Reducing Your Spending On Loss: 5 Tips For Protecting Your Assets

We grow up accustomed to the fact that we're going to deal with some loss along the way. We've all dropped a great dessert, or maybe even had someone steal something we liked. But when it comes to our financial standing, there are some things we can do to protect ourselves from loss. Whatever your financial status may be, you can use some of the following five tips to protect your assets.

Invest in proper insurance

If you are the proud owner of a business, it is imperative that you have liability insurance to shield your pockets. A sudden accident on the work site or another unfortunate incident could leave an unprotected business owner stripped of their assets in a lawsuit. Homeowner’s insurance is a great advantage in case of a natural disaster, and auto insurance is a must-have for your vehicle.

Keep an eye on your bank accounts

Monitor your bank account on a regular basis, and be sure to report any suspicious activity as soon as your recognize it. If you are in a business partnership, make sure to formalize the union to protect your assets in case of disaster. Remember that anything that your business partner does, you are considered responsible for as well. Simplify joint accounts wherever possible to ensure that anyone with open access to your financial assets does not abuse the privilege.

Use a quality home security system

Your home is a place where your valuable property should be safe. However, many homes are vulnerable. With a system from a company such as Vivint Home Security or others, you can shield your possessions from unscrupulous burglars who seek valuables of all kinds. A Peoria AZ specialist in home security suggested that in the United States a burglary occurs almost every 14 seconds. So, an investment into a decent system can be a great protection against loss of assets in your future.

Minimize online transactions

In this high-paced technological age, the desire to conduct business online for convenience is high. However, millions of people find themselves the victim of identity theft and other online capers where cyber-criminals can drain assets. Keep your online transactions to a minimum, and invest in the best virus protection possible. Keep your bank information safe, and never enter personal information in an unsecured site. Aim to do transactions over the phone, by certified mail, or in person, wherever possible to offer yourself an extra edge of security.

Protect your assets after you are gone

Designate a responsible power of attorney to manage your finances in case you are unable to for any reason. If you plan to leave some of your assets to children or other relatives, remember to place them in a legacy trust. An estate planner can help you set up a trust in your state so you can comfortably leave wealth to your heirs.

No matter the type of assets that you have, it is important to protect them from harm. A financial planner can help you place your assets in an ideal arrangement where they will not be depleted. Seek wise investment advice before placing any of your finances in the stock market or other money account. Using this information can help keep your assets secure at all times.

Looking To Invest? 5 Foreign Investment Ideas For Your Portfolio

Luckily, no one needs to scour through information on hundreds of countries or upcoming trends in developing states in order to invest internationally. Instead, here is a look at five simple investment ideas that many have not though of when it comes to expanding the portfolio. 

1. French Wine

What many investors are surprised to hear is that wine funds are both popular and a great investment. Much like a hedge fund, a specialist in both wines and finances will allow investors to pool money in order to invest in new or established wineries, bottles, or companies.

This not only will diversity your portfolio, but it yields good results as well. When investing it is best to spread out your money, this is a great option to mix things up and still be happy with the results. 

2. Chinese Clean Energy

While China is a global player, the country is now encountering huge issues with air pollution, toxins in the soil, and irreversible damage to wildlife. This has led them to begin looking at projects for clean energy in all parts of the country. Investors should take a look at their up-and-coming hydroelectric plants and solar panel fields to get an idea on the scale of growth they can expect. This is a great potential opportunity. Something is going to have to be done in China, if you are invested in the right companies you could really benefit through the market. 

3. Iraqi Currency

The value of the Iraqi dinar has risen and fallen due to instability in the region, but many are looking to dinar news to see that this form of currency is looking profitable in the near future. For those that do buy dinar, even minor changes to the region could result in dramatic increases to the currency’s global worth making it an excellent investment opportunity.

4. German Housing Market

Japan has long been one of the most undervalued investment markets for property, but foreign investing can become a lifelong hassle. This is why many investors may want to look at the German housing market. Both German land and German houses have remained chronically undervalued by as much as 15 percent when rent, home sales, and land prices are taken into consideration.

By being aware of history and trends, you will be able to better understand the market and how the stocks will react and change. 

5. Globally Appealing Art

A few pieces of art around one’s home can be much more than decoration, but investing in art is not for the faint of heart. Sometimes considered to be more complex than any other form of investment, investors will want to ensure that they not only love art, but are devoted to the extensive research that each piece will require along with global art trends.

Diversifying one’s portfolio is an absolute must in today’s volatile economic climate. With these few international ideas, investors have a number of great new options for unique and exciting markets.

Brionna Kennedy is native to the Pacific Northwest, growing up in Washington, then moving down to Oregon for college. She enjoys writing on fashion and business, but any subject will do, she loves to learn about new topics. When she isn't writing, she lives for the outdoors. Oregon has been the perfect setting to indulge her love of kayaking, rock climbing, and hiking.

