Zen Finance Advice

• 18Oct

  What Are the Pros and Cons of Annuities?

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  Welcome back!

  Everything, whether it relates to finances or not, has its good side and its bad side, and annuities are no exception. Timing is a crucial factor in deciding whether to buy an annuity, so let’s take it for granted that you are an investor. That means you are nearing retirement age and want to protect your current portfolio while earning an acceptable rate of return.

  guaranteed annuity

  The benefits of owning an annuity are easy to understand and make the product a real possibility for almost everyone at some point in life.

  I feel the PROS are:

  Tax Deferral: Earnings are sheltered from annual taxation just like an IRA. That is not the case with other low risk cash type options, including CDs and money market accounts.

  Safety of Capital: Insurance companies are required to keep a certain level of reserves on hand to ensure your money is safe. Some of the best companies in the industry are stronger than ever today, which makes an investment in those companies a very solid bet. Each state also backs up these deposits with a guaranty fund. For the most part, that coverage is limited to $100,000 but each state is different so it’s best to look in to the laws of your state.

  Liquidity: Annuity contracts have a annual free withdrawal provision giving the account holder access to 10-15% of the account value annually without penalty.

  Your Yield Is Moderate: Historically, annuities yield a conservative rate of return. Think about the alternatives. Today, CDs are posting average yields of 2%(taxable) in comparison to annuities at around 4%(tax deferred). And as the markets return to normal, yields for annuities, like everything else, should increase. In most markets, you’ll find annuities to be a safe, consistent alternative to market fluctuations.

  Maximize Your Income: The Wharton Business School and New York Life worked together to discover the best method for maximizing retirement income. Fixed annuities that allow the owner to receive a constant income for the rest of his or her life, has been proven to be a great way of maximizing retirement funds. Annuities, after owning them for a year, can usually, and perhaps always, be changed into a monthly stipend that will continue as long as you’re alive. Immediate annuities allow you to begin receiving a monthly income right away.

  immediate annuities

  Conversely, the problem with annuities is that agents sell people products they don’t want or need. To avoid this issue, you need to educate yourself to be sure you get accurate advice.

  Here are some negatives of annuities.

  Short Term Money: Annuities are not the right place to put money if you need all of it back in one lump sum within a year or two. You need to limit your annuity funds for those your can commit for at least five years.

  Surrender Schedule: There is no upfront sales charge associated with annuity purchases. But, the investment company will charge you an early withdrawal penalty if you withdraw your cash before the account comes to term. This is a standard practice, and some contracts have surrender schedules in excess of ten years. That will give you less control over your money in the future.

  Brokerage Commissions: an agent stands to gain a commission no matter who you choose to broker your annuity. I mention this as a con since brokers will benefit more from certain products over others. It is critical to find out as much as you can so you can recognize the difference between a bad annuity and a good one. Many agents let the thought of a big paycheck dictate which products you see and which ones you don’t.

  Liquidity Is a Disadvantage: Okay, I can see you getting confused. Didn’t I include liquidity as a Pro? Yes it was. This can work for or against you and it goes along the same lines as the point I made with short term money. How will you use the money? When will you need it? What part of it will you need? Answer those questions and read the remainder of this article to decide how liquidity affects your situation.

  I’ve made it as clear as I possibly can. Before you get going on your research, realize that not everything is black or white. Certain details about your individual financial situation will clear that up and make it very obvious as to whether an annuity is the right choice and which specific product is best.

  For a Free copy of the Annuity Report, please be sure to visit Bryan Anderson at www.AnnuityStraightTalk.com - annuities pros and cons

• 10Oct

  How to Figure Out Annuity Rates

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  For people considering an annuity, the decision process is a daunting task. Interest rates are an essential aspect of ranking annuities. The maze of information available causes a person to lose confidence in the final decision.

  annuities safe

  You should concentrate on a few important interest rate elements that will allow you to ignore the unimportant facts, and help you arrive at a decision more easily. Since variable and equity-indexed annuities float with the stock market, a broad focus on interest rate components is irrelevant. So, we are going to concentrate on Fixed Annuities.

