Retirement Statistics – Plan Your Retirement for Better Future

Posted by admin – February 2, 2012

According to the retirement statistics, there are very few people who make plans about what they will do once they stop working. As soon as you start working, you need to allocate some financial resources towards your post-working period. You can do this by saving some money each month or buy assets that will allow you to collect income. The main reason why people should plan is to ensure that they are financially independent once they stop working. This will allow you to cater for your daily expenses and travel without anyone’s help.

To have adequate financial resources once you stop working, you need to plan well. It takes a while before you have these resources and this is why you need to start at an early age. According to retirement statistics most people assume that they will start planning for the post-working period once they are old but this is not advisable. If you fail to plan ahead, you will have to rely on other people for your daily expenses and this can be very frustrating. When you have your own money in old age, you are able to make your own plans without consulting anybody.

Before you start making plans, you need to determine at what age you will stop working. This will depend on the kind of lifestyle that you are currently leading. You also need to come up with actions that you need to take in order to meet your goals.

This process does not take a week or month because it is recursive. The plan that you put in place should be flexible to allow you to make changes when it is necessary. To achieve your goals, you can work with a professional. This will offer the guidance that you require to come up with an effective plan. A professional will make the planning simpler for you and you will be in a better position to explore the investments and ideas that will ensure your future is well secured once you stop working.

When you start investing early, the investments have adequate time to accumulate an income. You need to choose long-term investments that will withstand changes in the market. The goals that you set for your retirement stage should be realistic. Give yourself adequate time to invest in ventures that will ensure you have a comfortable life.

Finance Training Courses and Distance Learning – Are They a Good Match?

Posted by admin – February 2, 2012

With modern life becoming increasingly busy and the Internet revolution making access to services easier every day, distance learning has begun to take hold. There’s no doubt that there are benefits and disadvantages to distance learning and that it is more suited to certain kinds of degrees and courses than others. This article will look at distance learning specifically in relation to finance courses, and will weigh up the pros and cons of taking part in a long-distance arrangement for study in this area. If you are considering taking any kind of finance course, this article will provide helpful in making your decision.

Benefits

In terms of finance training, a long-distance or distance-education course could fit in perfectly with the type of person who would be attending the course. People needing or wanting to take courses in finance are often tied up with either owning their own business or in another time-consuming job that means they have prior commitments to remaining in their location. In addition to this, many people may want to do finance courses as a refresher or as a means to ask for a promotion, but because the subject of finance is so broad, the specific course they want could be located too far from their current location for them to feasibly complete it in person. Another benefit of distance education for finance is that often the complexity of the issues discussed requires a certain amount of clarification and one-on-one time with the tutor. It is often easier in these cases to pose a question in email form and get a tailored and personalised answer than to raise the question in front of a class and perhaps not be satisfied with the answer.

Disadvantages

Having said this, some people work better face-to-face, and may need a conversational setting in order to grasp difficult concepts. People who may have trouble focusing or problems with procrastination may also find distance education in finance challenging as the concepts are complex and require regular work rather than sporadic or inconsistent efforts. Someone learning long distance may not realise that by ‘slacking off’ for a few weeks they have failed to grasp a key concept that will help them further down the line.

A Personal Choice

At the end of the day, because there are so many pros and cons to distance education in finance training, the decision really must rest on a few key factors. The first factor is the type of course that would be most beneficial to your situation. Where the course is located and whether you’re able to attend in person will obviously have a great effect on your decision, The other thing to take into consideration is your personal learning style. If you work better face-to-face then you’re likely to achieve better results in this setting, whereas if you find that you have more confidence working independently and maintaining email relationships with tutors then your results would obviously improve in that forum. Ultimately, knowing yourself and knowing what you want out of your course will help you make the right decision.

Things To Look Into Before Doing Cheap Accounting Courses

Posted by admin – February 2, 2012

When you have decided to pursue accounting as a profession you should be deterred by the costs that are involved when you study the field. In fact, there are many credible and cheap ways of learning accounting that help you in your endeavor to become an accountant. The accounting studies is one that is vital for you establishing yourself in this field and this is the reason why you must ensure that you get guidance under a good one to be successful in the profession.

