in your application packet, as per the organization’s application instructions.
6. Include any additional information requested in the application instructions. The grant agency or organization may require additional information that should be included in your proposal letter, or it may require separate documents as enclosures in your packet. Refer to the application instructions carefully and frequently, and contact the organization whenever you have questions or need clarification.
Additional documents may include financial budgets, past financial records, and past records indicating the success of similar projects performed by your organization in the past.
Make sure your grant request isn’t delayed or even rejected because you failed to provide a required piece of information.

Method 2 Writing a Business Financing Proposal Letter.
1. Refer to any prior contact at the beginning of the letter. If your business is already established and has a previous relationship with the lender or funder you are contacting, be sure to mention that prior contact. This doesn’t guarantee success for your current request, of course, but it may strengthen your status as a “good bet.”
If you interacted with a specific contact at the company, mention that individual by name. For example: “Nearly seven years ago, I worked with Jane Goodson at your company to help secure the funding that got my business off the ground.”
2. Discuss the size, scope, and focus of your company. Include your mission statement and a short description of the products or services your company provides. To make your case for funding more convincing, also include details like the number of customers served, the number of employees, and information about any administrative boards.
Providing a brief summary of your business helps the funder get a better understanding of who you are, what you do, and why you are a good choice for funding.
Aim to spend 1 paragraph on this content, in most cases.
3. Pinpoint the amount of funding you need and why you need it. Take a paragraph to both identify precisely how much funding you are requesting and explain why you need financial help from the funder. Describe what, specifically, the funding will be used for.
For example: “The $50,000 loan we are requesting will enable us to expand production in our highest-profit product range and grow sales by an estimated 20% within 2 years.”
You may need to include budget data that spells out how funds have been used in the past and projections on how the funds will be used this time around. This additional data may need to be included as a separate attachment.
Regardless of how much information you include in the body of the letter itself, you should always state the total cost of the project and how much of that cost will be covered by the funder's support.
4. Explain how you will use the funding, specifically but succinctly. You need to provide enough information about how the provided funds will be used to make the prospective funder curious and excited by the prospect. Provide key highlights in a paragraph, mentioning specifics but not going into excessive detail.
This should only be a summary. With a full-scale proposal, this information can take pages. This information should take no more than a half page when writing a shorter proposal letter, however. Provide separate enclosures as needed.
5. Offer to provide additional details at the close of your letter. Since a proposal letter is shorter than a full proposal, make it clear that you are willing and able to provide additional details as requested. Do this instead of sending excessive amounts of information that has not been requested with your proposal letter.
For instance, you last sentences might read: “Should you need any further information, please feel free to contact me directly by phone or email. I would also be happy to meet with you at your offices.”
6. Include any necessary enclosures with your packet. Check over the application requirements again. If the prospective funder requires additional documentation along with your proposal letter, include it in the envelope as an enclosure. Note the enclosures in your proposal letter.
Possible documentation might include a list of board members, copies of your tax documents and financial documents, and resumes of key staff members.

Method 3 Writing a Book Proposal Letter.
1. Check the submission guidelines before starting the letter. Every publishing agency and publisher has its own set of submission guidelines. These can usually be found on the publisher's website—if not, call, email, or write to the company and request a copy of their guidelines before proceeding.
Submission guidelines outline the types of books a publisher or agent will accept, as well as the required format and content for the proposal letter.
2. Spend the first few paragraphs describing your book. Right from the start, you need to convince the agent or publisher that the book you want to submit will be successful in the marketplace. In the first paragraph, use around 300 words to write a brief but intriguing summary of your book. Write a second paragraph that describes the essentials of the book, such as genre, word count, and likely market.
If you’re writing fiction or creative non-fiction, outline your narrative and describe your main characters in the first or second paragraph.
State whether or not the book is finished at some point in these opening paragraphs. Note, however, that some publishers will not accept proposals for unfinished works.
3. Identify your expected target market and competitors. Use a paragraph to thoroughly describe the demographic your book is aimed at. If possible, provide provide statistics and make sure they address your target demographic in specific, rather than general, terms.
Perform a competitive analysis in this section. List a few main competitors to your book, explain how well these competitors do in the market, and describe why your book will offer something its competitors do not.
4. Provide biographical information, especially in relation to the book’s subject matter. Describe yourself and explain why you are the perfect person to write this book. Don’t fabricate or exaggerate details, but do put a positive spin on your personal bio.
Mention any writing experience and publishing experience you have.
Mention any experience you have with your book’s subject matter. For instance, if you’ve written a book about fashion and have experience as a fashion designer, include that in your letter.
5. Summarize your intended role in the marketing plan. Provide specific information about what your plans are concerning the promotion of your book once it gets published. Be specific, not general. Do not state what you are willing to do, but rather what you will do.
Instead of writing “I would be willing,” for example, go with “I will.”
Possible forms of marketing include professional blogs, book signings, and professional conferences.
6. Include a more detailed synopsis as a separate enclosure. You will usually need to include a 1-2 page synopsis that describes your book in fuller detail than your 300-word summary at the start of the proposal letter. Unless otherwise directed, include this as an enclosure, not as part of the main body of the letter.
Provide a full summary of the entire plot and purpose of your book. Include all the major details about the plot and significant sub-plots.
7. Enclose a sample table of contents and an extract, if requested. Some publishers expect you to send along a table of contents, an extract from the work, or both. Follow the specific submission guidelines provided by the publisher, and get clarification if needed.
If you do not yet have a table of contents, you may instead need to provide a brief summary of each chapter.
Some publishers and agents will request the first few pages or chapters of your book. Others may not specify which part of the book the extract needs to be pulled from. Regardless, the extract should be an example of your strongest writing.