  There are four key interest rate components in an annuity contract. This will assist you in knowing where to maintain your focus.

  Base Guaranteed Rate: This is the contractual minimum rate that the annuity will yield. This rate typically ranges up to 3.5%. However, when discussion CD-type annuities, you will usually find higher rates that are locked in for the duration of your contract.

  - Current Rate : Annually, the insuring company will fix a rate that will be applied to contracts that are in-force. By doing this, annuities will remain competitive throughout the field. Every company will declare rates which are based on the performance of portfolios, projections for future business, and by comparing their rates to the competition. A decent current rate will tell you whether or not the organization is financially sound now and in the future, when compared with other companies.

  Bonus Rate: A lot of agreements insert a bonus rate to entice investors even more. Certain annuities offer excessively high bonuses. You need to think about a few facts of bonus rates. Some of these rates are only credited at contract maturity which adds an additional surrender charge if the annuity is cancelled early. You will probably have to keep your money in an annuity for a greater amount of time to make up for the additional costs to the organization. Usually, these ‘bonus rates’ don’t provide you with any real bonuses in actuality. Make sure you understand all elements of your agreement before accepting a bonus rate.

  Yield to Surrender: This represents the effective rate of return projected throughout the contract time period. It is also the single most important interest rate to consider. An advisor should offer the yield to surrender in a current and guaranteed minimum rate basis. By calculating this amount, you can determine how valid your bonus rate is, objectively.

  tax deferred annuity

  There are still other important factors that you need to address as well as these main components of your interest rate. These include a company’s renewal rate history and bailout rates.

  Renewal Rate: You can learn a lot about an organization’s probable financial returns by reviewing their past renewal rates. Historical rates can be matched to past economic cycles to show how the specific company has performed during various market scenarios. It’s perfectly normal to be concerned with deflation and inflation when you’re thinking about making large investments in anything. This is one of the better ways to compare an annuity’s performance in relation to past interest rate environments.

  Bailout Rate: Some annuities have bailout rates, and some do not. These rates are generally part of annuities of higher quality, and offered by companies which are extremely stable. The bailout rate is usually set just above the base guaranteed rate. This rate will permit the investor to cancel their contract and not suffer a penalty, providing that the interest rate which has been declared falls equal to or below the rate set for bailout. This is attractive to investors because they are able to invest their funds knowing they have a way out without being charged early-surrender penalties.

  This basically sums up the things a person needs to consider when evaluating interest rates in annuity contracts. However, annuity rates are one of a multitude of aspects of annuities you must know about in order to make an informed decision.

  Annuities are extremely versatile financial products that will play an expanding role in the financial planning landscape. Selecting an annuity, though, can be difficult due to the sheer number of products available to investors.

  We’ve given you the framework for formulating an informed choice regarding annuities which can be seen at AnnuityStraightTalk.com. Visit the site for a list of all necessary contract components and the objective analysis needed to make an educated purchase.

  Make an informed decision about annuities. Get the Free Annuity Report at www.AnnuityStraightTalk.com - annuity rates

• 02Oct

  Saving Money By Employing A Financial Planning Consultant

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  As financial instruments become more complex by the day, getting professional advice on finances becomes more and more important. This is where a financial planning consultant comes in. Financial planning consultants are

  helpful in every financial avenue that you can think of from multiplying wealth to planning investments. If the recession has made one thing clear it is that things could change

  rapidly and you do certainly need protection from any possible future financial disasters. A financial planning consultant would make this easy for you and could help find the perfect type of investments that would suit you.Click through here for more information on coin collecting.

  Hiring a good financial planning consultant is a must. Good simply does not mean good at his job but also means trust worthy and reliable. A financial planning consultant who is bad at decision making might lead you to lose a fortune and a dishonest one could land you in trouble with the law or leave you a virtual beggar. So you must be very very careful in choosing a financial planning consultant and it would be best if you take the trouble

  to learn at the very least the basics in finance so that you understand at least if the consultant you hire is leading you on a wild goose chase.

