4 Ways to Protect Your Business Capital and Investments

A growing business like yours could have considerable capital and investments. This puts your business at risk for equally significant losses through lawsuits and other claims. 

These four strategies will help you to protect your business capital and ensure that your business can continue operating, generating profits and employing a dedicated team of workers.

Incorporate

If you have functioned as the sole proprietor of your business, you should incorporate before making any major investment. Incorporation separates you from your business. Under the law, there are different types of corporations, such as a limited liability corporation. 

An LLC protects your personal assets from a lawsuit filed against your business. The other types of incorporation procedures are S incorporation and C incorporation, which are geared toward companies with employees and two or more co-owners or partners.

Establish a Holding Entity

As you grow your business, consider separating it into a holding entity and an operating entity. The holding entity owns all of the assets, investments and capital. The holding company then leases the assets and capital to the operating entity. 

The operating entity conducts the day to day business operations. This type of a business structure is ideal for corporations that could be faced with costly or frequent lawsuits, such as restaurants or grocery stores.

Get Professional Advice

When your business is considering making an investment, such as the purchase of land or a building, it is a good idea to speak with a lawyer. 

A business lawyer can advise you on the tax implications, environmental regulations and other issues related to big business investments. A professional, like those at Carter West, know that these sort of things can be hard to navigate, especially if you’re new to it all. 

The legal advice that you receive will allow you to make an informed decision about where to invest your corporation's profits.

Set Up a Blind Trust

If you are the owner or CEO of a large company with considerable investments, consider setting up a blind trust. 

The blind trust would be operated by an independent entity. All investments would be controlled by that entity, and the profits would be put into a trust controlled by the entity. You and your beneficiaries would be able to receive remuneration through the trust.

These four steps will help to protect your business and its assets and investments. Because of the complexity of these actions, it is best to work with a lawyer. 

An experienced lawyer will make it easy for you to understand these legal issues and solutions.

Frugal Family: How to Save Cash on Essential Home Repairs

Keeping your home in proper working order can be expensive. You cannot live without a properly functioning refrigerator, furnace or electrical wiring, and these things require professional repairs. 

If you feel like your home is a money pit, these four tips can help you to save on essential home repairs.

Allow for Flexible Scheduling

Many companies charge a fee if you have them come to your home and make repairs on the weekend or during the evening hours. If you can, accept an appointment that does not involve any off-hours fees. 

Ask the company if they will waive your service call or discount it if you have them make a costly repair or replace the broken equipment.

Look for Discounts

Visit the company's website and social media pages. Many companies offer a new customer discount on repair services. 

Look on other community deal websites to see if there are any special offers on the services you need. If you are a senior, member of the military or student, ask if the company offers a discount. 

Installing a Water Heater

Water heaters last for about eight to ten years before they need to be replaced. Installing a water heater could help to cut down on your utility bills. 

Professionals, like those at HELP Plumbing, Heating, Cooling and Electric, know that you should consider choosing a water heater that has the Energy Star rating. These appliances use about 30 percent less electricity or natural gas compared to their same-capacity counterparts without the rating. 

According to the U.S. Department of Energy, heating water accounts for about 17 percent of your home's energy usage, you could save a lot of money this way.

Join a Maintenance Club

Consider joining your heating, plumbing or electrical service's maintenance club. Preventive maintenance on your home's essential systems can prevent the need for many repairs. 

For example, replacing the air filter of your furnace, air conditioner or heat pump every 90 days helps to prevent the motor and fans from becoming dirty and losing their lubrication. 

Maintaining your home's heating, ventilation, air conditioning and other appliances also helps them to use less electricity or natural gas and to last longer. Some companies also offer a discount on repairs if you are part of the maintenance club.

Always be sure to hire a licensed and insured professional to do repairs on your home. A professional who does the job right the first time will cost less in money and time. These four tips will help to ensure that your home's systems are operating properly.

Types of Mutual Funds: Everything You Needed To Know

Mutual Funds are one of the most preferred investment instruments for Indian investors; what’s more, this is one sector that is continuously evolving with time.

A lot of people prefer keeping their money safe and relatively untouched, in their saving accounts. Others understand that investing in Mutual Funds, while it has risks, also pays off handsomely. This is primarily why more and more people flock to this mode of investment.

Here’s everything you’ll need to know about Mutual Funds, and investing in them.

What is a Mutual Fund?

A Mutual Fund is, in a nutshell, a bucket of money from different investors like you. This bucket consists of various investment instruments like stocks, and bonds. Investing in a mutual fund is much easier and safer than investing in individual bonds and shares.

Plus, you can sell your shares whenever you want.

Mutual Funds are managed by qualified and experienced finance professionals who use this money to create a portfolio. You (as an investor) don’t own individual securities, but shares of the fund. You can invest small amounts of money—any amount you choose, really—and benefit from the profits in this collective portfolio. 

Each and every shareholder has an equal share of the fund’s gain and loss, and experiences them proportionate to the amount they invested.

Types of Mutual Funds

There are different types of Mutual Funds in India, and it’s really important to choose the right one based on your investment goals. Broadly speaking, there are two types of Mutual Funds, and various types of MF schemes under both of them. Let’s take a closer look at them.

Open-Ended

Open-ended Mutual Funds are available for subscription for the entire year. You can sell or buy whenever you want; there is no fixed maturity date.