Method 4 Formatting the Letter.
1. Start by placing your address at the top left of the letter. In the upper left corner of the letter, write your street address on the first line, then the remainder of your address (such as city, state, and ZIP code in the U.S.) on the second line. Left align the text (here and throughout the letter) and single space between lines.
You do not need to include your name or title in the return address, since this information is provided in the closing section.
Do not type out the return address at the top of the letter if you are using paper with a formal letterhead that already includes the address.
2. Include the current date below your address. Double-space after the return address and type the current date in "month-day-year" format in the U.S., or “day-month-year” in nations that typically use that format. The month should be spelled out, but the day and year should be represented by numerical values.[
For instance, write “October 8, 2019” (month-day-year) or “8 October 2019” (day-month-year).
If you are not using a return address because your paper has a formal letterhead, the date should be the first piece of information you add at the top left.
3. Type in the recipient's name, title, and address. Double-space after the date, then use a single-spaced line for each of the following: recipient name; recipient title (if applicable); recipient street address; recipient city, state, etc.
Alternatively, you can put the person’s name and title together on one line—for instance: “Mr. Thomas Jones, Director of Operations.”
Use the person’s personal title—Mr., Ms., Mrs., Dr., etc.—if you know their preference. It’s generally acceptable to assume “Mr.” for a male and “Ms.” for a female. However, you can instead choose to exclude the personal title and write “Thomas Jones” instead of “Mr. Thomas Jones.”
The entire block should be left-aligned and single-spaced.
It’s preferable to write to a specific individual at a company instead of writing a general letter to anyone who may read it.
4. Include an appropriate salutation to the recipient. Double-space after the recipient's address and type the salutation "Dear" followed by the recipient's personal title and last name. End the salutation with a colon, not a comma: “Dear Ms. Amy Watson:”
If you do not know the recipient's preferred personal title and prefer not to assume either “Mr.” or “Ms.”, skip the personal title and use the recipient's full name: “Dear Amy Watson:”
Double space after the salutation as well.
5. Write the body of your letter using single-spaced block paragraphs. The exact content and length of your proposal letter will of course vary depending on the type of proposal you’re writing. The format of the letter should remain the same for each type, though.
Single space and left justify each paragraph.
Do not indent the first line of your paragraphs.
Double space between paragraphs.
6. Use an appropriate closing and signature. Double-space after the final body paragraph and include a formal closing, followed by a comma. Hit the "Enter" key four times before typing your full name and personal title—this blank space is for your signature.
Capitalize only the first word of your formal closing—That is, “Thank you” instead of “Thank You.”
Common closing options include “Thank you,” “Sincerely,” “Regards,” “Best regards,” and “Best wishes.”
Add a comma after the formal closing.
7. Mention any enclosures below your signature and name and title line. If you send any enclosures with your proposal letter, like a resume with an employment proposal or financial information with a business proposal, indicate this by double-spacing after your typed name and title and typing "Enclosure” or “Enclosures.”
You also have the option of listing each document you are enclosing. Use the following format: “Enclosures: resume, writing sample, 3 letters of reference.”
8. Review the letter for spelling, grammar, and formatting errors. Run your finished letter through a spell-check program, but don't stop there. Read it out loud to check for any awkward phrasing or grammar errors. If possible, have someone else read through it as well, since they may spot errors that you've missed.
Don't let a silly spelling error or misplaced comma reduce the impact of an otherwise carefully-crafted letter. Proofreading is important!

