The 5 financial tips for the 2nd week of March 2012 are given below:
Tip no 1 - Time is the best friend of investors.
Time is really the best friend of the investors. If the investors don't invest their money at the right time, then they won't be able to get high returns. For instance: in the stock market, one needs to invest when the price of the stocks is moderately low. The investors should take advantage of the low price of the company stocks and buy them as early as possible. The best time to sell the stocks is when the market condition is very good. In the other words, investors should sell the stocks in a bull market. The bottom line is to buy the stocks at a low price and sell them at a high price.
Tip no 2 - Floods and earthquakes are not covered under standard homeowners policy. You will need to buy separate coverage for such catastrophes.
A normal homeowners insurance policy doesn't cover natural disasters like flood. If you want to cover your house against floods, then you'll have to purchase a flood insurance policy. Similarly, a homeowners policy does not cover earthquakes. You'll have to add this coverage to your insurance policy. If you want this coverage, then you'll have to talk to your insurer. He can tell you the necessary steps you'll have to take for adding this coverage.
Tip no 3 - You can draw a loan against your whole life insurance policy.
One of the advantages of whole life insurance policy is that you can borrow money against it. Apart from the death benefit, a whole life insurance policy offers cash value to the policyholders. This cash value acts as a savings vehicle. You can borrow money against it. You can use the money for any purpose. Once the purpose is served, you can pay back the money with interests.
The cash value benefit helps cash-strapped consumers to get over the difficult financial times. So, next time you need money, feel free to borrow money against your life insurance policy.
Tip no 4 - If you're 62 years old and have equity in your home, take advantage of reverse mortgage.
Reverse mortgage has been specially designed for the benefit of the senior people with equity in their homes. This type of mortgage allows the senior people to convert a percentage of their home equity into cash. You'll receive cash until you leave the home. Reverse mortgages are primarily of 3 types – single purpose reverse mortgage, federally-insured reverse mortgage and proprietary reverse mortgage.
The best part of reverse mortgage is that you can use the money to meet various financial purposes. For instance: you can use the money to renovate your home or pay off credit card bills.
Tip no 5 - Always carry your driver's license and auto insurance card when you drive.
Make sure you have your driver's license and auto insurance card while driving. In case your vehicle meets an accident, then the traffic police will want to see these cards. A driving license will prove that you're fit to drive. On the other hand, the auto insurance card proves that your car is insured. If you get involved in a hit and run accident, then you'll have to show these to the law enforcement officers. Other than that traffic police will want to see your insurance card if you happen to violate some traffic laws.