  There are quite a few different investment options that are really very trick without the correct financial planner. They range from such things as agricultural investments to coin collections - all are different and all have unique advantages and disadvantages. Always consider what your advisor is

  telling you and run it by your own common sense test - if it does not stack up - ask questions and keep asking questions until it does.You can obtain more information on coin folder here.

  Any career will bloom if the person has a personal interest in what he pursues. Therefore, make sure that the financial planning consultant you choose is something who’s got passion about what he does. There are thousands maybe even more firms and individuals on internet the claiming to be financial planning consultants, saying that they are capable of producing marvelous results.

  Especially beware of such people and remember that even the best financial planning consultants are hardly likely to be wizards. Remember that you also need to be careful about financial planning consultants who sell products on commission basis. Never give the upper hand to self proclaimed financial planning consultants as they may then try selling products and services you do not really need. You ought to be very careful with financial planning consultants, especially when dealing with long term investments.

  With financial planning becoming more and more important with markets becoming more competitive a

  financial planning consultant could be a career with a lucrative future. You can gain tons of valuable information about coin holder here.

• 27Sep

  Get Competent Accountants Cheshire To Manage Your Company Finances

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  Entrepreneurs, especially the preoccupied ones, must have no less than one accountant to manage bills, taxes, and finances. On the other hand, looking for a qualified accountant is by some means not a simple undertaking. The first thing you have to do is decide whether you really must have one or not. Several sole proprietors and entrepreneurs can deal with such responsibility especially if they have a little expertise on the task. Nevertheless, a few and even those who have adequate experience will realize it is difficult to squeeze in the job in their busy time. If you are one of these persons, you obviously must have someone who can work on your financial management and monitoring. In short, your business requires an accountant.

  Accountants Cheshire perform major functions within the operations and maintenance of a company. More than you as the owner, they can identify whether you are earning or not. They likewise have profound knowledge about how your resources are being used as they closely verify the entire inward and outward flow of capital within your organization. The figures that they will give you is essential in maintaining your company. Actually, one of the explanations why a lot of companies are unsuccessful is due to incorrect accounting and financial management.

  There are important reasons why company owners need an accountant. Most are normally are connected with tax management functions. Tax specifics can be a huge responsibility which your demanding time may not permit you to handle. An accounting expert can aid you by getting the benefit of tax reductions. Definitely, you do not want legal issues with the government due to unsettled taxes and tax preparation is one complex and tiresome chore.

  If you have realized that you need somebody to manage the accounting aspects of your company, then you just need to inquire from a trusted establishment. For more convenience, try looking for firms with web sites so transactions done are just over the web.

  These companies can provide you with excellent professionals for your benefit. For instance, highly trained professionals with remarkable knowledge on tax management are what you need for they can help you in figuring out how to reduce your tax dues, which is a complicated task. Moreover, well drafted management accounts Cheshire, which include cash flow, income statement, and balance sheet, are important reports to be prepared by an experienced professional. These data are essential when creating evaluations.

  Moreover, you can have your payroll Cheshire managed well when you have an employee that handles it. As company owner, your time will now be directed to the general image of your company. The specifics may be left for your assistant to deal with, and this is especially true when you want to develop your company. You can no longer count on yourself to deal with all the details but, of course, you have a very important function to be vigilant.

• 07Sep

  Get Useful Information about financial planning services

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  In our contemporary world of tough economic situation a lot of people are trying to find out of how to get some money fast and without any loans so they did not have any troubles with debts and bed credit history.

  That is why if you want to know how to get money without any loans I can give you couple of suggestion:

  First what you can do is to have your yard sale. It will give you some money fast and you can sell those things form your house or a garage that you don’t use them any more. There are actually a lot of thing which people buy and than they simply don’t use it, that is why you can a yard sale or if you want to sell some more valuable items and get some more money for them you can sell them on eBay or Craigslist.

