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Reduce Financial Stress as an Aging Worker by Taking Advantage of One’s Equity on a Property

Posted on October 8, 2019

Taking out a mortgage under equity release arrangement has become increasingly popular among Britons. Although many do so as a means to supplement their retirement funds, others simply need additional funds for other important reasons. At age 55, retirement is still ten years away and will be a year farther away in 2020 for those currently under age 55.

Actually the UK government is bent on pushing the retirement age further to age 67 by 2028 and to age 68 by 2046. As it is, The Centre for Social Justice (CSJ), a think tank founded by Tory MP Iain Duncan Smith, a former minister for work and pensions, recommends furthering the retirement age to as late as age 75 in the next fifteen (15) years.

That way, the UK government can save an estimated £182 billion a year by making Britons work, way until their mid-70s, instead of retiring and claiming their state pension. That is despite the fact that compared to other developed countries, the British government grants the lowest state pension; just roughly about 16% of the earnings gained by Britons during work.

At present, the new UK full state pension is pegged at £168.60 a week, albeit still dependent on a pensioner’s national insurance contributions. A full pension amount requires at least 35 years of national insurance contributions. Eligibility for even a partial pension requires national insurance contributions for at least ten (10) years.

Most Britons Resort to Releasing Equity on Their Property Upon Eligibility

That is why taking advantage of money locked in one’s property by age 55 or above is a solution most Britons consider.

Since their body is starting to age and weaken, they can at least slow down with economic activities to avoid hastening the deterioration of their physical condition. After all, equity releases under UK lending conditions come with a no-negative equity guarantee. This provision ensures that even if the amount borrowed doubles or exceeds the appraised value of the property at the time the obligation is settled, the heirs or beneficiaries of a deceased senior borrower will not be burdened with unpaid debts.

Cashing out the value of one’s equity on a property before the official age of retirement appears to be more practical than waiting for pensions that will take a long time to come. The amount that can be borrowed via an equity release mortgage can be determined using an equity release calculator in the UK websites of financial specialists.

The Equity Release Council reported that during the second quarter of this year, as much as £971 million in equity release mortgages were availed by qualified older British adults.

Based on a report published by the UK National Statistics Office for the Centre for Ageing and Demography, and covering the years 2015 to 2017, the most recent estimations of life expectancy among older people in the UK is up to 79.2 years among males and 82.9 years among females.

If this life expectancy trend continues when the official retirement age is at 75 years, male retirees will collect only about 5 years of pension that cost him 35 years of contributions. Older female workers retiring at age 75, will be able to claim at least 8 years of pension.

That is why Baroness Ros Altman, who is herself a former minister of work and pensions, brands the proposal to increase the retirement age to 75, as “chilling and immoral.” She deems that increasing the pension age to 75 will lead to a shortening of life expectancy, particularly among disadvantaged British subjects. In all probability, many will not even reach age 75 to enjoy their hard-earned pensions.

How Is Crypto Trading And Stock Exchange Different?

Posted on October 6, 2019

BitSeven is a highly developed platform for cryptocurrency exchange and trading on the market for cryptocurrency such as Bitcoin, Litecoin, Ethereum and Ripple. At present, digital currencies possess a market capitalization of approximately 300 billion US dollars with the possibility in the close future to reach 10 trillion US dollars. Presently, there are more than a thousand digital currencies as well as an ceaseless quantity of crypto tokens.

The quick growth progression of cryptocurrencies has caught the attention of traders around the globe. But, cryptocurrency trading is different from the usual processes of investment like stock exchange. How do they differ and what can one expect when getting under way with cryptocurrency trading?

Crypto Trading and Traditional Stock Exchange – How do they differ?

With the usual exchanges, it could be tough to start trading as there are numerous stumbling blocks with sizeable amounts of paperwork as well as related costs prior to carrying out the initial trade. And even this entire work and process is done, it will be a long-term course to earn a profit which would necessitate a preliminary capital for items like margin fees and trading fees. Additionally, a substantial effort is needed for the assessment of newscasts, business models, global and local indicators and trends in economics and politics, like hints of an economic crisis or recession.

On the other hand, one could delve into cryptocurrency trading with as low as $100 worth of digital currencies which would permit one to make the most of a market that is frequently volatile compared to the usual regulated finance, however that offers more chances to gain better and bigger profits. Volatility of the crypto market has two sides wherein it offers in equal gauge the possibility for profits and losses.