Investing in Property: An Alternative Pension Plan

Pensions have taken a lot of hits over the last few years. There are problems with people not saving enough and people not receiving the amount they believed they paid in. On top of this there have been government cut backs, banks facing various crises and a global recession. Naturally this means that people have been looking at alternative ways to invest their money – the most popular of these is investing in property, here’s why:

They’re not making any more land

Land itself is a very valuable commodity, and ownership of even a development plot will give you strong financial standing. If you have property on the land then the value of the area can drastically increase. When you’re looking to invest in land you need to plan for the future, working out areas that are going to be popular in years to come. There are a couple of things that you will want to think about:

• Renting – this will provide you with a steady monthly income that you can put towards your cost of living. Make sure that you set the rent high enough to cover the cost of the mortgage as well as home insurance, and gives you a bit of cash to still play with. 
• Development – one of the fastest ways to build up a strong pension fund would be investing and developing property, as this can give you tens of thousands of pounds profit. It’s also something that you can continue into retirement, using your free time to further increase your savings. 
• Commercial property – you don’t have to be a business to obtain commercial mortgages, you can buy shops and rent them out to other companies. This tends to be a very profitable investment, as businesses will often pay over the odds to get a premium location.

Pay into your savings

If you’re looking at investing in property as an alternative to paying into a pension, then the main goal should be boosting your savings rather than generating an income. Make sure that you are putting the income from your property into a savings account to give you a greater sum to dip into when you’re older. One mistake people often make is that they don’t build up enough funds through investing, generally using the extra income instead of putting it aside.

Renting or selling

One of the best ways to use property investment for a pension fund is to buy and rent it out until the mortgage is paid off. After the mortgage is paid off almost all the rent you will receive will be profit – this can drastically boost your savings account. When you do plan on retiring, you may either wish to continue renting the property or you could put it up for sale. The main differences are:

• Renting would provide you with a set amount of cash every month, however you will have to deal with any issues the tenants may have. If the building is in need of many repairs this could end up costing you a small fortune. 
• Selling gives you a large sum of money to help make retired life more comfortable for you. You will need to budget around the amount of cash you received from the sale, although you don’t need to worry about any major costs of repair etc. 

If you’re thinking about setting up an investment property instead of taking out a pension then it’s worth finding out what residential and commercial mortgages are available to you. Now is the time to buy, as both house prices and interest rates are low – giving you the best chance to be in profit as quickly as possible.

Pure Commercial Finance are experts in commercial finance and they pride themselves on excellent customer service. They secure the best deals possible for their clients – whether they are looking for a commercial mortgage, bridging finance, development finance or invoice factoring.

The Opportunities of Property Investment

You may have some savings in large numbers. And one thing you should think about is how you will do something with it. Today, there are many prospects that we can take from many business opportunities. Each opportunity offers advantages in certain ways. That's where you have to pick your challenge for a brighter future. In fact, every level has a different challenge that will determine the quality of your business. Try to consult with Ori Tal finance guy, and you will have the best advice for your investment. What is it? Yes. You will look at the opportunities of property investment.

Investment property offers many different opportunities from other businesses. As a comparison, you can look at a car rental business. You definitely are interested in buying a number of vehicles that could be a means of your business. However, it will not guarantee your chances at a greater rate. Sometimes, there are some obstacles such as weather conditions and the needs of the client. Perhaps, it would be very suitable in tourist areas. Still, it would be highly dependent on the season. Well, it is clearly different from the real estate business will always survive in any monetary situation. This has been evident from the many news about the real estate business is actually constantly evolving in every turnover year.

A number of surveys proving that there are many people who are always interested in buying property. Perhaps, they take it as an investment for the future. Or they may have the same mind with you. And it will always thrive on one thing that always creates big profit. Yes. That's because there are many families who need the comfort of the residence. In the modern world, it is something that is almost impossible. And fortunately there are a lot of real estate offers residential concept in quality.

If you are planning an investment property, it means that you will be working with the team. On the one hand, you feel that it would be a little complex. But know that you will carry less risk. The professionals will always accompany and support you exceptional targets. And you will be able to explore the potential of natural resources for the property development. So, when you encounter a problem, you can entrust it to a consultant who will promptly address it appropriately. However, it would be a great business concept. So, you have to understand it well.

Today, development is always developed on a massive scale. Almost every country has its own concept in implementing economic development. Meanwhile, every country has a prospective lands can be managed professionally. Uniquely, it creates an incredible network of business people who are always interested in finding new experiences. In the property sector, there are many new companies are trying to look for opportunities in other fields. It was like doing the most risky speculation on the stage. Well, it also can create the greatest gains in company history. So, you can take inspiration and motivation from these experiences to new challenges.

The Essential Guide to Trading on Margin

Fundamentally, trading on margin is investing in a given asset using a loan from your broker. There are a number of advantages and disadvantages to margin trading that make it potentially worth your time, and if you’re willing to take a risk with margin calls, this should be a method of investment that you should know about. 

Here’s an essential guide to trading on margin.

Fundamental Facts

You can’t trade on margin if you have a standard cash account with your broker. Instead, you’ll need a margin account where you will need a minimum investment amount of $2,000 – though some brokers will ask you for more. This amount acts as a deposit which then allows you to make trades.

Once you’ve made an investment and closed your position, you’ll need to pay back the deposit you loaned from your broker to make the investment in the first place, and then you’re free to take the rest of the money. Of course, if you fail to be profitable, you’ll still have to pay the deposit to your broker.

Advantages of Margin Trading

One of the greatest advantages of margin trading is that it allows you to make larger investments than you’d be able to use a cash account. 

This is because you’re making an investment using the loan which you’ve borrowed from the broker. This means you could potentially make investments 2, 3, or 4 times the amount of money you actually have as capital. 