When it comes to accounting courses in cheap rates, there are a few things that you must keep in mind. The first thing that you should do is find out about the credentials of this course and what it is going to offer you. You should not go in for very cheap courses without accreditations. Research online will help you in this regard. If you do not have the means to travel long distances for campus accounting courses you can successfully opt for the online accounting courses that give you the dual advantage of studying at home and saving costs. You do not require spending on daily travelling expenses and this helps you to save a lot of money.

The accounting studies that you opt for must be one that ensures that you get the best guidance on accounting fundamentals, taxation, auditing and other fields of specialization. You must ensure that the course that you opt for suits your individual requirements and helps you get detailed knowledge about what you require before venturing into the accounting field.

Who Is to Blame for the Financial Crisis? FCIC Panel Points to Banks, Government

Posted by admin – February 2, 2012

The financial crisis has ruined the lives of myriad Americans, and many are left wondering: who is to blame for all of this? A new study put out by the Financial Crisis Inquiry Commission (FCIC) blames the government and banks as the twin villains in the stock market crash (and ensuing financial turmoil).

Citing deregulation and self-regulation by banks as major factors, the study went on to say that the banks not only ignored warnings, but they also failed to question and manage the risks that their faulty mortgages were putting forth.

After 30 years of government deregulation, banks were left to their own devices to make the majority of financial decisions. They often erred on the side of profit over reliability, and Americans saw just how little oversight the banks used when the subprime mortgage bubble collapsed.

The full report can be read in a book published by the Financial Crisis Inquiry Commission after a full year of examination that will be made available on their website in paperback and e-book formats.

Expect to see a load of blame piled onto the Federal Reserve, with fingers pointed at both Ben Bernanke and his predecessor, Alan Greenspan.

If you don’t want your personal finances to go the way of the nation’s, speak with a financial advisor in your area. Investment advisors, also known as financial planners, can help you to get your finances in order and make sure that you are putting enough college savings plans for your children and retirement savings for yourself. The best part is that fee based financial planners only make money when you do, so it is in everyone’s best interest for you to succeed financially!

The Bargains and Traps You Will Find at a Sheriff Sale

Posted by admin – February 2, 2012

Some people dive into a sheriff sale with high hopes of dirt cheap cars, homes, and other normally pricey property. While there are the odd cases of someone spending chump change on an incredible find, more often than not you are bidding with pros or people who know exactly what they want and will do what it takes to get it. Here are some of the most commonly sought items and some of the risks and benefits of bidding on them at a sheriff sale.

Cars

Can you get a great deal on a used car at a sheriff sale? The best possible answer is sometimes, but more often you’ll pay about the same you would if you simply haggled with a private dealer. Perhaps the biggest benefit about bidding on cars at a sheriff sale is the retired police vehicles. These cars are generally well-maintained (if they weren’t used in too many high speed traffic chases) and reliable. Vehicles that were impounded from crime scenes or traffic offenders can be more hit and miss. You’ll want to look up the VIN number of several of the autos that you are interested in bidding on. Also remember to include inspection costs, auction house fees, and the odd repair in your budget. You may find that after winning and tacking on the extras, you paid more than you would have otherwise.

Homes

Many people think that buying foreclosed property at a sheriff sale is one of the most affordable ways to break into the tight real estate market. A minority of people bid on property with the intention of it being their sole home. It is more common for investors to bid on multiple areas including building and lots in order to build up their portfolios. Again, good bargains can be found, but it takes skill and patience to nab the best deals. You need to do some heavy research into the area you are considering buying from beforehand in order to understand current market values. You’ll also have limited time and access to actually view any of the properties on auction, and sometimes are merely going buy a stub of a description. There are some big risks and potential big rewards though for those who are persistent and smart.

Furniture, Electronics, and Other Household Goods

Your best deals can probably be found in the cheaper items that get overlooked for the more popular homes and autos. Don’t expect to walk away from an event like this with a brand new laptop that works like a dream, but if you’re a computer buff, like to refurbish old furniture, or simply need a few household items on a budget, you will likely catch a great deal. Many of the items sold might have some damage and wear and tear, but a little elbow grease can do wonders. Many people who have hobbies such as art or carpentry will find the auctions full of great materials to work on. These auctions are definitely worth a look for the household scavenger.

