Why Wealth Management Might be the Right Choice for Your Finances

The vast majority of high net worth individuals will be those who already have some measure of financial acumen. They’ll know how to save and look after their money properly; after all they’ve got to where they are now with their own financial knowledge. They may not however, know how best to use the wealth they’ve accumulated in order to make their worth grow in the future. In short, they may need some advice when it comes to making investment and planning decisions, and this is where wealth management companies come in.

Purpose

In the past, wealth managers were there to ensure the safety of large funds of money, but these days the majority are focussed on helping their clients wisely invest their fortunes, guarding against changing markets and planning for the future. This includes both things like financial trading and developing a portfolio but also major decisions such as pensions and the products associated with them. The best companies will sit down with you and discuss where you want your finances to go and how you’d like to progress them, ultimately searching for the best solution and recommending or executing it for you. Many people have the idea that you hand over your money to an investment firm, and they do whatever they think best with your money. In reality, this is not the case; wealth managers are generally there to help guide you and support your wealth planning – you’re not at the mercy of their investment decisions.

Benefits

Some may well question the value of using a wealth management company when you could actually access all of the products and investments on the market without them. The simple fact however is that it takes significant training and knowledge to be able to decide the optimum course of action. And the optimum course could well be one that sees a significant positive effect on your net worth. Conversely, poor investment decisions can leave you with gaping holes in your portfolio. This does also mean choosing the right company – look for award winning businesses like Sanlam so you know you’re in good hands.

Ultimately, choosing to use a wealth management company, or even an individual adviser, is a big and personal decision to make. But in general, they can help to both increase your fortunes, and plan for money at every stage of your life for a comparably low cost of retainer or percentage. If you’re a high net worth individual, then it really does make sense.

The Advantages of Selling Your Property to a Fast Cash Service

Many people view fast cash property buyers, such as House Buyer Bureau, with suspicion. They believe that they’re too good to be true – a solution to their problems where none seem possible.

And yet, before you discount them and start looking for their disadvantages too, it’s worth considering these services in light of your predicament. If you need to sell your home quickly, whether because of bankruptcy, financial difficulties or an impending emigration, they could offer you exactly what you need: an immediate lump sum of money.

Here are a few things to consider…

It Will Speed Up Your Sale 

A cash sale is much quicker than it’s traditional alternative, and therein lays its main benefit. If you need money soon, these services do away with the time you would normally spend advertising your home, waiting for a buyer to enquire, conducting viewings, accepting offers and exchanging contracts. On average, this process takes 65 days – too long for those in need of cash immediately. Professional services, on the other hand, can complete a sale in days, providing you with funds when you need them most. This difference in timescales can be the difference between being repossessed and losing all of the money invested in your home, defaulting on debts and missing out on the opportunity to move elsewhere.

It’s Convenient 

When you’re looking for a buyer, it’s often necessary to spend time and money improving your home in order to increase the chances that someone will want it. Cash buyers don’t require any such efforts on your part; they’ll take the property exactly as it is. This means that if your funds are already overstretched, you don’t need to dip into them even further by paying for repairs, new carpets or paint. In addition, you don’t need to spend any time sprucing things up and having a spring clean for somebody else’s benefit. Yes, you’ll be receiving a little below market value, but you’ll be saving money in other areas, meaning that your profit margin will be harmed a lot less than you might think.

It Avoids Complications 

Normal sales always run the risk of falling through or running into other complications, from your buyer being unable to secure funds to backtracking, haggling on price and the goalposts being moved due to the results of any surveys that are carried out. Should the worst happen, and your sale fall through, you have to go through the whole arduous process all over again. When you sell your house to a fast cash service, you don’t have any of this to worry about. Once an agreement has been reached, the money will change hands instantly and you can rest assured that your sale has gone through.

In light of these points, could such services perhaps be of benefit to you?

Understanding ISAs: A Beginner’s Guide

When it comes to ISAs, lots of people have a very limited understanding of what they are and how they work. There is a perception that they’re incredibly complex, and this means that many people avoid them or only take them out on the advice of financial advisors. In truth, ISAs are relatively simple to understand and can be a very useful tool when it comes to saving money.

Take a look at our quick guide to find out more. 

What is an ISA? 

