How to Invest Your Equity Release in Retirement Investments

A number of events over these last few years have seriously impacted the way in which we all plan for our futures. For people who are approaching retirement age, they might just realise that their pensions are not quite enough to keep them going. The cost of living is always climbing, and other complications tend to creep in over time. For these and other reasons, pensioners often choose an equity release plan to help keep them afloat and avoid serious financial problems.

A great way in which you can be sure that you receive an adequate income over the years is by investing your money in the right places. Regardless of the type of investment you opt for, you will need some extra money to pay for the initial financial contribution. Whether you are more inclined to invest in a buy-to-let property or invest a lump sum in a short-term investment policy, you will need access to cash in order to start the process. As they say, you need to spend money to make money.

If you don’t have the necessary cash readily available, then you can take out an equity release on your existing property in order to cover your new investment. The value of your property, the type of equity release plan you choose and your age will all contribute towards determining how much you can release against your property. For example, the older you get, the more equity you can release. The greater the worth of your property, the more money you can release too.

By determining how much cash you can release, you can make informed decisions in terms of how you choose to invest that money. Many people choose to invest a large portion of their equity release so that they can benefit from their investment in years to come. They also pay off debt such as loans and credit cards so that they are free of yet another burden. Other pensioners choose to invest their newly released cash in a holiday home. This second property can eventually become their permanent home, or they rent it out in order to earn some extra money each month.

While an equity release is bound to affect your estate, it is a highly secure way of accessing money when you need it most. Not to mention relieving the stress of debt hanging over your head as you live out your golden years.

How Retired Couples Can Benefit From a Holiday Home

Once retired, many people take more frequent holidays, travelling abroad to far off places they dreamed of visiting during their careers. In some cases re-visiting relatives and friends they have not seen in decades.

Tourism being such a massive industry across the globe it is no wonder the cost of holidays is forever rising, especially to very popular destinations. Couples everywhere have dreams of escaping to the perfect holiday home. Owning a holiday home means that you won’t have to worry about high hotel room rates around peak season and you really can enjoy time away whenever you like!

For anyone who has already retired or nearing retirement age, there’s nothing more appealing than the idea of eventually making their holiday home their full-time residence. Purchasing any type of property is an investment and, by purchasing a holiday home, you can integrate into society gradually. This makes it easier when you do eventually make the move since you’ll be acquainted with the locals and your surroundings.

Another benefit of buying a holiday homes is that you can rent it out if you’re not living there permanently. This way, you can enjoy earning an additional income from this property instead of just letting it stand vacant. Once you do move in permanently, you can decide whether you wish to sell or rent out your initial home. You could even pass that home on to your children if you like.

The unfortunate reality for many retirees is cash may not be readily available to make dream of a holiday home abroad come true. Pensions or investments may fall short, utility bills are forever on the rise and ensuring you live within your budget is increasingly difficult.

But if you are retired and own your home outright then there it always the option of releasing equity from your primary residence to fund a second home. Downsizing the family home for a smaller, less expensive property is one viable option which will give you a cash lump sum for investing in property abroad. Equity release is another such option which can allow you to remain in your property whilst releasing cash for you to fund your dream holiday home.

Retirement is all about enjoying your golden years as much as you possibly can. How better to do this than to getaway to your dream spot in the mountains, by the beach or even overseas?

Why Choose Equity Release?

Like any financial decision, choosing to release equity will mean that you are bound to be filled with questions. Since there are so many different options and everyone has their own individual needs, it’s important to gain a complete understanding of equity release and all of the possibilities available.

By choosing an equity release plan, you can free up some much needed cash against the value of your home. Now, there are various clauses, prerequisites and restrictions depending on the type of plan you choose. Some don’t charge you any interest until you have to leave your home and relocate to a long-term care facility or in the event of your death. Others allow you to make monthly payments in order to cover the overall interest and avoid having it accumulate.