Equity Funds/Growth Funds

Here, you invest in stocks of different sizes or in equity shares. Equity funds are one of the most popular choices among investors today. They have the risk of high losses in the short term, with the advantage of modest capital appreciation in the long run.

Debt Funds/Income Funds

A major portion of the investor fund is channelised towards government securities, debentures, and other debt instruments. Capital appreciation is low, but there is very low risk involved. Given this fact, this is an ideal investment vehicle for investors looking for a steady income.

Money Market

This is ideal for you, if you are looking for short term gains and better options at the same time. The money is invested in short-term debt instruments, and reasonable returns are guaranteed.

Index Scheme

An Index Fund is more common outside of India, in the Western world. It makes use of a passive investment strategy, and replicates the pattern of benchmark indices NIFTY and SENSEX. This means the capital appreciation (and depreciation) of such a fund coincides with the rise (and fall) of the indices.

Sectoral Scheme

Sectoral funds are invested in specific sectors like IT, infrastructure, and pharmaceuticals, or in capital market segments like mid cap and large cap segments. The return is high in this scheme, and so is the risk.

Tax Saving Scheme

Offering tax benefits to investors, your money here is invested in equities; long-term growth opportunities are quite common here. Tax saving schemes usually have a lock-in period of 3 years.

Balanced Funds

With balanced funds, you can enjoy income and growth both at the same time. The fund is invested in fixed income securities and equities both, the proportion of which varies and is written on investment document.

Close-Ended

Such MFs come with a predetermined maturity period and you can invest only during the initial launch period or New Fund Offer (NFO) period.

Fixed Maturity Plans (FMPs)

As you’ve probably already realised given their name, FMPs come with a fixed maturity period. They comprise mainly of debt instruments that mature at the same time as this scheme, and earns through the securities’ interest component.

Capital Protection

The primary aim of this scheme is to safeguard your principal amount and earn reasonable returns. 

Why invest in Mutual Funds?

There are many reasons why you should invest in Mutual Funds. Some of them are:

Diversification

Every investor worth their salt knows not to make the mistake of putting all their eggs in one basket. The same rule applies in the investment market as well. It’s a known fact that diversification is the key to making profits, and investing in mutual funds ensure just that.

It’s important that you invest in different types of securities. In most cases, debt markets don’t yield great results when the equity markets do, and vice versa. If you’re intent on creating a portfolio of your own, it’ll take quite a bit of time. With mutual funds, you can easily diversify your assets at a low cost, as these are available for as low as Rs.500 a month.

Professional Expertise

Investment isn’t everyone’s cup of tea. It requires skills and continuous evaluation of market dynamics. Anybody can park their extra money in the investment market. However, in order to get returns, you need to learn the skills of managing money professionally.

Mutual Funds have qualified investors who understand the market well and take the right decisions as far as investment is concerned.

Liquidity

Mutual Funds usually don’t come in with a lock-in period, and the money you invest is available to you all the time. Ideally, it takes a couple of days for the fund to return your money; it is usually sent to your bank account.

Transparency

Each and every Mutual Fund’s performance is reviewed by rating and publication agencies and you also get regular updates as being a member of the fund. 

How to Invest in Mutual Funds?

In order to invest in Mutual Funds, you need a bank account and a PAN card. All you need to do is fill an application form, furnish your PAN detail (typically if you’re investing more Rs.50,000), sign your cheque and submit the same to financial institutions. You can even invest online.

Now that you know the different types of Mutual Funds and their meanings and how to invest in them, take a call and start investing. Good luck!

How To Save Money And Make An Old Car Work For You

If you're living a thrifty lifestyle now with an eye to building up a comfortable cash cushion or saving for an anticipated expense, and your ego doesn't have to live in the driveway waiting for another wash & wax session, an older car can help you reach that goal.

The Financial Advantages of Older Cars

There are many different ways that older cars cost much less than newer models do. Here are just a few of those different reasons as to why having an older car can play to your advantage:

• The insurance payments are much lower, since you're insuring a smaller investment, even with the same coverage.
• Interest on a $3,000 auto loan is quite a bit less than the interest on a $30,000 auto loan.
• Older cars are simpler and easier to work on yourself.
• Liability insurance is a tempting option because you've got less to lose if you do total the car.
• People driving a Ferrari are projecting an image, and that's expensive to live up to. People driving a '97 Toyota don't feel the same pressure to spend.

If you picked your care carefully, it's entirely possible to keep it running until you retire, and maintenance on it, even when you replace an engine, will cost you much less than loan or lease payments will. 

Careful model selection is much easier with older cars. They have a history that can be checked online. It's a good sign if they have an avid fan club 20 years later.

The Downsides of Older Cars

The worst thing to ever happen to an old-car enthusiast was the Cash For Clunkers program in the late 2000s. A huge majority of the older cars that were running fine disappeared off of the market forever. 

Finding replacement parts can be tricky. You'll have to shop around for some of the rarer parts. If you can't find a part that you need anywhere, try the junkyards. 

Call around to check availability. Some junkyards will insist on pulling the part themselves, but others have a 'U Pull & Pay' policy that will save you even more money.

If you're lucky enough to find a model older than 2000, you can learn to do much of the repair and maintenance yourself, saving even more money. 

Shop manuals for the older models can be found in thrift stores, libraries, and sometimes even online. It doesn't have to be pretty to get you into a Classic Cars Club, and the other members will have valuable advice for you.