Having cash can be helpful to put down a larger down payment, pay everyday expenses, or satisfy debt. Learn more about investment options for your cash, what you can do with more cash, and what your cash means on this page.
Life insurance comes in a variety of forms. Permanent insurance is a type of life insurance that's also known as whole, universal or ordinary life insurance. Unlike term life insurance, permanent life insurance has a cash value and some people treat it as an investment. Permanent insurance is best for people who want to keep it long term.
Why should you buy life insurance? If you have a family or people who depend on you, life insurance can protect them if you die. Life insurance provides cash to beneficiaries you designate to help them with daily expenses and large bills such as mortgages.
Investing $100,000 requires some careful thought and consideration. A fee-only financial planner can help you work through your options and come up with the best investment plan for you.
Cashing in a 401(k) is no way to reinvest your retirement funds. You have several options for reinvesting your funds to build up for your retirement by transferring your IRA from an old employer. Reinvesting your retirement funds, rather than cashing them out, will keep you from paying fees and penalties from the early withdrawal.
When you win a contest, it's like winning the lottery. You get the goods but you have to pay tax on your winnings as personal income rather than capital gains. The difference can be pretty dramatic in terms of taxes owed. Many people choose to take a cash payment instead of the prize, because they will have the cash to pay any applicable taxes.
A senior citizen wants to take cash out of his IRA to supplement his Social Security Income of $1,200 per month. His income is so low that he will probably not trigger any taxes on this income. He may be able to qualify for a reverse mortgage if he needs more cash to live on.
A reverse mortgage can be a good option for an elderly parent who has equity in her home but not much cash. If the parent is over 62 and owns her home, she would be eligible. The money would be doled out in a lump sum or monthly payments that would be paid back when the house is sold. A reverse mortgage is a good way for a parent to use her home's equity to enjoy her retirement.
Cashing checks at a currency exchange doesn't help you create a credit history. If you don't have a credit history, it's a lot tougher to get a credit card, not to mention an auto loan or a mortgage or even a job. Ilyce explains what you need to do to create a credit history and gain access to credit that can help you to buy a house, buy a car, or achieve other financial goals.
"No source, no seasoning" is a term used in the underwriting process of mortgage lending. The mortgage lender's underwriter must make sure the prospective borrower has properly obtained the funds to buy a home. The mortgage lender also must ensure the home-buying funds have been in an account for some time.