Starting with Crypto Trading is Easier

As mentioned, to begin trading utilizing fiat exchange, there are a lot of paperwork to be done because of traditional finance remaining to be an industry that is extremely regulated worldwide. Companies the offer services for trading necessitate a substantial quantity of info and at times even a declaration of a status being a “professional investor”, wherein it totes up additional cost as well as delay.

Currently, the crypto market is primarily unregulated. Requirements also differ from one country to another, but at present there is no clear global regulations that are standardized and best practices. Nonetheless, this is shifting. For now, it is simpler to begin with crypto trading, not merely because of a lesser capital needed to see some profits, but also because the paperwork to begin trading is frequently easier, simpler as well as time saving with no need for go-betweens like brokers.

The Cryptocurrency market is turning out to be progressively more mature and is more flexible compared to fiat exchanges. And since there are increasingly more tools for crypto trading, the digital currency market will turn into a more constructive substitute to conventional finance.

Social And Economic Benefits Of Government Loans

Posted on August 21, 2019

Lending companies offer individuals loans or funding for different uses, such as for business startup, household and home improvements, debt consolidation, schooling, personal use, or for paying off unanticipated outlays. For instance, the American Pride Legal Funding offers loans for automobile accident settlements, which is one of the most typical types of personal injury settlement loan. This type of loan could be really helpful for individuals who don’t have readily available funds for such unforeseen event since approval and issuance is fast.

Benefits Of Government Loans

Aside from banks and private lending companies, the government as well provides lending programs across various departments that aid and assist communities, individuals, as well as businesses corresponding to their distinctive financial needs. These programs provide funds for those who may not be eligible to take out a loan in the market. Loan programs by the government are intended for the long-term welfare, socially and economically. This is to:

Make better the overall economy of the nation as well as the quality of living of its people
Foster innovation, modernization and entrepreneurship
Deliver defense and security against as well as assistance from disasters
Transcend the human capital of the nation
Reward or compensate veterans including their dependents for the contributions they have given in the past as well as to support them with their current needs

Small scale businesses and individuals with insufficient to zero capital or guarantee might realize that the terms for a market-rate loan is too expensive. Government loans that are low-cost try to fill this gap, which permits benefits that are longstanding for both the receivers and the country.

Government Loans – What Are They And How Do They Work?

Both the borrower and the government benefit from government loans. As the government provides capital or funds to borrowers who require it, the original capital or funds lent by the government is repaid with interest.

Government loans may possibly be financed by the government or not, however the government secures or guarantees each and every government loan. As the government finances a loan, it makes available the loan capital. This cash stems from taxpayers. When a loan is simply secured by the government, it essentially cosigns with the person, community, or business borrowing on funds financed by specified lenders such as private banks or enterprises that are government-sponsored. This denotes that if a repayment for a loan is defaulted by the end-borrower, lenders have to be repaid by the government.

Subsidized loans are loans that a go-between, or somebody besides the end-borrower, pays the loan interest for a set time contingent on the kind of loan. This third-party could be the government, established and known charity organizations or institutions. On behalf of the individual who borrowed the money, these third-parties will have to pay to the lender the loan interest for a fixed period. For a government-subsidized loan, it is typically the state or national government that provides the subsidy. Loans that are unsubsidized necessitate the borrower to pay the entire interest charges, from the first day the loan was issued.

Trump Softens 10% Tariff Threat in Response to China’s Suspension of US Procurements and Yuan Devaluation

Posted on August 15, 2019

Unable to stand the economic pressure created by China’s counter-offensive of suspending the country’s procurement of US agricultural products, president Trump softens a bit by modifying coverage of the 10% tariff and by moving effectivity date to December 2019.

Typical of Donald Trump, he proclaims that the move is his way of making the new 10% tariff irrelevant to Christmas; and not as an acknowledgment that his tariff bullying against China has no effect.

Unlike Beijing’s claim that China can sustain its projected economic growth for 2019, despite yuan devaluation, Trump cannot offer similar assurances to the U.S. farmers who stand to lose its 4th largest buyer of farm products. In fact the yuan devaluation can even backfire and destroy Trump’s vision of collecting billions in additional taxes on Chinese goods that will enter the U.S.

China’s yuan devaluation actually brought down the exchange rate between U.S. and Chinese currencies: USD1 : CNY 7. The devaluation means it will only cost US importers only around USD 1 to buy every CNY 7 worth of Chinese goods. That being the case, the lowered value practically offsets whatever additional tariffs they have to pay on importation of Chinese goods come September 01 and December 01, 2019.

E en if the 10% tariff pushes through, U.S. importers of Chinese goods therefore, will not pay heavy tariffs that they subsequently pass on to retailers, and eventually to consumers.

