How to Compare and Choose the Right ULIP Plan

A ULIP is an investment product launched by a few eminent insurance providers as compared to the more generalized form of insurance policies developed by others. It’s actually an integrated plan that creates both the opportunities of coverage and investment for the policyholder simultaneously.

The life coverage that you enjoy will claim a portion of your premium. The remaining portion is invested in a preferred fund so that you achieve a safety-shield for protecting the entire household financially. A ULIP plan yields great returns on the vested amount even in the event of any untoward incident. ULIP plans have always been preferred over other forms of insurance due to their lucrative features.

Things to consider while choosing ULIP plans:

Multiple funding options – When it comes to asset allocation, a plethora of options is created by the best ULIP plans in the industry. Compared to investing your entire savings in just a couple of funds, you may consider picking a ULIP plan with multiple funding options that offer a more diversified allocation in equities. A ULIP will help you gain a few additional investment options or an appropriate plan besides curbing your investment risks.

Choosinga plan online – These days, it has become a lot easier to choose an online ULIP plan due to their lucrative options. You may pick the right plan that matches your financial situation. It’s much easier to compare all ULIP plans online as you can check their features simultaneously.

The cost factor – You must pick a ULIP plan that seems more feasible in order to avoid the financial burden of meeting your premium. Your policy might lapse in case you’re unable to meet the cost of the premium. This isn’t a good thing for your financial situation.

Opportunity to switch – There are a few ULIP plans that yield the facility of switching between each of your funds. You’ll gain the flexibility to restrict investing in a certain fund and opt for another suitable fund of your choice.

Facility of redirecting premium – Choose a ULIP plan that comes with the advantage of premium redirection. It enables you to choose the right investment fund and percentage of premium that you wish to pay for it. You’ll even gain the flexibility of lowering and increasing the percentage depending on your changing financial needs.

You must ensure that your ULIP policy yields all the right features that other similar plans provide for. You must have the facility of transferring the accumulated investment from the current fund to a better one within your preferred time. It’s in your best interest to gain an opportunity for redirecting the premium in your chosen funds.

Gaining access to your wealth by way of partial withdrawal and loans is even important. You may also need to explore the option of paying your premium within a specified period while enjoying insurance protection and wealth accumulation for a longer duration. Besides that, you must also achieve tax benefits as per the Sections 10D and 80C of the Income Tax Act, 1961.

Hands On Investing with P2P Lending

There are many different attitudes investors have towards the type of investments they make and how they manage them. Some investors do not have the time or skill to manage their own investments so they use investment advisors. This can include everything from a highly paid investment advisor to a simple low cost mutual fund. This approach is by far the most common and serves to make investing easy enough that anyone can do it.

Of course, there is also the small segment of the investing population who prefer to actively manage their money. While this can be risky, these people believe that they can equal or exceed the returns provided by advisors and institutions. In addition, many of them enjoy the challenge and effort required to find and manage great investments. There are a lot of different ways to invest money and people who can find certain options may be able to do very well.

One popular way to invest that is very attractive to the hands-on investor is peer to peer lending. Peer to peer loans are rapidly becoming the most popular way for consumers to get personal loans to pay off credit cards, pay medical expenses, make improvements to their home or get money for virtually anything. In the past, banks were the only place to go for these loans. Now, the peer to peer lending industry provides an alternative. What makes them different is that the money to fund the loans does not come from large institutions. Thousands of investors provide a small amount of money each, and when it is pulled together they have millions of dollars to loan.

The investors deposit a small amount on money with the lending platform (a website like Lending Club). They can then choose which loans that their money will fund with lending club investing. This is the hands-on part. The investor can view information from each borrower’s application and decide which loans are the best investment for them. Loans vary by risk of default and interest rate so an investor must first decide how much of a risk taker they are. For example, some who wants to make a lot of money may invest in higher interest rate but riskier loans. They may have more loans that are not paid back but the higher interest rates will probably give their portfolio a higher return.

Once an investor has decided on the type of borrower they want to lend to, then they will pick specific loans. This is done by looking at the information on the application and the borrowers credit information that the platform has researched and provided. One key piece of data is the borrower’s credit score. Also, it is good to look at how much debt they have, what their income is and if they have made all of their payments on time in the past. There is a lot of information to analyze and the investors who do it well can make money.

If you are looking for a relatively safe but hands-on investment, then peer to peer lending may be right for you. There are many websites that offer this service but they are usually pretty much the same. So, set up your account today and you can be investing tomorrow!

Four amazing rules to become a profitable trader

Everyone wants to lead their dream life. But in the world economic crisis finding a decent has become extremely difficult. For this very reason, many people in Australia often consider trading as their prime source of income. But before you start making a significant amount of money from the Forex market, you must learn the three major forms of market analysis. Those who trade without having any clear knowledge about the retail trading industry are the ultimate losers of this industry. You will be surprised to know more than 90% of the traders are losing money. So why do people still want to trade the market? Since most of the professional brokerage firm like Saxo offers high leverage trading accounts to the retail traders, making a huge profit with a small investment has become extremely easy. Today we will share four amazing facts which will help you to become a profitable trader.

Learn fundamental analysis

Those who are relatively new to the trading industry only focus on the technical factors. But technical analysis will never help you to find the big market movements. Majority of the pro-Aussie traders uses fundamental data to find quality trades in favor of the long-term market trend. You might have very little experience but this doesn’t mean you will be trading without knowing fundamental analysis. Your trading strategy must include fundamental and technical data. When you develop your trading strategy, be sure to use the demo accounts. Never trade the market with real money unless you have backtested your trading system in the demo environment.

Use the Japanese candlestick pattern

If you can learn support and resistance level trading, it’s enough to lead your life. But how do you trade the key levels of the market with the extreme level of precision? To be honest there is no exact way. However, if you start using the price action confirmation signal, you will find things relatively easy. CFD trading in Australia has become easier since many expert Aussie traders offer price action trading course. This course is based on the different formations of the Japanese candlestick. Every candlestick bears information. As a forex trader you to understand the language of the candle. Things might seem a little bit hard at the initial stage but if you focus on the core factors, you will learn the details very easily.