FAQ.

Question : How do I write a proposal for a musical tour?
Answer : dentify the potential donors and outline your plans for the tour, including the bands involved, the venues where you will be playing, and an estimate of the upfront costs and potential profit. If this will be for charity, clearly identify the cause.
Question : How do I write a proposal letter to the ministry of safety, wanting to supply them with stop signs and police gear?
Answer : A proposal is generally understood to mean something the receiver has not yet thought of. "Dear city council, after reading your urban planning blueprints, I propose to plant more trees" rather than "I see you're looking for trees and I want to sell you some." Governments are typically bound by public tenders when they buy equipment, so if you want to sell signs and gear, you have to submit your offer when they issue a tender and hope yours is the best of all offers received.

Tips.
If someone else typed the letter for you, double space after the enclosures line and include their initials. For example, add “HU” if Hilary Underwood typed the letter for you.
April 07, 2020


How to Help Elderly Parents With Finances.


Helping your elderly parents with finances can be a tricky thing to do. It can be frustrating for you and can cause hurt or embarrassment for your parents. If you go about it with discretion and respect, though, you can streamline your parents’ finances and remove a lot of stress from your and their lives. By communicating properly, budgeting, and simplifying their affairs, you’ll be able to help your elderly parents with their finances. In the end, you and your parents might be come closer, and you'll both have a lot less to worry about.



Method 1 Budgeting.

1. Find out their sources of income. Sit down with your parents and ask them to list their sources of income. If they are unable to list their income, keep an eye on their mailbox and wait for checks to arrive. In addition, contact their bank to find out if they have recurring direct deposits into their accounts. Some sources of income might include.

Social security.

Pensions.

Retirement accounts that include stocks, CDs, and bonds.

Real estate holdings.

2. List their expenses. After you’ve determined your parents’ income, you’ll need to list their expenses. You can also do this by sitting down with them and asking them to list expenses. However, if they can’t remember, you’ll have to wait on bills to arrive in the mail or for businesses to call them asking for payment. Some common expenses include.

Phone.

Cable and internet.

Utilities like electricity, gas, and water.

3. Meet with professionals who manage their affairs. In addition to getting records from your parents and tracking them down yourself, you should also meet with any professionals who manage aspects of your parents’ affairs. This includes lawyers, accountants, management companies, insurance agents and brokers. They will likely have valuable information about your parents' finances you need.

Don't be intimidated by professionals you may have to meet with. In most cases, they'll be happy to help you and your parents.

4. Cut expenses, if needed. Once you’ve gathered a list of their income and expenses, you’ll have a very good idea of what they can afford and what they can’t afford. When you have this information, start trimming expenses. This way, your parents’ income and savings will last them a lot longer than it would otherwise. Some things to cut include:

Cable.

Very large life insurance policies.

Magazine and newspaper subscriptions.

Charitable donations.

Cars or homes that have been financed.

5. Raise money for your parents, if they need it. In the case that your parents don’t have the income to meet their expenses, you’ll have to raise money to help them. There are a variety of things you can do without reaching into your own savings account. Consider:

Selling their home or getting them a reverse mortgage. A reverse mortgage is a loan that the borrower does not need to pay back until they sell the home.

Auctioning cars and other valuable possessions. Your parents might have valuable artwork, a car collection, or a piece of land somewhere that could be sold. That money may be just enough to meet their expenses.

Avoid taking loans or selling your parents' property before talking to them about it.

6. Find out if there are entitlements they are eligible for. In addition to identifying their current sources of income, you may be able to find entitlements or other sources of income for your elderly parents. To do this, check with your local, state/regional, or national governments. Don't worry, though, there are many resources available that will make this search easy.

For people in the United States, visit http://www.benefitscheckup.org to identify new sources of financial help for your parents.



Method 2 Organizing Their Affairs.