How to Qualify for Low Rate Loan Construction Financing

Posted by admin – February 2, 2012

If you want to finance a construction project, you may have already done some research and learned that construction financing is much more complicated than conventional mortgage financing. There are a lot of really great deals out there but if you do not dot your “I’s” and cross your “T’s” it can get really expensive.

The best type of professional to guide you through the process is a local mortgage broker who specializes in construction financing. If you are seeking to finance a construction loan in Toronto, seek the assistance of a Toronto Mortgage Broker. This can get tricky because the majority of mortgage brokers specialize in residential mortgage financing. Even a residential mortgage broker, who wants to get into construction loan financing, benefits from a relationship with a mortgage broker who specializes in construction loans.

How do you ensure you are dealing with a mortgage broker who is a construction loan specialist? Ask lots of questions and do a little bit of research. Here are some tips.

1. Visit their website. Is a large portion dedicated to useful information about construction loan financing? Are there client testimonials?

2. Google them. Other customers may have posted reviews about their service and you can see if they are a leader in their field by how many results come up on the search engine under their company name.

3. Call them and ask them about other construction financing projects that they have completed and ask for references.

4. Visit the FSCO website to confirm that they are licensed.

5. What types of properties can they finance? (residential single family, small or large subdivision, commercial, industrial). A mortgage broker who specializes in construction loan financing should know about all areas of construction loan financing.

6. Construction financing is as much an art as it is a science. Advances are made in progress draws in relation to work that has been completed.

If you are planning on applying for a construction loan here is what you are going to need: a site plan, building plans, a building permit (if available), a construction budget with a breakdown of hard and soft costs, a detailed cash flow with dates and advance requirements, construction contracts, builders resume and history of recent projects, a marketing plan and brochures if the final product is to resold in which case you may also require some pre-sales, a copy of typical purchaser agreement with all schedules, projected sale prices or rental rates with comparables and competitor details, presale details and estimated sell up time and completion date, offers to lease (if pre-leasing) or if it is a condominium, a copy of condominium application and/or draft documents.

Once you have found your mortgage broker that specializes in construction loan financing, they can guide you the process and help you obtain the financing that you will need to achieve your dreams. For more information please visit http://www.firstequity.ca

Can An Overseas Bank Account Help You Achieve Financial Security?

Posted by admin – February 2, 2012

More and more people are becoming aware and educated about opening an overseas bank account to take advantage of tax benefits as well as protecting their assets. Even for those not financially secure a foreign banking arrangement can be beneficial in taxes saved at home. These people are also becoming wary of changing political opinions, economic upheaval and uncertain of their jobs. An arrangement overseas seems more secure, open to investments perhaps not available at home and, of course, easier on the tax issue. A foreign bank account can help some achieve financial security.

The idea of opening foreign bank account would benefit those susceptible to litigation due to divorce, professional failure or other frivolous type lawsuit such as the neighbors kid jumping your fence and getting hurt on your property. Assets remain secure and subject to the laws of the country in which the account was opened. There are typically no laws in place forcing these to divulge information to anyone about their account holders and they guard that information ferociously, so the account holder enjoys security in knowing his assets are safe. An overseas bank account generally yields a higher rate of interest than the home banking community due to its more international focus and also its use of foreign currencies, which enjoy a better exchange rate.

For those not wealthy, to achieve financial security is a goal for which they will need an ace in the hole. Opening foreign bank account could provide such persons with interest-bearing accounts that are tax free. The ability to bank online is not limited to just the home country and accounts can be accessed anytime, anywhere. Investments can be managed as well with better returns and little to no taxation. To become financially secure, this foreign arrangement could be a useful tool.

Privacy and tax breaks are possibly not the only reasons for making foreign banking arrangements. Everyone’s circumstances are different and what is suitable for one would not be for another. Generally, these arrangements are easily done online with a small deposit which from there can be built upon to grow the owner of the account some kind of financial security. These accounts have become attractive to a large segment of the population for a variety of reasons, such as estate planning and retirement planning, for instance. Sometimes those traveling the globe for their jobs have an account in foreign banks and manage their investments wherever in the world they happen to be.

