Spend Time Instead of Money: Set Your Future in Stone with a Financial Plan

It's easy to meander through life without any real goals. Lots of people do that. The problem is that a lot of people are also in financial trouble. It's no coincidence that poor financial planning is associated with a lack of financial success. Without goals, and a plan, you're just daydreaming about the life you could have. Don't dream, achieve.

Set An Overall Purpose

The first thing you should do is lay down a purpose for having a financial plan. A financial purpose could be anything, but usually involves some type of productive activity. Maybe you enjoy working at your current job. Is there room for advancement? If you hate your job, why are you still there? Should you be making a plan to switch jobs or start your own business?

Write down what you really want to do in life. Write down that one thing you could do forever, even if you had to do it for free - that one thing that you love doing even on the weekends. Your job shouldn't feel like a job. It should be fun. Sure, you're going to get tired, and you'll need a vacation, but you shouldn't be longing for the weekend and retirement.

Of course, there are other things in life unrelated to work. These could be hobbies or favorite vacations you enjoy taking every year. Make sure you write these down too.

Set Long-Term Financial Goals

Open up your favorite spreadsheet program. Once you have a long-term purpose set in place, it's time to enter in all of the information that will get you moving toward that purpose. It might even be helpful to write down your purpose in the spreadsheet.

Long-term goals are things you expect to happen over a period of 5, 10, 20, even 30 years. These might be things like buying a home, starting a family, buying a business or starting your own, moving out of the country, or retiring.

Set Short-Term Financial Goals

Once you have long-term goals set, it's time to reverse-engineer short-term goals. Short-term goals typically are derived from long-term goals. For example, let's say one of your long-term goals is to own a home. How will you get there?

Well, you might need a lot of short-term goals like "find a new job," "start a savings," and "buy life insurance." If your long-term goals involve building the home of your dreams, your short-term goals would also include "research construction companies," "hire an architect," and "build good credit for a construction loan."

Buy Financial Products

Usually, people rush into buying financial products before they ever have anything resembling a plan - big mistake. Fortunately, companies, such as jg wentworth, can help simplify the process of buying financial products. They can also buy back retirement plan payments later on in life if your plans change and you end up needing a lump-sum of cash in your old age.

Life insurance, annuities, mutual funds, stocks, real estate - all of these things are merely an implementation of a plan. Once you know what you want to do, choosing the right financial products is easy.

Update Your Plan Often

Plans change. Life happens. If something goes awry, you need to be prepared. That's why a good plan is always open to change. Review and update your plan once a year. If you unexpectedly have a child before you're financially ready, some long-term plans might need to be shuffled around. At the end of the day, your plan isn't going to be set in stone. It's a useful guide, but it's not something that should feel like a duty.

Melissa Rudd is a long time accountant and avid blogger. You can find her helpful writings on many blogs, including finance, business, technology and more.

Eight Financial Tips for Working Seniors

More and more people are continuing to work beyond retirement age. For some, it is a choice that keeps them active and involved. For others, it is a financial necessity. Whether work is a choice or a necessity, here are eight financial concerns that those who continue to work should keep in mind: 

1. You are entitled to begin receiving Social Security benefits at age 62. However, if you receive benefits before age of 66 and your earned income exceeds the set limit, your Social Security benefits will be reduced. At age 66, you will receive your full benefits regardless of earned income.

2. If, between the ages of 66 and 70, your earned income is sufficient that you don't need your Social Security benefits, defer them. For every year that you defer your benefits up to age 70, your benefit amount increases by 8% with an adjustment for inflation.

3. Consider the effect of employment on your income tax rate. Calculate your taxable retirement income from Social Security, pensions and retirement accounts and compare it to the current IRS tax brackets. If your earned income puts you into a higher tax bracket, put the amount of income that increases your tax rate into tax-deferred retirement accounts.

4. Take full advantage of tax-deferred retirement accounts. Older workers are allowed to save an extra $1,000 beyond the maximum annual contributions. Many of these accounts have having check writing privileges. You have the choice of standard checks or designer personal checks. This extra saving option adds money to your future retirement income and reduces your current taxable income.

5. Regardless of whether or not you are eligible for Medicare, take advantage of employer health insurance. Basic Medicare does not cover all expenses, and at best, pays only 80% of expenses that it does cover. Additionally, paycheck deductions for health insurance may be made pre-tax, which reduces your taxable income.

6. As investors approach retirement, investment strategies commonly switch from a growth-oriented portfolio to an income-producing one. Those who continue to work, however, are not relying investments for income. Moreover, earned income reduces the potential effects or a decline in the stock market. Those who feel comfortable with the risk could add to their future retirement income by continuing a growth-oriented investment strategy with some investments.

7. Keeping accurate records of living and employment-related expenses has two benefits. Accurately tracking living expenses enables you to make a more accurate estimate of your living expenses after retirement and assures that your combined Social Security benefits, pension, and investment provides a sufficient level of retirement income. Tracking employment-related expenses may lead to job-related tax deductions.

8. Studying your current cash flow and projecting it out for one year, three years, and five years for scenarios such as working full-time, working part-time, or retiring, enables you to analyze the benefits or necessity of working versus retiring. This study switches the emphasis from retiring on an arbitrary date to retiring as preparations become adequate to sustain the life you want to live. That is what retirement should be.

