Save Tax with Health Insurance

It's common knowledge that buying health insurance helps you to save tax. Under Section 80D of the Income Tax Act 1961, you can get a maximum tax benefit of Rs.15000 on health insurance preium paid. The exemption limits are as follows:

• An individual can avail an annual deduction of Rs.15000 from taxable income for health insurance premium paid for self and dependants. 'Dependents,' in this case, refers to spouse and children.
• In the case of senior citizens (aged 60 years and above), the annual deduction from taxable income goes up to Rs.20000.

But here's a tidbit that might help you save more tax than you think:

• If you are paying the premium for your parents' health insurance, you can claim an additional tax benefit up to Rs.15000 under the provisions of Section 80D.
• If your parents are senior citizens (aged 60 years and above), the benefit goes up to Rs.20000.

However, there are a few conditions:

• You cannot claim tax benefit on health insurance premium paid for your in-laws.
• Proof of payment of premium has to be furnished, in order to avail the tax benefit.
• Except cash, any mode of payment is acceptable for claiming tax benefit.
• The health insurance premium must be paid from your taable income of that year only if you want to claim a deduction.

The health insurance premium that you pay for yourself, your dependents (spuse and children) and your parents, are all considered for tax benefit under Section 80D of the Income Tax Act 1961.

*Tax benefits are subject to changes in tax laws.

My Health Insurance

• You cannot claim tax benefit on health insurance premium paid for your in-laws.
• Proof of payment of premium has to be furnished, in order to avail the tax benefit.
• Except cash, any mode of payment is acceptable for claiming tax benefit.
• The health insurance premium must be paid from your taable income of that year only if you want to claim a deduction.

The health insurance premium that you pay for yourself, your dependents (spuse and children) and your parents, are all considered for tax benefit under Section 80D of the Income Tax Act 1961.

*Tax benefits are subject to changes in tax laws.

How Health Insurance Works

Health insurance companies today provide coverage against maternity and additional expenses, including both pre and post natal care, child delivery (normal or caesarean), which sometimes lead to vaccination of newborn babies. Maternity insurance covers the new-born baby up to the validity of the maternity insurance policy. 

Health Insurance Explained – The YouToons Have It Covered

With this health insurance policy, you can cover all your family members against diseases under a single cover. This cover offers a fixed sum insured for the family members that can be availed either by an individual member or as a sum total for treatment of one person. Family floater Mediclaim cover offers a fixed sum insured for the family members that can be availed either by an individual member or as a sum total for treatment of one person. Floater benefit means the sum insured as specified for the proposer under the policy, is available for any or all the members of his/her family for one or more claims during the tenure of the policy. As compared to individual plans, family floater Mediclaim plans come at a marginally incremental premium.

Investments In Business: Pros And Cons

Staring your own business is an exciting adventure. It has all the possibilities you dreamed of; you can be your own boss, set your own schedule, and your income potential is limitless! Yes, this is all true… but with all the pros there are certainly cons to starting your own business; anyone can do it”, it is meant to give you some things to think about before your start on your journey.

There is a common assumption that you have to raise money from outside sources to start a viable business. In fact, the vast majorify of small businesses are launched solely on the owner’s dime and time. Some businesses seem to simply require outside investment, particularly if they call for expensive equipment, a substantial inventory, significant labor, or the like. However, most business ideas can be modified into smaller startups without high capital needs and built up to the ultimate company over time. There are excellent reasons to start a business and, of course, there are other excellent reasons not to. This is why it’s important to weigh the pros and cons for yourself, as your situation is unique, and advice that worked for one entrepreneur’s business may not be applicable to your own. 

Here are some of the pros and cons that you need to think about before you start your own business:

1. Being your own boss

•       Pro: Being your own boss means that you have the freedom to direct the company in the direction you want it to go. You can experiment with your ideas. You do not have to check with someone above you to get something done quickly. This can be very rewarding and refreshing especially if you have spent time in a bureaucratic business environment.

•       Con: Being your own boss can be a con. The buck stops here becomes a reality, not just a saying. When problems cannot be solved by your employees, they get escalated to you. Escalated problems are typically the hardest and very time consuming, such as dealing with the most difficult clients. Secondly, being the top leader can be lonely. It is important to have a mentor and a peer group. They can provide you some social comfort as will not give a reliable forum to check your ideas. Often your employees will not give you the full scoop because you are their boss. You need to solicit and hear honest feedback on a regular basis.

2. Flexibility with your time

•       Pro: For obvious reasons having flexibility can be really great. You can pick your kids up from school when they are sick, you can sleep in on occasion, or for skipping work at all hours during the day or for working during odd hours. The freedom to control your own time is great.