QROPS Growing in Popularity

Posted by admin – February 2, 2012

QROPS are relatively new and are a result of a change in Government regulations relating to pensions. These regulations set down certain criteria permitting the transfer abroad of UK pensions provided certain requirements are met. Any overseas pension schemes that meet these requirements are said to have qualified and they appear on a list published by HMRC and known as the QROPS list. Included amongst these requirements is the fact that the pension should be recognised in terms of taxation by the country where it has been set up. Hence, these pensions are known as Qualifying Recognised Overseas Pensions Schemes (or QROPS).

QROPS schemes are growing in popularity as increasing numbers of people find out about their advantages. Tax Savings is a major draw, but QROPS pensions also offer other advantages. These include a wider range of investment opportunities than UK pensions as people with QROPS pensions are able to choose from investments available worldwide. QROPS also offer a solution to the problem of fluctuating exchange rates when you come to withdraw your pension, because you can arrange to have your QROPS pension in the same currency as the currency used in the country where you reside.

Figures recently published show that in excess of 7,300 QROPS transfers have taken place since the rules changed in 2006. This represents approximately?500 million in value. Interestingly, the figure of 7,300 represents over three times the number of people who chose Alternatively Secured Pensions (ASP’s). These have also been available since the change of ruling in 2006 and are an alternative form of pension that avoids the need to buy an annuity at the age of 75. Although they have advantages over other UK pensions they do not avoid tax duty on death, whereas there is no inheritance tax payable on QROPS pensions.

In terms of locations for QROPS, Guernsey is a popular choice. This is mainly because of the high tax incentives associated with investing in Guernsey. In another recent report by a Guernsey QROPS provider it was revealed that applications for QROPS pensions had increased in the last year from about 50 month to approximately 100 a month.

However, a spokesman for the company commented that this was partly attributable to the fact that places such as Singapore had had their QROPS status removed. This reflects on another reason why Guernsey QROPS are so popular, which is the fact that HMRC rules are closely adhered to in Guernsey. Therefore, UK investors feel more confident in transferring their pensions to the island.

Another reason for the increase in the numbers of QROPS transfers is the growing number of UK citizens who retire abroad. If you are thinking of retiring abroad a Qrops advisor can give you details of the benefits of transferring your pension overseas. He will also recommend approved QROPS schemes and provide guidance on how you can qualify for a QROPS pension as certain stipulations have to be met.

Corporate Wrap – Future of Employee Benefits?

Posted by admin – February 2, 2012

With the demise of final salary pensions, company pension plans are no longer seen as a key employee benefit. The focus has shifted to other employee benefits, particularly flexible benefits as a way of attracting and retaining employees. And now the Corporate Wrap is being hailed as the ‘next big thing’

There are, however, differing views on the subject – including the ‘pros and cons’- and just a handful of players in the market so far with more to follow and further developments to be made. So, what is the corporate wrap?

Some would argue that a more accurate description would be a ‘corporate platform’. The word ‘wrap’ is taken from the IFA market, but the key differentials are the area of advice and that the corporate wrap is centred around workplace benefits as opposed to retail. It has a set of product wrappers that might include a DC pension, Group SIPP, possibly a retail SIPP, ISA, share save, and SAYE with the ability to transfer between wraps – and it should extend further than this to include protection, healthcare and flexible benefits. This will enable employees to make the most of their benefits, presented in a clear concise format, encouraging them to take action and control of their wealth and engage further with their employer. Eventually one would review the ability to transfer across legacy pensions, savings, even debts, therefore providing a complete overview of an employee’s financial situation.

Where are we now?

Scottish Widows entered the market early last year with its platform ‘mymoneyworks’ comprising a pension, ISAs and cash saving options where employees can make use of the platform even if they don’t take up the pension. It has a ‘reality check’ where employees can analyse their financial health and priorities are highlighted as high, medium or low risk. There are tools and calculators to check income and expenditure and identify where employees could free up money for savings and so on. Also available is financial information in relation to products and employees are guided to Scottish Widows’ advisers or to an IFA for more complex issues.

HSBC has launched Workplace Retirement Services whilst more players in the provider market will follow suit. Standard Life bought online benefits provider Vebnet, Threesixty and the software firm Focus Solutions. Friends Provident teamed up with technology provider FNZ and Axa, Aviva and Zurich have all voiced their intent to join the group.

Hargreaves Lansdown has launched its corporate Vantage wrap where employees can contribute through payroll into a choice of ISA, pension, and fund and share accounts. It also offers calculators and expert information on funds, stocks and other financial issues.

