Posted by Money Tips Staff

One of the most common sources of debt

and bankruptcy are medical injuries and illnesses that leave behind

unpaid bills. This is often the result of a lack of health care as

well as a lack of foresight which can lead to not having emergency

funds squared away. An injury can zap your funds very quickly. In

addition to the original costs of paying for whatever surgery,

procedure, or medicine is needed (all of which are greatly

exacerbated if you don’t have healthcare insurance), you may also

have to afford lost paychecks and income from being on medical leave.

If your injury came as a result of your

job, your best bet is to hire a workers compensation lawyer so that

you can be properly compensated. Most employers have some form of

workers comp insurance. You will have to fill out the proper

paperwork and be able to document your injury. If your injury did not

come as the result of your job, you may still qualify to receive funds

from Social Security disability, unemployment compensation, medical

insurance, short or long term disability insurance, ADA,

accommodations, credit or mortgage insurance, and even suing third

parties.

If you don’t have healthcare insurance, it’s important that you get it. You will be forced to eventually, and

in the meantime, you’re risking enormous hospital bills that could

result from an injury or illness. Without insurance, a single broken

bone could add up to tens of thousands of dollars in debt. Even if

you do have insurance, you may still need to keep a savings account

that can help you out with short term and long term medical costs. An

injury may affect you years after you think it’s healed and can lead

to chronic pain and flare-ups, which create additional costs both

from consultations, physical therapy and/or medication.

The basic lesson to be taken from this

is to view your health as a financial factor. Even if you have been

relatively lucky up until this phase in your life, it is almost a

certainty that at some point you will have to deal with the effects

of a major medical condition. When that time comes you need to be

financially prepared for the long term fallout. The best way to

prepare is to make sure you understand your employer’s workers comp

insurance, your own medical insurance, and the contingencies that may

exist in your retirement savings.

Posted by Lily Svensson

Everyone knows that it’s important to save for the future, but how do you know which savings product to go for? One popular option is the ISA – let’s take a look at some of its key attributes and features.

Why get an ISA?

First of all, why do people get ISAs? There are plenty of reasons and everyone’s reasons are probably going to be slightly different. For example, you might be saving up for a house deposit or other large purchase such as a car. You might be saving for your children’s education, a wedding or something fun like the trip of a lifetime. It could be for your retirement or just in case you ever need some cash; one of the good things about ISAs is that you can choose what you use the money for.

Tax-free savings

So what is an ISA? It stands for Individual Savings Account and it offers you the chance to invest or save without having to pay tax on the interest or dividends that you earn, making them significantly different to most other savings products on the market.

Choice of products

If you have ever looked into the best stocks and shares ISAs at all, you will no doubt know that there is a range of products available. For example, junior ISAs for the under 18s have just been introduced as a replacement for the old Child Trust Fund. However, most ISAs require you to be over 18 in order to take them out.

The two main choices are cash ISAs or an investment ISA. If you go for an investment ISA then you will be able to choose between options such as a government bond and corporate gilt ISA, a climate change option that invests in green companies, or one that tracks all of the companies on the London Stock Exchange. This is known as a FTSE all-share tracker ISA.

If you go for a cash ISA then the main thing you need to look for is the rate of interest on offer.

The tax year

ISAs are based around the tax year; the current tax year is from 6^th April 2011 to 5^th April 2012. ISAs have an annual allowance as to how much you are allowed to put into them (see below) and this limit typically rises with each new tax year.

Annual allowances

If your child has got a junior ISA then their current annual ISA allowance is £3600. For a cash ISA you are currently able to invest up to £5340 per year and for a share ISA, the limit is £10680. You also have the choice of putting £5340 in both a cash ISA and share ISA if you want to split your money between a couple of different options.

Reasons to invest

There are a couple of benefits to having an ISA, the main one of which is that the savings or investments are tax-free. This allows you to maximise what you put in. Also, as long as you meet the age requirements and have got a bank account then you should be able to find a suitable ISA fairly easily. Investment ISAs in particular also have the potential to grow fairly significantly if the market does well.

Limiting your risk

However, as well as the potential to do well, share ISAs can also fall in value as well as rise. This is because they are pegged to the stock market, which isn’t guaranteed to grow. This is why some people invest in lower-risk bond and gilt ISAs, or put part of the money into a cash ISA as well. This is also why it’s so important to make sure you choose an ISA with a good reputation.

Accessing your money

Some ISAs allow you to access your money whenever you want, as long as you don’t deposit more than the annual limit. However, others require you to give notice before you take out any money, so it’s worth being aware of this before choosing an ISA.

Development of ISAs

The history of ISAs can arguably be dated back to the late 1980s, when Personal Equity Plans were introduced. Tax-Exempt Special Savings Accounts were another precursor to the ISA, but you cannot now get these products since the Individual Savings Account came onto the market in 1999.

International comparisons

The ISA is definitely a British product, but there are some international accounts that have some similarities. For example, the US Individual Retirement Account has some similarities to British investment ISAs. Also, Canadian Tax-Free Savings Accounts are fairly similar to what we know as cash ISAs.

Posted by Money Tips Staff

As the American economy continues to suffer, more and more people are looking for ways to improve their financial situations.  Joining the military is one method you might use to discover your place in the world as well as offer you the opportunity to make money and help you build your character.  Here are a few of the ways that enlisting will benefit you financially:

Loan programs.  Military loan programs are available through the federal government as well as in the majority of states.  Whether you are currently in the military or you have served in the past, you can apply for student loans, mortgages, or for a small business loan.  One of the major incentives for this kind of program is the incredibly low interest rates offered.

Signing bonuses.  Depending on the branch of service, your level of education, any prior professional experience, or the length of your enlistment term, the Army may offer you a bonus for enlisting that can be as high as forty thousand dollars.

Education.  The Army is well known for helping out students who are unable to afford to pay for college or do not qualify for other student loans.  When economic turmoil troubles the country, many people respond by going back to school.  If this is an idea you’ve been turning over in your head, you might consider the advantages to enlisting.  You can attend school and then serve for three or four years, or you can serve first and attend college later.  The GI Bill will offer you a tuition waiver, a living stipend, and will help you pay for your books and other necessary educational supplies.  The military is also interested in people who can offer special services such as nurses, who may be offered a bonus at the beginning of their program and one at the end, which is often as high as fifty thousand dollars.

Your current career.  By enlisting in the military, you will undoubtedly acquire many skills that you can apply to your life or help you climb up to new levels at your job, particularly with regards to technology.  You will probably be trained to use the most state of the art computer technology that will aid you once you have finished serving and are ready to return to civilian life.

Your future career.  Or you might learn a new trade altogether.   Many companies or corporations in the private sector will be interested in your increased technological skills as well as for the security measures you undertook during your training.  And even if you are not interested in being taken on for your computer or security knowledge, you can always utilize the martial arts or fitness expertise you have gained.

The U.S. military is eager to enlist new recruits, and you could easily become one of them.  Whether you’re looking to beef up your bank account or acquire new skills to better your life, you can certainly take advantage of army scholarships to ensure that you are getting the best military education that will help you succeed!