Monthly Archives: August 2019

Savings insurance Savings with insurance?

Saving insurance may seem confusing in its name – is it now. No problem, because savings insurance is now clearing.

Savings insurance is ideal for long-term savings, but is not the only option for savings. Before signing contracts, it is a good idea to look at other options, such as savings accounts. You can compare savings accounts in our comprehensive savings account comparison.

What is Savings Insurance?

What is Savings Insurance?

The purpose of savings insurance is to accumulate savings for the future by negotiating an insurance contract with an insurance company. The insurance can be collected either by paying smaller amounts gradually, but generally larger lump sum payments are also possible. This long-term savings generates a sumptuous sum, which you get for your own use at the end of the insurance contract. If you save on insurance with only a small but large one-time payment, you can also talk about investment insurance.

Savings insurance is a life insurance contract which is concluded for a specified savings period, usually at least five years. The insurance covers death insurance, ie if the insured dies during the insurance, the insured will be paid a death sum. The beneficiary’s order is made in writing before the insurance becomes effective, and even overrides the will.

Unit-linked insurance

Unit-linked insurance

In unit-linked policies, the return on insurance is tied to investment activities. Investment targets are selected based on the policyholder’s risk tolerance and return willingness, as with other investment activities. However, savings insurance differs from traditional investments in that the policyholder does not directly own the investment, but the object of the insurance is the value of the investment.

Default rate insurance

Default rate insurance

Interest-based insurance can also be called interest-based or defined-benefit insurance. In this case, the return on insurance is tied to some kind of interest, which is usually lower. The interest rate may be, for example, Euribor or it may be determined by the performance of the insurance company. Particularly in interest-linked insurance savings, one should be careful that insurance costs do not increase above the interest rate.

Taxation of savings insurance


Savings insurance is often advertised because of the tax benefits they offer. However, the laws are changing and, for example, there will be no free contribution to inheritance tax from 2018 onwards. In the past, in the event of death, a close relative was able to receive inheritance tax of € 35,000 free, and a widow up to € 50,000. Savings insurance in the form of gifts is taxed at the rate of the gift tax.

Through savings insurance, active investors can swap investment items without tax on their appreciation or interest rates, as taxation is only provided when insurance savings are withdrawn. Occasionally, however, the insurance company may charge transaction fees for the change of portfolio.

Insurance costs

There are always certain costs involved in maintaining an insurance policy, whether or not savings insurance makes a profit. These costs may include, for example, percentages of insurance premiums, percentages of annual management fees for savings themselves, miscellaneous transaction fees, repurchase costs, which is, expenses for early retirement savings, and premium insurance for maintenance of death insurance.

Savings insurance should be as careful as a carrot, and contracts should not be signed until the terms have been carefully considered. All expenses must be taken into account when calculating the potential income from savings insurance.

Is Savings Insurance worthwhile?

Is Savings Insurance worthwhile?

Because of the costs involved in savings insurance, you should carefully consider whether to take out savings insurance. If you are interested in long-term savings, you may want to look at different forms of investing or savings or fixed-term accounts before making a decision.


Why Ferdies Financial does not need your Social Security Number when you apply for a loan

If you are not a U.S. resident UU., You know how difficult it can be to access capital to invest in your business. If you are also an undocumented immigrant without a Social Security Number, you also know that it can be almost impossible.

It doesn’t matter that you are a hardworking person and that you are only in this country to access a better life: even for non-permanent residents without a greencard (only with a work or student visa) it can be difficult to qualify for something as simple as a credit card. The situation is even worse for undocumented immigrants who do not have a visa and therefore do not have a Social Security Number.

If you find yourself in any of these situations, is there any way to obtain financing for your business?

money loan

Fortunately, it is entirely possible to obtain the capital you need to invest in your business, even if you do not have a legal status of legal immigration and do not have a valid Social Security Number.

Instead, some financial institutions will allow you to use an ITIN instead of your Social Security Number when applying for a commercial loan. While not all financial institutions will accept an ITIN instead of a Social Security Number for a commercial loan (especially larger financial institutions), community banks, smaller banks and local credit unions may be willing to do what.

The IRS issues ITIN ( Individual Taxpayer Identification Number or Individual Taxpayer Identification Number) numbers to those who are not eligible to obtain a valid Social Security Number, but who are required by law to file an individual income tax return. In other words, all foreign citizens, regardless of immigration status, and who must file federal taxes, can obtain an ITIN. Obtaining an ITIN will not change your immigration status, but will allow you to apply for loans that only require an ITIN to finance your business.

In fact, it is an obligation for all individuals in the United States to file their taxes, regardless of immigration status. Even undocumented immigrants have to file taxes by law if they are working and earning a salary in the US. UU.

Obtaining an ITIN is a fairly simple process. To get yours, you must:

  1. Fill out the W-7 form, available in English and Spanish .
  2. Present a document that proves your identity, such as a passport or driver’s license.
  3. You must also attach a complete federal tax return. This means that your ITIN and your tax return are processed simultaneously.
  4. Mail your request or take it to an IRS office or to a qualified agent for processing.
  5. In approximately six weeks, you will receive a letter from the IRS with your ITIN number.

For a step-by-step guide on the required documentation and how to submit your ITIN application, read here the 5 steps to complete an ITIN application .