  However, it has become a little bit harder to sell things on eBay or Craigslist because of all these spammers and also there are a lot of different restriction and a high fee, but if you have verified account fro the eBay or the Craigslist you won’t have any problems with selling things there. So you can sell all kinds of things and get some not bed money for them. Or you can always sell such items as books or old music records to the different stores. And this is also a very good option to do especially when you need to get some fast money, because those kinds of items can bring you some good money, too.

  Or if you don’t want to sell anything and you find your own things too valuable to sell you can always get a second job or find some other activity that can bring you extra money. For example, we al have some skills or talents or some other experience that we can offer to other people as some kind of service. It can be some writing or painting skills or maybe you are a very good photographer or even a singer.

  You can always offer your skills to other people it can be even your friends or neighbors. And it is also a very beneficial activity to do, because people will pay you money for those thins hat you can do the best and that you like to do the most. So think about, because it can be also a very profitable idea.

  So I think these suggestions are going to be valuable for you and will help you to make some extra money fast and easy. And you won’t have a necessity of taking any loans. So it is both a very beneficial and profitable ideas.

  For more tips about financial planning services, please check this financial planning services resource. Your shortcut to financial planning services and useful knowledge.

• 05Sep

  Find Out Ways to Make Cash Using Your Computer

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  If you are like most people, you have been hurt in some way by the current economic downturn. In the past, you could go out and get a second job to help make more money, but with so many people out of work, there just aren’t that many opportunities out there for second jobs.

  The internet has become a source of income for thousands of people to help supplement their normal job or even replace it. There are literally thousands of ways you can make money with your computer and internet connection.

  One way that you can make money that doesn’t require any investment and is easy to get started is to publish articles on established websites and get paid for people visiting your site and clicking on ads. Two sites that allow you to make money this way are Hubpages and Squidoo. What you do is pick a topic you are familiar with, write an article, and publish it on the website. You can write about literally anything from the acai berry to natural remedies for hemorrhoids, but you want to write about something that people will be looking for.

  You probably want to know how you can make money by publishing articles on free sites. The first thing you need to do is write an article about something. You want to find something that people are looking for because you need people to come to your webpage. After you have a good article that people are going to want to read, just post it and wait for the money to start coming. Squidoo pays you based on how many visitors you get. Hubpages actually shows Google Adsense ads that you get paid for so make sure you sign up for an Adsense account and link it to your Hubpages account. Once you lather, rinse, and repeat as they say, you can start building up some decent money. I have seen a single article bring in over $100 a month so if you can get a bunch of these, it can be very lucrative.

  Another way you can make money is to sign up for affiliate programs and send traffic to an affiliate site. For example, if you became an affiliate for Amazon.com, you would send people to a specific product on Amazon and you get paid a commission every time somebody buys a product. There are even programs out there that allow you to market electricity and natural gas. One such company that does this is Ambit Energy.

  When it comes to making money on the internet, you’re really only limited by your creativity. There are a lot of programs out there that will help you get started making money on the internet if you need help getting started. Some of them are very expensive and some of them are very cheap. If you are just starting out, get a cheap one so you can learn the basics. After that you will be better able to make a decision on what is a good program for you.

  

• 01Sep

  free financial planning - The Tips You Must Know About

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  If you want to earn some extra money you can always find easy way of making money right at you home. And this article will help you out with this and can give some very god ideas of how to do it. Do you feel like being short of money in the end of each month? Well if you use these simple tips you won’t feel it anymore.

  So what you should do first is to look around the house and find some things that you don’t use any more or don’t need them and you can sell them to others. For example, very often we go to shopping malls and buy some thing that we don’t even need. And as the result al these things are laying somewhere in the backyard or in the garage and you don’t even remember about them. So find out what things you don’t use and or can sell them to your local sores. Or you can always sell them to your neighbors or friends.