Embrace the losing trades

This is the most important thing you need to learn as a trader. The new traders never embrace their losing trades. They are always trying hard to win trades. This market is nothing but a field of probability. No matter how hard you try, you will always have to face losing trades. So how do you make money even after losing 50% of the time? The idea is very simple. Always trade the market with 1:2+ risk-reward ratio. This simple principle will help you to become a profitable trader regardless of the conditions of the market. At times you might have to face a series of losing trades but this is absolutely normal. Stick to your trading strategy and wait for the next trades.

Never become a trade addict

Trading is just like addiction. If you fail to control your emotion you will find yourself behind your trading screen 24 hours a day. But the pro traders always trade the market in an organized way. They focus on different trading hours and based on the quality of trade setup they execute their trade. By over trading the market you can never earn huge amount of money. You have to find good trades and trade the market with discipline. Even if you can find one single trade, it’s enough to secure your whole month profit. Forget about your past trade result always stay concern about your next trade. Learn to manage your trade in a very efficient way so that few losing trades doesn’t cause emotional stress.

Common Invoice Factoring Mistakes You Should Know

Factoring is used by many businesses to increase their capital. A factoring agreement is where the funding source, called the factor, buys the right of the seller (client) to collect on an invoice at a discount.

The factor usually pays most of the value of the invoice upfront and the remaining balance upon actual payment of the buyer. It is not a loan and helps keep the business cash flow steady. Here are some common invoice factoring mistakes to avoid:

1. Not sending an invoice - This one is pretty obvious, but a lot of companies don’t send invoices. Invoices should be sent for both written and verbal contracts. This is a means to remind your customer that they need to pay you and exactly how much they owe. People tend to have a lot of things going on for them and payables can easily happen.

Invoices are part of your records and if you’re not careful with your accounting practices, you could be at risk of being overcharged by the factor. Make sure you plan for how you account for the advance and fees attached to it.

2. Failing to ask for the maximum limit upfront -The factor will usually appraise your business and set a maximum amount that you can advance. You need to find out how much is available to you before you enter into an agreement. It is important that the amount is enough to fund your business so you that you can look for better alternatives if it is not enough.

On this note, you should also ask how much is the upfront percentage that you will receive. As already mentioned, the factor will pay a percentage of the total advance (75% to 85%) and pay the remainder once the buyer pays the invoice.

3. Not exploring all your options - Just as it is with any aspect in your business, you need to do a thorough research on your options for funding. Different businesses have different needs and thus have different financial solutions. Just because a friend’s business is doing well by using one particular facility does not mean it is good for your business to. Explore your options by finding out what’s available out there, weigh the pros and cons of each option and determine whether or not these apply to your business.

Consider your options before committing to a contract with one funder. Speaking of contracts, don’t commit to a long-term receivables finance contract of several years. You need to make sure that you have the ability to refinance or not and a long-term contract will limit this capacity. Make sure that you have an alternative plan and that you can gracefully exit the agreement and switch strategies when you see the need.

4. Not monitoring your factor’s relationship with your customer - Remember that once you enter into a debtor financing contract, your factor will be the one who will handle collections. They will be the ones who will deal with your customers in terms of invoice payments on your behalf. Make sure that the factor has exceptional customer service. They should make sure that your relationship with your customers remains intact and positive.

A good way to check your factor’s responsiveness and customer service practices is to try out their contact points yourself. Send them an email, give them a call and chat with their chat support and see how well they handle questions and attend to concerns.

One other important issue in this matter is that when you turn over your invoices to a funder, you will lose track of your customers’ payment habits. You will not know whether or not your customers are paying promptly. You will also not be able to keep track of your cash collection cycle. These are things you would want to think of when considering invoice factoring as a financial solution.

5. Invoice factoring vs. invoice financing - Make sure that you are entering into an invoice factoring agreement and not one for invoice financing. The difference between the two is that for invoice factoring you are turning over collections of your invoices to the factor as a third party in the sales contract with your customer. Invoice financing is where your invoices are merely used as collateral for a loan from the financing company.

It is also important to note that as a business owner, you should not turn to invoice factoring as a solution for every small setback in your business finances. Note that most invoice factoring finance companies have higher interest rates compared to business cash flow loans. However, it is easier to procure invoice factoring than it is to get a bank loan.

6. Failure to understand all the terms of the contract - Make it a habit to read everything when you are running a business. This is particularly important in contracts because you will be binding yourself to these terms and you will be held liable for any violations or non-conformity. Read the fine print, make sure that there are no hidden fees or conditions that were not made known to you upfront.

Be sure that you know the term requirement or whether you are required to meet monthly minimums. Find out what will be the penalties if the terms are not met. Determine these factors before you enter into an invoice factoring contract.

Business is not a simple, one-sided operation. There are so many factors to consider and this compilation of common invoice factoring mistakes will hopefully help you make sure that your business runs as smoothly as possible.

Whatever your business decisions are in terms of funding, debtor factoring etc, the most important factor to consider is whether or not you do need to bring in a third party into your business relationships. Consider the benefits as well as the risks and continually weigh these extremes because things and circumstances change. What you need now may not be what you need in six months or a year.

Aside from regular self-evaluation of your business practices and standards of procedure, take into consideration your customer. Are they happy with your practices? A good business standard is to make sure that your customers don’t just buy from you once. They should want to keep coming back to you to buy more.

Do-It-Yourself Investing: Can It Be Done?

For anyone wanting to make the most of the money they have, investing is often one of the most important and lucrative ways to do so. If you are someone who is thinking of trying to get started in investments of whatever kind, then you are probably keen to make sure that you get it right. This means that you should have a keen eye for what seems to work and what works less well, do whatever you can to make the right decisions, and try not to stress too much in the early days particularly. In this post, we are going to look at this style of do-it-yourself investing which requires the use of no agents or other similar help. Can it really be done by the layman?