If you’re trading currencies via the forex markets, you can use this to your advantage to make substantial profits, particularly if you use a margin calculator.

Disadvantages of Margin Trading

The best advantage of trading on margin is also its largest disadvantage because large margins can lead to great losses, as well as great profits. 

If you make a loss, a very small change in pips can lead to massive losses in your own money because the margin conversion is usually high – this is what allows you to turn a couple of thousand dollars into a couple of hundred thousand dollars. 

Therefore, when you’re considering trading on margin, you should be wary of all the disadvantages before you take the plunge – you could lose large as well as win big.

Ultimately, margin trading presents an exciting, though the risky strategy of investing, so look at all the options before you open a position.

Understanding Online Share Trading

Trading stocks on a computer (Photo credit: ota_photos)

Is there a secret to online share trading? The tools and techniques you use for offline trading are very similar when you trade online. The knowledge and experience comes through when you learn about your market. After many years you learn to develop systems, patience, and to see the world’s markets a lot more clearly.

Continue to learn

If you want to be a good online share trader you must spend time learning your market. Investing the time to learn your market is imperative if you want to be successful with online share trading. With this knowledge you will be able to adapt to any market situation like the Australian share market, or other markets that have their own individual behavior. 

Build a System for Online Share Trading

In any system you need to plan for expected and for the unexpected situations. Build your system and use it when you are trading online. There will be times when your system doesn’t work. But it’s best to stick with it and ride the tide till it’s over. No system works every time. When your system fails you need to find out where the problem is and adjust your strategy.

Wait until it’s ready.

Using patience and waiting for the deal to come to you is just one more habit that a share trader learns about at the start their career. Patience is one of the share trader’s best tools. 

Understand the big picture

Seeing the big picture and knowing the details are how an online share trader understands the markets and trades successfully.

When you see the big picture you understand that just because your equity drops in price there is no need to sell a position. You have learned, through experience, some trades go down but later increase in value. Only a trader who has been working in the business has the discipline to stay invested and not run.

Online share trading has leveled the field so many more people can participate in trading. Today anyone can trade, you do not need to have a pro or have a pro help. The average man or woman can do well trading in the market. All it takes is for the new investor to be educated.

Share trading, can be a risky endeavor, so it is best to be very knowledgeable in all aspects of the trade to avoid losing your hard-earned money.

Easy Money: Make The Most With These 4 Investment Hints

When looking to enjoy a decent return on investment, most people do not have a clue as to where to begin. Financial markets are not easy to understand. A complex maze of options leaves many individuals puzzled about the best places to put their money. While plenty of people try to invest in the stock market, they usually fail in the long run but don't know which way to turn. With that being said, here are four ways to make easy money if you have a desire to try something new.

Index Funds:

Most people cannot beat the market averages. When trying to, the average investor will miss out on gains and waste valuable time picking stocks. Instead, one should buy index funds and continue contributing money every month in a retirement or cash account. With this, an investor will not pay too much in fees and will enjoy solid returns on his or her investments.

Free Money:

When trying to save for the future, one should take advantage of tax benefits. For example, when opening an IRA or 401k, one can put money away for retirement without having to pay taxes. This is a massive benefit for a person who wants to save money for the future while enjoying a lower tax rate. Furthermore, some companies match 401k contributions and an employee would be foolish to skip this free money.

Refinance:

When carrying a mortgage, many overpay the on interest as they do not shop around often. This is a mistake and can cause a person to waste thousands of dollars over the life of the loan. Instead, a smart consumer should opt to refinance and get a lower rate on their mortgage. Luckily, with Low VA Rates, one can save money on their mortgage. In fact, when heading to LowVARates.com a customer can enjoy lower rates than others. This will enable a person to pay off their loan quickly and without as much struggle.

Do Nothing:

When trading too often, a person will miss out on market gains. Furthermore, he or she will have to pay taxes and deal with commissions and fees. Instead, when investing for the future, a person should sit back and do nothing. When relaxing and watching the account grow, an investor will beat most people who try to trade the market every day. Without a doubt, when trading too often, a person will have to work harder just to meet the market averages. Remember, with a slow and systematic approach, one will save enough money for retirement without much stress.

With these four investment tips, a consumer can save money for the future and pay off old loans. Most of these ways are sure fire to gain you some revenue if you have the extra cash to invest or if you are in a bind but remember it is important to have a long-term outlook on the situation when your finances are concerned.

What Does a Wealth Management Company Do?

Wealth comes in many different forms, and wealth does not necessarily mean having a large amount of money sitting in your bank account, and people with wealth and disposable income usually have complex financial arrangements. Generally, wealthy people have ‘assets’ that diversify their wealth and this is where wealth management companies come in. 

What Is Their Job?

The job of a wealth management company is to make these assets work efficiently and productively. People employ wealth management companies because of the complexity of the markets; as an in depth knowledge of both financial markets and investment opportunities required.

A wealth management company manages the wealth of its clients. People with a high net worth or HNW as it is known by people in the financial sector, are generally people who have financial assets that are valued at around $1 million.

There’s no set type of client eligible for wealth management, however. Although many people who employ wealth management companies come from the financial sector, business owners, celebrities, entrepreneurs and people who have acquired their wealth through inheritance also use them widely. 

What’s On Offer?