For those who are struggling financially and their pension pot does not suffice, an equity release can be just what you need to cover your living expenses all the way throughout your retirement. Alternatively, if you wish to make some kind of a financial investment, you can access the cash you need through an equity release plan and then use the money to invest as you please. Many homeowners choose to purchase a second property and either use it as a holiday home or rent it out in order to earn an additional income. If you wish to relocate and make your second property your primary home, you can then sell your primary home to cover the equity release amount and live out your golden years in the home of your dreams!

An equity release plan makes financial independence a possibility for everyone. Even though you are retired and no longer earning the same salary you had grown accustomed to, there’s no reason you cannot enjoy your life. By accessing the money you need in this way, you won’t need to dig yourself into debt by taking out another credit card, loan or going through the embarrassment of asking your family for financial help. Credit cards and loans might sound simple in the short-term but, over time, they can end up costing you so much more due to interest rates.

An equity release plan is also safer than investing in the stock market. The stock market is known to fluctuate and, while you might experience some wonderful profits today, tomorrow could quite easily be a very different story. Use the money you have and invest it in something sound and secure like property in order to ensure a brighter future for yourself and your loved ones.

How Your Inheritance Is Affected by a Home Reversion Plan

Home reversion plans have become one of the most realistic ways of supplementing your pension. Many homeowners today choose this financial option in order to maintain a certain lifestyle even when their retirement funds are lower than initially expected. That said, just like any financial decision in life, it is essential for homeowners to gain a proper understanding of all the implications of choosing such a plan. This does not just include the benefits, but it is also important to know how it can affect how much you will leave behind for your beneficiaries.

Home reversion plans involve the lender buying part or your entire property. As the homeowner, you can choose between receiving a lump sum and monthly (tax-free) payments from the lender. The amount of funds that you can release will be based on the value of the property, the percentage of the property the homeowner wishes to sell, the homeowner’s age, health and several other factors.

One of the main perks of this type of plan is that the homeowner does not need to move out. They can continue living in their beloved home for the rest of their life. Only once the homeowner passes away will the property be sold in order to cover the amount released by the home reversion plan. If the home is sold for more than the amount due, the remaining funds will be distributed as per the deceased’s will. Alternatively, if the funds only cover the amount released, there will not be anything left from the property in the form of inheritance.

One of the biggest upsides of home reversion plans is the fact that homeowners will not need to ask others for financial assistance. So, even if they don’t have much to pass on to their beneficiaries, they won’t leave them in debt or with the burden of helping fund their retirement. In many cases, particular in the instance of children and their parents, beneficiaries prefer to be unburdened by debt. Children are often self-supporting and want nothing more than for their parents to get the most out of their golden years.

It is also important to consider any loans or additional debt in your name. In many cases, homeowners choose to pay off debt before using what’s left of their equity release funds for other projects. If you do not pay off outstanding debt, the amount due upon your passing will be obtained through the sale of your assets. If you don’t have enough to pay back both the equity release and loans, you could end up burdening your loved ones with paying off at least part of your debt.

It is also important that you ask your adviser about a no negative equity guarantee. This way, the amount that needs to be repaid will never exceed the value of the house. By knowing that you won’t go into the red, it will provide you with added peace of mind.

Is Equity Release Really Helpful If You’re Already Retired?

Just like everything in life, when you retire, things might not be quite as clear and perfect as you imagined. Your most thought out plans could easily prove flawed as time goes by. Finances are the trickiest thing of all to plan in advance and, no matter how much you save, unexpected expenses have a way of sneaking up on you. Medical expenses alone can drain your bank account unexpectedly if you are involved in an accident or fall ill.

Reasons aside, many pensioners find themselves in need of financial assistance during their golden years. One great way of sustaining your current quality of life, without taking out a loan or opening a credit card at your local bank, is by applying for an equity release. These plans allow homeowners to use the value of their home to their advantage. A lender will use specific criteria to calculate the amount of money you will be able to release.