No Agent Doesn’t Mean No Help

It is important to remember that just because you are going for a do-it-yourself kind of investment portfolio, that doesn’t mean that you can never have any help whatsoever. In fact, there is plenty of help to be had, and the main thing is that you know which to accept and which not to. Given that you are keen on investing in this way, you will likely want to turn away from anyone who appears to be seeking to tell you what to do with your money. But that doesn't mean you shouldn’t use services like Fundrise Reviews to discover how easy investing can be. With this kind of service, you will find getting started in investments much easier and simpler, and it might even mean that you get more out of them in the long run.

Building A Portfolio Takes Time

No matter who you are or what skills you have, building a portfolio is always going to take some time. It is wise to bear this in mind from the start so that you don't start the process with any unrealistic expectations which could only end up hampering you. If you are aware from the off that you will need to invest mostly a lot of patience in your investments, then you won’t be so disappointed when the results are not immediate, and you can instead choose to continue on until you reach what you are looking for. Patience is the key characteristic of many a good investor, and one which you should definitely not overlook if you can help it.

Learning The Art Of Timing

If there is any skill which will really serve to set you apart from others, it is your ability to time well your purchases and sales. Ultimately, investing is all about timing, as you want to make sure that you get hold of those assets at a low price and ultimately sell them on for much more. Learn the art of timing, and you will be able to make the most of your investments, regardless of what actually happens in the marketplace during that time. This takes time and a certain ability to look closely, so make sure that you try to develop that ability within yourself at the same time.

Why You Should Start Investing for your New Born Child Right Away

When you have a baby, your life will completely change. Although it is an exciting time, there are certain things that you must do without any delay. One of the important things you must reconsider is your finance.

A baby brings in several new expenses today and in the future. It is important that you start investing immediately to maximize your returns. When your child is younger, you have a long time to accumulate a good corpus that may be used for his/her higher education. Here are two reasons why investing early for your child is beneficial.

1. Power of compounding

When you invest your money, it earns certain returns. By compounding these returns further, earn additional income. As a result, you are able to accumulate wealth and build a good corpus over the long-term.

2. Lower stress

If you start investments for your child as soon as he/she is born, you will need to invest a lower amount. As your child grows older, you have lesser time to accumulate the amount needed for his/her further studies. Therefore, you will have to invest a higher monthly amount to ensure you have adequate funds. This may result in some financial stress, which is easily avoidable by starting early.

Financial planning is important to ensure you have sufficient funds to take care of your child’s future. If you failed to start planning when your child was born, it is still not too late. Here are different strategies you may use for your child’s secure financial future.

1. Equity-oriented portfolio

If your child is three to four years old, consider investing in equity and related financial products. The returns on equities may not be guaranteed due to market fluctuations and volatility. However, when your child is younger, you may assume a higher risk through equity investing. Historically, equities have delivered the highest returns amongst all asset classes in the long-term. You may also invest in mutual fund equity schemes through Systematic Investment Plans (SIPs). This reduces your risk of direct equity investing while giving you the opportunity to earn higher returns.

2. Balanced portfolio

When your child is older, you may have only five to nine years to save and build a decent corpus for his/her education. Therefore, you have to reduce your risk while achieving balanced growth. Distributing your investments equally among equity and debt may be a suitable option.

You may opt to invest in mutual funds through balanced schemes that invest the fund corpus in debt as well as equity instruments. If you want to further reduce your risks, you may consider monthly income plans (MIPs) offered by asset management companies (AMCs). Such funds limit the equity exposure of the fund corpus to an approximate rate of 15% to 20%. However, the returns on MIPs are lower when compared to other types of mutual funds.

To include debt in your portfolio, you may commence a recurring deposit (RD) with a maturity date around when your child starts college. However, if you are in the highest tax bracket, consider an SIP in short-term debt funds for greater tax efficiency.

3. Debt-oriented portfolio

If your child will begin college within one to four years, you should reduce your investment risk. Therefore, building a debt-focused investment portfolio is recommended. It is advisable that you assume only 10% to 15% equity exposure as your child nears college.

This shift from growth to investment protection is crucial to ensure you do not run the risk of losing your entire savings due to unfavorable market movements. A sudden downturn may significantly reduce the value of your investments or may even completely erode its value. Therefore, discontinuing your equity SIPs and shifting towards short-term debt funds is recommended.

Financial planning is not a one-time procedure. You must regularly update and modify your plan to match your changing life situations. Here are two things you must remember.

1. Regularly monitoring

It is important that you regularly monitor and review the status of your investment portfolio. You must make modifications to your holdings as and when required to ensure you stay on track to achieve your goal.

2. Increase investment amount

Just like your income increases each year, increasing your savings and investments over the years is important. This will go a long way in helping you build wealth over the long-term.

Financial planning is not easy. ARQ,the proprietary investment engine in Angel Wealth’s mobile application simplifies this procedure. It uses over a billion data points to match recommendations to your goals and risk profile. A differentiating factor of this investment engine is that all recommendations are machine-oriented and free from any human bias.

Download the Angel Wealth mobile app today and save for your child’s financial future.

Simple Switch-Ups To Save Your Business Money

Whether your business is going through a tough time or you’re simply looking to cut your expenditure, a cost-cutting exercise could be very beneficial. When people think of cost-cutting, they usually associate it with cutting jobs, but that’s not what this article is about. Here, cost-cutting refers to cutting down your business expenses by making simple switches to save money. Want to know more? Read about the switch-ups you can make to save your business money today.

Slash your utilities

Changing your utility providers should be one of the first things you do to cut costs in your business. It might take a bit negotiating, but it’s possible to cut a lot of money off your annual bill through haggling or changing providers. In addition to cutting the supplier costs, you could also find other ways of lowering your business’ utility bills to reduce those monthly outgoings.

Cut your tech spend

While your business might rely on technology to carry out day to day functions, does it need so much of it? If you take some time to analyze how your business uses technology, you might find that it’s not being used as much as you thought. Find ways you can cut your spend such as switching to a leasing company instead of buying outright and switch your phone contract providers. Even switching to a different tariff could provide you with some savings, so try exploring the different options available to your business.