What a wealth management company offer is completely dependent on the individual’s assets. It is incredibly common for a client to have a diverse portfolio of assets rather than a cash lump sum in a bank account and, as a result, wealth management companies provide comprehensive financial support.

Advice offered is wide ranging, covering a number of different strategies such as taxes and asset protection, investments and property advice. Due to the fact that a wealth management company cannot be experts in all of these fields, they will act as a front for other parts of the bank or for other institutions that have a more in depth knowledge of how to invest. These other sectors or companies, however, will always be trusted partners.

Employing a wealth management company is a long-term strategy and, as such, you should not expect to make a quick buck. As a result, wealth management companies such as Sanlam Private Investors will touch upon many aspects of their clients’ lives in order to build a solid client-business relationship. This is vital to create trust between the two parties; especially with the size of the money that could be gained or lost.

Discretionary vs. Non-Discretionary

Wealth management is available at a discretionary and non-discretionary basis. If a client opts for a discretionary service, they effectively hand their assets over to the bank and the bank will invest on their behalf; assuming responsibility for protecting and growing the wealth of the client. On the other hand, non-discretionary means that, although the client receives advice from the bank, ultimate decision-making still lies with the client.

So, if you’ve got a wide range of assets and want to expand your wealth, try giving a wealth management company a try.

How To Spend A Lump Sum From Your Retirement Plan

As we approach the twilight years of our lives, millions of Americans will be given the opportunity to take a lump sum from their retirement plans, especially those who don’t have a significant amount of capital tied up in the schemes. This is because providers stand to make less profit from you compared to people with a significant investment in their plan, and so it’s much easier for the firms involved to get you off their books as quickly as possible. Although this might sound like a bad thing (and in some cases it certainly is), those who understand how to use this cash advance wisely could benefit tremendously in the long term. 

The average amount accepted as a lump sum by American citizens is around $15,000 and is usually obtained at the age of 55, although admittedly some people do wait until their working lives are over. Still, at 55 you’ve still got ten years or more to work out what you want to do with this money, and could well increase it tenfold if you obtain the right advice and the most up-to-date information, which is why I’m taking the time to write this short post today. 

Taking A Long Holiday

Though this isn’t going to provide you with any extra funds, taking a long holiday (perhaps a round the world cruise) can be a fantastic way of enjoying the fruits of your labor and investing in yourself for a change. After 40 years of hard work and with 10 more still to go you deserve a treat, and what better way is there of accomplishing this than taking a nice relaxing break where you can check out some of the most beautiful sights on earth?

Providing For Your Family

By this time you should be reasonably comfortable in your life, but some younger members of your family group may not be so lucky, which is why you might consider helping them out with your cash lump sum. Getting a deposit for a mortgage has become increasingly difficult, so perhaps you could help out others around you who are struggling. 

Investing In Gold

Presuming you’re pretty content with the quality of life you’ve obtained and your family members are well looked after, I’d advise that you to look into different investment opportunities and attempt to increase your funds before retirement age. There are some fantastic firms out there who deal specifically with helping people to purchase gold and other precious metals, and as these items tend to increase in value steadily, perhaps you should give them a shot. I recently read a real review of regal assets and discovered they’re the industry leaders, so try them out. 

Purchasing Land

Regardless of the amount you have to spend, land in the US is always going to increase in value. So, whether you can afford to buy 10 acres or even just a single plot, using your cash in this way is guaranteed to keep it safe until you know what you want to do with it long term.

Anyway, it’s time for me to go now. I’ve got to do some serious research into the gold market as I’m actually considering making a small investment myself. I’ll let you know how I get on.

Until next time my friends…

Link to image author

6 Ways To Save For Your Retirement

Anyone already in the 60s will know exactly how important it can be to save for your retirement whilst you're still young. Those who’ve made adequate arrangements will be looking forward to finishing work and living the life of luxury, whilst people who’ve made bad choices will start to feel rather stressed about what their future may hold. 

Thanks to the new workplace pension schemes being rolled out across the UK at the moment, most young people should have a more substantial cushion when they reach their twilight years, but that doesn’t mean that keeping some cash aside for a rainy day isn’t a good idea. 

Here are the top 7 ways you could save for your retirement before it’s too late:

1. Get An ISA - The first thing you should all do right away is take a trip to see your banking provider and open an ISA account. These provide high rates of interest and depending on whom you use, could allow you to save anywhere between £3000 and £5000. With no tax to be paid on any of the money accumulated, this makes for a perfect rainy day fund.

2. Clear Your Debts - There’s hardly any point in saving if you’re just going to be forced to hand the money over to cover your debts, so you should work hard to clear these as soon as possible. Just paying a little more than the minimum amount off your credit card can make a significant difference.

3. Join A Private Pension Scheme - Although you should be automatically enrolled in a workplace pension scheme soon, there are no laws surrounding how many of these policies you can take out, so doing some research online and locating a reputable private solution could also be very beneficial.

4. Cut Down On Luxuries - We all want to have a good time whilst we’re of working age and earning the cash, but it’s even more important that you raise the quality of life you’ll experience during the twilight years, and this is why cutting back on luxuries you don’t really need like designer clothes and flash cars would make sense.

5. Make Sound Investments - If you have a lot of money lying around not doing very much, it could be wise to seek out fruitful investment opportunities to increase your pot. I realise that most people have no experience with this kind of this, which is why I’d like to point you in the direction of a blog called MoneyStreetSmart because they have some fantastic advice articles that deal with all elements of personal finance.