Author's Bio
Phillip Gruppelaar worked as a Sales Tax Inspector and Administration Manager before entering the finance industry in 1988. While working in motor vehicle finance he earned the “AIM Insurance, NSW Business Manager of Year 2000” award. He then moved to home loans and general asset finance including sourcing machinery finance. In 2007, he became General Manager of an online asset financing company, building it to be one of Australia’s largest and most successful. In December 2011, he returned to his own management consultant business and focused on improving client relationships and staff training for another of Australia’s large online finance brokerage firms.

How to Turn a Nest Egg into a Windfall - The Groundwork

Is launching a small business or a start-up the recurring character in your dreams for a brighter future... except you don’t know the first thing about casting the part? Even in this economy, however you slice it, there’s money to be made by taking the entrepreneurial big leaps - the news bulletins are awash in success stories, rags-to-riches tips and even the odd oh-no-he-didn’t gasps. What’s to say yours won’t be the next business venture that carries the day on Wall Street? 

If you don’t have money to burn - and who does, these days? - but you’re considering putting your savings on the line for the chance of striking it big, take every precaution before plunging in head-first. Remember that some failure is predictable from the get-go and so, you should consider hedging your bets as best you can before putting your head on the block. 

1. Use online tools by way of planning ahead - the gung ho and the gunshy alike stand to profit from not going into a potentially costly affair on a wing and a prayer. Sorting out your finances beforehand, accounting for the initial expenses and tallying all the risks involved in founding a company are all necessary steps. A painless, free option is resorting to the Internet as your personal go-to financial adviser, which you can learn more about through just a couple of clicks. Playing it safe (being cost-conscious) and smart (getting customized financial advice) will save you money in the future.

2. Don’t discount the helping hands - even if this might not be the best time to play the market, there are still investors out there willing to gamble on start-ups. As for your presumably scanty knowledge about the investment game, you just need to keep in mind that thinking opportunistically about any venture, however dear to your heart, is all it takes, even if you’re not used to framing decisions in an economics-centric manner. If your business objectively needs more cash than you can provide, an angel investor or a venture capitalist can certainly be approached to shore it up. Even a friend or relative might be willing to pony up, just as long as you both agree to separate your professional relationship from the personal one.

3. Look out for new developments - take the trouble to scope out what other are doing and how the industry you’ve chosen to enter is faring. If you’re not yet sure about what area to go into, the Internet will provide you with more than one good idea and if you’re tech-savvy, all the better, as there are tens of avenues to choose from (of which mobile communication is the hottest right now). Regardless how advanced the industry of your choice already is - and you can look that kind of info up online, via business data aggregators, as well as putting in the legwork and the research work needed to get a read on all the players - think outside the box on ways to improve it.

It’s only at this point that you can start fine-tuning your concept, drawing up a business model and picking a catchy name for your new company. Once you get your ducks in a row, and the financing in the bag, there’s nothing preventing you from going after your dream full speed ahead.

Old School Finance Tips That Work

English: Debit Card(Photo credit: Wikipedia)

There are all kinds of things people can learn from the Great Recession. However, the biggest lesson is that there’s no such thing as a guarantee. While some investments may be conservative, they’re still a gamble. Locked-in interest rates usually aren’t worth the trouble, considering you’re making a large set of funds unavailable for emergency situations. It’s safe to say more people are miss-managing their money (whether it’s a lot or a little) today than they were 100 years ago.

While you won’t get rich from old school investment and savings strategies, you will be relatively secure. How did our grandparents save, invest and manage their money? Maybe they knew a few things that today’s race for high ROIs leaves in the dust. After all, slow and steady has long been the mantra for many things in life, so why not money management?

Actually Budget

Everyone knows you “should” have a budget, but do you actually have one in place? A budget is a written down, line item document that itemizes every single expense and source of income. A budget is something you stick to even if you really want a new BBQ for the summer or if large garden desperately needs an expensive organic rabbit repellant (you should budget-in emergency funds). Despite this knowledge, most people don’t have one or fail to follow its guidelines.

However, most people also have a salary, work the same amount of hours, or get the same benefits each month. It’s no secret how much money you get, and it shouldn’t be a secret how much money you spend. Write down your fixed-costs, such as utilities and actually track how much you spend on everything else. You’ll quickly pinpoint some ways to save money and make sure you re-direct it to savings, emergency funds or retirement.

Use Cash and Precious Metals

It’s simply easier to spend on a debit or credit card than with cash. In an emergency situation, it’s always best to have cash on hand, and maybe even some precious metals bought when the prices were low. However, cash is also easy to steal and most burglars know exactly where to look. Invest in a fire-proof safe that’s bolted to the home and impossible to remove to store vital documents, cash and other precious belongings — that’s what our grandparents did.

Sadly, most banks don’t offer a good enough interest rate to make savings accounts worthwhile. You can easily get disheartened looking at monthly interests that never go beyond single figures. If you have trouble saving, choose an online account and opt out of getting debit cards and checks. You can still transfer funds to make them accessible, but it will take a few days so it stops impulse purchases. 

Reconsider Needs

A big problem many people have while budgeting is their undefined definition of necessities. Few people need a house as nice or as large as the one they live in, or the cars that they have in the garage. If you really want to be financially sound, keep in mind you’ll likely need more than your current income per year when you retire. Suddenly the urge to save is much stronger — and you find downsizing a little easier.

Start Early When Preparing for College Expenses

If you're the grandparent of a recent high school graduate, you're probably filled with many different emotions. Chances are that you feel excited for your grandchild's accomplishment but are also nervous about the future. The cost of college increases each year, and room, board, and rent aren't cheap, either. Add in the cost of textbooks, new clothes, and apartment belongings and the opportunity to go to college may seem slimmer than ever. There are, however, a few ways you can help your grandchild succeed should he decide that college is right for him.