Switch your external contracts

Whether you work with external marketing agencies, payroll, fulfillment companies or other external contracts, remember to review your agreements regularly to see if you could be getting a better deal elsewhere. You could save money by switching to another supplier, like Red Stag Fulfillment who could provide the same if not better service at a lower rate than your current fulfillment company. Going through a tendering process could be the best way to ensure you make savings while getting quality suppliers competing for the job. Think about your approach to choosing suppliers and whether there’s anything you can do differently to save money.

Move to online systems

There are many business functions that can now be used online to save businesses money, while also providing further security. There are many benefits of cloud computing that can make your workplace more productive as well as save on server costs, while online payroll and accounting software are also useful for your business. Price up the different costs of moving to online systems versus what you pay now to help you get the most bang for your buck.

While there are some active solutions for how you can save money for your business, there are also some proactive work you can do avoid hefty business costs. Protecting yourself against common business financial woes will help you avoid costs that could affect your business’ finances, undoing all of your other savings efforts. Give serious consideration to how your business can save money and start reducing your spend now.

Welcome To The World Of Investment

A warm welcome to the world of investment. If you’re reading this article, it is most likely because you’re a business and you want to get into investing. If so, then you’re in the right place. Investment is such an exciting area to get into, there’s just so many things that you can invest in. But at the same time, it is a really risky gamble. You might already know that not all investments pay off, and you want to be sure that yours does. Money is at stake, so it is often a rather stressful situation to be in. But with the help of this article we’ll make sure you’re making the right investments, and going about them the right way. Read on to find out more!

Types Of Investment

There are so many different types of investment that might appeal to you. One of the most popular is definitely real estate. It is such as exciting area to get into, and for business it could even lead to another little business venture. You’ll most likely have the right amount of money to get into this as well through your own company savings. All you need to do is first talk to an advisor who can help you out a little with how to get into it. It is pretty easy, but you need to talk about when is the right time to invest, what properties are going to make you the most revenue, and how much you should spend. Another area that is really popular is other small businesses. With this one you might not need any outside help deciding which you should invest in. You’ll already have a clear understanding of the business world and how it works.

Professional Help

There are professional people out there who have years of experience dealing with many different investments. These are the people you need to be talking to and getting some knowledge from. Take Chris Pivik, and investment analyst with years of experience. Someone like that is who you need to steer your investment in the right direction. They don’t necessarily have to control the whole investment for you, but if you work side by side with them, there’s no end to the money you could be making. Because at the end of the day, investment is really hard to get right, and it is a gamble. So you want to make sure you’ve got enough professional advice on board before you enter into it.

Money Worries

If you’re having money worries when it comes to investment, well… you’re well within your right to. We’ve already explained that it is risky, so you obviously are going to be worried about whether it’ll pay off. The main thing to do here is make sure you’ve got the money aside to actually waste. You don’t want to be throwing money into it hoping that you’ll get a return. It has to be money you’ve saved it purposely for this, just so you’re not putting yourself out of pocket.

How Does Indexation Impact Tax Charged on Gains from Debt Mutual Funds?

When you invest, you aim to maximize your returns. However, inflation eats into your actual returns. Additionally, when you exit your investments, you need to pay capital gains tax. Fortunately, the government offers a solution for this, which is known as the indexation benefit.

The basic reasoning for indexation benefit is to ensure you pay tax only on your returns after being adjusted for inflation. This allows you to pay 20% capital gains tax after taking advantage of indexation benefit.

Indexation plays a pivotal role in taxation when it comes to debt mutual fund investments. You may wonder what indexation is. In simple terms, it considers the rate of inflation when you calculate your returns on investments. Indexation results in a significant impact on your actual returns earned when you exit your investments in debt funds. Through indexation, your investment price is adjusted for inflation for the purpose of determining your tax liability when you exit. Indexation offers you several benefits because of the inflation adjustment.

Benefit of indexation

The indexed cost of your investment in debt mutual funds is based on the ratio of the inflation index at the time when you exit your investment. Therefore, a higher value means a reduction in your tax liability. During the long-term, the rising inflation adds up to the purchase cost of your debt funds. On a cumulative basis, it may result in the reduction of your taxable returns when you redeem your investment.

In case of smaller returns over a longer period, your entire returns on investments may be eaten up due to rising inflation. It is likely that in such a situation, you may not have to pay any taxes. It is beneficial because if most of your returns are erased due to inflation, paying taxes is not logical. Furthermore, the returns are only notional and not real due to the rising inflation.

Working of indexation

Indexation takes into account the date on which you invested your funds and the rate of inflation since then. When you apply the indexation benefit, your purchase cost increases. As a result, your profits at the time of exit reduce thereby reducing your tax liability.

Indexation and debt funds

Mutual fund investments are liable either to short-term or long-term capital gains tax. When you opt for tax-saving investments, long-term is defined as at least three years. Therefore, when you stay invested for at least three years, you will be liable to pay long-term capital gains tax. The current applicable rate is 20% post-indexation benefit.

For applicability of indexation, the formula is:

Original investment cost X Cost of Inflation Index (CII) at the time of exit/CII at the time of purchase

Let us understand this further with an example.

Assume that you invested INR 20,000 in tax-saving investments in May 2010. Further, assume that you redeemed your investment in June 2013 to earn INR 40,000. Therefore, your long-term capital gains before indexation are INR 20,000. However, your entire returns are not liable to tax because you remained invested for a period exceeding three years. You are allowed to avail of the indexation benefit, which reduces your long-term capital gains tax.

The indexed returns will be (20000*220)/167, which is equal to INR 26347 (CII was 167 in 2010-11and 220 in 2013-14).

Therefore, your taxable profits = 40000 – 26347 = INR 13653, which is a reduction of INR 6347 (20000 – 13653).

Until recently, the indexation base year was 1981, which is now modified to 2001. Therefore, if you invested before April 1, 1981, your profits may be calculated based on 1981 fair value. However, all investments after April 1 2017 will use 2001 as the base year to calculate the fair value.