6. Stop Moving House - You know; thanks to my family and their lack of foresight, I’d moved house over 11 times by the age of 16, meaning neither my mother or my father have a great deal of money within their properties. Picking one home and sticking to it will provide you with the best opportunity to accumulate equity that can be released when you retire by simple selling your home.

Well, I hope now you understand the importance of making early preparations for your retirement and ensuring you don’t have to rely on the ever dwindling state pension of only £110 per week.

Good luck with everything!

Are Annuities A Smart Investment?

In the economic bust of 2008, we learned that easy credit is no way to stretch dwindling retirement funds. Many senior employees took early retirement trusting that their Market-dependent 401(k) would produce an income stream capable of sustaining their unexpected situation. When it did not, they turned to credit hoping to make it through to better days. As a result they wound up first in bankruptcy, then homeless, and finally destitute. If they and their employers had utilized annuities instead of Market driven investments to create retirement income streams, then a lot of grief might have been avoided.

It’s worth checking how much you need to retire with the lifestyle you want.

Annuities Are Sustainable Even In a Down Market

The rate of return offered by fixed annuity plans is based on the amount of time your money is kept out of your hands by the Annuity Fund. The usual holding period is 5 years or more. This means your money is untouchable during those years. In return for this commitment you will receive a guaranteed rate of return. This rate is usually fixed at 3% to 5% depending on the type of annuity you purchase and the length of time your money is held.

Unlike stock portfolios and mutual funds, the income you receive from annuities does not fluctuate even when the Stock Market rises and falls. This is because annuity rates are anchored on highly stable investments such as US Treasury Notes and Bonds. Because the payout is spread over longer periods of time, Annuity Fund managers can react to changing economic conditions with thoughtful planning instead of panic. This enables them to give you the best annuity rate available. 

Stocks Can Produce More Income In a Shorter Time

While it is possible for an investor to grow wealthy over night in the Stock Market, every downturn produces its share of impoverished investors. It may be fun to pick the right stocks and watch your investment grow, but it is no laughing matter when the very safety net you depend upon to see you through rough times rips apart just when you need it most.

As this article explains, fixed annuity rates are not tied to Market performance. You will get your 3% return even if the Market drops to the floor. And even more important; you will get all the money back intact when the required holding period is up. You will also have made 3% interest on that money. And if, for some reason, you have to withdraw the money before the time is up, a predefined surrender fee will be imposed. But you will still get the majority of your money back. Can your Market-driven 401(k) make that claim?

Sanity and Safety

Make one bad investment in the Market and you can wipe out your retirement nest egg. Annuities offer investors few guarantees. However, most annuity plans are sane and safe. Most important: the money you put into an annuity will still be there after 5 years. Can your 401(k) portfolio make the same claim?

How to Manage Your Money Effectively With the Right Financial Planner?

Financial planners do help their clients in saving their money, making smart investments, and ultimately growing their money tree. They help in reaching a specific goal and assist in purchasing assets like a house, stocks, and ETFs.

Few financial planners are specialized in giving smart estate or retirement planning advice, while others consult for a wide range of economic and financial matters. It is always recommended to seek advice of the expertise financial planners, if you are planning your future at a young age.

How to Make Use of Planners in Reaching Your Goals?

The initial step you need to take is to note all your realistic goals. You need to list the short term, long term, and mid-term goals. You need to map up the objectives and the duration required for accomplishing them.

Short term goals include saving for buying expensive furniture, gadgets, honeymoon, car, and things that you can buy within 1 to 3 years of time. If you have children, tuition fee would be considered as mid-term goal and travel and retirement plans fall under the long-term goals.

You need to understand how to handle all the expenses as early as possible. Make sure that you do not spend almost all your earnings. Keep in mind that it is discipline, and you should practice this daily in order to reach your goals. 

Avoiding Debts

Avoiding debts is a part of budgeting. Avoid using more credit cards, which can increase the debts steeply. It could be pretty simple to swipe the card, and shortly we lose the hard earned money in the whole process. If we do not pay them on time, the debt could increase and you may finally end up clearing more debts.

However, you wouldn’t want to spend your hard-earned money unnecessarily right? So, financial planners will help you with great ideas when it comes to things like spending money via credit cards.

Financial planners help you in making decisions, which can benefit you more when it comes to the economic status. Hiring someone who’s expert in this arena will help you in avoiding killing what you saved. In this case, you need to choose the best planner to save yourself from unnecessary expenses. 

Hiring Honest Financial Planners

The person that you hire should be honest and trustworthy; since the planner deals with your money, make sure that you can trust him well. It does cause troubles if you have any concerns or doubts about the person you hire.

Finding someone who is proficient in this particular arena is pretty important. You need to browse through their portfolio and make sure that the concerned person has extensive experience the profession. Finally, make sure that you can afford their personal finance planning services, and that you’re not overpaying and putting a big dent on your budget as such, otherwise the whole point of hiring a financial planner would be defeated!

Negotiate

Learn how to negotiate before hiring him and don’t blurt out everything before finalizing things. If the planner has a personal website, you can always read though the information posted on the website, and get a pulse of his/her experience.