First off, look at scholarships. Help your grandchild fill out his FAFSA to find out what sort of federal scholarships and grants he may qualify for, but also look at local scholarships. For example, many colleges offer private scholarships to students who choose a certain major or students with a certain background. A scholarship will help reduce the cost of attending college and can free up extra money that you would normally have spent on tuition.

It's also important to talk with your grandchild about financial responsibility. If he's ready, consider taking a trip to Lexington Law to meet with a financial adviser. A professional financial adviser will consult with you and your grandchild to talk about how to prepare for the future financially, how to make good financial decisions, how to avoid falling into debt, and how to resolve current debts if this is an issue. Additionally, your lawyer will be able to discuss different investing options for your grandchild to consider even while he is in college.

Finally, make sure you help your grandchild find an inexpensive, yet cheap place to stay. Remind him that it's more important to live within his means than to impress people by showing off how much money he has. It's easy for students to get caught up trying to show off to their friends and do things like buy a brand new car or charge an expensive sofa, but the truth is that these things are unimportant. A secondhand car or a secondhand couch work just as well as brand new items, yet don't mean going into debt to acquire. Remind your grandchild that what matters is his personal education and not making friends who need to be impressed.

It's Never too Late for Seniors’ Life Insurance

It's never too late to get the peace of mind that comes with knowing your loved ones will be taken care of when you are gone. However, the more life you have lived, the greater chance that you are not in the same condition you started out in. 

You may even be in a high-risk category and think you won't qualify for insurance at all. Or, you may be in great health and just want to leave your family with financial help. No matter what your situation is, know that there is a seniors’ life insurance policy that can cover you. Even if you have a pre-existing health issue, you have smoked your whole life, or you have procrastinated for far too long, there is a policy out there to get you the coverage you need. 

Of course, coverage is cheaper and has a higher benefit if you purchase it while young and healthy, but if you are in your golden years, there are still many great, affordable options. The right one for you depends on what you need to take care of your family when you are gone. The options include permanent life, term life, no medical whole life, preexisting condition, guaranteed issue, simplified issue, funeral insurance and more.

Here are some factors to consider. Are you and your partner on a fixed income? If you are, seniors’ life insurance can replace a lost income. Do you want to leave an inheritance to your future children or grandchildren? A life insurance policy is a tax free way to give them the financial help they need. It can also be a way to pay for the taxes on anything else you might leave them, like your family home. 

We never want to think about these things, but your final expenses can be devastating to a loved one if they are not prepared for it. Research notes, “with average funeral costs across Canada of $5000 — $10,000, even a short term plan can help your family when the time comes”. Lastly, if you have any large debts that you don't want to leave your family with, life insurance might be the answer that you are looking for.

We are fortunate to live in Canada where our government provides financial provisions for seniors that have worked and paid the applicable taxes, however, this pension amount is often far below the standard of living costs seniors currently enjoy. It is difficult – if not impossible – to live on this pension and save for final expenses. You may even find yourself dipping into your cash savings during your retirement years if costs are higher than you expect or you have an unexpected financial event. 

 Having seniors life insurance eases the stress of trying to save or plan for your family’s needs after you pass on. Seniors’ life insurance not only helps your loved ones, it gives you peace of mind.

You have just thought of all the reasons for why you need to get seniors’ life insurance. Now is the time to make sure your family’s future is covered. Look no further than No Medical Life Insurance.ca for all your insurance needs, including seniors’ life insurance. We work with the best carriers in Canada to ensure you get the coverage you need. Contact us today to learn more about seniors’ life insurance. We are happy to answer your questions and provide a no-obligation quote.

Financial Loans Even With A Bad Credit History

In this financial world we all are bound with daily expenses. Our job gives us a regular paycheck by which we lead our daily life. But sometimes it becomes difficult to make both ends meet when we require urgent cash in the middle of the month. Urgencies like medical treatment, accidental car repairs, urgent grocery bills and late payment of credit cards do not come planned. 

And thus people fall in a dilemma where they need urgent cash to meet such financial requirements. This leads to borrowing money from various sources such as friends and relatives. But one tries to avoid such financial transactions from relatives. The best option here lies is the source of quick loans available in the market today.

If you have a bad credit history and are worried about getting a loan, you can get a loan easily through no credit check loans available in the market. It helps you to get a loan even if you have a bad credit rating. The eligibility for such a loan is very simple. You just need to be 18 years of age with a regular job and should have an active bank account to show financial transactions. The loan amount borrowed for such loan ranges from £100 to £1,500. The repayment of no credit check loans ranges from 7 to 30 days depending on your next payday. It helps you to make the repayment at your next payday.

No credit check loans can be searched and applied online. You can search for the right lender over the internet and then apply for no credit check loans online by just filling up an online form. Once you submit the online form you receive a verification call for the documents you have submitted. Once they are satisfied the loan is approved and you receive the cash in your given bank account within a day.

No credit check online saves you a lot of money as there is no fees required for processing the loan. The main advantage for such loan is that your credit history is not checked upon for approval of the loan. Also if you have collateral against the loan you can save a lot on the rate of interest. But if you do not have collateral against the loan amount you have to pay higher rate of interest as the lender has to borrow money as his own risk. But always remember to make the repayment on time because if you fail there can be undue circumstances of paying higher interest rates.

Thus if you have a bad credit history and you need cash in the middle of the month, you have the best option to apply for no credit check loans online. It helps a lot to improve your credit rating if you can make the repayment on time and enjoy other financial benefits in future financial market.