Ferdies Financial is one of the few financial institutions that do not require a Social Security Number to grant a commercial loan, and instead accept an ITIN. Why? We know that a large part of our applicants belonging to the Latino community do not have Social Security Numbers due to their immigration status, but we do not believe that this is a sufficient reason to deny them the right to obtain financing for their businesses.
We have designed our commercial loans with that in mind and we finance applicants who can only submit their ITIN. In this way we fulfill our mission of helping the Latino business community.

In Ferdies Financial we are faithful to our motto: “We do not close the doors to any business”.

money cash

  While there are other lenders that are beginning to accept the use of an ITIN instead of an SSN, such as Aura and Oportun , that offer personal loans, business loan opportunities remain scarce to date. This is especially true with the largest financial institutions.

Initially, the sole purpose of the ITINs was to facilitate non-US residents. The presentation of federal taxes, but this number is gradually becoming an alternative to the Social Security Number in terms of also facilitating access to capital for their companies. More and more financial institutions and nonprofit lenders are expanding their offer to accept an ITIN instead of an SSN. But keep in mind that an ITIN does not change your legal status; It only serves as a replacement for an SSN in certain cases if you cannot obtain the latter.

Ferdies Financial supports the community of immigrant business owners in the US. UU., And take initiatives that support this mission. In addition to accepting applicants with only one ITIN, our business loan specialists are bilingual, we provide educational resources in English and Spanish, and we provide our Latino members with continuing education to improve their financial performance in the US. UU. and grow your business.

Why Ferdies Financial is your best option

money cash

Ferdies Financial is your best commercial loan option for a variety of reasons that go beyond the fact that we accept ITIN instead of Social Security Number:

  • Our application and financing processes are faster and more convenient than with traditional banks, and you can receive your funds directly into your bank account in a period of between 2 and 10 days .
  • In Ferdies Financial we offer you a personalized customer service, and we make sure to find the best financial solution that meets your specific needs.
  • Throughout the loan application process, we will make sure that you know and understand all the details of the commercial loan you are taking and that you feel comfortable with your monthly payments.
  • Our loan specialists understand the unique challenges of being an immigrant entrepreneur in the US. UU. We do not believe that your legal status should be an obstacle on your path to success.
  • Ferdies Financial does not require you to have a credit history, because we understand that a large part of our applicants have not been in the United States long enough to build a substantial credit history.
  • We do not require you to provide a guarantee when you apply for a commercial loan, so you will not put your personal assets or those of your business at risk.
  • In short, we have fewer requirements than most lenders.
  • Our members also have exclusive access to webinars and receive discounts on selected commercial products.

In Ferdies Financial we make an additional effort for our members. All this implies an added value that you will not find in any other commercial lender, especially if you are an immigrant in the USA. UU.

Apply for a commercial loan with Ferdies Financial, and start making your dreams come true, without letting the lack of a Social Security Number stop you.

Mortgage – Is It Worth It?

It is a dilemma that accompanies us in the most important moment of our lives. Obviously, the greater the dilemma, the greater the reliance of the banks on the purchase of a home.

There is no doubt that the state of the economy influences decision making, because if until very recently buying with the use of credit housing was not so advantageous the truth is that in the days that run and despite the spreads practiced, buy housing using the housing credit can be more advantageous.

Should We Choose to Buy a Home?

Should We Choose to Buy a Home?

Each case is a case and it is not enough to make the calculations taking into account historical inflation data (in the case of rents) or euribor (in the case of recourse to credit) because the uncertainty in the markets exists as we witness daily. The rental market is also experiencing moments of euphoria, with landlords living on the best days to rent, that is, the demand is immense (since rates of the best term deposits are close to zero) and incomes rise almost exponentially taking advantage of the lack of supply, especially in urban areas.

It seems clear to us that whenever rent is higher than housing, it is preferable to opt for housing purchase, but there are also reasons to opt for renting, such as uncertainty about the crisis. Buying, mathematically, is more advantageous than renting, when the benefit is lower than the rent and because in the future there may be potential for capital gains, but it may not be the case if the market responds negatively.

Is It Worth It to Make a Mortgage?

Is It Worth It to Make a Mortgage?

It is the most difficult decisions to make, especially for young people who decide to take a course in their lives. The price of the houses despite having been recovering still has room to recover low and housing credit is now a new breath with banks re-opening the faucet (to see what your spread would suggest we use a housing credit simulator ). But we should not restrict ourselves to these scenarios, we must clearly analyze each item of our personal, family and professional lives and the environment in which we enter, such as:

  1. Economic Financial Situation in which we live;
  2. Personal, Family and Professional Situation that we have;
  3. Crisis and uncertainty;
  4. Banks and their management model
  5. Financial Situation in which We Live

Instability is bound to remain, for at least the next two years, pushing for a restructuring of the market and governance models. The euribor has already given signs that will increase in the coming times and the spreads practiced by the banks raise worrisome values ​​for the maintenance of the family budget. It is clear this economic climate and only does not see it who does not intend to assume that even more difficult times are about to arrive.

Buying a home today using 30-year credit for the amount of 125,000 euros has a monthly installment of around 600 euros which, when checking the euribor increase by 2 percentage points, pushes this value to more than 700 euros per month, insurance premiums and any charges.

You will be prepared to withstand such an increase

You will be prepared to withstand such an increase

How did you prepare for hard times? Did you make an emergency fund? Have you created an effective Family Budget? If you are not prepared then the use of the lease is the best solution because you will not have concerns about the development of the market and the only changes you will feel will be updating the rent on an annual basis and the possibility of eviction of the landlord at any time.

Another advantage is still in case of unwanted event you can always look for a lease more into account and organize your personal finances to the new reality.