Splitting of Goods in Deferment of September 01, 2019 10% Tariff to December 15, 2019

In trying to put a brave front, POTUS Trump still intends to impose the 10% tariff by September 01, 2019 but not on all Chinese goods as previously planned.

The September effectivity will be imposed on imported various agricultural products, clothes, footwear, kitchenware and antiques. According to Bloomberg News, the total value of which is around USD110 billion.

An estimated $2 billion worth of China-made products such as bibles and shipping containers will be eliminated from the list of goods subject to the impending 10% tariff imposition.

The bigger lot that includes electronic items like smartphones and laptops as well as children’s toys, which Bloomberg estimated as worth USD160 billion, will be subject to the 10% tariff after December 15, 2019.

Modifications on Trump’s chaotic tariff policies are still subject to the outcome of another round of talks being set up by U.S. negotiators with Chinese trade officials. Although Trump claims that Beijing wants to renegotiate for a better deal, Commerce and Foreign Ministries at Beijing’s end is not responding to faxes seeking confirmation of Trump’s current claim. .

Consumer Credit – Is It Good For The Economy?

Posted on July 28, 2019

Consumer loan, also termed as consumer credit or consumer lending, such as those by xn--forbruksln-95a.com/, is money lent (typically on a nonsecured basis) to a borrower or a person for numerous purposes, whether it’s for family, personal or household use.

Regulatory agencies of the government monitor these types of loans to ensure they comply with regulations on consumer protection like the Truth in Lending Act.

One of the most significant element that drives the economy is credit. Since credit brings about a rise in spending, it therefore also increases the levels of income in the economy which in turn directs to a higher gross domestic product (GDP) and thus result in a speedier productivity growth. If and when credit is utilized to acquire resources that are productive, it adds to the revenue and aids in progress of the economy. Moreover, credit further steers to the generation of debt cycles.

The Economy Benefits from Consumer Debt

Consumer debt also termed as consumer credit is what you owe, contrasted with what the government or a business owes. It could be borrowed from financial institutions, credit unions, as well as the federal government. It’s not easy for consumers to perceive debt as a piece of good fortune, since it signifies that they have a responsibility to pay off their lender from their salaries and earnings. It could as well denote acquiring charges in interest that are costly. However, debt could essentially be a positive aspect from the stance of the whole economy.

Consumer debt in the United States rose 5% to $4.09 trillion in May 2019. That exceeded the record of $4.07 trillion in June 2019.

$3.016 trillion was accounted to fixed-payment loans or non-revolving debt rising to 3.9%. Majority of these non-revolving debt is on auto and education loans wherein school debt reached $1.598 trillion and auto loans at $1.161 trillion in March 2019. On the other hand, credit card debt amounted to $1.072 trillion, rising 8.2% which topped the record of $1.02 trillion in 2008.

Consumer debt is a factor in the growth of the economy. Provided that the economy raises, debt is more quickly paid back in the future, since your education lets you secure a job that pays better. That generates an ascending cycle, improving the economy all the more.

Downside of Debt

Although debt could be beneficial to the economy, it could be harmful as well, particularly for the borrower. If the economy is subjected to recession, you may lose your employment and may encounter defaults. This could mess up your credit rating, as well as your capability in the future to obtain loans. Even though the economy continues to be boom, you could acquire too much debt not because of poor spending practices but because of unforeseen and unwanted circumstance such as medical bills.

The wisest approach to evade the disadvantages of debt is to settle it every month. Moreover, save up at least six months’ worth of expenditure. This will protect you and give a breathing space in case of recession, unemployment, or unexpected expenses.

Working Capital : What is It and How is It Determined?

Posted on June 16, 2019

Working Capital has been defined in several different ways. Some call it the lifeblood of a going concern. Others define it by describing it as the amount of seed money invested in a business for purposes of meeting the day-to-day needs of “a going concern.” Some others refer to Working Capital as the Net Worth of a business, using the formula:

Working Capital = Total Current Assets – Total Current Liabilities

Yet for those who have very little or no idea about Current Assets and Current Liabilities, Working Capital as a concept may be difficult to discern. .

Understanding the Concept of Working Capital Elements

A business is a “:going concern” if it is in constant operation to generate sales. As such, its Working Capital will keep the business running continuously. The value of which is determined by the Current Assets and Current Liabilities of an entity.