3 Strategic Investment Planning Tips for Seniors

Investment planning is important throughout live but even more so if you are a senior. Your investments will become important to you as you move through retirement. The biggest problem that could occur is running out of money. Taking these three strategic investment planning tips will help you along the way, offering you money and markets stock advice and steering you away from mistakes and onto the path of investment success.

1) Do not invest too conservatively

While some planning is contingent upon your current health and estimation of how long you will live, financial planners who specialize in money & markets stock advice tell seniors to plan to live at least 90 years. If you retire at 65, that is 25 years of retirement! Investing moderately when you are retired is the best way to guarantee your investments will perform at or better than the inflation rate, something a lot of seniors do not take into account. You should take a look at your investments, reevaluating your strategy on a regular basis and planning in 5 year increments.

The markets change, but the value in your investments should be as averse to downward pressure as possible while responding well to stock market gains. Obviously, it can be scary to invest in such a volatile market, but investing too conservatively can lose you a lot of gains.

2) Never change your course suddenly

With the plethora of investment news channels, websites, and guides available today, it may be tempting to change course immediately and often, especially if you fall prey to the immediateness of the tone in their voices. However, there is not one financial event that should make you pull all of your investments out.

During the Great Recession, seniors left and right pulled their investments out of the market, and most of these people regretted it later. The market is almost guaranteed to recover eventually. Any large financial changes should be given months of thoughtful consideration. Never let your fear control your decisions on a whim!

3) Be cautious

There are many sales people who offer "advice" and get-rich-quick schemes to seniors. These people are generally trying to make a quick buck from you, and they will provide you little in terms of financial security. High-pressure salespeople should be avoided at all costs. Get money and market stocks advice from someone with whom you have a long relationship with and a lot of trust.

                                                                                                                                                                                               

To Save or Not to Save: What Financial Tricks Will Work for You?

There are lots of financial tips out there, but not all of them will work for you. How are you supposed to save $500 from not buying cigarettes if you don't currently smoke? How are you supposed to be able to save 15% of your income if you're living paycheck to paycheck? Often the saving tips we hear are not applicable to the current personal situation. Here's some ideas to help you think of your own ways to save. 

Spend Less

Many financial experts say that credit cards are a good thing if you use them wisely. The thing is, most people don't use credit cards the right way. Cut up your credit cards and only spend what you earn, if you can't pay with cash, don't buy it. If you "need" credit cards to pay your truck or house payment, downsize. You might be able to pay all your bills, but you don't have enough to put money in the bank or spend on entertainment. It doesn't matter what your situation is - if you don't have a comfortable amount of wiggle room in your budget, keep getting rid of expenses until you are able to stop living from paycheck to paycheck.

Earn More

There might be certain things you feel like you can't live without, but just don't have enough money for. If this is the case, start earning more. This could mean asking for a raise, trying to get a promotion, finding a different job, getting a second job, or starting your own business on the side. Whatever you decide to do, just remember to find a balance between having spare time and having spare money. The more you work, the less time you'll have to enjoy that money. When you can earn more, it can mean a lot more responsibilities, so be sure to keep that in mind.

Make Out Your Will

Once you've reached your golden years, you will have hopefully saved some money. You're going to have to decide what to do with it before your time on this world is up. Most people tend to believe that retirement is easy to finance for, and it can be when you do it right. Just make sure you have enough in reserve to cover even the most unexpected problems that may arise in the future. To do this, try making a revocable living trust. Since it's revocable, you can change any part of your will while you're alive if you want to. Websites like FindLegalForms.com can help you find out more. Take time to talk to an adviser or family if you need to get affairs in order for everyone.

People in the personal finance industry try to make becoming wealthy seem harder than it really is. To have more money, you only need to do two things: spend less, and earn more. Also, make sure to have everything in order so you can leave something behind for your loved ones. When you really look at it, personal finance can be a breeze. Just make sure it fits into your own lifestyle.

How To Keep Your Investment In Sight

The stock market is one of the best ways to invest your money. This is because they have higher returns as compared to investments in real estate or bonds. However, before you benefit from your investments in stocks, you need to find ways to manage this type of personal finance. There are several tools on the market that you can use for managing your investments. This article looks at some of these finance tools.

Virtual Options Trading Tool

There are so many strategies that you can put in place to achieve the goals you have set for your investment in stocks. This tool allows you to test any new strategy before implementing it. This tool gives you access to various strategies to help you process complex orders. The best thing is that the tool is totally free for you to use.

This finance tool comes with virtual options, trade stocks, spreads, covered call trades and straddles. You also have access to advanced order strategies such as one-cancels-other (OCO) and triggers. Other features include:

• Analysis of performance via downloads of positions
• Use the notes feature to set reminders for various tasks
• In case you need to start all over again, you can reset the account and have a fresh start

Stock Screening Tools

This represents one of the most versatile tools that you can use in your stock investment. This tool can pinpoint credible companies in a particular industry. You will be able to examine valuation ratios, revenue growth, and various types of financial ratios. These tools allow you to maintain a proper balance in your investment portfolio.


Screening tools come with a charting capability that allows you to determine the buying and selling levels. This helps you enjoy better accuracy as well as saving time for you. You will get to understand the various concepts underlying different types of stocks. 

Stock Monitoring Tools

If you need to watch your investment grow, you must have a tool to monitor the portfolio you have set up in a quick and efficient manner. There are various tools that you can use to do this. One of the best feature of such tools is the capability to give you updates in real-time. The updates may come via email or phone. The updates will help you assess your portfolio very quickly and based on facts.

