Everything You Need to Know About a Secured Loan

Written by John Mussi

If you're not familiar withrepparttar term, a secured loan is a loan which requires a security deposit of some kind (also known as collateral) to protectrepparttar 149775 lender against nonpayment. The secured loan isrepparttar 149776 preferred type of loan for lenders who deal with people with bad credit, but is also used when purchasing certain types of property (such as an automobile or real estate.) Interest rates tend to be lower with a secured loan than with an unsecured loan (which doesn't require collateral, but charges higher interest rates to coverrepparttar 149777 additional risk.)

Types of collateral Just about any property with value can be used as collateral for a secured loan, though some types are more common than others. Jewelry and rare coin collections can be used as collateral for some loans, though they are usually held byrepparttar 149778 lender to help protect them from theft or loss. Automobiles and real estate are popular forms of collateral, and lenders usually allow you to keep them while you repayrepparttar 149779 loan… you simply turn overrepparttar 149780 deed or title andrepparttar 149781 lender is given a legal claim torepparttar 149782 car or house in case you should default on you secured loan (which is a fancy way of saying that you don't pay it back.) Car financing and mortgages are both forms of secured loans, in whichrepparttar 149783 automobile or real estate that you're buying withrepparttar 149784 loan serves asrepparttar 149785 collateral forrepparttar 149786 lender.

Who Wants To Be A Millionaire?

Written by Mika Hamilton

I am sure you have probably read aboutrepparttar power of compound interest. And how if you invested $10,000 at 10% return and let it compound for 50 years you would have a little over 1 million dollars.

Now that’s all well and good, but who wants to wait around for 50 years before they can enjoyrepparttar 149774 fruits of their labor.

A quick tweak ofrepparttar 149775 spreadsheet tells us that if you could increase your returns to just 15% per year, we would be looking at a million dollar balance in around 35 years, which would also be bringing you in around $150,000 more each year after that.

25% return per year will turn your $10,000 into 1 million in around 22 years, producing another $250,000 per year in additional cash flow.

This brings us to an important point. How much is enough?

How much money do you need to live your life?

Well, its all relative torepparttar 149776 lifestyle you wish to lead. A good way to work out how much is enough, is to consider how much money you live off now. Work out how much money you would need to earn to replace your current income with your investment income.

If you earn $50,000 per year, then it will only take you around 15 years fromrepparttar 149777 example above at 25% return to replace your income from your investments.

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