You can also read user comments in blog and then come to a conclusion whether to hire him/her or not. Taking a deeper look into the background of the planner will certainly help you in understanding more about the person, and making a smart decision.

Author Bio:Steve Martin is a personal finance planner who has been working at a reputed bank for past 8 years. Follow him on Twitter, or connect with Steve by dropping him a message through the comment box here.

Investment Basics: Six Steps To Successful Long-Term investment

In order to successfully invest for a child’s educational costs and your own retirement, you must start now and think long-term. Investing successfully over the a longer period of time is not as complex as you might think. Keep these six steps in mind to help you make wise financial decision:

Don’t Time The Market

Day trading is something that became incredibly popular during the tech boom. Large amounts of cash combined with small upticks in the market, and frequent trades were able to create full time incomes for many investors. When it comes to long term investing however, less is more. There is no need to sit in front of your computer all day to be successful. Research an investment, select it, and stay with it.

Past Performance

Though past performance does not guarantee future success or failure, it can be a strong indicator, and should be thoroughly reviewed. Stocks and mutual funds are easy to track performance with earnings and rates of return. Many mutual funds mix stocks and bonds in order to diversify. There are plenty of experts with bond market research and investments tips that you can learn from to avoid past mistakes and understand the market better.

Don’t Panic

Remember that you are a long-term investor. Short term market fluctuations and sell offs are nothing to be feared. These should be viewed merely as buying opportunities where your cost basis can be greatly reduced by buying low to later sell high. If you panic and try to sell when the market drops just a little, you will end up losing much more. Again, think long-term, because there will be small dips and spikes in every stock.

Re-Balance

Even excluding short term market fluctuations, as a wise investor, you should still review your portfolio periodically to ensure that your portfolio performance is on the right track. This may be an opportunity to invest more in a particular fund that is outperforming others. Keep in mind that diversification is still critical to ensure success.

Never Chase a Trade

You have completed your research and resolve to purchase a stock, bond, or mutual fund at a strike price. If something unexpected happens that no longer makes the trade an attractive one, don’t chase the trade, move on. Although it is good to invest long-term, that doesn't mean you should chase after an investment that is clearly not going to have a positive benefit for you in the long run.

Cheap is Not Always Good

Penny stocks may seem like a good idea because they allow you to execute large purchase orders with only a small cash investment. As with any investment, you must factor in risk. Penny stocks are so cheap because they are extremely risky. Though some risk is acceptable in the successful long term portfolio for diversification, penny stocks are too volatile, and should not be considered.

Investing for education or retirement can by simple when you take these tips into consideration. Understanding to to successfully invest long-term is essential to help you meet your financial goals. Remember these tips when investing, and you will be able to gain the return on your money that will make a significant difference for you financially.

Understanding Annuities: Fixed Annuities vs. Variable Annuities

With annuities, it's important to know what you're getting into. This is a huge decision that'll determine how much and how often you get paid during your retirement years. Should you go with a fixed annuity or a variable annuity? Let's take a look at some of the differences between fixed annuities and variable annuities, and you can decide which one sounds more along the lines of what you're looking to do with your money.

What Are They?

First things first, let's define them. A fixed annuity is a contract offered by an insurance company. You deposit money and the insurer agrees to pay a certain interest rate over a specified period of time. A variable annuity is an insurance contract that, at the end of the accumulation stage, the insurance company guarantees a minimum payment. The rest of the income payments can vary depending on the performance of the managed portfolio.

Essentially, variable accounts are similar to mutual funds. You can invest in one or more accounts, and those accounts can own stocks, bonds, or a combination of both. Variable annuities have more fees than mutual funds, though, which leads to them having a higher annual operating expense than mutual funds.

The Tax Differences

One important difference between fixed annuities and variable annuities is the way that they're taxed. With both fixed and variable annuities, any earnings remain untaxed as long as they within their annuity. However, if they're withdrawn, the earnings are taxed like normal income. If you draw before the age of 59, you'll pay a 10 percent penalty.

The earnings in your variable annuity are taxed at ordinary income rates instead of long-term capital gains rates. This essentially converts all long-term capital gains to ordinary income, which is a definite disadvantage for variable annuities because it boosts the share of your gains that go to the government. If you pull your money out within the first seven to 10 years, you'll have to pay an early withdrawal penalty. You may need to calculate different types of annuities to see which one works best for you.

The Safety Difference

A fixed annuity offers more security than a variable annuity, but the upside potential is very limited. With variable annuities, you accept more short-term volatility because the value of your investment will fluctuate with the value of the stock and bond markets. You're essentially looking at risk versus return.

With a variable annuity, if the market goes up, you're golden; if it goes down, you lose money. Fixed annuities are also based on the market, but they don't directly participate in it. The interest is paid out at certain intervals based on how well a specific measure of the market is performing.

Rather than just offering a guarantee, variable annuities provide the opportunity for growth. Your return will depend entirely on how well the investment you select does, and may be greater or less than that of a fixed annuity. If you die before you begin receiving annuity payments, your heirs will receive at least as much as the total of your premium payments.

The Hidden Costs

Fixed annuities don't usually have hidden fees. If they do have a fee, it'll be an annual policy fee, which could run $25 to $50 annually, which can be waived if your investment meets a minimum specified amount. Variable annuities, however, have a ton of hidden fees and charges. They have mortality and expense risk charges, administrative fees, sales and surrender charges, and charges for optional benefits and riders.