Most of the tools come with a news feed. This works by giving regular news for specific stocks. The information will come from various sources such as blogs, websites and other sources. The information you get will be the latest on the market.

Stock Prediction Tools

Predicting the way the market goes is not a guarantee. However, there are tools that will give you an idea of what to expect. These finance tools for prediction use pattern analysis to determine what will happen next. You can use the resulting chart to know how the stocks will rise or fluctuate so that you can make an educated decision. Stock prediction tools are ideal for deciding which type of stocks to invest in. 

Stock Growth Analysis

If you have invested in a given type of stock, you need to find a way to know whether it is increasing or not. This will help you know whether to purchase more stocks, keep the one you have or invest in a new type of stock. These tools monitor any change in the stock so that you know exactly when something happens.

Finance tools for managing your stock help you stay on track with your investments. You will be able to know how your investment is working out and which step to take regarding your stocks.


Author Bio
Joshua Turner is a writer who creates informative articles in relation to business. In this article, he offer tools to manage finances and aims to encourage further study with an  NJIT Online Master Computer Science. 

How to Deal With Mortgage and Credit Card Management

As we are all aiming to ride out the financial wave to safety, you may be currently facing issues when it comes to repaying on a credit card or taking out a mortgage. Thanks to the economic recession we have all be tightening our fiscal belts whilst taking out favourable terms with a number of different credit card firms or banks. Whether you are seeking alternatives or looking to control your personal finance, here are a few options on how to cope with managing your credit. 

Do your research

If you wish to keep a hold of your credit cards then it is essential that you scan a wide variety of companies on the net. This is in order to obtain the best interest rate or APR so your repayments or as low as possible. Different firms will charge different types of rates so it is essential you find the best deal where you can reduce interest rates and more. This includes;

• Decreasing monthly payments.
• Eradicating any charges.
• Asking for a lower interest rate.

Settle debt immediately

Whether you have a credit card or are renewing an existing mortgage loan, it is crucial that you pay off the monthly debts in good time. This is because you may run into trouble in the long run when it comes to missed payments. Like a credit card, a mortgage payment is taken monthly so you should ensure;

• Settlement of any outstanding monthly payments as soon as possible in one lump sum.
• Ask to discuss how to pay less over the course of a month.
• You have enough money to pay or your credit rating may be affected. 

Prioritise

Do you really need to take out a credit card or struggle with mortgages? If you really do not have enough funds to cover these monthly payments then you should draw up a schedule. Credit card repayment can be left to a certain extent while a mortgage needs to be paid off in full. Alternatively it may result in the loss of your home. Yet, if you speak to an independent financial advisor, they will be able to put you in the right direction as far as the best home loan rates are concerned. This will provide you with the opportunity to repay within your budget so that you are not short at the end of the month.

Little and often

If you choose to pay back the minimum amount each month, it will allow you to be in control of your personal finances. In this way, it may take you longer to pay the full amount back on your mortgage or credit card but paying in bite size chunks will ensure you don’t run into debt. By adopting a less is more attitude you will have the chance to;

• Be in control.
• Repay the lowest amount when necessary.
• Not rack up any additional loans.

Seek help

If you have been unable to agree on reduce interest rate payments as well as reduced balance, then there are other solutions available. You can always seek approval from independent advisors or ask friends or family to cover you until you can repay them back. This won’t be as much of a burden especially as it will only be a temporary loan to tide you over until your next pay cheque.

If you are disciplined and keep a close record of all your outgoing and incomings then you will have the ability to manage your finances. By following just a few of these steps, you will be well on the way to financial freedom and taking control of your personal finances.

About the Author:
Westpac is one of the banks in New Zealand that offers the best and reasonable home loan rates. They also have credit card deals and more.

Preparing for the Future – Costs to Be Aware of

Life is full of surprises, many of which turn out to be financial. Even if you are an excellent budgeter there will probably be something that comes completely out of the blue that will knock you for six. 

Many experts suggest having at least nine months’ worth of income saved up for these unexpected and unplanned for costs. This is rather a huge amount and it’s not always possible. But you can prepare by being aware of some of the most common expenses that are rarely planned for.

Take a look over these expenses and try to find out a way of putting a little bit of money aside each month just in case they affect you in the future.

Presents and Gifts

It is quite astonishing how much money you can spend on buying gifts for others. You may have already planned ahead for special events such as Christmas and even set aside money for the birthdays of family and friends but what about when a friend has a baby, a christening, marriages, your children’s’ friends birthdays, retirements, new homes, or engagements. Life is full of times when gifts are given that fall outside of the usual routine.

Legal Bills

You may need to find the money to cover your legal bills. These can arise in all sorts of situations such as selling a home, illegal activity, suing someone and you should also consider the costs of making alterations to your will and testament, rental agreement or the Cost of gaining power of attorney. Legal bills can cost a small fortune so plan ahead and put money aside now.

Health Related Costs

Medical costs are another expense that can suddenly knock you for six. You may have to cover the cost of prescriptions, have surgery or diagnostic treatments or pay for long term care. Insurance is another expense as well as routine check-ups. It all costs money if you are unable to get the treatment for free or if you would prefer to use a private health care option.

Transportation Costs

Cars eat money when they are healthy and on the road let alone when they need attention. The work required to upkeep a care is constant. You will have service charges but also have to cover the costs of accidents, general wear and tear such as replacing brake pads and tires. If you have a car you will definitely benefit on building up some savings to dip into in the future. 