  Another good thing to do is to sell some books, of course if you don’t need them any more. For your information, some books can be really costly and you can sell them for thirty or even for hundred dollars. Most of the people have a lot of such books that they want to get rid of. So you get some good profit if you sell these books using Amazon auction. And they will charge only 10 per cents of commission from you.

  And you can always sell you staff through online retailer like eBay, for example. You can sell all kind of items using it, it can be: musical instruments, antiques, different equipments and car part and a lot of other thins.

  Or maybe you have some devices that you don’t use any more. It can be washing machine or some fridge or maybe you have some furniture that you want to sell. You can sell all these staff by listing them on craigslist.

  And don’t forget to make your own budget and keep it stable all the time. For your information, proper budget managing can also make you some extra money. If you manage you money properly and decrease all your unnecessary expanses you can save p to 100 dollars ach month. Write down how many money you earn and what purchases you make each month. I am sure that you will find a lot of things which you can take away from your budget list. And save this extra money for vocation or your credit bills. So you can always manage you money correctly and find some easy ideas of how to save some additional money around the house.

  Looking for more info about free financial planning, please check this free financial planning resource. Your shortcut to free financial planning and useful knowledge.

• 19Aug

  Georgia Moving Companies: Tips and Cash Making Ideas for Relocation

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  It is a common assumption for most residential owners that relocation means additional expense and a major hassle. It is only understand why most people avoid it like a plague or go through it with abject dread. While we cannot hope to solve all the major woes that come with relocation, we can present wonderful ways to make money or generate cash during a move. This can definitely ease things a bit and eliminate or at least lessen the worry of having to spend on paying full service moving companies.

  Moving experts advise that moving trucks should be booked at the very least six weeks ahead of the scheduled move. Contracting professional moving services at such short notice will mean having to pay extra charges that you would want to avoid at all cost. By giving yourself and your service provider ample time to go over all the fine details of the service, you can ensure better service. And of course, this gives you more time to scout and compare rates and does the necessary background checks.

  Of course, planning should just only include the entire moving process. You have to remember that more expenses await you after the move and when its time to settle down and adjust to your new environment. Your budget should also include post-moving expenses, or else end up stunned in discovering you actually don’t have much left to get your new home and that fresh start up and running. There are hidden costs and charges when moving, so make sure you will take time to find out and discuss this with your service contractor.

  If you are living in an apartment, then it would be good if you leave your pad in pristine condition. This will ensure that you will be able to claim your security deposit in full. This is another simple yet effective way to raise money to help you during your move. You can also consider getting your money back by canceling your cable subscription at least a month early. With the busy schedule and the hectic pace you will be keeping no doubt in preparation for the big move, you will barely have time to watch TV anyway.

  Also you need to assume and anticipate additional fees on top of the moving charges and the agreed upon price for the service. Although, there are some companies that do not impose any additional charges, make sure you ask your provider regarding this matter so you will know what to expect and if there are any extra services that may be needed for the move.

• 09Jul

  Trading Stop – a counter intuitive notion

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  Essentially, providing you can master the counter intuitive notion of the trading stop, you’ll be well on your way to setting yourself apart from many others in that you’ll be able to turn a profit.

  I’m sure you’ve had a few occasions when you’ve “hung in there” a little too long, but you needn’t feel bad because it happens to all traders at some point. Now, we all agree that a small loss is better than a big loss so let’s just remember; every big loss starts off as a small loss. The beauty of a trading stop is, when we’re experiencing a loss, it allows us to nip it in the bud, before that loss escalates into a big loss. The bigger a loss gets, the more difficult it becomes to apply a trade stop.

  Basically, a trading stop is a predetermined exit point. When a specific trade fails to perform has you’d anticipated, a trading stop is the point at which you pull out of the trade. Remember, trading is vulnerable to various trends and we can never be 100% certain as to when a trend will change. For all you know, you may enter into a trade just as the trend is about to change, thus the need for a predefined exit point. In other words, if the price drops below a predetermined limit, you exit.