The best part is that the funds you release can be accessed in the form of monthly payments or a lump sum. Either way, the amount is tax-free! Unlike credit cards and other kinds of loans, there are special plans that require no monthly repayments.

Once your equity release amount has been approved, you can then use it as planned. Many homeowners use the money to perform much-needed repairs to their existing home. Others use the money to support their monthly bills. There are even those who invest in a second home as well as those who decide to splurge and spoil themselves with the holiday of their dreams. Since you don’t have to move out of your home, you can even hire somebody to tend to your medical and healthcare needs in the home you love rather than being forced to move to a facility.

If you are already retired, and you are finding it increasingly difficult to keep up with the cost of living, take a moment to consider all of your options. Downsizing might sound like a good idea to some, but it involves so much more than simply selling your home and buying a new one. You would have to sacrifice much of your existing furniture and have everything moved from one location to the next. Not to mention the effort of packing it all up! On top of it all, selling your home involves taxes, tons of paperwork, and plenty of patience too. You cannot simply sell your home overnight. These things take a substantial amount of time which is a luxury you may not have.

More Than Money: Focus on Your Legacy With an Ethical Will

When most people sit down to write a will, they typically focus on how their material goods will be distributed after their death. While those instructions will provide an invaluable roadmap for those who will inherit, they stop short of addressing something you should be concerned about: your legacy.

You may find it surprising that a recent study conducted by Ken Dychtwald, Ph.D., a gerontologist, psychologist and educator, found that almost 80% of parents and their adult children believe the most important issue concerning inheritance is parents sharing values and life lessons. That’s right; your heirs are more interested in learning about your legacy than who gets the silver.

How do you go about defining your legacy? How do you want to be remembered? What will your lasting influence be on both a business and personal level? The answer to the first question-creating an ethical will-will allow you to provide long-lasting value to your family, your business (if applicable) and even your community.

How do you get started? Here are a few questions to answer:

  • Who are the three people who are most important to you and why?
  • What are your top five values?
  • What’s the accomplishment you’re most proud of and why?
  • What are three words you’d like to have said about you?
  • What worries you most about the future for yourself and the next generation?
  • What do you want your children and future generations to know about you, in particular your values, lessons learned, and life experiences?

Once you’ve answered these questions, and reflected on what you’d like your legacy to be, you can move on to the actual process of writing your ethical will. It won’t be a legal document, but it can provide your heirs with information such as:

  • What you want them to know about you
  • How you became who you are
  • What your life’s main influences were

If you own a business, you’ll want to create a business/leadership transition document in which you can:

  • Share a historical perspective of the business and industry
  • Identify critical issues in the business that need to be addressed
  • Share your vision of the future for the business and industry
  • Outline specific business expectations for the future

By thinking about your legacy-making an in-depth assessment of who you are and passing it along-you’ll be providing your heirs with a treasured gift that will resonate long after you’re gone. It’s a gift so powerful that you can’t place a specific monetary value on it-but it’s surely worth its weight in gold.

The Debt Of A Nation

The history of this nation is being written in the annals of debt that has become almost to insurmountable. There have been two critical factors that have derailed the sovereignty and stability of the United States. In all our recorded history of over 200 years this nation has seen only small periods where our armed forces were not engaged in some conflict or another somewhere around the globe. From the time of John F. Kennedy’s death all the way up to today the national debt has continued to climb. There are two important factors as to why this nation still can’t grasp the concept of elimination of our now catastrophic national debt. A nation at war and a nation that relies on the creation of money by privately owned banks like the Federal Reserve Board are the most ruthless ingredients to incur massive debt.