In addition to earning profits, investments aim to determine how to save tax. One way is to use the indexation benefits on your long-term investments. You may also choose to pay taxes without taking the indexation benefit at a pre-specified tax rate.

You may choose from several mutual fund schemes. However, you may not have the experience or expertise to compare different schemes. In such a situation, you may consider using the ARQ investment engine, the core feature of Angel Wealth’s mobile application.

One major differentiation of ARQ from other available options is that all the recommendations originate through machines without any human bias or intervention. Based on your personal requirements and risk appetite, ARQ offers investment options that only deliver better returns but also help you know how to save tax.

Download the Angel Wealth app today and enjoy smart and quick investment tips.

Doing trust management through binary options

Trading binary options has long become one of the favorite occupations of thousands of traders — having the simplest mode of use, this tool really works and brings impressive profits. Despite this, many traders look for possibilities of passive earnings by means of trust management. In this article, we will explain what trust management is, and how reasonable and realistic using this service in binary options is.

What is capital trust management

Classical capital trust management is an investment tool that allows those who do not know how to trade to earn by investing in the professionals of the trading business. This service has long been practiced in the stock and currency markets, where it has originated. Capital trust management is, in fact, precisely the service that allows absolutely everyone to earn in the financial market. This service is an optimal tool for investors who do not know how to trade or do not want to dive into all the nuances of exchange trading, as well as traders who know how to earn professionally and need additional funds to increase the amount of their profits.

The working principles of the trust management are based on the following scheme:

1. The managing trader with professional skills in earning carries out trade using the investor’s funds and receives commission.

2. An investor wishing to earn without trading himself, transfers a certain amount of funds to the manager for a certain period of time; the latter uses them for trading or managing in the financial market.

The manager and the investor sign a legal contract according to which the transfer of funds and the payment of profit and compensation to the manager is carried out. The investment contract always includes the duties and rights of both parties, the amount of funds, the investment period of managing the investor’s funds, the amount of commission payment.

It is worth noting that in the classical trust management the amount of investor’s funds remains in his own account, to which the manager is granted temporary access. This means the investor can monitor and control the entire process of options trading and block the manager’s access to trade transactions at any time. Another traditional feature of direct trust management is that for the distribution of profits, the investor first needs to withdraw funds from his account and then transfer the percentage (the monetary compensation) to the manager through a payment system.

Where can I use the trust management service

Although a growing number of binary options traders are looking for this investment service, it is only available from stock brokers and investment companies. That is, the classical binary options brokers do not provide this service. This is because direct trust involves large amounts of investment (starting from several thousand dollars) not available to the majority of binary brokers’ clients, especially in companies that offer the most minimal trading conditions.

Why does trust management require large amount of investment? The high investment threshold is due to the fact that in order to be effective, professional trader should only manage a small number of accounts simultaneously; if the amount of funds is small, the percentage of the manage (that is, his earnings) will be scanty.

Thus, those who want to profit on binary options with small investments have only one option — learning how to trade on their own. Moreover, today you can learn binary options trading free of charge on the websites of broker companies that provide comprehensive training programs for novice traders. For example, Binomo broker provides traders with a stock exchange dictionary, interactive tutorial, video lessons, step-by-step instructions and a demo account on a real platform with virtual funds for training.

In addition, the broker’s platform features tools that allow you to apply various strategies of market forecasting: a set of built-in technical indicators and graphical tools, extended list of quotes with various functions. Also, the broker offers an option yield of up to 90% and a profit withdrawal within 24 hours. Thus, a trader can quickly learn to trade independently and earn using an advanced trading terminal.

"You Don't Need An Emergency Fund" - And Other Myths Young Adults Fall For

When you are growing up, you may have it drummed into you by your parents to save as much money as you can so that you have a cushion to land on should things go wrong in life. You need to be able to continue to pay your rent, groceries and utilities and you need to be able to live while you save up. Being smart financially is not always easy, especially when there are so many tempting ways to spend your cash. However, one piece of advice that parents give that is good to stick to, is to have an emergency fund.

Most young adults around you will tell you that you don’t need an emergency fund. It’s one of those financial myths that people get told and the reason it’s a myth, is because EVERYONE needs an emergency fund. If you were to find yourself off work because of an injury that changes your life, you would need to find and fund the best injury lawyer to ensure that you get the right compensation. You’d need an emergency fund to keep the bills paid while you recover, and you need that time to recover. The thing is, there are a lot of financial myths that young adults fall for every day, and bad financial advice is harmful – not helpful. It can really put you on the wrong foot if you are given advice that is simply incorrect, and you could be unwittingly led into financial disaster. So, what are the most common myths young adults are told about finances?

Always Leave A Balance On Your Credit Card

Nope, nope, nope. Most people believe that having a balance that is unused on your credit card can help your credit, but in reality, you should never carry a balance of any amount on your credit card. If you do, you pay interest, which means that the credit card companies are making a wedge off cash off of you. Clear the balance entirely every month and you avoid paying more than you have to.

Applying For A Loan Won’t Hurt Your Credit

In most cases, companies are now offering a soft search for credit applications. This means that when you apply for a loan or credit card, you can get an idea of whether you will be accepted without the footprint left on your credit file. The problem here is that any hard search could decrease your score, so this myth is definitely one that is only half true!

Stock Markets Are No Place For Your Cash

Mostly this myth comes from a lack of understanding of how the stock market works. Most people hear ‘stock market’ and also hear the word ‘crash’. Your cash isn’t safe in a lockbox in your house, but it wouldn’t stop you stashing it there for safekeeping before you go on holiday, would it? In the stock market, your money at least has some hope of keeping up with inflation, which isn’t something that will happen in that lockbox in the bedroom!

Credit Cards Are Evil

Usually this I something said by those who have mismanaged their cards and therefore been burnt by debt collectors and late fees. For people with a massive lack of impulse control, a credit card is likely going to be a very bad idea. But that’s not everyone, and you can’t buy into the myth that credit cards are bad just because your sister’s friend’s mother had a bad experience. As long as you are responsible with it, you can benefit from a credit card.