At its core, an ISA is simply a tax-free or tax-efficient savings or investment account. It helps you to increase your returns as you pay less tax, or no tax at all if you have cash savings. Think of it like this. The capital and shares you own are biscuits. Each year, when the taxman comes to tea, you plate them up and he chooses the biscuits he wants to eat. ISAs are like a biscuit tin. To encourage savings, the bank gives you the tin to put some of the biscuits away in for later. The taxman can only choose what’s on the plate and cannot touch what’s in the tin i.e. your cash and shares.

How Much Can You Put into an ISA? 

ISA allowances reset each year, with a tax year running from April to April. You can save up to £15,000 per annum, split however you wish between cash and shares.

The money must be invested by the 5th April to count for that year. Any allowance that has not been used becomes void as opposed to rolling over.

How Long Will the Money Remain Tax-Free? 

Savings or investments placed within an ISA wrapper continue to earn interest and benefit from tax rewards until the money is withdrawn from the account. This means that you can invest substantial amounts tax-free over a period of time. For example, as of 2014, an individual could have invested £7,000 per year between 1999 and 2008, £7,200 between 2009 and 2010, £10,200 for the year 2010/2011, and £10,680, £11,280, £11,520 and £15,000 respectively for the years following that. Provided they have not withdrawn any money, they will be earning interest or investment returns and paying little to no tax for these sums.

What’s the Difference Between a Cash and an Investment ISA? 

There are two types of ISA: cash and investment.

A standard savings account will require the taxpayer to give between 20 and 45 per cent of the interest they earn to the government. Those who choose a cash ISA benefit from paying absolutely no tax on their savings.

ISAs can also be used for investment purposes. These accounts are known as stocks and shares ISAs. You can choose to invest in shares and bonds through them. This carries three main advantages:

  1. You will not be required to pay tax on profits.
  2. There is no tax to be paid on interest earned through bonds.
  3. There is a 10 per cent tax cap on your income.

Unlike a cash ISA, stocks and shares ISAs tend to be managed through a broker or some form of fund management entity, such as Killik & Co.

Although this does, of course, carry many advantages not available to ordinary investing, a risk remains that your investments may fall as well as increase. It is recommended that investment ISAs are best suited to those playing the long game – five years at least.

Whoever you are, if you have savings or investments an ISA is almost certainly worth your while. However, the ISA that you should choose – whether cash or investment – is entirely down to the individual and their attitude to risk. The gain from cash ISAs is simple; no tax. Investments are far riskier but do offer a greater reward. Therefore it is imperative that before you choose an ISA, you do your research and work out which type is best for you.

Why Personal Finance Management Should Be Taught at School

Personal finance management should be included in the  subjects taught in primary and/or secondary education. Such a measure will help make sure that young people turn out better versed in savings and even in loans. This can be an appropriate preparation for the students to become responsible and knowledgeable adults in the future who are familiar about how to effectively manage personal finance

To date, there are calls to make personal finance a compulsory subject in schools. Many individuals believe it should be made a part of the academic curriculum. Financial education is perceived to be a long-term solution to inevitable and pressing problems regarding consumer finances. Here are four more reasons why personal finance management should finally be taught in school.

1. Providing financial literacy to young people.

Many think that financial literacy is just about counting and calculating. There is a bothering observation these days that many consumers can perform even complex algebra and mathematical equations. But such a skill is not enough. To be able to make important financial decisions, a person need to be familiar about terms like PPI, APR, and the like. There has to be a natural understanding about savings, banking, and finance.

2. Eliminating personal insolvency and irresponsible borrowing.

There is an observation that most of those individuals who are into debt troubles are those who are not too familiar and knowledgeable about finance. Effective and proper budgeting is a basic in personal finance that can equip people with the right skills to possibly succeed in business and to help dive the economic growth forward. The school can be the best place for young people to learn how to properly manage their own money.

3. Making young people take personal finance seriously.

Teaching young people about personal finance early in their lives will help them take the matter more seriously. Compulsory financial education in schools can help develop interest in handling money properly. Teachers can be influential enough to instill financial values to young people to help mold those youngsters as more responsible and disciplined individuals in the future in terms of finances.