Losing a Job or Clients

There are not many careers out there that now guarantee that you will be in work for years to come. Finding yourself unemployed can be nerve-wracking. You should aim to have at least three months’ worth of wages saved up just in case the firm you work for closes down or needs to make some cut backs. If you are a freelancer you will also need to prepare for times when work slows down between contracts.

By saving you can at least work to soften the blow of unexpected expenses. Start saving now for a more comfortable future.

The author is a freelance copywriter with an interest in personal and business finance. His work has been frequently published on websites and blogs as well as in magazines over the past four years. Besides writing about finance he also has an interest in writing articles about small business start-ups.

Financial Planning for the over 50s

Whether a school leaver or a septuagenarian, financial planning is a vital part of life. However, as you grow older, the factors you need to consider evolve and change as your needs mature.

When you are younger, financial planning is all about the long-term future and putting ideas together to ensure you start edging your way to getting what you want sooner rather than later.

Once you are over 50, although you may have many things you still want to see and do, you also need to start thinking about how your loved ones would pay for a funeral if the worst happened.

We take a look at financial planning for the over 50s and run through some of the considerations which should be taken into account.

Preparing for the worst

No one likes to think about their own death but making sure that all the necessary financial preparations are in place means that your loved ones will have much less to deal with while they are grieving.

"Look after your money, and it will look after you in retirement."

If you are willing to go that one step further, you could even make the preparations for your own resting place. An increasing number of people are opting to have their memorial stone constructed by a stone mason and pick their own cemetery – and even paying for it in advance – to save their family and friends from making difficult choices at a traumatic time.

You might prefer to leave the actual wording on your headstone, but there's no reason why you can't decide on everything else. Granite or marble? Polished or pitched? The choices over your headstone can be made in advance. You can even opt for a curbed memorial if your chosen cemetery permits these.

Pension arrangements

Hopefully, you will have been able to contribute to a personal pension. If this is the case, now is the time to view what arrangements you have in place and consider whether they would be sufficient to fund a comfortable retirement.

There are many types of pension funds that can be arranged

Although the exact value of your pension fund may well fluctuate in line with the market, it can be helpful to get an annuity quote so you know exactly how much extra income you can expect to receive once you stop working. 

This will help you plan for your future and decide whether you need to keep a small part-time job or whether you can afford that around-the-world cruise you have always promised yourself!

The other factor to consider is whether your pension fund needs to be moved to a low-risk, more secure investment.

Pensions are considered a long term investment, so investing in a fund deemed either cautious or aggressive carries little real risk as there will be time to make up any losses. 

The stock market, by its very nature, undulates, but any dips will even out over time, so there's usually no need to get worried by fluctuations in your fund value.

However, once you are nearing retirement, it's worth considering whether it would be more appropriate to move your fund to a less-risky investment. 

If the worst did happen and the market crashed, you may not have sufficient time for your pension fund to bounce back before you need to cash it in. Experts recommend moving your fund to a low-risk location the closer you take your retirement.

Conclusion

Just because you are over 50 doesn't mean you don't still have a long and fulfilling life ahead of you, and free of the shackles of work, you can finally spend your time doing exactly what you want.

However, financial planning is just as important as ever. Whether making sure your loved ones don't have too much to do if you were suddenly to depart this mortal coil or bolstering your pension fund so that you can have a whale of a time during your retirement, it's vital to make the necessary arrangements.

Looking for Part-Time Income?

Economic downturns, furloughs and sequesters have a lot of people looking to supplement their income to offset their losses in recent years. Fortunately, there are a number of options to get some extra income on the side, including options such as covered calls. Before you run to make extra money though, know that the first steps in financial freedom is always budgeting (try this method?) and living within your means (like this guy?). Do you need the newest iPad? Can you give yourself a raise by simply spending smarter? 
After taking an honest look at your own finances, you may decide you really do need extra income. Perhaps you want to fund a hobby, or you are one of the few lucky ones with extra time on your hands, or even want to find a different investment opportunity. Covered calls are one opportunity you can exercise in order to pull in extra income with investments you already have or can acquire.
What are Covered Calls?

Covered calls are an option one can sell on investments they already own. The option is to purchase the underlying investment at a strike price before a certain date. The hope for the seller of the covered call, is that the option is purchased and never exercised, allowing them to sell the option repeatedly to generate a consistent flow of income. This will happen if the underlying investment value remains below the strike price. If the investment value exceeds the strike price, you will be forced to sell the investment at the lower strike price, but you will keep the amount you sold the option for.
What do I need to start?

In order to start selling covered calls, you need to have investments. Certain investments will be better than others based on your expectations of their future performance. As stated above, investments you expect to remain constant in value, or to decline (and which you don't otherwise want to sell), are best investments for covered calls. Of course, the if the entire market agrees with you that the investment will not increase in value then no one will purchase your option to begin with, so obviously, you need to have an investment whose future is at least somewhat uncertain at the time of the option sale. Barring insider trading (which is illegal), predicting the future can be difficult, but also can be worth the rewards if you are willing to take the risks.
What are the risks?

The risks of covered calls are the same as with any option and with any stock investment. With the option itself, you put at risk only the difference between the increase in value of the stock and the strike price – thereby limiting the gain you can make if the price of the stock does increase. However, owning the underlying investment also presents a risk that is not eliminated by using covered calls. By owning the stock, you are risking the entire value of that stock, as you are when you invest in anything. Because the options are 'covered', that is, you own the underlying stock at the time of the option sale, you are limiting your risk as opposed to when the option is 'naked' where you will have to purchase the underlying stock at market price in order to sell it to the option buyer at the strike price if they exercise the option.
How do I get started?
There is a lot of information about covered calls available on the internet and in investment books. One such source is Compound Stock Earnings. Always remember, however, that options are bets on the future performance of the stock market and are not a guaranteed source of income. If you do choose to invest in covered calls, be sure you are using funds you don't necessarily need to survive (or retire) on.