1. Get a power of attorney. A power of attorney will give you the legal right to act on your parents’ behalf in managing financial (and legal) aspects of their life. As a result, you’ll have the right to talk to your parents’ insurance companies, bank, pension administrators, and more. Without a power of attorney, you’ll have serious problems managing your parents’ finances.

2. Reduce the number of credit cards and checking accounts they have. Shut down all checking accounts and close all credit cards except for one or two. It will be very difficult for you to monitor their finances if they have many cards and accounts. Ultimately, it’ll be easier for you to follow one card and one checking account.

Verify that accounts and cards you intend to close do not have automatic payments or direct deposits attached to them.

3. Set up automated payments. Contact all the businesses that your parents have regular or recurring payments with. Provide them with a credit card number or a bank account number from which they can draft money that they are owed.

You may be able to do this through the business’s website.

4. Hire someone to manage their finances. If your parents’ finances are too complicated or their estate is too large for you to manage on your own, you may need to hire a third party to help you. In this event, a financial advisor, management company, or a law firm may be able to help you help your parents.

Determine if you or your parents have enough money/income to employ a professional financial manager.

5. Get their tax information. Ask your parents for their prior income tax returns. If they can’t find them, ask their accountant. With their tax information, you’ll be able to file the current year’s taxes, consolidate loans, and much more.

If you are unable to get tax information from your parents or their accountant, visit https://www.irs.gov/individuals/get-transcript to get transcripts of prior years taxes. Remember, though, you’ll need to have a power of attorney to do so.

6. Have them write or update their will. One aspect of your parents’ finances that they might neglect is their will. Their will is important as it will allow their estate to be settled relatively easily if they pass away. While this will probably be a tough conversation for both of you, you should ask them to write a will.

7. Document everything you do. Keep good records of everything you do for your parents. This includes keeping copies of checks you write, holding onto receipts for things you pay for, and taking notes of complicated financial issues. If you don’t document things well, you could find yourself in a legal battle with a sibling later on.



Method 3 Communicating Properly.

1. Ask if they want help. Before you take matters into your own hands and try to take control of your parents’ finances, you should ask them if they want help. Depending on their personality and position, they may respond negatively or affirmatively. Whatever their response, you'll at least open up communication and let your parents know that you are thinking of them.

If your parents are terminally ill or intellectually diminished, you may not need to ask them. Instead, talk to them and let them know you are going to try to organize their affairs.

2. Respect their wishes. Depending on your parents’ circumstances, you should respect their wishes as best as you can. If you disregard their wishes, you’ll probably alienate them and poison your relationship. By respecting their wishes, you’ll turn managing their finances into a positive experience.

3. Keep them involved. While you may be tempted to just take care of everything yourself, make sure that you keep your parents part of the discussion for a long as you can. This is important, as you don’t want them to ever be surprised about where they stand financially. In addition, if they stay active, they might fare better in terms of their health.

Schedule monthly meetings with your parents to talk about their finances. At the very least, take some time to let them know where they stand.



Tips.

Keep an eye out for signs of dementia; this is a signal to start taking great control of your parents' assets.

If you are working with your parents' finances, be sure and keep siblings informed in writing. This will help alleviate any tension about financial matters when your parents pass away, as that sibling or those siblings will be aware of what the state of your parents' finances are.

Warnings.

Educate your parents about scams. Request that they not mail any large payments to anyone for any reason without discussing it with you first.
February 25, 2020


How to Help Elderly Parents With Finances.


Helping your elderly parents with finances can be a tricky thing to do. It can be frustrating for you and can cause hurt or embarrassment for your parents. If you go about it with discretion and respect, though, you can streamline your parents’ finances and remove a lot of stress from your and their lives. By communicating properly, budgeting, and simplifying their affairs, you’ll be able to help your elderly parents with their finances. In the end, you and your parents might be come closer, and you'll both have a lot less to worry about.



Method 1 Budgeting.

1. Find out their sources of income. Sit down with your parents and ask them to list their sources of income. If they are unable to list their income, keep an eye on their mailbox and wait for checks to arrive. In addition, contact their bank to find out if they have recurring direct deposits into their accounts. Some sources of income might include.

Social security.

Pensions.

Retirement accounts that include stocks, CDs, and bonds.

Real estate holdings.

2. List their expenses. After you’ve determined your parents’ income, you’ll need to list their expenses. You can also do this by sitting down with them and asking them to list expenses. However, if they can’t remember, you’ll have to wait on bills to arrive in the mail or for businesses to call them asking for payment. Some common expenses include.