Stuff = Wealth

You could have purchased many things with loans or credit cards, but rather than looking wealthy, all you’re going to do is show the world how much debt you are in. Don’t forget that the more you purchase on your cards or with borrowed funds, the more you have to pay back. Your material possessions don’t equate to wealth, so don’t be fooled!

Money = Happy

Well, you never see an unhappy person speeding past on a jet ski, but that’s neither here nor there. Money, when managed well, can of course make you happy. But it can also be the cause of stress, depression and upset. The relationship between money and happiness is relative depending on the level of debt you have.

Being smart and not listening to myths is going to help you get by, so take everything you hear with a pinch of salt and make up your own mind.

The Most Overpriced Items That People Regularly Buy

No one likes the feeling of being ripped off. But there are some things that people willingly part with their hard-earned cash for even if they are paying massively over the odds for them. Well, in this article, we are going to shine a light on some of these to encourage you to think twice before making these purchases. With many consumers feeling more cash-strapped than ever before, it is worth asking the question: can you live without these things?

Movie Theatre Popcorn

When the drinks and snacks at the movies cost more than the ticket, you know something is going wrong. Movie theatres will purchase their popcorn in bulk and then hit you with a markup that it often as much as 1275%! And the rip-off doesn’t stop there with soda and bags of candy costing way over the odds. When you think that you could buy a good meal for what you are paying in movie snacks, it may be worth reconsidering your choices.

Greetings Cards

So many events during the year encourage you to buy greetings cards, and just think how much you are spending on those overpriced pieces of paper! $3 is standard and you will be paying even more for branded greetings cards. When you think that you could make a card on your own for just a few cents, getting a little creative seems like the sensible choice every time!

Books

Paying full-price for books seems a little crazy in this day and age, especially with so many second-hand retailers out there offering significant discounts. After all, if you can read the words on the page, there shouldn’t really be too much of a problem! Also, making the switch to reading books electronically can save you significant sums of money and you can even get many titles for free.

Bottled Water

In developed countries, water is one of the most abundant resources available for free from water fountains and taps pretty much anywhere you go. Nevertheless, many consumers are willing to work out a few dollars just to get their hands on it. A big percentage of bottled water comes from municipal taps and may not even undergo additional filtering. Hopefully, this fact alone encourages you to carry a refillable bottle around with you at all times.

Branded Clothing

The fashion industry is a clever one, dictating what is in style and then charging you a huge sum of money to get your hands on it. Next season, the style inevitably changes and you will have to fork out again. Simply waiting until the end of the season or using coupon sites like DontPayFull can save you a significant amount of cash. And avoiding the big brands can really pay, as the markup is often as much as 500 to 1000%.

So, hopefully, this article has encouraged you to think again before making any of these purchases. The little habits that you change all really add up in the long run, helping you to live a more financially secure life.

Do you think you are ready for your retirement?

A few decades ago, retirement planning was quite straightforward. People got well-paying government jobs and stayed on in the same company until retirement. After that, the company’s pension plan supported them financially. But times have changed. It is rare to find someone in the same job for more than a few years. As a result, the onus of retirement planning has fallen directly on the individual. But the fact is, many people do not think about retirement planning until it is too late.

Importance of retirement planning

Imagine the following situation. You are in your early 30s. One day, you bounce into your old college friends. You go out and have a blast. The bill is huge. But that’s not a big problem because you can afford it. You know exactly when your next pay cheque will arrive.

Fast-forward thirty years or so. You are retired. In other words, you don’t have a regular source of income anymore. What would you do in case you have to foot a huge expense all of a sudden? If you have access to a good corpus of money, great! But otherwise, you may be in trouble.

Financial independence during your golden years is the main reason why you should start thinking about retirement planning today.

• Rising expenses

Twenty years ago, a cup of coffee didn’t cost more than a few rupees. Today, the same cup could cost you at least Rs 50 in a good restaurant. If you are wondering how it is possible, the answer is quite simple: inflation. In other words, your daily expenses are only going to rise over the years. So even your daily goods such as rice, sugar, coffee and tea would cost a lot more thirty years later. And if you are not prepared for the rise in expenses, you may be forced to change your regular lifestyle to accommodate these changes.

• Rising cost of medical expenses

The other major problem during retirement is the cost of medical expenses. Increase in health problems during old age is a natural phenomenon.Bad knees, poor eyesight, diabetes and arthritis are a few problems that you commonly find among older people. And if you haven’t planned well for your retirement, a substantial chunk of your savings can be spent on medical expenses.

To make matters worse, healthcare costs are spiralling out of control. Some studies show that hospitalisation costs are increasing by 10% every year.

Therefore, the only way to ensure you enjoy a happy and peaceful retirement is through an efficient long-term investment planning.

Create a retirement plan

The journey of a thousand miles starts with a single step. Same is the case with your retirement plan. And the best time to take that step is today.The first step is to identify how much you would like to save for your retirement. This would be based on your current income level and lifestyle. For instance, if your monthly expenses are Rs 40,000, it can be difficult to drastically cut them down after retirement. You might also want to travel or pursue other hobbies. All this can be expensive. Identify your potential expenses and take inflation into account. When you have a rough estimate, you can start your investment plan to achieve your goals.

How investment helps in securing a healthy retired life

One of the main goals of retirement planning is to create a large corpus for your sunset years. You can do this through long-term investments.There are many retirement and pension plans in the market that you can consider. In addition, investing in equities is one of the best ways to do achieve your long-term goals. This is because they have the potential to offer high returns for the long term.

But if you are hesitant to invest in the stock market, equity mutual funds are ideal for you. They are less risky than directly investing in the stock market. Besides, the long-time horizon ahead of you can balance out any hiccups you may encounter on your investment journey.

It is also bestto consider taking out a long-term health insurance to finance any health problems you may encounter in your retired life.