4. Making personal finance management a basic skill.

Not all students can graduate high school and attend college. If not given the opportunity to take financial management classes in higher education, young people will remain unfamiliar and clueless about the subject. If the proposed subject will be taught earlier, more students will have the privilege to be familiar about it. This means more citizens in the future who are financially literate.

Personal finance requires sound decision making process. If not properly equipped with the right knowledge, how can one make effective financial decisions in the future? It is also ideal to train children and teens to manage their own personal finances early in life. By the time they grow up, they will not be stressed about how to handle money and debts. This way, financial woes and troubles of individuals can possibly be reduced and eliminated.


Don’t Show Me the Money!

A cashless society was once the stuff of science fiction. It is hard to image when living in a world in which every wallet held banknotes and coins, but the movement towards a cashless society has begun and it is fast gaining pace. It might just be that before we know it, we’ll be living in a world of digital currency.

Sweden showing the way

A number of digital currency proponents in Sweden are asking why bank notes should be printed at all in an increasingly high-tech world in which people are more familiar with screens and scanners than paper. Now is the time, they believe, to begin to transition towards digital money.

Catch a bus in a Swedish city and you will need to purchase a prepaid ticket or buy one with a cell phone text message. In fact, there are towns where it is no longer possible to go into a bank and use cash. Of course, this poses a problem for people living in rural areas and the elderly who do not have credit cards.

Interestingly, the Swedish Bankers’ Association says the shrinkage of the cash economy is already making an impact on crime statistics. The number of bank robberies in Sweden plunged from 110 in 2008 to 16 in 2011 — the lowest level since it started keeping records 30 years ago. It says robberies of security transports are also down. Almost US$ 1.2 billion is spent securing cash in Sweden each year. This amounts to 0.3% of the kingdom’s GDP.

Of course, this doesn’t mean that somewhere down the line thieves will not find new ways to part people with their digital money.

In fact, cybercrimes are on the increase. According to the Swedish National Council for Crime Prevention, the number of computerised fraud cases rose to nearly 20,000 in 2011 from 3,304 in 2000.

A digital economy also raises issues around privacy because of the electronic trail of transactions. Many who support the idea of phasing out cash, believe that other anonymous payment methods need to be introduced instead.

Going cashless has also spawned a multitude of other services that enable people to transfer small sums of money without having to resort to the ATM. Internet start-ups in Sweden and elsewhere are now hard at work developing payment and banking services for smartphones – devices for small traders that plug into the back of an iPhone to make it work like a credit card terminal. Sweden’s biggest banks are expected to launch a joint service later this year that allows customers to transfer money between each other’s accounts in real-time with their cell phones.

The flipside of the coin, is that banks could make bigger profits in a digital economy. Small traders in Sweden are charged about 5 Swedish kronor ($0.80) for every credit card transaction, and a law passed by the Swedish Parliament prevents them from passing on that charge to consumers.

The digital currency picture in other European countries is quite different. In Italy, for example, three-quarters of all consumer purchases are still paid for in cash. Many believe this is due to the low confidence in the authorities and the banking system.

South Africa in transition

MasterCard advisors’ estimate that cashless payments account for 43% of the total value of consumer payments in South Africa, which means that South Africa fits into a category of countries described by MasterCard as “transitioning” – countries in which cash payments account for between 40% and 60% of the value of all consumer payments.

South Africa’s readiness score of 54, indicates that many prior impediments to expansion of cashless payments are being eliminated – the result of the broad movement away from cash to the uptake of new cashless payment technologies like mobile, contact-less and EMV Chip, as well as a modern payments infrastructure. Even payday loans provider, wonga.co.za, is a cashless loan provider that relies on cash loans via electronic means.

Emerging economies – Indonesia (31%), Russia (31%) and Egypt (7%) – have just started down the path towards a cashless society, but are in many cases changing cash share of payments at a much faster rate than developed nations.

Countries like Brazil (57%), Poland (41%) and South Africa (43%) – having only recently put all the aspects of a modern consumer payments infrastructure in place – are now in a transitioning stage, and are quickly shifting share away from cash.

China has had the quickest shift away from cash. The cash share of consumer payments is estimated to have drop by as much as 20% between 2006 and 2011.