In two distinct periods in our history has a sitting President tried to empower the public while reigning in the Nations debt. One during a time of the greatest internal struggle for national preservation namely the Civil War and another were we were headed into one of the greatest challenges that perplexed a nation primarily the Vietnam conflict. In 1861 President Lincoln needed money to continue to fund the Civil War. Bankers at the time were charging over 28% interest. Rather than pay up that high interest Lincoln pressed congress to authorize the Treasury Department to print full legal tender treasury notes [this is what the Constitution originally implied with no interest attached] to pay for the costs incurred form the war. When congress passed this legislation Lincoln stated ” We gave the people of this republic the greatest blessing they ever had. Their own paper money to pay their won debts.” Thus Greenbacks became the name this currency was called. To Lincoln’s credit the passage of the Merrill Tariff Revenue Act in 1861 along with establishment of the first ever income tax, a flat 3% on incomes above $800 [today equates to $19,000] all increased financial revenue to fund the Civil War.

Lincoln’s troubles began almost from the time he took office. By 1862 congress repealed the flat tax and instead established what was to become the basis of the complex tax system that we have today. A more progressive tax structure putting more of a burden on the less wealthy. Another set back was the National Bank Act of 1862. This act let banks become national in that they are charted by the Federal Government and authorized to issue interest bearing notes secured by Government bonds similar to what Alexander Hamilton did after the Revolutionary War in the creation of the First Bank of America. Passage of this bill ensured a market for the Federal Debt since the new National Banks would now be required to buy those bonds.

Had the National Bank Act failed to pass Congress Lincoln stressed that “Money is a creature of Law and the original issue should be maintained by the exclusive monopoly of national government. the Government should stand behind it’s currency, credit, and bank deposits of this nation. No individual should suffer a loss of money through depreciation or inflated currency or bank bankruptcy;” would have benefited the American public in a time of great uncertainty. Look what happened in 2008 with the Federal Reserve Bank running the show. Millions of our citizens suffered great financial loss. All the Federal Reserve does is loan money to the government at interest. What drives up our national debt higher are privately owned banks, the Federal Reserve, and a nation that continues to be engaged in armed conflicts anywhere in the world.

The London Times in 1863 who favored the Bank of England’s monetary policies wrote ” If that mischievous financial policy, which had it’s origin the North American Republic, should become indurate down to a fixture, then that Government will furnish it’s own money without cost. It will pay off debts and be without a debt. It will have all the money necessary to carry on it’s commerce. It will become prosperous beyond precedent in the history of the civilized government of the world. The brains and the wealth of all the countries will go to North America. That government must be destroyed or it will destroy every monarchy on the globe.” The wealth of the United States is in the hands of the private bankers not the American public. It is no wonder that the English were trying to help the Confederacy. When Lincoln issued the Emancipation Proclamation in 1863 the British populace who were opposed to slavery quietly withdrew their support of the Confederacy while Russia grew more supportive of the Union cause which helped the North and Lincoln preserve the Union.

In repealing the greenback law congress passed the National Bank Act in it’s place. All national banks were to be privately owned and the national bank notes they issued were to be interest bearing. The National Bank Act also provided that the greenbacks be returned as soon as possible as they came back in the payment of taxes. A hundred years later the United States Treasury Department computed the amount of interest that would have been paid if 400 million dollars would have been borrowed at interest instead of being issued by the Treasury Department as Abraham Lincoln initially did. Because of the greenback resolution the United States Government saved 4 billion dollars in interest. President Lincoln followed the exact interpretation of the United States Constitution by the government creating it’s own money interest free.

More recent President Kennedy in 1963 almost one hundred years after Lincoln undertook the gauntlet of reducing our national debt again following the Constitution issued Executive order 11110. This order circumvents the Federal Reserve Bank an makes possible the Federal Government not the banks print interest free money. In 1963 the Treasury Department under President Kennedy issued $4,292,893,825 interest free money. What is so startling is that not long after Kennedy’s death all the United States notes, which Kennedy had issued, were called out of circulation.

