ways to meet financial needs
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One can have a financial emergency at any point in life. You can plan for a contingency, but sometimes you get an unexpected requirement for funds. Even if you have invested for a potential contingency, it may take time to withdraw those funds to meet your financial needs. Anyone can have an emergency like an illness, accident or job loss and having ways to manage tough times must be thought about. Sometimes you will need funds super-fast too. Here are a few ways to meet financial needs in an emergency. Cash value of life insurance If you are holding a whole life insurance policy, then you should know that the cash value gets accumulated over time. So, in case of an emergency you have two options – borrow against this or terminate the policy. You can borrow money against the cash value from the insurance company or just terminate the whole policy and get a lumpsum amount. It is your money you are taking and the cash can be made available fast. You could replace the policy with a different low-cost term policy and in many cases, there isn’t a tax liability. But if you borrow against the policy instead of terminating it, there are costs – you will have to repay the loan and it could attract additional interest. And if you terminate the policy, you are losing coverage. Loan against refund tax Tax return loans allow you to get fast cash through the emergency tax refund advance online. Companies offer money against tax refunds in an urgent situation. You must have filed your taxes correctly and have a refund amount. Now this refund will come at a certain time and in case it is a little too late, then you can opt for such loans. You can get up to $35,000 in cash against a refund and the deposit is often made the same day. It is a quick and convenient method of getting funds. Liquidation of investment You can choose to liquidate investments that you hold in your name. The investments could be mutual funds, stocks or bonds. You may have invested in such vessels for the purpose of saving and growing your money, but in emergencies, this is a good source of funds. The investment could have yielded returns, in the long run, so you may not have any loss unless their market value has gone down. There could be capital gain taxes that you may need to pay. But the reason why it’s the best source to meet your financial needs in emergencies is that it is your own money. Selling property You could look for items that are expendable and can be sold for good value. Precious jewellery and gems are a good option to sell and raise money. You could also sell property like an apartment, car or house if you have them in your name. You can list them on online sites which bring in buyers and sell them quickly. Selling such items, that have been used, like jewellery, doesn’t bring tax load. However, you may incur costs related to advertising and sales tax. Asking relatives Not the best option, but one of the quickest ways to get cash fast is asking relatives. You could ask your siblings or parents or that aunt who had a soft corner for you. If you are on good terms with them then you can access this fund source which is interest and tax free. Gifts up to $14,000 aren’t taxable. This method of getting quick cash doesn’t impact credit history. However, if you have borrowed money, then be sure to pay back on time, lest you strain relationships.

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