Phone.

Cable and internet.

Utilities like electricity, gas, and water.

3. Meet with professionals who manage their affairs. In addition to getting records from your parents and tracking them down yourself, you should also meet with any professionals who manage aspects of your parents’ affairs. This includes lawyers, accountants, management companies, insurance agents and brokers. They will likely have valuable information about your parents' finances you need.

Don't be intimidated by professionals you may have to meet with. In most cases, they'll be happy to help you and your parents.

4. Cut expenses, if needed. Once you’ve gathered a list of their income and expenses, you’ll have a very good idea of what they can afford and what they can’t afford. When you have this information, start trimming expenses. This way, your parents’ income and savings will last them a lot longer than it would otherwise. Some things to cut include:

Cable.

Very large life insurance policies.

Magazine and newspaper subscriptions.

Charitable donations.

Cars or homes that have been financed.

5. Raise money for your parents, if they need it. In the case that your parents don’t have the income to meet their expenses, you’ll have to raise money to help them. There are a variety of things you can do without reaching into your own savings account. Consider:

Selling their home or getting them a reverse mortgage. A reverse mortgage is a loan that the borrower does not need to pay back until they sell the home.

Auctioning cars and other valuable possessions. Your parents might have valuable artwork, a car collection, or a piece of land somewhere that could be sold. That money may be just enough to meet their expenses.

Avoid taking loans or selling your parents' property before talking to them about it.

6. Find out if there are entitlements they are eligible for. In addition to identifying their current sources of income, you may be able to find entitlements or other sources of income for your elderly parents. To do this, check with your local, state/regional, or national governments. Don't worry, though, there are many resources available that will make this search easy.

For people in the United States, visit http://www.benefitscheckup.org to identify new sources of financial help for your parents.



Method 2 Organizing Their Affairs.

1. Get a power of attorney. A power of attorney will give you the legal right to act on your parents’ behalf in managing financial (and legal) aspects of their life. As a result, you’ll have the right to talk to your parents’ insurance companies, bank, pension administrators, and more. Without a power of attorney, you’ll have serious problems managing your parents’ finances.

2. Reduce the number of credit cards and checking accounts they have. Shut down all checking accounts and close all credit cards except for one or two. It will be very difficult for you to monitor their finances if they have many cards and accounts. Ultimately, it’ll be easier for you to follow one card and one checking account.

Verify that accounts and cards you intend to close do not have automatic payments or direct deposits attached to them.

3. Set up automated payments. Contact all the businesses that your parents have regular or recurring payments with. Provide them with a credit card number or a bank account number from which they can draft money that they are owed.

You may be able to do this through the business’s website.

4. Hire someone to manage their finances. If your parents’ finances are too complicated or their estate is too large for you to manage on your own, you may need to hire a third party to help you. In this event, a financial advisor, management company, or a law firm may be able to help you help your parents.

Determine if you or your parents have enough money/income to employ a professional financial manager.

5. Get their tax information. Ask your parents for their prior income tax returns. If they can’t find them, ask their accountant. With their tax information, you’ll be able to file the current year’s taxes, consolidate loans, and much more.

If you are unable to get tax information from your parents or their accountant, visit https://www.irs.gov/individuals/get-transcript to get transcripts of prior years taxes. Remember, though, you’ll need to have a power of attorney to do so.

6. Have them write or update their will. One aspect of your parents’ finances that they might neglect is their will. Their will is important as it will allow their estate to be settled relatively easily if they pass away. While this will probably be a tough conversation for both of you, you should ask them to write a will.

7. Document everything you do. Keep good records of everything you do for your parents. This includes keeping copies of checks you write, holding onto receipts for things you pay for, and taking notes of complicated financial issues. If you don’t document things well, you could find yourself in a legal battle with a sibling later on.



Method 3 Communicating Properly.

1. Ask if they want help. Before you take matters into your own hands and try to take control of your parents’ finances, you should ask them if they want help. Depending on their personality and position, they may respond negatively or affirmatively. Whatever their response, you'll at least open up communication and let your parents know that you are thinking of them.

If your parents are terminally ill or intellectually diminished, you may not need to ask them. Instead, talk to them and let them know you are going to try to organize their affairs.