To sum up

In the end, the important thing is to be financially independent in your retirement years. You shouldn’t depend on your children for financial help. On the other hand, it might be a better idea to leave them something from your own side. You can ensure that a part of your retirement savings contributes towards your family’s future.

Begin 2018 With An Investment Overhaul

There is no better excuse for a reassessment of your investment portfolio than the emergence of a new year. While many friends and family might be making resolutions to shift the extra few pounds put on over the festive period, attend the gym a little more regularly or spend more time traveling the world, you are keen to get your finances in shape. The most common route down which to see your money grow into a worthwhile nest egg is to leave it in the safe and secure environment of the bank. This is the least lucrative yet least risky way of accruing money. However, you’re keen to explore your other options and want to see if there are any better ways to invest your hard earned cash so that it works for you more aggressively.

Property

Bricks and mortar has been the go-to investment for people who are growing a little frustrated with their lack of return at the bank. If you have the funds for a deposit on another home, you should be able to purchase a second property to rent out. Get the calculator out and do some number crunching to ensure that any monthly rent that you achieve will cover your mortgage repayment. If you can find a humble abode that ticks along nicely without you spending too much money on it, you could have stumbled across a sound long-term investment. Over a decade or so, your property will be sure to have increased in value and given you a return much greater than merely having your money sat in your savings account at the bank.

Trading

Whereas stocks, shares and Forex were once the domain of professional investment bankers, hedge funds or those with millions of dollars burning a hole in their pocket, they are now much more accessible to the masses. Head to a site like investormint.com, and you’ll discover a wealth of impartial reviews regarding trading platforms, stock tools and financial decisions.

You could choose to specialize in a certain aspect of trading such as the buying and selling of foreign currencies or you might wish to take a jaunt into the world of cryptocurrencies. This burgeoning market is in its infancy making the market highly volatile but the returns potentially astronomic. As with any ultra high-risk investment, only use the funds that you can afford to lose and never see yourself venturing into debt.

Wine

A little-known avenue down which to pump some of your savings is wine. The wine market is buoyant with investors buying up cases of vintage years of chardonnays, beaujolais and shiraz. Wines like those listed at wine-searcher.com get better with age, and like antiques, they become rarer and more sought after. Investing in wine has outperformed equities 98 percent of the time over a five year period making it a solid and relatively low-risk investment option as long as you’re not looking to make a quick buck.

Make 2018 your most financially prosperous year yet by heeding some of these investment tips and watching your nest egg grow.

10 Financial Services You May Not Know You Need

When it comes to your finances, it’s safe to say that you usually know what you’re doing. Most of us know how much money we earn, and roughly how much our bills come to each month - even if it’s just because we tend to know what we have left to spend each month. Either way, it’s relatively easy to know where you’re at with your money without being a financial expert.

But if we were to take that idea one step further, and say that you’re generally incredible with your cash and you even have systems in place to make sure you do stay on top of things, you may consider yourself to be a bit of a financial pro. So much so that you don’t really need much help with how you handle things. But if that’s how you think, you’re more than likely wrong. Because most of us may require some kind of financial service without really knowing it.

Sometimes, the financial services we need are things that we could implement now just to make life much easier, and sometimes they’re going to be things for the future. And sometimes, they’re even things that could come in handy, despite never really knowing that we may need them. So, if you want to make your financial life even more efficient, here are the financial services you should consider taking on board.

An Accountant

When it comes to accountants, you’ll often find that people are all for them, or they’d rather do without. Even if you tend to fall in the latter camp, it may do you some good to realize that actually, an accountant is going to make your life much easier. When it comes to filing your tax return, it may take you hours and hours to do each year. Whereas hiring an accountant could be quicker and most-cost effective for you, as you can get on with other things as they do it.

A Financial Advisor

Next up, you may also want to consider taking on some financial advice. Again, this isn’t going to be for everybody, but it could prove invaluable to you. You may think that you know what you’re doing with your money, savings, and investments, but you may not be getting the most out of your money. With a skilled financial advisor, you’ll be able to maximize your savings and ensure that you’re getting the best return.

An Assistant

If you’re self-employed, you may also want to think about taking on an assistant. Because it doesn’t make a lot of sense for you to be spending all of your time working on your financials when you have other work to be doing. So, it will often pay for you to hire an assistant to handle, chase, track, and manage your finances for you, freeing you up to get on with your work.

Specialist Finance

Lots of people will require different kinds of finances in life, you’ve probably had a loan or mortgage in the past. But what about specialist finance? From working with a bail bond company to a business investor, you may not know it now, but they could be essential for your future. Because you may not always have access to the money you need for specific ventures.

Realtor

Then, there’s also a realtor to think about. And before you say that technically they’re not a financial service, they are there to help you sell your house and they want to help you make as much money as possible. There are many benefits of working with a real estate agent, but their expertise is always one of them. Not only will they help to maximize your properties worth, but they can also manage any rental property you own which can make it more efficient for you.

Insurance Broker

Next, there’s also an insurance broker. This is going to be a particular service you should take advantage of if you have lots of different insurance needs. From health to home to business to car, and more, you may find that having an insurance broker to handle the policies for you means that you can get them cheaper overall.

Specialist Dealer

Again, we have another service here that isn’t quite a financial service as such, but it’s there to make you money - so we’re going with it. And it’s the service of a specialist dealer. Should you be interested in collecting things like art or jewelry, you may wish to sell certain pieces at some stage, and this is where the specialist will come in. As they will have the expertise and connections that will allow you to get the most money for your sale.

International Bank Account

From here, it’s the on to the idea of your international financial affairs. Because if you work overseas, or have some international interests, then you may find that you won’t be getting the most out of your money by constantly transferring between currencies. So, you may want to work with an international bank for this exact reason. With an international account, you won’t have to keep losing funds when exchange rates are poor.

Cryptocurrency Advisor

With talk of international transactions, it then leads us nicely to the idea of cryptocurrency - which is taking the world by storm. It’s proving essential for international transfers due to the lack of fees. But, if you want to get involved with cryptocurrency, and you have no idea what you’re doing, or you just don’t have the time, you may want to consider working with a cryptocurrency advisor.