It basically comes down to risk tolerance and how much control you want over the investment decisions. Fixed annuities have very little risk, but there's no growth potential. Variable annuities provide a much greater potential for growth, but there's a huge risk involved. Your investment decisions can impact the growth of the annuity. There's a lot of management involved with a variable annuity as well.

For a steady stream of income after retirement, a fixed annuity is the way to go. With little risk and a guaranteed minimum return, you know exactly how much you're getting. Variable returns are much riskier and nothing is really guaranteed; you shouldn't rely on variable annuities as a source of income. Sure, your investment could pay off big time, but you could be left without a retirement fund. If you've got the extra money, a variable annuity might be a fun venture, but otherwise, a fixed annuity seems like a much safer option.

Have an annuity tips from first-hand experience? Leave a comment below.

What You Need to Know Before Opening an ISA

If you are interested in saving for your future, there is a great option you may have heard of. The Individual Savings Account (ISA) is a tax-free way of saving money for your short or long-term goals. It is a way of saving your money under a tax shelter. The concept of an Individual Savings Account is simple to understand, however, there are a few things you should understand before opening an ISA. 

Cash ISA versus Investment ISA

There are two types of ISAs: cash ISAs and investment (stocks and shares) ISAs. In either case, an ISA manager handles your account. You do not have to pay income tax on the interest and the gains are tax-free as well.

The cash ISAs are great for short-term savings accounts. You can place the money into the account at any time or place a lump sum in there up to the annual contribution limit. You can readily pull your money out, and there of course may be penalties for doing so.

An investment ISA allows you to place your stock market investments into a tax-free shelter as well. These are advised to invest in for long-term opportunities. These are a risk and your funds will go up and down. Therefore, if you are depending on the money, it may not be the best option for you. 

Check Out Multiple Bank Offers

Banks operate under different terms and conditions when it comes to their ISA’s. Some banks are more lenient than others are. You may find a bank that allows you access to your money immediately while others go through strenuous paperwork. A bank may pay you a fixed rate if you do not touch your ISA for a full year. You may start with a bonus rate for your initial deposit, but the rate may drop over time. 

Transferring Fees

A bank can charge you transferring fees. That is a major catch and deal breaker for some people. Remember, you cannot withdraw your own ISA without incurring a fee. It must be transferred over. So find a bank that does not charge a fee. You may find a better interest rate later and it will be too late at the end of your term to transfer and receive the advantages.

When transferring, you want to make sure it is simple to do and done correctly. If you have cash and investment ISAs, they both may not be able to transfer to the same bank. An investment management firm such as Nutmeg makes transferring existing ISAs simple. They offer stocks and shares ISAs. They help you build and manage your portfolio. 

Apply Early and Get Your Documentation Ready

The deadline for ISA applications are April 5. Your maximum annual contribution amount for the cash ISA is £11,280 for the 2012-2013 tax year and £11,520 for the 2013-2014 tax years. You will find many people hurrying at the last minute to get them in. Once you have found one you are interested in, hurry and apply. Before that, get your documentation ready such as your identification, address verification, and your National Insurance number.

Tips for Getting Started with Property Investment

The island of Manhattan, from which the term is derived. (Photo credit: Wikipedia)

Investment property. Two words that have lived on the lips of those who desire something more from life, for the last five years, since the world economy took a hit and monopolies shifted. So, should you? While there are arguments for and against, I’m not here to convince you either way, rather, should you decide to take the plunge and join the 1.3 million Australians who enjoy the benefits of investment properties, I’ve compiled some tips. Tricks of the trade, common sense or not. Whatever happens, as you set off into investment land, don’t give up or get overwhelmed; yes, there are details and caveats, confusing points of jargon and slippery real estate agents, but you can do it without leaving your mind behind. 

Where Are You Sitting?

Discerning where you’re located on the financial spectrum is the first and most essential step. Stepping back and taking stock of your current debts, assets, expenses against total income figures will instantly give you a clear picture of investment viability. If you’ve had problems paying a credit card or personal loan in the past, check your credit file and analyse where you stand. Will you have trouble making mortgage repayments, maintenance contributions and other ownership fees and taxes, on top of everything else? Defaulting on your loan is the last thing you want to do. If you’re less financially secure then you feel comfortable with, hold off on investing until you knock out a few other debts and build your credit rating. All in good time. On the other hand, if you’re in the clear and enjoy a stable occupation, give yourself a green light, start researching home buyers grants (if it’s your first home) and talk to financial institutions to compare rates. 

What Property? Which Home?

Planning and researching are important components of the investment process. Before you can refine a series of goals or even project how much you need to borrow, figuring out what sort of home or investment you want is important. Do you want to live in it at first? Do you wish for something regionally located? Do you prefer certain suburbs? Would you rather the flexibility of investing in a display home or do you fancy a simple cottage somewhere out of town? Each option has specific advantages, and only you know what you’re looking for. 

Start Planning

By now, you should have figured out whether you qualify for a loan; if not, boost those figures by repaying more than the bare minimum on other debts and try again later. Successful? Great. Now start budgeting – not only to pad your savings account and repay other debts, but to identify a long term strategy when your debts will be significantly higher. Still confident? Good. Now head out into the market, talk to property owners, look at sources like Coral Homes home and land packages and remember, be prudent regarding negotiations and real estate agents. They are there to help you, but some like to help themselves too. Don’t settle on a property you’re not 100% happy with, as you’ll be inheriting its difficulties, flaws and quirks.