2. Respect their wishes. Depending on your parents’ circumstances, you should respect their wishes as best as you can. If you disregard their wishes, you’ll probably alienate them and poison your relationship. By respecting their wishes, you’ll turn managing their finances into a positive experience.

3. Keep them involved. While you may be tempted to just take care of everything yourself, make sure that you keep your parents part of the discussion for a long as you can. This is important, as you don’t want them to ever be surprised about where they stand financially. In addition, if they stay active, they might fare better in terms of their health.

Schedule monthly meetings with your parents to talk about their finances. At the very least, take some time to let them know where they stand.



Tips.

Keep an eye out for signs of dementia; this is a signal to start taking great control of your parents' assets.

If you are working with your parents' finances, be sure and keep siblings informed in writing. This will help alleviate any tension about financial matters when your parents pass away, as that sibling or those siblings will be aware of what the state of your parents' finances are.

Warnings.

Educate your parents about scams. Request that they not mail any large payments to anyone for any reason without discussing it with you first.
February 11, 2020


How to Prevent Arguments About Finances.


Money and finances are one of the most common sources of conflict for couples. Money problems can stem from not being open about your finances and having differing views of how money should be spent. To help prevent fights about finances, discuss each other’s views about money, come to a compromise that respects both your values, communicate about your finances openly, and set goals to help keep your finances in order.



Method 1 Discussing Your Views About Money.

1. Talk about your view on money. One of the money problems that arises between couples is due to their differing position on money. Some people are spenders and others are savers. These two mindsets can strongly clash. To help get past this problem, you should talk about these differences.

During this discussion, talk about whether you are a saver or spender.

Having open communication about your ideas and feelings on money can help you start to solve or eliminate problems.

For example, you may say, "I believe that money is hard-earned and should be enjoyed." Alternately, you may say, "Saving money is important to me. We work too hard for it to spend it often."

2. Discuss what money means to you. Often, the arguments about finances aren’t about money specifically, but about what money means to the people in the relationship. To help prevent any financial arguments, you and your partner should explain to each other what money means to you and what it signifies. This can help you understand each other.

For example, you may think that saving money means safety and security. You may think that saving money or spending it can show love and affection. Saving money may make you feel in control and like you have power.

You may feel that you deserve to spend your hard earned money on yourself, or you may feel that you deserve to save your hard earned money for future plans.

Determine if you or your partner use money as a way to measure success, status, or keep score with others.

Make sure to discuss any fears you have about money and the way that your family approached money growing up.

For example, you may say, "Saving money makes me feel safe. When we were growing up, we had no money, so having a savings account helps me feel like I'm taking care of my family."

3. Acknowledge your differences about money with an open mind. After you have discussed what money means to both of you, you should use the opportunity to understand each other’s position and ideas about money. You should not point fingers or try to make one of your right and wrong. There is nothing wrong with having different values about money. You have to work towards understanding, accepting, and compromising.

For example, work on understanding why your partner feels that spending money is something they have earned and deserved. Try to see how saving money makes your partner feel in control and safe.

Both you and your partner are two different people, which means you are not going to have the same opinions about everything. Communicating about your ideas of money can help prevent and avoid misunderstandings.

If your partner has illogical, irresponsible, or contradictory ideas about money, that is a separate issue. You want to accept different ideas about money, yet help your partner work through illogical money ideas that may harm your family.

Try saying, "I understand that you want to save money though I like to treat myself for my hard work. Can you explain to me why saving money is so important to you? I will explain to you why I think we deserve to spend some of our money."

4. Compromise with both of your sets of values. After you have figured out what each of you feels about money, you can then work on a compromise. Compromise means you both stay positive as you find a way to negotiate both of your values. Find some common ground that benefits you both. You should work on finding ways for both of your to compromise equally so one person isn’t giving up more than the other.

For example, you may come to a compromise where you set aside money each month to spend on yourself while your partner sets aside a similar amount to save. You both can come to an agreement on what things are considered special splurge purchases, and decide what you want to save money on to purchase or invest in in the future.

5. Take a break and come back to the discussion. If you and your partner are discussing money and start arguing or yelling, stop the conversation and go do something else. Stepping away for a moment will help you and your spouse have time to calm down and think more logically about what has been said.

You and your partner will not always agree about money. However, it is crucial that you learn how to compromise so you can meet everyone’s needs and address each other’s concerns.