  The ability to make decisions which counter intuitive is essential if you’re hoping to be a successful trader because it’s generally in out nature to hold on too long when a trade is slipping.

  Richard Harding described a trading stop perfectly when he compared it to a red light saying, “You don’t have to stop, but you’d be a fool not to”.

  When I introduce traders to the concept of a trading stop and traders money management, they frequently ask how much room they should allow for the price to move. Unfortunately, this isn’t something I can answer as it depends largely on the time frame you’re trading.

  Generally speaking, short term traders tend to set their trading stop relatively close to the price while long term traders allow the price a little more room for movement. Remember, the markets are never static so some fluctuations are to be expected. The reason I’m pointing this out is because once you’ve determined what time frame you’re trading, you need to ignore the fluctuations which appear. If you don’t, you could end up closing out unnecessary.

  A trading stop which is set just below the entry price is known as a tight stop and the problem with this is, if it’s set too tight, it could cause you to loose your position within a trade entry, before that trade has even had a chance to recover. On the other hand, a looser trading stop won’t trigger an exit as quickly, but it could of course result in a bigger loss. The advantage however is, by setting your trading stop looser; you allow a trade more time to recover if it’s recently taken a dip.

  As you can see from what’s been said above, tight stops have certain disadvantages. For example, tight stops can have a negative impact on the reliability of your trading system due to you being stopped out all too often. Additionally, your overall transaction costs will increase significantly and for anyone starting out with a small float, the last thing you want is a system which costs you a fortune in brokerage.

  For the most part, this is the primary reason for me always advising my clients to focus on trades with a longer time frame. Longer term trades tend to have much looser stops that short term trades.

• 23Jun

  Trading Fibonacci: Putting This Valuable System To Work. Interesting Points to Consider

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  A lot of traders are using fibonacci retracement and extension numbers to catch big profits in the forex market. So you need to be doing this too!

  The great thing about the forex market is that the more people who enter a trade a certain way, the more likely it is for that trade to occur. When using fibonacci levels to either enter trades or take profits, it is important to remember this. The more clearly defined a trade seems the be, the more likely it will work out the way it appears because other traders will also see this and catch in on it.

  When using fibonacci numbers you must make sure that you place your line on a clear trend of a currency pair. If you just choose any trend, no matter it’s length or importance, then you will be making a big mistake. You must pick trends that are clear and long term, and also ones that you know other traders will pick up on. These trades only work if other traders are looking for the same levels as you.

  Mostly all trading platforms these days have fibonacci trading tools. These tools help the average trader to enter/exit trades using fibonacci numbers with relative ease. Most platforms allow for the trading right from a chart, so you can be checking to see if a currency pair is going to hit a finbonacci number, and then enter into the trade right from the chart.

  As you draw your fibonacci line on your currency pair chart you will notice that there are different levels. These are the different fibonacci levels that you must put into consideration when entering or exiting a trade. If you have entered into a trade then you have some options as to which level you would like to exit at.

  You must be cautious when choosing which level to exit at because some currency pairs will only rise/fall to the first level before reversing, and other may go as far as the last level. The other tricky part to this is that a pair may appear to be beginning a revers, but then will continue with its normal trend toward another fibonacci level. The level that the pair decides to reverse at will usually come from other factors, such as fundamental factors, or other technical indicators on a bigger scale.

  Knowing which level to exit at will come with experience. Trading is ultimately the best way to learn from your mistakes and grow in your trading abilities. This is also the same with entering a trade using a fibonacci level. There are ways to tell how the market is acting at the current moment, but only experience will give you a true feel for where the market is going.

  You can learn more about trading fibonacci by reading articles on the topic and watching videos of trading. One really good article I know is “Trading Fibonacci - How To Trade Fibonacci” You can also learn a lot about forex trading by visiting www.dailyforexinformation.info and viewing there article database.

  Good luck fellow traders!

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