Current Assets

Available business funds used to support the selling activities and to purchases sellable goods are simply labeled as Cash. If the business is a trading concern, the sellable goods are called Merchandise Inventory. Inventory may have other descriptions, such as Raw Materials, Raw Materials in Process or Finished Goods, Inventory by any other name is a Current Asset since they will likely be sold and converted into Cash within a short period of time.

In some instances, goods are sold on credit; denoting that the sale will not immediately increase available Cash. in such cases, sales on credit be distinguished by being classified as Account Receivable. Ideally, Accounts Receivables are collected within a short period of time so that they will immediately become part of Current Assets. .

When a “going concern” is having a good run, more than enough cash may be amassed. If so, it is a good practice to place extra funds in short-term investment instruments such as stocks, or bonds. That way, even excess money can have a chance to grow while invested. Collectively, they are classified as Marketable Securities. They can easily be sold or converted into cash, they also form part of the Current Assets of the business.

Take note that for an asset other than Cash, to form part of the Working Capital of a business, it must be Current or one that can be easily liquidated in cash form.

Current Liabilities

Current Liabilities include trade credits that allow businesses to procure inventory and other business necessities on short-term bases. Credit purchases do not earn interest for as long as the obligations are settled according to the terms of credit, which can be as short as 10 days or 180 days at the most.

In cases when a business is unable to generate additional cash funds by way of sales, fund may be secured by way of short-term loans. Payment terms include interests, and amortized monthly up to 12 months. Inasmuch as there is a need to settle obligations periodically in less than a year, they are also classified as Current Liabilities.

Total Current Liabilities are then deducted from the Total Current Assets when determining how much Working Capital is being used by a business.

The Risks Of Peer-To-Peer Lending

Posted on May 4, 2019

Peer-to-peer lending, also known as P2P lending such as the mintos review, is a popular alternative that is without the use of a traditional credit union. Majority of loans given by P2P lenders are personal loans, wherein borrowers could use it for different of purposes and intents from consolidating debts to starting a small business, or for home improvements. Peer-to-peer lending occurs when individual investors are able to directly lend to borrowers, frequently via online P2P lending platforms.

It’s worth assessing P2P lenders if you are in need of a loan. Rates for P2P loans could be remarkably low, especially if your credit standing is good. And although your credit standing isn’t perfect, you may still be approved for a loan that’s affordable with these lenders online.

The investor and the borrower both gain from the P2P model. As the lender obtains higher interest rates, the borrower gets lower interest rates as compared to what would be offered if either one went through a credit union or commercial bank.

What are the risks?

The major concern for each investment decision is the risks versus the rewards. But, with the advertising rates of peer-to-peer lending platforms which range from 3% to 19%, the rewards could easily and clearly be envisioned. Yet, the challenge correlates to evaluating the risk level that is acceptable or good enough to the reward. The nature of lending or loaning money to businesses and/or individuals forms unique possibilities of risks compared to the usual asset classes that savers or investors had better be aware of. It is an investment to be loaning money via P2P lending platforms; hence funds aren’t protected by insurance firms like the FSCS. Eventually, without coverage, the capital and interest of investors are at risk.

Market Risk

These risks associate to macro-economic factors that might affect the capability of a borrower to pay off their loan or for the investment capital to be regained post default. This is similar to set income investments, there also exists an interest rate.

Interest Rates

If the rate of interest were to increase, the rate of interest paid off by a borrower may not look appealing as compared to other types of investments.

Credit Risk

Borrower default might be caused by economic factors or by a poor initial credit choice. Investors are recommended to differentiate across a huge quantity of borrowers to make certain that the effects of the defaulting of one borrower are nominal on the investment as a whole. Even after diversification, a large number of borrowers defaulting on their loan obligations continue to be a risk.

These are just three of the risks of investing in the sector of peer-to-peer lending. The illiquid make-up of lending implies that investors ought to be ready to commit for the duration of the term or be informed of the secondary market of the P2P platforms. A Borrowers who default on their loans is an evident risk that investors have to evaluate.

Starting and Growing a Business : Important Things to Consider

Posted on April 28, 2019

So you have a great idea for a startup business and the only thing that is holding you back is your need for additional business funds. First off, start by being a wise investor yourself, by exposing you and your assets to as little risk as possible. Do not throw all your eggs into one basket, so to speak, once you decide to turn your business idea into a full fledge business venture.

Just a piece of unsolicited advice, start small, maybe as a home-based business at first. As much as possible, veer away from the notion of securing a business loan to avoid being burdened with interest expenses and other financing charges. Your initial goal is to prove the viability of your business, then evaluate other aspects that need room for improvement or expansion.