Happy hunting!

Information is Key with Trade Finance Products

Finance (Photo credit: Tax Credits)

There are numerous definitions for trade finance that can be found. Essentially, it is a term that covers several activities. There are a number of tools that are used by financiers that determine how credit, cash, investments as well as other assets are used for trade. 
In a simple form an exporter will require an importer to prepay for items that are shipped. The importer wants to reduce his risk by asking the exporter to create a document proving the goods were shipped. The importer is assisted by the bank, which provides a letter of credit to the bank of the exporter or to the exporter directly. This statement proves that a payment will be made when certain documents are presented. 

Traditionally, trade finance occurs in the short or medium term and involves three activities; financing, payment facilitation and risk mitigation. These are the core components of trade finance, no matter what type of transaction is being completed. 

Credit Based Products

Currently, credit based products are mere commodities mainly due to the current levels of liquidity available throughout the world. Most large corporations are mostly interested in distributing the risk options and information through their international transactions and throughout their global chains of supply. 

Large corporations, including global retailers, currently have logistics capabilities and supply chain management that is similar to those in place for advanced military units. These are the retailers that drive the trade volume and help to define the expectations in the market that are related to trade banking services. 

Trade Banking

There are many opportunities for trade bankers in today’s markets. Almost every company relies on correspondent banking relationships in order to verify the legitimacy of a trade counter party. Trade banks may also be called upon to provide information to the overseas party because of increasingly stringent compliance levels. 

Consumers are now demanding and expecting real time tracking of all shipments, as well as the shipping documents and the financial flows that are related to the shipment. Taking a couple of days to check with a foreign bank and then get back to the customer is no longer an option.

In order to be this responsive there is a need for the appropriate technological investment. This includes investment in the backend of the business for transaction processing, as well as the side that faces the client. Web enabled solutions provide a number of information-rich reporting that is customisable. More and more clients demand to be able to see their portfolio at all times and to be able to view their trade transactions, across all financial institutions. 

Information Quality

When it comes to trade finance the quality of information provided by the company is becoming increasingly more important, as this is being demanded by consumers. It is now possible for financial institutes and trading companies to offer accurate and timely information regarding the exact status of the product and financial flows that are related to the imports and exports. This allows for quick identification of points for financial solutions, any risk mitigation options that are available, as well as advisory services that can be offered to their trade clients. A trade finance company with international experience is going to have the best data, information and choices available to its clients.

Trade finance and banking is a field that is being changed by technology. The best companies provide their customers with a plethora of information about the trade operations that they are involved with. This information can be the driving force of fundamental decisions that are made regarding whether or not services or products should be outsourced or if a company should maintain internal control. Information is the key to success when it comes to the world of trade finance. 

Quick Insight into Top 4 Benefits of Online Share Trading

Investing in the share market is a great way to raise capital, given that you do the needed research and make the investment strategically. With the advent of Internet, today people can now easily access the markets and related information online, which were earlier only available through a broker. With such convenience, online share trading has slowly started replacing offline share trading due to its innumerable benefits. 

Online trading has given the modern traders of today the convenience, but this, in no way, means that they are investing in a smarter way. An increasing number of individuals opt to trade online as against offline trading today. People who learn to trade forex online today would never want to go back to the conventional method of offline trading. Let’s take a look at what has been attracting the investors towards this online trading strategy by understanding its benefits. 

Convenience

The first and foremost advantage of online share trading that has been appealing to investors is convenience. Traders can manage their investments online during any time of the day or night, which is extremely convenient to them. Such trading also lets the traders watch out their investments throughout and gain access to info that were earlier accessible only by brokers. Thus, online trading saves money and time by trading according to your convenience. You can trade from the flexibility of your home, office or internet café.

Apart from a computer and Internet access, the only other important thing that you need for online trading is a bank account for all your money transactions from time to time. Once you have the needed money in your account, you have the freedom to purchase your favorite stocks. Your share trading account and bank account will be linked to each other to enable you in purchasing shares online.

Diversity

The next benefit is the diversity of investments and assortments available. Few of the most popular online brokerages are AmeriTrade, Fidelity, and Scottrade. You will gain access to various markets like foreign bonds, and stocks based on the brokerage, which will open up your chances of making more money in the longer run.

Instant Access to Stock Markets

A trader gains instant access to his online share trading account and details pertaining to the stock market with just few mouse clicks. Further, he or she can avoid making decisions in haste since the investor can stay updated concurrently with the recent stock details and latest news about the firm in which they have invested or about any other potential firm they would want to invest in.

No Limit on Trading Hours

One more benefit of online selling and buying is that you can place your orders even during non-market hours. On the contrary, in offline trading buying and selling shares need to be done only during market working hours. The fact that there is no restriction with respect to market hours is an added advantage in online trading.

With these many advantages of online share trading at the fingertip of every online trader, there is no reason as to why any investor would want to ignore the convenience of online trading. So, become a smart trader, and leverage the power of Forex trading today.

Author Bio
Alisa Martin is an online share and stock market trader. She has been using this convenience ever since online trading was introduced in the market, and happens to be one of the veteran traders.