The only time in the history of the United States that our National Debt was eliminated occurred when Andrew Jackson stopped the charter of the Bank Of America in the 1830’s. Today just imagine the trillions of dollars saved by interest free currency if the Treasury followed the Constitution. The Debt of this nation starts with the elimination of interest on the currency used. Reinstating the gold standard where one dollar is secured with a dollars worth of gold is one way to start. Another is what President Kennedy was trying to accomplish gave the Treasury the authority to issue silver certificates against any silver bullion, silver, or standard of silver dollars in the US treasury. Now, in 2011 the United States is still operating under the Federal Reserve System. A system that is arguably most instrumental in contributing to this countries trillions of dollars in federal debt. There is more truth in what Abraham Lincoln once said that is so true today “There can be no peace without justice, and there can be no justice without a reform of our economic system, for the financiers are behind most of the corruption in our Government.”

How To Go From Debt Consolidation To a Debt Free Life

A debt consolidation loan – make that the RIGHT debt consolidation loan – can be a stress reduction loan as well. The fact is that most people get too deeply in debt at one time or another. Sometimes the deep debt is caused by poor financial management and a bad case of “living beyond means,” but sometimes the deep debt can be caused by an accident, injury, or illness or by the unexpected loss of a job. Sometimes personal relationships can put a strain on finances, and divorce is often the reason that people get too deeply into debt. Deep debt causes stress.

There’s no doubt about that fact. Getting out of deep debt relieves stress – there’s no doubt about that, either.

The thing is that if you are considering a debt consolidation loan that you understand exactly what the loan covers and what it does not cover. You need to get the debt consolidation loan for as much money as you need – no more and no less.

First, debt consolidation loans are usually made for unsecured debts only. Unsecured debts are debts like major credit cards, store credit cards, gasoline credit cards, etc. Medical bills are sometimes included.

An unsecured debt is a debt for which you have pledged no equity. Secured debts like mortgages, car loans, loans for furniture, boats, or other physical property are not included in a debt consolidation loan, and neither are monthly expenses like utility bills, groceries, or insurance payments included in a debt consolidation loan.

It is important to note that when you get a debt consolidation loan, the credit cards, store cards, gas cards, etc. will be terminated. You can’t pay off a balance on your MasterCard with a debt consolidation loan and continue to use the card.

What I discover in my years of debt experience is that the banks, debtors, insurance companies education system have in common, is that they don’t tell you what to do to make a increase on your monthly or annual income.

They all wants you to pay your debts and whatever you owns them. One day it strike me, that I want to pay my debt and bills but the money, my income is not sufficient and there is no sign of promotion or increase without starting you own small business.

Then I told myself is time to start at a new plan. I change my approach to debt. But this thought didn’t come in one day or the next day. It takes years for me to find out, to find my way to get out of debt consolidation. The secret is that you cannot get up in the morning assuming that you are going to get out of debt by next week Monday or next mount or by the end of the year.

You need to start thinking, make a mental picture to break free from your debt, that debt don’t have a place in your life. A debt free life is not something that you receive from someone, is something you have to work on and it takes vision, hard work and Action.

The success debt management newsletter will lead you ultimately to start building wealth, start making money. Start thinking about a online business.

You need to get serious and as yourself do you really want this? This is one of the secrets. Building up your internal empowerment without a business degree by making the right choices in your life and if I can do it you can. But this require Action. Get started Today. It’s a gold mine of information.

Make Money With Forex Strategies

Making money is perhaps one of the most common goals among ambitious individuals. That is not necessarily a negative since it is an important part of someone being able to live the lifestyle they choose and have the things they desire. The challenge is creating lucrative cash flow without having to work so much that there is no chance to enjoy life.

A lot of individuals have found the secret of generating financial gain by discovering how to trade world currencies on the Foreign Exchange market. Commonly referred to as Forex, this is the process of using carefully formulated strategies to analyze trends on how various types of currency appreciates, or depreciates, in value in comparison to others. Learning how to predict these fluctuations can lead to substantial income.