Once your startup business picks up, and shows signs of potential growth, then you will have made your startup business a venture worth investing on. That is the first thing that most most business fund providers look into when looking for a good investment product.

At that stage, it would be unwise to wait until you have raised additional funds for expanding your home business, into something that has more form and structure as a business enterprise . Your goal this time is not lose the momentum for business growth, even if you have to seek additional funding from outside investors or financing institutions.

Potential Sources of Funding for Growing Your Startup Business

Love Investors

When looking for outside investors, look for them first in your circle of family and friends. If there is anyone willing or interested, let them in as investors. Doing so will put less strain and money-pressure on you and your business. Agreements with love investors are after all less constricting, when it comes to repayment terms and conditions.

However, try not to destroy their faith in you, because it will do you more harm than good. Building a good reputation in handling business obligations, even with informally contracted love debts, is valuable; especially if you want to grow your business further.

Banks and Other Financing Institutions

Keep in mind that banks and other lenders often require a specific period in which you have already operated a business even with minimum success. Lenders also want to make sure that they will be investing on a venture that has great potential to pay, not only the principal but also the interests that come with financing. This is why business reputation is worth more than the dollars you earn or keep by not honoring your obligations and commitments.

SBA Microloans

If you are a member of a minority group, or a business woman or a veteran, checkout your eligibility for a microloan being extended by the government’s Small Business Administration (SBA). The SBA is actually a program that coordinates with non-profit, community-based lenders who are willing to grant loans ranging between $500 and $50,000 at a minimum interest rate and up to a maximum term of 6 years.

Still, in light of the easy terms by which microloans are granted, you have to apply for one as early as possible. There are many like you, also seeking to obtain funds for a startup business, which means it will take time before your application gets processed.

Business Capital Investors

Business capital investors are different from lending institutions because the funds they intend to infuse will be in the form of semi-fixed investment, such as having a share in the ownership of a company, usually as a stockholder or as a bondholder.

Although they have greater capacity in providing larger funds, they also want to make sure their investments will grow by taking part in the decision-making processes. In case they are not satisfied with how the business is being run, capital investors have the option to pull out their investment when deemed necessary.

How Much Savings Do You Really Need For Retirement

Posted on April 21, 2019

Are you in your 40’s and may be confused about how much you need to retire? Or the idea of saving such a lot of money is too much to handle? Nonetheless, if you have a reliable plan, you still have plenty of time to save.

Know Your Savings Needs

Put as many funds into your retirement savings as possible. Should you start off saving for retirement living in your twenties, the general rule said that you could still live comfortably when you save about 10 % to 12 % of your net income. If you start at the age of forty, the general rule suggests that you should raise your savings to about 15% to 20%.

Sounds a little overwhelming? Then try to do this: instead of centering on the percentage of the actual wage you must save, consider exactly how much you really want on an annual basis on your retirement then multiply what you have in mind by 25 to end up with the amount you have to save. For example: In order to live on the retirement of $40000 annually, you will need to raise $1M for your retirement portfolio.

Savings from Investments

While a million dollars is a lot to consider, it may not always necessarily have to come from your take-home pay but it can come from wise investments. The longer the span of time your money is invested in the retirement fund, the more likely it is to grow. Need Money Now for a great investment? There are many options for you if you are considering a take-out a loan to put on an investment. Your best bet is to speak with a financial adviser.

In reality, by way of an aggressive financial savings approach, you are able to produce a $1 million portfolio within 17 to 20 years. The bottom line is that when your money is invested for the longest time, you can take more benefit from compounding interest. After some reasonable time, compound interest will help you to double or triple your hard earned money.

Savings from Side Jobs

If your job at present is not sufficient for you to save at least $1,500 to $2,000 each month, you may want to look for other ways to come up with some extra income. Consider small means to earn that extra income. For as little as $100 per week, you can raise a good amount of savings for retirement.

Future Income on Current Investments

In addition to earning more, spending less and building your $1 million-portfolio, you can also look for sources of income in retirement.

While many of us are earning more and spending less, you can still consider other sources of income while in retirement. For instance, if you have a fully paid mortgage, renting out the home for a short and long term lease is feasible. Rental income can be used to live in a cheaper rental space.

Bottom Line

There are many elders who are on delayed retirement because they may have insufficient funds or could realize unforeseen needs for retirement. Nonetheless, this could be avoided even if you are past 40 years old. While delayed retirement is not too bad, there is a myriad of ways to fund your retirement and to even earn an extra while in retirement.

The Savings Accounts Everyone Needs The Financial Diet

Posted on March 29, 2019

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