401(k)

In US 401(k) refers to the retirement savings left with a former employer. 401(k) is a kind of tax-qualified deferred compensation plan in which an employee can elect to have the employer contribute a portion of his or her salary to the plan on a pretax basis. These are generally called deferred wages as they are deferred from current income taxes, on the saved money and earnings on it until withdrawal.

There is a limitation on how much percentage of salary can be kept for deferral contributions. There are also restrictions on how and when employees can withdraw these assets, and penalties may apply if the amount is withdrawn while an employee is under the retirement age as defined by the plan.

Advantages Of 401(k):

1) Increased Take Home Pay --> This tax deferred saving plan, reduces your current taxable income and simultaneously increases your take home pay. These savings are tax deferred until withdrawal.

2) Automatic Deduction --> In this plan your savings are automatically deducted from your payroll. So you don't get a second thought on whether to save or to spend.

3) A Company Match Can Help Your Investments Grow --> Certain companies offer contribution of certain amount to your account for every dollar that you contribute. In this circumstance you are bound with the work for certain number of years. This way your savings will grow manifold.

4) Emergency loans --> If any emergency you can take loan from this deferred savings account and pay it back later with the interest ( a fixed rate determined at the time of the loan).

5) Emergency Withdrawal --> Another benefit is that, you can withdraw it before retirement, when in heavy financial need, but you can't put it back after total withdrawal.

6) Updated Account Services --> Through statements, telephone and online account services 401(k) plan holders are kept updated on how their investments are working. Total account information are provided on time to time.

7) Portable --> The main beauty of this plan is that it can be transferred from one job to another, without withdrawing your total amount everytime you change your job

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Quitclaim Deed

Often misspelled as quick claim deed or quit claim deed, Quitclaim Deed refers to transfer or quitting any interest in real property as a grantor and passes that claim to grantee.

A Quitclaim Deed neither warrants nor professes that the grantor's claim is valid. The grantor may not have any right at all, so that the grantee can assume that the grantor has any real interest to claim. However, in a way, if the grantor is related to the grantee, the owner of the property, the grantor can sign a quickclaim deed, stating his/her disinterest in the property. Like in the case of married couple, the grantor can sign and record a quitclaim deed in favor of the spouse, to transfer any interest the grantor is having in the property to the spouse.

Majorly this situation arises during a divorce situation, where one party is granting the other full rights of the property and eliminating any kind of interest. This is done to make sure that the spouse who wasn't on the deed, does come back later and lay claim to the property.

Other Types Of Deeds:

1) Tax Deed --> When property taxes are unpaid , the property is sold to recover tax amount. In this case auctioning body, which is usually a local

government, claims no interest in the property.
2) Gift Deed --> Gift deeds are generally used to transfer title among relatives. In this property is transferred without payment of money.

3) Deed-in-lieu of Foreclosure --> Sellers who are behind in payments to the lender will sometimes negotiate with a lender to accept a Deed-in-Lieu of Foreclosure, which means the seller has transferred the property to the lender to avoid foreclosure. But the deed may still show up on a seller's credit report.

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Hard Money Loans

Hard Money Loans are high rate loans from institutions and private individuals, who lend money. These loans are almost never issued by a commercial bank or other deposit institution. Hard Money loans are similar to bridge loans but it is asset based and shorter in terms with high rate of interest. The financing can be availed without much documentation, unlike traditional banks.

Hard Money Loans are generally based on the current market value of the collateral. This is called the loan-to-value or LTV ratio and typically hovers between 60 and 70% of the market value of the property. In commercial real estate, hard money developed as an alternative "last resort" for property owners seeking capital against the value of their holdings and that too without much fuss.

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Advantages Of Online Banking

With the advent of Online Banking everything seems easy and within the reach of hand. Online banking is becoming much more popular these days than in the past, due to faster internet and more and more options. Online banking is also called as E-Banking, Internet banking or home banking.

Online Banking has following advantages:

1) Worldwide the number of daily transactions have increased enormously, due to powerful computer networks. Through online banking multiple transactions can be done super fast and smoothly.

2) No more time consuming paper work is required and gives access to many different banking services to its clients instantly.

3) Online Banking means anytime and anywhere. Unlike traditional banks, which opens for couple of hours, through online banking the services can be accessed 24 hours.

4) Another popularity gaining advantage is the payment of various utility bills through one's account. Whether its mobile bill, electricity bill, water bill, car loan etc . everything can be paid without much hassle. You can set up recurring bill payments for monthly bills.

5) No need to carry much cash or cashbook while traveling. You can access your account from any part of world and get your funds transferred.

6) Also the individual can manage and access all of the aspects of bank accounts like CDs, IRAs securities from one protected website.

7) No need to hop to nearby ATM or bank for any financial transaction. So Online banking not only saves your time, but also saves your money.

8) Online savings accounts typically earn a better interest rate than the savings accounts at a bricks-and-mortar bank.

9) Online banking has given more access to Stock Marketing, making it faster.

10) All the above services and more and more facilities can be accessed from the comfort of your home. No more long queues.

Apart from various benefits, there are also some disadvantages of online banking as online crime is increasing day by day. A few computer glitches which have revealed individuals personal details have been occurring, sometimes at third party processors. Keep your passwords confidential and change once in a while. Always log off from your account after completing your transaction.

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