Financial Software

Finally, you may also want to consider taking up the use of financial software. Staying on track with your finances is only easy if you’re organized and you stick at it. But we don’t always have the time to do this ourselves. And while you may not want to hire someone as point three suggested, you may choose to work with a software service instead. This could streamline your financial life and make it so much easier to manage.

Don't Get Ripped Off When You Start Your Business

Starting a business is hard work. It will swallow up all of your time and cost you a few hours you didn’t know you had. This means you’re tired but excited. And you’re vulnerable to get ripped off. Making bad decisions at this early point could lead to disaster and failure before you ever get going. Here are just a few ways you can lose your cash and reap nothing from your new company:

Going in too big too soon

Sure, we all want to make a great impression. But if you’re not comfortable with being the little guy, all shiny and new, you might be about to make a big mistake. Pretending to be bigger than you are could be expensive. You might choose to take on formal premises before you’ve seen your first sale. Perhaps you’re registering as a formal company structure before you have the cash available to pay your accountant each year?

Spending money before you’ve made money could be harmful to your financial health. Start as you mean to go on. Test the waters with an honest approach. You might be charging less, but you have fewer overheads at this early stage. And no, you don’t have a business if you don’t have a customer. Avoid the financial woes of legal obligations when you don’t yet need to get that involved.

Hiring staff is an enormous responsibility. These people depend on you to be able to put bread on their tables. Don’t go giving false impressions that jobs are secure and financially covered for a year if they’re not. Be honest and tell them if it’s commission only. Let them make an informed decision. They might walk away, or they might work their backsides off to help you take your company to success.

Tech troubles

Lots of companies have tech teething troubles in the beginning. You’re not sure how much you should spend up front to give a good impression but protect each transaction. You can’t afford to let fraud cost you. You might need to invest in state of the art identity verification services if your business requires it. Smaller value goods and services should also be protected. Use reputable paying services, and take secure website options if payments come in this way.

As for maintaining your website, you don’t have to spend a fortune here. A good hosting service should offer near 100% uptime. And first year hosting is often offered at a hugely discounted rate. If you’re not really sure what you’re doing, then choose a WordPress option. This is as simple to figure out as it gets. Pick a template, add the plugins you need for marketing and shopping cart facilities. Then start posting your content and pages. You can invest in a professional upgrade later when the money starts coming in.

Secure data is essential. After all, you’re handling customers’ personal details like their name, address, phone numbers and credit card details. If you prefer to store this offsite in the cloud, make sure you have a high-security service provider. This might cost a little more, but you will be offered certificates to post on your website that will enhance customer confidence. Essential for the sale!

Other Essential Services

If you’re not sticking it out as a home business right now, make sure you’re not ripped off by service providers in your new offices. Cleaning services, telephone and internet providers, and even security services are essential. The trouble is, you might be paying for more than you need at a price higher than is necessary. Always shop around, and don’t be afraid to negotiate. Energy bills, waste services, and window cleaning will all be added to your basic rent. Can you afford to do this right now?

As soon as you’re in formal business premises, the overheads for your company will shoot up. You need to decide where your money is best spent, and what you can live without for a while. The higher the overheads, the higher the price you need to charge your customers or clients. Are you at that place yet, or do you need more proven experience and client history?

It’s not easy to stay on top of the cost of running your business. This is why so many entrepreneurs get the clients before formalizing their business structure. If you’re working with business clients, you might be credit checked, and a formally registered company might be essential. Of course, virtual offices and assistants might be able to help you here. Where do you need to spend to stay safe and viable when you start up?

Money-Management Tips For Rainy Day Emergencies

Are you financially prepared for an emergency? You need to be, as disaster can strike at any time. You may lose your job. Your car might unexpectedly fail. You may suddenly need medical treatment, at a hospital or at the hands of a dentist. Sorry to be the bearer of bad news, but you can never predict a disaster, though you can plan for it, to reduce future financial woes. So, to help you when those difficult times arise, here are some of the things you can do to prepare for a financial emergency.

Keep an emergency fund

Putting your savings into a jar isn’t going to help you. The temptation to put your hand in for non-emergency situations, such as buying a takeaway, may be too strong. You need to put money somewhere you can’t touch it, such as a savings account at your local bank. This way, when you have a genuine emergency, you will have reserves at hand, that may also have built up a little bit of interest to boot. Shop around on your local high street, and find the best deal the local banks have to offer.

Get insured

While you will be keen to save money, insurance is something you shouldn't skimp out on. We recommend you look at the offers found at Health Insurance Innovations to help you pay for your medical care. Life insurance is also vital, in the sad event of the passing of the main breadwinner in your home. Homeowner’s insurance will help should you get burgled or face a threat from a natural disaster. Car insurance is a legal requirement, but there may be optional extras, such as ‘collision insurance’ which will protect you from costly repairs. You may not think you need insurance at all, but you will only pay out more money when disaster happens if you don’t have it in place.

Find a financial planner

To help you get a better handle on your finances, work with a financial planner, who will advise you on the best way to manage your money. This not only includes ways to budget and save money, but a decent advisor will also give you guidance on where to invest your money, and how to reduce your taxes. They can help you reach short and long-term goals, such as planning for retirement or going back to school. Like insurance, hiring a financial planner is one expense that can ultimately save you money, rather than losing it into a monetary black hole.

Cut living costs

The cost of living is high, and there is so much to pay for before we even get to save money or reward ourselves with the occasional treat. However, you don’t need to spend a fortune on your utility bills, when you can use a price comparison service to find a better deal. A few simple habits in your home will also reduce the amount of energy you use. Setting a budget each month will also help, letting you keep track of what you are spending, and where you can cut back. The more money you save each month, the more you have to put away for those rainy day emergencies.

Finally

Follow our advice, and when a crisis hits, you should have money to fall back on. Don’t put off making changes to another day. Disaster may strike tomorrow, so do what you can today to better manage your money. You will thank us for it later.