Way of the future

A recent Gartner report indicates that worldwide mobile payment transaction values will reach $235.4 billion in 2013, a 44% increase from $163.1 billion in 2012. The number of mobile payment users worldwide will reach 245.2 million in 2013, up from 200.8 million in 2012.

How to Manage Personal Finance?

Now it comes to application part of personal finance. You need to divide your earning into diverse segments so as to fulfill a variety of your preset purposes. Concentrate on the following areas to get better result with your monetary spending and saving.

Financial assessment: It is related to a complete understanding of the worth of your financial asset. This has two components – net worth and household cash flow. On the basis of analysis and assessment of both these factors, you can plan and accomplish your financial goals. Speak with a trusted adviser at a local bank like BB&T to start your financial assessment.

Ensuring protection: Future is unpredictable and unforeseen are unpleasant happenings. You need to safeguard yourself and your family from any untoward event and heavy risk. You can buy insurance policies to cover the possible risk threats. Different types of insurance policies such as health insurance, home insurance, and car insurance are available.

There are some special kinds of insurance for the professionals, entertainers, athletes. Rate of premium varies as per coverage provided. You must be in fair knowledge of different insurance schemes to make a cost-effective choice subject to suitability of your needs.

Saving and investment planning: Asset accumulations like real estate buy, car purchase or simply inflating your bank balance are some goals that you want to achieve in life. These require a whopping amount of investment. As Rome was not built in a day, so you need to set aside money to build up your financial empire and fulfill your objectives.

The prices of these goods shot up over time. You need to calculate a net present value so that it is possible to earmark the asset and decide how much to save for such an expensive investment. To ensure maximum return on your total investment, you should concentrate more on diversification of investment portfolio. Apart from house or car buying, you should also think about investing on bond, stocks and other options. Never forget to measure your risk appetite and benefits in return.

Tax filing: Income tax chucks off a larger share of your income. Tax management focuses on two crucial factors – when and how much to pay. There are some government incentives, availing of which may reduce your lifetime tax related expenses. You can ask for a tax consultant’s opinion regarding how to make the most of different tax break plans. A good tax plan heavily impacts your personal finance management.

Retirement planning: In order to live a financially peaceful life in post-retirement phase, you must get prepared from your early thirty. Estimate how much you need to maintain the current living standard in your retirement days and then plan accordingly. Think about asset distribution to ensure flow of fund from alternative sources to compensate pension shortfall in twilight years.

Personal finance is all about addressing every financial need from micro to macro so that you can sail smoothly in season and out of season. From above discussion, you may gather a simple knowledge that without taking best care of your personal finance, there will always be a huge gap between your dream plan and its realization. So why delay, start planning from today.

Logbook Loan- The effective Short Term credit Solution

Logbook loans can certainly be termed as the best short term loan ever. No wonder people are going for them with such confidence. Usually no one opts for a loan unless they are in grave need for short term credit. Owing to the fact that human life is completely unpredictable, no one can say when exactly they will come up with some urgent need.Availing logbook loans in order to suffice your short term financial requirement is actually a good idea.

There are numerous benefits that come hand in hand with logbook loans. The ease with which on can avail the loan is noteworthy. Unlike other loans, a logbook loans gets approved in a very short period of time. Generally a maximum tie period of 24 hours is all that is required to avail this loan. This helps individuals to take care of their short term credit requirement with promptness.

How it works

The way in which a logbook loan functions is fairly easy and simple. The only catch is the logbook of your car or the V5 registration. The loan provider provides a loan by keeping the logbook as a mortgage. One can avail a loan of up to half the value of their car.  However, in order to avail the loan the first thing that one ends to do is do a thorough research over the internet and find out the reputed logbook loan providers who function in their locality. The loan provider will fix an appointment with you wherein you will be able to ask them all that you need to know.

They will also ask you for some basic detail and check the validity of the V5 registration. Once this process is over you will be granted the loan, provided all your documents are valid and the loan provider has no doubts regarding your identity.

Basic requirements for logbook loans

Some of the basic requirements of logbook loans are as follows:

  • The applicant should be a permanent citizen of that country.
  • The applicant should be 18 years of age (minimums)
  • The log book must be registered in the name of the applicant.
  • There must not be any pending tax or insurance dues on the car.
  • The car should not be more than 8 years.
  • The car should not be damaged.