New Technologies Keeping You Organized With Your Finances

Finance (Photo credit: Tax Credits)

It is very important to make use of accurate systems in financial management since this is the only way you can achieve financial freedom. A proper system can in its most basic sense, be compared to a car engine; a car may look sleek and have the perfect color, but it cannot take you anywhere if the engine is malfunctioning. Likewise, you may be making millions, but if you do not employ the right system of finance management, what you earn will be just about meaningless --it will not help you get where you want. Keep in mind that when it comes to finances, it can never be too early or too late to get things in good standing. 

Five applications that can help you take effective control of your finance 

Credit Karma 

This is very useful software that helps you gain access to your credit scores and also facilitates credit monitoring. Credit scores essentially represent how well or not you utilize your credit, and a high score always works to your advantage. It's thus important to continuously work toward achieving and maintaining those high numbers and credit karma can help you make your way there. However accessibility of this application is limited to an iPhone. 

Mint.com 

Sometimes you may just need to get a visual representation of how your finances are adding up, and mint.com can help facilitate that. With this application, you can compare your credit card debts with the cash you have in hand, so that you can subsequently determine how to settle the debt. It also helps you see how much you spend based on the budget you have set. 

Expensify 

If you need a reliable way through which to keep all your receipts, this application makes a good alternative. You can use it to get your credit cards and receipts linked so that they are easily reachable from one spot. This will make you stay on top of your expenses so that you make your payments on time. 

Financisto 

Financisto is an android application that enables for a user to control multiple accounts. If you are an international business person, it can be a very helpful application since it enables you to manage numerous currencies. In addition it makes possible for you to move money into different accounts, so that you have the cash exactly where it's needed. You can also create back-up data which you can then save in Google drive or drop box. 

Nickel Tracker 

If you experience difficulty in sticking to the amount you have put down on your monthly or weekly budget, nickel tracker can enable you to take charge of the matter. The application sends you an alert when you are almost reaching your budget limits, and this helps ensure that you do not overspend. 

The availability of advanced technology has contributed to the easy access of such applications; it's certainly a good way to keep track of every coin and doing it the right way can greatly help you take control of your financial life. 

With a good system in place, you can figure out where to direct more of your resources, and also determine what you have achieved so you get to establish the amount of extra effort to put in. The advantage of these applications is that they can be easily accessed no matter your location, and they are also easy to use, as long as you make use of a compatible gadget. The fact that they are free is just a bonus since you do not have to worry about incurring extra running costs. Technology is undoubtedly one really efficient process in the management of finance. 

Author Bio 

Joshua Turner is a writer who creates informative articles in relation to business. In this article, he describes a few organizational technologies for finances and aims to encourage further study with a UAB online bachelors in MIS.

Are You Missing Out by Not Knowing About Wealth Management?

Finance (Photo credit: Tax Credits)

In this day and age, it’s never been so important to know who to make the most of your money. Maximising your cash flow and taking care of your finances is advisable when the economy is good, but in these hard times it’s become an absolute necessity. Yet, large numbers of people still remain in the dark when it comes to assessing and managing their wealth.

Why Should We Look After Our Finances?

Looking after your finances has numerous benefits, including giving your wealth the opportunity to grow. On the other hand, not taking care of your finances can have devastating consequences. For this reason alone, it’s advisable that you get clued up about the best way to take care of your money, and the best way to start is by learning about wealth management.

How Does Wealth Management Work?

In its simplest form, wealth management is the process by which financial planning, advice, management and investment are all corralled together under the same heading, with one purpose in mind – to maximise the assets of the client in question. However wealth management is much more complicated than this, and requires significant time, knowledge and effort to be applied correctly. If wealth management is carried out properly by an experienced financial advisor, this can result in a significant return for their client. If you’d like to find out more about how wealth management can benefit you directly, you should visit www.spi.sanlam.co.uk for more detailed information.

Which Areas Does Wealth Management Cover?

Wealth management is a large and complex practice which can be effectively utilised across multiple financial products. These may include:

• Pensions and Annuities 
• Savings and Investments 
• Stocks, Bonds and Shares 
• Portfolio Management

The specific type of wealth management you may need will be entirely dependent upon which financial products you already own, and your proposals for future investments and savings. If, for example, you are coming up to retirement age, you may need advice on how to maximise the value of your pension. Alternatively, if you are a young professional who has just received a promotion, you may be interested in investing your newly increased salary across various different trading options.

Wealth management services also differ between locations. Wealth management companies in London, for example, will be more likely to offer a broader range of international investment services than a smaller, regional company. Clients with small portfolios and limited resources often prefer the personal service of a smaller company. However clients with large portfolios and a significant amount of capital would be wiser to choose a larger, international company, which is more likely to be able to diversify their investments across a wider range of options. 

Advice and Information on Wealth Management

If you’re interested in the idea of investing in wealth management, or simply want more information but don’t know where to begin, it’s always advisable that you get in direct contact with a professional wealth management services provider, such as Sanlam. Their financial experts are always on hand to help you make a decision about whether or not wealth management is right for you.