Method 2 Communicating Effectively About Finances,

1. Be open about your finances. One way to help prevent arguments about money is the be open about your finances with your partner. This helps each of you be on the same page, so you won’t be keeping secrets about money or lying about money. These behaviors can cause problems and arguments.

When your relationship gets to the point where you start sharing bills and financial responsibilities, you should be open about all of your finances. This includes your debt, income, and financial obligations.

Tell your partner, "I want to share my finances with you. I have some student loan debt, a car payment, and two credit cards."

2. Keep your partner in the loop. You should share vital financial information with your partner so that you both stay informed of each other’s financial situation. This includes any changes to your income, tax returns, and credit reports. This helps maintain honesty and communication between you, and you can avoid potential problems if you keep something from your partner.

This often happens at the beginning of a partnership, when you let your partner know your financial situation. However, you should continue doing this throughout the relationship, especially if things change significantly.

For example, you may say, "My credit report has changed recently due to my recent bill payments. I'd like to go over what changed the credit report with you."

Another way to prevent arguments is to agree to text or call if you are thinking of purchasing something over an agreed upon spending limit, such as $100. If you or your partner is out shopping and finds something above the agreed upon limit, then sending a quick text or making a quick phone call may prevent an argument later on.

3. Establish weekly money talks. Another way to help prevent fights about money is to discuss any minor problems before they can turn into something worse. Getting together with your partner once every week or two to discuss the budget and any minor problems can help keep the lines of communication open and help prevent fights.

For example, you may get together and discuss how one of you spent more on groceries than was budgeted, or another minor financial problem. Addressing the problems early can help prevent the small things from turning into major problems.

You may say things like, "We went over the budget on groceries, but by cutting a few corners, we can adhere to it next month."

4. Talk about how you will approach helping out family. Many people help out family members financially. However, this can cause a lot of problems and arguments. To help prevent this, talk about what you and your partner want to do about helping out family members so you have a procedure in place.

For example, you may decide to help out a family member up to a certain dollar amount or a certain number of times each year. You may decide that you want to help out certain family members but not others. Discuss these issues with your partner and come up with a solution that you both can handle.

You may say, "I understand that your parents struggle, but we can only afford to help them for this set amount of money three times each year."



Method 3 Setting Financial Goals.

1. Create a budget. Budgets can help prevent a lot of arguments about money. Budgets create a solid plan for your money so there won’t be any questions or confusion about where the money goes and when. Budgets give you and your partner a guide to help stay on track where money is concerned.

If one partner has trouble adhering to the budget, you can look at the numbers and find areas that need improvement or adjustment.

Make sure to budget in money for extra purchases, such as an impulse buy or going out to dinner.

Include each of your money interests in the budget. If you like to spend money but your partner likes to save, budget those things in each month.

If budget has a negative connotation, consider calling it a “spending plan” instead of budget.

2. Share financial tasks. To help keep the financial responsibilities even and a joint effort, come up with a way share tasks and assign a duty to each person. This helps take all the pressure off one person and lets you work together to manage your finances.

For example, you may pay the bills while your partner makes and maintains the budget. You may focus on the savings account while your partner invests money.

3. Come up with long term goals. Figure out what your long term goals are for your money. Do you want to invest? Are you saving for a new car or house? Are there kids in the future? Do you want to take vacations? Each of these future plans are important. You should discuss what you and your partner want in the future and come up with a way to approach it.

Most of these purchases require pre-planning and saving. Prioritize what you want to save your money for.

4. Approach finances as a team. To help keep your finances running smoothly and eliminate any potential conflicts, work on your finances as a team. Even though one person may be in charge of the budget or paying the bills, you should talk about these ideas and sit down once a month to discuss the month’s finances.

You may decide to pay bills together and do the budget together instead of assigning the task. You may also switch back and forth and do a different financial task each month.

5. Consider having separate accounts. If finances and spending habits are a frequent source of frustration in your relationship, then you and your partner might consider setting up separate bank accounts and just maintain a joint account for your shared bills and savings. This may help to prevent arguments about finances if you each have a set amount of money to spend on whatever you want each month.

6. Seek professional help. If you and your partner fight too often about finances, you can seek professional help. You may want to visit a therapist who specializes in resolving conflicts in relationships. This can help you get past any barriers and help you learn how to compromise.

You may also want to visit a financial planner. Financial planners can help you figure out how to budget and compromise on financial issues.
February 25, 2020