Advantages of Logbook loans

  • Some of the most imperative advantages provided by logbook loans are:
  • The loan gets processed very fast.
  • There are no credit checks or credit history check.
  • Even if here is a bad credit history one will be able to get a loan.
  • One can retain their vehicle and use it for their personal or business purpose.
  • The repaying terms are very easy.
  • The interest rates are fairly low as compared to other short term loans.


Ways To Help You To Stop Impulse Buying

Modern marketing system of stores, markets, and online shops are set up in such way to make us buy more. This is called an impulse buying.
Stop Impulse Buying
While impulse buying can be a tricky term, psychology states a number of reasons why an individual may go overboard with their shopping impulses. Are you wondering what is impulse buying about?
Well, you can check for the following signs either for yourself or in anyone around you:
If you love shopping – People who love to shop or ‘shopaholics’ are most prone to impulse buying. The urge and excitement to acquire something new overpower our abilities to understand the feasibility or our situation of buying something.
Loss aversion switch – This is when retail stores and online sites offer us ‘discounts’. Most of us get excited about discounts and nobody wants to miss it. The thought of missing out of such discounts is what describes our loss aversion switch, which retailers clearly take advantage of.
Twisted heuristics – Twisted heuristics come into play when online and offline retailers either offer products packaged in bulk or offer ‘free extras’. Such tactics prevent us from researching or even thinking further, activating our impulsiveness nature and push us to buy something that we don’t need.
The desire to save – While most individuals look to saving more than spending, this desire to save has encouraged retailers to introduce another form of marketing tactic. When there are discounts, retailers often also provide information on how much you can save. This motivates impulsive shoppers and buyers who don’t think much and instead, go with their impulsive instincts.
Consumption of novelty – The simple urge to either show-off what you have, somewhat similar to when people choose to buy branded clothes irrespective of their price and quality is another thing that triggers an impulsive behavior amongst individuals.
The above points confirm that yes; we do buy things that we do not actually need. The logical question arises: how can we cut down our impulse buying?

  1. Friends stimulate your shopping

Friends may be divided into two categories: the ones who help you resist buying anything and, vice versa, the ones who encourage you to buy everything in your sight. That is why it is important to know with whom you should go shopping just to prevent yourself from buying unnecessary things. Think of your credit card bill beforehand not to get surprised.

  1. Stay away from shops when you are stressed

If you are in a bad mood, stressed or disappointed, do not come close to the shops for you can fail to resist the willing to buy. The only possibility is to leave your wallet with cash, credit cards, or even ID and only then you may go for a walk to come down the nerves. Still, try to keep o  your way out of the shops. Some consumers try  making  their mood better with a help of shopping, some even use credit cards or short-term loans online to buy something. It’s not worth to borrow money and make financial decisions while you’re stressed because it can importantly harm your budget.

  1. Budget will save you

A lot of people use budgeting to save some money. Budgeting limits your finances but it’s very useful extent for keeping some money in your pocket. Writing all your expenses down will show you the exact statistics where you spend all your money. Cutting expenses can be hard, but it is worth of trying. You will view where all your money goes and this will give an opportunity to reconsider whether you spend it in a right direction. Find the courage to say “no” if your direction is not the one you’d like it to be.

  1. Do not agree at once!

The phrases as: “No, thank you” or “I will think of it” will save you. The pressure that we feel at the stores is quite high and sometimes we need the employees to pull their efforts down. The only thing, that you will notice, will be the look of disapproval in the salesmen’s eyes, but this will not make you purchase an unnecessary thing. Think twice before making a decision to buy anything. Ask yourself whether you really need it or you may get on without it.

  1. Special offers can be more tricky than beneficial

The marketing consultants are perfectly aware how special offers influence on the customers. That is why you can meet so many of them in any supermarket. Any offer is made specifically to make you open your wallet and spend money. The initial prices of products essentially differ from the ones that we see on the supermarket shelves. To sum up, try to review your attitude towards your expenses and think whether you would like to change the situation. The most important thing here if your willingness. .
Last thoughts:
A lot of people cannot fight their impulsive instincts, yet some people can actually bring about a change by fighting off this thing called ‘impulse buying’. Impulse buying can be dangerous for your finances, either in the present or future. The next time you have thoughts about purchasing that discounted dress across that window store, think again!