A number of Employee Benefit Consultants are also set to follow, although some would seem to be better placed than others. For example, Jardine Lloyd Thompson has Benpal, its flexible benefit platform; NPI SIPP which it acquired; fund manager IIMIA; and it has a key market share for its pension administration software Profund. So, Jardine Lloyd Thompson has the key ‘nuts and bolts’ as it were, and it will be interesting to see its developments.

There is also a debate as to whether the providers or the benefit consultants are best placed to develop and launch to market the corporate wrap. Key areas to consider are whether a company has the technology, funds under management and capital to invest. And why spend the money if someone else has a solution for you.

Pros and Cons

The overall feeling is that the corporate wrap is the future of how benefits will be packaged to employees by their employer. It still does have its critics, however, and here are the ‘pros and cons’.

Pros

There is maximum benefit for the employer in terms of engaging employees. Flexible benefits are a once a year choice whereas with the wrap the information can be accessed daily and portfolios can be monitored and adjusted as required.

It will educate the low to medium earners who don’t have access to a financial adviser. It will help them to gain an overview into their financial situation and guide them through managing their finances, hopefully turning those in debt into savers and eventually IFA clients of the future.

People are encouraged to save:they can use the tools and calculators to see how they can get to where they want to be, whether that may be paying off debts or saving for a new car.

Money can be easily transferred. Maturing shares can be rolled into an ISA.

There is flexibility for the employee. DC employer pension contributions could go into an ISA instead, perfect for the person wanting to save for a deposit or the high earners affected by tax restrictions on pensions

For the employer, it becomes easier to recruit and retain staff and as the corporate wrap falls under contract based scheme rules the provider will handle the administration and delivery.

Financial education in the workplace should be a large part. This should be delivered to employees in the form of seminars and one to one meetings and will be hugely beneficial.

Cons

Some employees may feel uneasy about their employer having access to their financial information

The concept will only work if the financial education is right, the tools are available and the information is clear and concise

Will there be true independence or will providers ‘push’ their own products? This could be avoided by charging for the pension and whole package as opposed to the individual products, but will that be enough?

Will moving data from one corporate wrap to another be straight forward?

What if the employer wishes to switch pension?

Could there be some areas of conflict with the employer’s interest? For example, rolling maturing company shares into a SIPP. The employer would also want to keep the focus on employer benefits as opposed to previous pensions and external products.

One thing for sure is that corporate wraps are here and are looking to be the future of employee benefits. It will be interesting to see how they develop, how they will co-exist alongside personal accounts, and whether they will be accessible over time to the smaller employers as well as the larger market.

What is your view?

When to Buy and When to Sell When It Comes to Stocks

Posted by admin – February 2, 2012

When one is looking to invest in a stock market, there are many things to take into consideration. Many consider volume to be the most important though. Volume is nothing more than the number of contracts or shares during a specific period of time. The volume is a good measure of the liquidity of the market as a whole. It can also tell you the same about an individual stock. During a normal transaction, each transaction will have both a buyer and seller. The more volume in a stock or market, the better your chances are of a successful transaction that is completed quickly.

Others say that price movement should be the most important factor. Here is where the money is made in the stock market. While volume tells a great deal about supply and demand, you must interpret these things properly. The volume is what tells you which big institutions are showing interest in the stock you are considering. As much as 75% of the activity on the stock market comes from high volume stocks so this should be a crucial factor.

Stocks which are strong have big point gains and this leads to new highs. Upward price movements are usually seen during heavy volume and, when the stock goes to correct itself, the volume will be much lighter. When you see volume and price action of this type, chances are good that this stock is a healthy one. In contrast, if the price of a stock drops on heavy volume, your investment may be in trouble. Another warning sign that you don’t have a healthy stock is a situation in which your stock rebounds, but it does so at a smaller than average volume or in smaller steps. If this occurs, it is most likely time to sell. Make sure you remain objective in all of your trading decisions to bring in the most profit.

In simple terms, when you see heavy volume and a price recovery or you see a big sell-off and then a quick bounce back, this is a good sign. When the stock doesn’t bounce back after a sell off or the volume is low, it is time to sell. Keep this in mind and you will see your profits rise.