Throughout the world, all currencies are not created equal. Based on the principle of supply and demand, the value of each one is in a constant state of flux that is influenced by multiple factors such as gold prices, political unrest, economic booms, depressions and natural disasters. The trick is finding pairings that provide the best profit range when one is exchanged for the other.

Currency has its own market that is quite similar to the ones used to buy and sell stocks, bonds, and other products. Though there are hundreds of individual currencies, there are only eight with which traders are primarily concerned, as they constitute the bulk of activity. These major economies include Japan, The United Kingdom, New Zealand, Switzerland, Australia, Canada, The United States, and The Eurozone, which encompasses Spain, Germany, Italy and France.

To understand how these economies relate to each other in terms of value, it will be necessary for a person to take the time to study market trends. Contrary to what many people think, this does not mean one must quit their regular job and spend hours on end sitting at the computer and watching the charts change. With a bit of training, an individual will need to invest merely sixty minutes daily, to the cause.

One of the easiest strategies for beginners to learn is the after hours technique. All this means is that instead of trying to keep up with the hustle and bustle of the New York market during the active times, watching the constant rate changes, one waits until it closes. During the down time, a person will spend a while studying the trends of daily business.

The advantage to this approach is that one can take the time to see which currencies show as strong, and which as weak, over a period of weeks. This is a slower process and trades are made using educated estimations, but with a bit of patience, it provides an individual with ample earning potential. In this manner, a person can hone their abilities and make money without the excessive pressure of intraday strategies.

Anyone interested in day trading would be well advised to partake of a Forex training program. These are taught by individuals who have years of active experience in the field and know what it takes to make great profits on a regular basis. Such instruction is available in multiple formats including physical classes, online seminars, e-books and printed materials.

An Overview of the Top Traded Currency Pairs

Forex trading is all about buying and selling currency pairs to profit from exchange rate fluctuations. Currency pairs are also called securities. Unlike equities and commodities, currencies are paired in a sell-buy or a buy-sell pattern. Which pair(s) to trade is a big question to answer. There is no central source of information to figure out how to rank currencies. Currency pairs can be classified based on volatility and liquidity, spread and volume of trade. The cluster of most actively traded pairs is considered as Majors. They include USD/JPY, GBP/USD, EUR/USD, NZD/USD, AUD/USD, USD/CHF and USD/CAD. Majors account for more than 70% of the total FX turnover.


EUR/USD is the most liquid, popular and predictable pair. The pair value depends on the monetary policy of the European Central Bank (ECB) and the US Federal Reserve. Price quotes are sensitive to fundamental factors. The overall economic health of the US and the EU, dynamics of raw materials, financial statements of large corporations and commodity markets have a direct impact on trading the EUR/USD pair. Price dynamics can be predicted using technical indicators.


USD/JPY is the second level of liquidity pool in the FX market. It is the top currency of the Asian trading and accounts for about 17% of the total market turnover. The pair is also sensitive to fundamental factors. Price dynamics can be predicted using the vital economic data and the means of technical analysis. Characterized by high volatility, the pair offers professional traders the best trading opportunities.


GBP/USD accounts for more than 12% of the total trading volume. It is the most popular and traded pair amongst expert traders focused on short-term aggressive strategies. Price quotes are sensitive to fundamental factors, the actions of the Bank of England and statistical data on the state of the British economy. The pair has high volatility, allowing you to maximize profits in short-term.


AUD/USD and USD/CAD are less liquid compared to the pairs discussed earlier. They are considered to be commodity currency pairs as their prices are closely correlated with oil and gold. Australia is the biggest producer of gold, and hence, the price of the AUD/USD is highly reliant on gold prices. Similarly, Canada is one of the largest oil producers, and therefore, the price of the USD/CAD is heavily reliant on oil prices. The values of these major currencies keep fluctuating as trade volumes between the two countries change every minute.