Being Economical Is What You Need Today

These days everyone seems to be attempting to seek out ways to lower their everyday expenses. Living in a frugal way is considered nearly impossible in today’s unstable economy. In fact, being economical implies not wasting your resources and assets on unnecessary things. You can be economical, but you have to be smarter. This is the dire need of the hour. You don’t need any specific skills or training to save money. You just need wisdom to avoid wasting cash. The younger you start the better.

Having borderline amounts of disposable money is the primary reason why we have a tendency to explore for ways to lower our expenses. You will never know when you start living a paycheck to paycheck life. The only solution here is having a budget in place and sticking with it. The budget plan must have two parts in which one is for financial gain and the other for expenses. This needs to be done with some meticulous planning.

Having financial trouble on the paradise?

Financial trouble often causes stress that can affect our relationships, marriages, as well as our careers. Everyone has a different outlook on their financial plans and goals. Managing your money smartly can make you feel happy and confident while the lack of it can make you miserable. It totally depends upon you how you plan your budget and what financial goals you set for yourselves.

Our bad habits need to change. We all have to become accountable for our choice of lifestyle. Generally, people have a tendency to devote an oversized portion of their lives earning the money and have less time left spending it. So, be smart, manage your finances well and learn the way to avoid wasting your money.

Do what is necessary

Go through the list and mark those things that were unnecessary when you noted the expenses. Set your priorities right. Eliminate those expenses that are no longer required. Contemplate debt consolidation if your credit cards interest rates are too high. Your budget plan is the best economical recommendation as his will allow you ample scope to save wherever possible.

Smarter use of coupons will lower the family’s shopping bill while not sacrificing the quality of the items. Also, there are many websites you can get various offers and discounts for saving on your purchases. Prepare a can or a box and save the change everyday, you will be surprised by how much is accumulated by the end of the month.

The bottom-line

Go through your house and notice all the items you don’t use. You can have a garage sale and sell that stuff which were just lying around your house and make some quick bucks. Save electricity and cut back on your utility bills. If you employ these thrifty living suggestions, you will be able to save a lot and can have a bigger ability to manage your budget.

Your Guide To Making Money From Financial Spread Betting

Do you want to know how to generate income from financial spread betting? If yes, then you should keep on reading this article.

What is financial spread betting and how does it work? 

Financial spread betting enables you to earn money from global financial markets without having the need to be involved in stocks and shares. This type of betting utilizes the financial markets and you have the freedom to choose whatever type of market you want. It would be more advantageous on your end if you are going to choose a market you are most familiar with.

Making Money From Financial Spread Betting

In reality, financial spread betting is a simple yet very exciting financial tool. The betting rules are easy to understand, which attracts many investors. There are so many subjects to bet on such as commodities, individual equities, currencies, and other financial tools. Through it, you will be able to gain a significant amount of profit. Financial spread betting is tax free, which is also one of the reasons why a lot of investors are encouraged to take part in spread betting.

The investor needs not to worry on extra expenses while trading. The profit attractiveness of financial spread betting has paved way to the development of different spread betting companies. With so many companies to choose from, investors should carefully compare one company from another to determine which company has better attributes. Work with the most secured and reliable company.

What should you keep in mind? 

As an investor, you should be aware that brokerage fees are included. It would be more beneficial on your end if you are going to take advantage of financial spread betting comparison service so as to find the cheapest service provider. You can also make a quick comparison by going through the Financial Spread Betting Margin Requirement.

By going through the requirement, you will find out the vitality and liquidity of the market. You should also know the number of tradable markets allowed by the company and ask for the corresponding interest charge for accounts held overnight. Most importantly, familiarize yourself with the company’s trading system and overall customer’s satisfaction rating.

If you are going to look at the nature of spread betting, you will know that it is somewhat similar to gambling. The only difference is that it is not included in the list of gambling activities. Spread betting companies are legal and in fact regulated by FSA or Financial Service Security.

Unlike any other trading tools, the pay-off for the investor and the company is not fixed. It basically depends on the bet being placed by the investor as well as the outcome of the market performance. The company’s income on the other hand primarily depends on the spread. The process makes it really difficult to assess, compare, and evaluate accounts.