•       Con: Freedom means you need to be more disciplined with your schedule and very self motivated. No one else but you will keep you on task. Working towards your goals needs to be a priority every day. While this may not seem like a con, it can be if you need format structure to keep you going.

3. You can set up the business the way you want

•       Pro: your dreams can be pursued just like you want. You can set up unique employee structures and create new and different ways of conducting business. You are not stuck implementing someone else’s ideas. Essentially you have freedom to do it the way you think is best

•       Con: Being responsible for setting up the business also means that you are responsible for determining how operations, finance, marketing, sales, and human resources will all be run. If any part of your business is not working, you need to figure out how to fix it. This can be exhausting and very time consuming. An entrepreneur’s job, especially in the beginning, can translate into very long hours for very little money, and as your business grows, you may be revising/refining the business processes on an ongoing basis.

4. Financials are your sole responsibility

•       Pro: you get to decide how and when you spend money. Which new product lines or markets you invest in is ultimately your decision. You also get to decide who benefits from the corporate profits. Will you share it with important staff members, invest it all in the business or keep it all for yourself? If your business is enormously successful you can retire early or pay for your children’s college and leave them a great inheritance.

•       Con: All financial resources you need to procure. Whether it’s investing your own nest egg, talking out an SBA loan, borrowing money, or engaging an investor (which means you lose part ownership). The risk that this requires is yours to bear. To procure funding you will very likely be required to sign a personal guarantee. If the company does not succeed, you will need to pay them back or file bankruptcy (which is painful but not as bad as it sounds). This is the risk you take. It’s also why many entrepreneurs find investors. But, of course you lose part of your business with each new outside investment. Also, managing cash flow is your responsibility. You need to figure out how to pay your bills, including payroll. If the money is not there, you must personally figure out how to get those funds. Will you increase your loans, borrow more money, work extra hard to sign a new client, or spend over time collecting on bills? Whatever you do, you will need to figure it out.

Mr. Yitz Grossman is President and Chairman of Target Capital Corporation, a financial consulting company since 1983. Base in Washington Street, Braintree, Massachusetts 02184, USA

Obviously there are many more pros and cons and every entrepreneur will have unique experience. Regardless, if you have the perseverance and desire to build a business, you can succeed. The beginning phases can be the most difficult, but over time, your resources can grow and your circumstances usually become much easier and more rewarding.

Real Estate Investments And Do Your Homework

Real estate investing involves acquisition, holding and sale of rights in real property with the expectation of using cash inflows for potential future cash outflows and thereby generating a favorable rate of return on that investment.

As compared to other investments, less of misadventure is involved in a real estate property. I will not get away from the fact that just likes any investment you make; you have the risk of losing it. Real estate investments are traditionally considered a stable and rich gainer, provided if one takes it seriously and with full sagacity. The reasons for the real estate investments becoming less risky adventure primarily relate to various socio-economic factors, location, market behavior, the population density of an area; mortgage interest rate stability; good history of land appreciation, less of inflation and many more.

But aside from leverage, real estate investing provides other benefits to investors such as yields from annual after-tax cash flows, equity buildup through appreciation of the asset, and cash flow after tax upon sale. Plus, non-monetary returns such as pride of ownership, the security that your control ownership, and portfolio diversification.

Of course, capital is required, there are risks associated with investing in real estate, and real estate investment property can be management-intensive. Nonetheless, real estate inventing is a source of wealth, and that should be enough motivation for us to want to get better at it.

Real estate is not purchased, held, or sold on emotion. Real estate investing is not a love affair; it’s about a return on investment. As such, prudent real estate investors always consider these four basic elements of return to determine the potential benefits of purchasing, holding on to, or selling an income property investment.

1. Cash Flow – The amount of money that comes in from rents and other income less what goes out for operating expenses and debt service (loan payment) determines a property’s cash flow. Furthermore, real estate investing is all about the investment property’s cash flow. You’re purchasing a rental property’s income stream, so be sure that the numbers you’re rely on later to calculate cash flow are truthful and correct.

2. Appreciation – This is the growth in value of a property over time, or future selling price minus original purchase price. The fundamental truth to understand about appreciation, however, is that real estate investors buy the income stream of investment property. It stands to reason, therefore, that the more income you can sell, the more you can expect you property to be worth. In other words, make a determination about the likelihood of an increase in income and throw it into your decision-making.

3. Loan Amortization – This means a periodic reduction of the loan over time leading to increased equity. Because lenders evaluate rental property based on income stream, when buying multifamily property, present lenders with clear and concise cash flow reports. Properties with income and expenses represented accurately to the lender increase the chances the investor will obtain a favorable financing.