How To Hire The Right Financial Advisor

While both financial planners and broker-dealer agents are technically considered financial advisors, their expertise and services vary significantly. Before selecting an advisor it is important to understand that this decision should not be one that is rushed. When selecting a financial advisor it is important to consider all option and not just settle for the advisor that is the most convenient. Many consumer banks offer the option to use their financial advisors and there are some positives to this alternative. It is also common for those with higher funds to seek advisory from a financial institution. Whether choosing to hire an advisor from your local bank or seeking out advisory from financial institutions, it is important to consider all options and conduct detailed research to narrow down the options.

Financial Advisors

What To Consider: 

1. Credentials 

Before selecting a financial advisor, it is important to look into the registration and certifications of all the agents being considered. Failing to select an advisor with the right professional credentials and licenses can hurt you in the long-run. For financial advisors, you should be looking for the Certified Financial Planner (CFP) tag. Similarly, if you are interested in working with a broker, you should be looking for the Broker Dealer Agents (BDA) title. To get a better feel for certifications and areas of expertise one must always consider and reference the professional designations of an advisor. 

2. Consultation 

First impressions are half the ball game. If your first meeting with a prospective advisor leaves you feeling uncomfortable and unsure, it is likely that this relationship should not continue in terms of your financial goes. Before making a final selection, it is important to find an advisor who aligns with your goals and can ultimately meet your needs. Depending on how the initial meetings goes, it will be easy to tell whether your prospect is on the same page. 

3. Financial Strategy 

If you live a conservative lifestyle and refrain from taking risks often, it would be wise to align yourself with an advisor who has a similar asset allocation model. If you are aggressive, however, your best fit would be an advisor who will seek high risk and high reward. These two models are on opposite sides of the advisory spectrum and the models in between could seek to benefit those who like a little bit of both. If you are not conservative or aggressive, you should seek to work with an advisor who is moderate, moderately conservative, or moderately aggressive. The type of asset allocation model selected is an important aspect of selecting an advisor, however it is more important that your styles are aligned. 

4. The Alternatives 

         a. Banks

Banks

Banks can be a great alternative for those seeking a financial advisor. When choosing a bank advisor, they may offer incentives such as lower fee transactions or free checking if you have an investment account at the bank. People may choose to work with an advisor from a bank because it simplifies the process of searching for a qualified advisor. An advisor working for a bank will also likely be able to offer a wide variety of investments as well as life insurance options. 

          b. Online Broker

Online Brokers

An online broker may also be an alternative to consider as they provide trading services over the internet, unlike traditional physical brokerage firms. Similar to financial institutions, the services offered will differ by each broker, ranging from trading and research strategies. When considering an online broker, keep your trading and investment habits in mind. If you trade frequently using your own research, concentrate on a firm with a low trade fee. Likewise, if you like to rely on broker assisted trades, confirm the service is offered at a reasonable price before depositing your funds. 

Things To Keep In Mind: 

Selecting a financial advisor is a big decision. It is important that when your retirement day hits you are prepared for a life of leisure. A financial advisor will help you stabilize your finance and help grow your assets. There is no secret sauce to selecting an advisor, but these tips outlined will help you find an advisor that is the best fit for you. Whether over the internet, through a bank, or through a financial institution, always consider your options and understand that an advisor is someone you will have relations with for years. Make sure that your advisor is working in your best interest and that your goals and personalities align. With this in mind, finding the best financial advisor is a feasible task.

A 4 Step Guide for Individuals to Manage their Finances

Finance (Photo credit: Tax Credits)

Financial management is one of the most complex things that one ever comes across. The most difficult part about this is that one needs to change their policies with the fluctuating market conditions and also keep a close eye on the impending threats on the market in order to stay safe from any financial crunch. There are however a few things that are quite common yet effective in helping an individual to manage their finances in the best possible way. 

Start with a proper plan

Starting with a proper plan and then implementing it is an important factor. You need to make sure that you do not miss out on the basics. Make it a point that you note down each and every thing regarding your finances. Be it a new source of income or a new expense make sure that you list each and every thing. That would help you to keep a tab of all the vital aspects. Often it is found that individuals fail to locate the expenses that they have made. 

Budget – a pivotal step

A budget is definitely a pivotal step in order to manage your finances in a safe way. By formulating a budget you will be able to take control on things. Experts opine that many individuals do not usually list the expenses they need to incur or the money that they have earned from any source; hence they lose all kind of control on the transactions. With a proper budget you will be able to priories and differentiate the important expenses from the not so important ones. 

Spending Carefully

Spending money carefully is also another important thing that should be mastered by all individuals. In the backdrop of such a fragile economic condition where the prices of things go up all of a sudden one needs to be careful and ensure that they spend on the necessities in the first place and then spend on the luxuries. 

Investing like a pro

A proper investment is all the more important than all the other things mentioned above. The above mentioned steps will help you to save money but this is going to help you in making more money. Hence this is more important than those. Now you need to make a thorough research in order to find out which investment plan will work for you. There are so many ways in which you can invest your money but choosing the correct one is very important. A wrong investment plan can however wreck your financial career. Always try to invest in things that have an appreciating value as that would help you to get better ROI over a shorter period of time. Real estate for example is a good avenue to invest your money.

These are some of the essential things that must be remembered while making formulating a proper financial plan. Young professionals should be extra careful as they have a tendency of splurging more money in luxury items. It is always a better idea to make your own house before you purchase your own car.

Author’s Bio: Adil Kaya has been writing on finance and related topics for over a couple of years now. His articles are a good source of information for the readers. He also possesses a great deal of knowledge on the ways to find http://www.bahis10.com/. Follow his posts for more details on such topics.