4. Tax Shelter – This signifies a legal way to use real estate investment property to reduce annual or ultimate income taxes. No one-size-fits-all, though and the prudent real estate investor should check with a tax expert to be sure what the current tax laws are for the investor in any particular year.

Do Your Homework

1. Form the correct attitude. Dispel the thought that investing in rental properties is like buying a home and develop the attitude that real estate investing is business. Look beyond curb appeal, exciting amenities, and desirable floor plans unless they contribute to the income. Focus on the numbers. “Only women are beautiful,” an investor once told me. “What are the numbers?”

2. Develop a real estate investment goal with meaningful objectives. Have a plan with stated goals that best frames your investment strategy; What do you want to achieve? By when do you want to achieve it? How much cash are you willing to invest comfortable, and what rate of return are our hoping to generate?

3. Research your market. Understanding as much as possible about the conditions of the real estate is a necessary and prudent approach to real estate investing. Learn about property values, rents, and occupancy rates in your local area. You can turn to a qualified real estate professional or speak with the county tax assessor.

4. Learn the terms and returns and how to compute them. Get familiar with the nuances of real estate investing and learn the terms, formulas, and calculations. There are sites online that provide free information.

5. Consider investing in real estate investment software. Having the ability to create your own rental property analysis gives your more control about how the cash flow numbers are presented and a better understanding about a property’s profitability.

6. Create a relationship with a real estate professional that knows the local real estate market and understands rental property. It won’t advance your investment objectives to spend time with an agent unless that person knows about investment property and is adequately prepared to help your correctly procure it. Work with a real estate investment specialist.

Beachworld Residential LLC,a real estate investment and a management company, since 2000. It is an innovative and leading edge real estate investment firm founded by Mr. Robert Rothenberg. The CEO founder remains active in the business and his well-recognized for his experience, leadership, and knowledge within the real estate investment community.

Beachworld Residential LLC is by no means an ordinary company. Mr. Robert Rothenberg is a well-respected and nationally known niche real estate investment firm building a nationwide portfolio of student housing properties on major university campuses, conventional Class A Apartment Complexes, and NNN Leased Medical/Healthcare real estate throughout the United States. As a niche real estate investment firm, with a specialized expertise in high growth asset classes, Mr. Robert Rothenberg stays focused on real estate providing an opportunity for increased cash flow and large appreciation.

If you would like to know details about real estate, please click link Robbie Rothenberg.

Dental Insurance - What Is Dental Insurance Well Worth For You?

What's your dental insurance worth to you?

Most standard dental insurance policies will cover a few routine visits to the dentist, x-rays as well as dental cleanings. This is the preventive part of dental hygiene that most dental insurance companies are prepared to invest. Preventive dental care eliminates/lessens the likelihood of major dental problems from developing. Since most dental problems could be prevented there is less need for expensive treatment afterwards. This works to the benefit of both you and also the dental insurance company.

In case you require expensive treatment like root canals, dental implants, dentures as well as bridges etc, you insurance company will generally pay a percentage of the treatment cost and will also be required to pay the rest. The percentage the dental insurance provider pays will vary from say 50 to 80 percent of the total cost. This depends on the type of policy as well as the premium you are willing to pay annual. Higher premium policies will cover a larger the main cost of treatment.

No policy will usually cover 100 % of the cost. You need to expect you'll pay at least part of your dental care costs. But in case you have dual cover say you're covered both under your employer's dental cover as well as that of your spouse, then you may be eligible for 100 percentage of dental cover. But you need to get this clarified with both the dental insurance providers and any exclusion clauses that they may have.

Since, most major dental problems can cost lots of money to treat it is safer to have dental insurance to lessen the financial burden. Most dental insurance may have annual limits on spending. It is rare to locate a policy that does not restrict the amount you are able to spend in a year on dental remedy. So, if you need major procedures that exceed this annual limit discuss your choices with your dentist and structure your treatment over two-three years to obtain maximum benefit from your plan. Most dental procedures can be achieved this way.

There is also the major disadvantage of some inexpensive dental insurance plans that will only permit "least expensive alternative treatment"(LEAT). Which means that for any dental problem if you have three or four ways of treating it. Then the insurance plan will cover only the LEAT. If you go searching for the more expensive but better treatment for your condition then you'll have the pay the difference in costs. This clause severely restricts your possibility of getting the right treatment for yourself and focuses on reducing the expense for the dental insurance company.

Opt for a dental insurance that doesn't restrict your treatment options even if the actual premium is on the higher side and you will afford it. If your are struck with this type of plan then another option is getting yourself a discount dental plan that allows all treatment at discounted prices. Only restriction is you need to opt for a dental plan that your dentists accepts or visit a dentist that accepts your dental plan greeting card.