Crucial Steps in Financial Planning

In our lives, financial planning is crucial. However, there are those who cannot seem to get started because they do not know how. If you are to change your fate, these are some of the steps that you must be accustomed to from now on.

The Key to Effective Financial Planning

Prepare and Know your Personal Financial Situation. This may differ from one individual to another. However, it may be connected to your investments, insurance policies like health, life, long-term care, liability, and property, will or trust, retirement benefits, powers of attorney, estate planning information and other kinds of financial information or documents that you may need eventually.

It would always help that you put together most of your personal financial statements. Do this most especially if you use yours for a business. Among the important records included are income statement, personal balance sheet, and other relevant statements that you can find useful.

The statements should also feature your assets and liabilities and income and expenses. In most cases, it will be okay to combine all these. This is the usual way husbands and wives do it. Other times, they may have separate income statements too, and as well as balance sheets that would put together each person in their family. Do all these professionally.

Focus on your goals and objectives. This part will somehow demand reflection. However, this is an integral foundation of financial planning that must not be ignored, nor taken for granted. If you must, take your time in completing this. When you do so, everything falls down to place and it does much better. Just stay true to what you can do and what needs improvement. This should be effective.

Make a comparison. This means that you might have to compare your present scenario, to other alternative ways of handling your financial plans. If you must, relate them to your goals and objectives. You can get advice and information from a loan advisor for example for a more professional guidance. These experts are going to guide you in making decisions. Once you are determined to change your status quo, they will also be there to be the instrument in doing so.

Improve your plan and put it into place. Your plan is integral. Stick to yours. Once you are done putting in together facts from your current situation, then the situation of your potential future, that would do the trick for sure. Always consider your goals and objectives. If there are alternative ways to handle your case, that must be okay too. Afterward, lay down all your plans. They must be flexible at all costs. As you do so, you build a map that leads you to your future.

Revise your plan regularly. Nothing is absolute. There may come a point when you have to revise your plan from time to time. As that happens, be prepared because circumstances change. Do not be disappointed. Be versatile enough to embrace changing times.

As you put these five steps into play, it would be easier to improve your finances. Please do so!

The Common Types of Money Problems You Must be Aware of

Money can change anyone’s working capacity. It can alter ideas and knowledge necessary in most lives such as electricity, bread, and transport. However, there are those who perceive it as an exchange mechanism rather. It is viewed with emotions. That is the reality of it.

Today, it is just okay to talk about the common money problems most individuals face and experience. It is not new to hear others ask “where did my money go?” As a matter of fact, it is considered as one of the many problems which are seen in most societies. This only manifests one scenario – people who are not capable of controlling their own finances. There are still many other problems. What are they?

The Usual Issues People Face about Money

These are some of the other issues that most individuals face about money. If your aim is to be guided by your financial quest, here are the problems that you should prevent being associated with. It may take mastery but you will surely understand how it has to be:

  • One common problem that people face about money is not worrying nor thinking about it. There are just those who are so entitled. Individuals who believe that they can obtain as much money as they want and require. At one point, money is treated specially. That there is no longer a need to work hard for it. This often leads to individuals not planning, thinking and making crucial decisions in life. It would never work that way.
  • Another complication is for those who always say that they do not know how to handle money. Well, the truth is that – this should not be an excused. Not in any way. The way it has to be utilized should be made clear for whatever it is worth. Meaning, you must strategize. How should you earn? How should you keep that earning? All of these are essential questions that have to be answered. To escape from responsibilities is the typical resort here. Yet, this is not the path to a pleasant life.

To conclude – all of us have a way to grow and develop in life individually. It can be both in monetary and personal terms and aspects. These two sides have always been associated with one another. In order to achieve success, there is a need to develop a good number of areas in life which concern personal, money and family life.

You will be surprised to discover that financial management starts with the way we perceive money. Never be afraid to adjust your attitude about money. At the end of the day, your financial situation will lead to the way your mind works and yes, it has always been powerful. It has the ability to control everything that matters in your life, whether you let it or not. The visualize exercise is also too important to miss. Do not fail to concentrate on mental and mind images about the crucial goals you have in life. This is too vital!

What Can Financial Planning Do In Your Life?

There is a common notion that planning is “good” for life. Planning is considered to be a tool to succeed in a business. But then, most people still fail to prepare especially in their personal environment. This really occurs. What is even bothering is that this also happens in handling our finances.

In the experience of many, individuals have neither the skills and time to plan their finances personally. Even if this is the case though, not everyone is open to the possibility of spending money to hire a professional financial planner. There are even those who just have the confidence to say that they may maintain their fortunes without the intervention of anyone.

Needless to say, financial life planning is integral to life. There are approaches that may be carried out in order to succeed in this. These would highlight the outcomes.

Now, the big question is – should you plan or not?

Working on your finances for the future

Planning leads to success. This works in different aspects of life. For instance, for those people who make sales, to have an excellent manager who will plan the pitch, target market, and call strategy may work. If these are present, it would not be hard to engage to customers for sure. It will be more effective.

Why should you develop a plan for your money and life then? There are four simple reasons:

  • You get to develop a framework which is practical in running your household finances.
  • You get to attain profound objectives and goals as fast as you can.
  • You get to ensure security and stability in finances on a long-term basis.
  • You get to deal with the setbacks of life.

It would just be right to look at these:

Financial Framework

There are individuals out there who do not have a financial framework or even system. In terms of expenses, there is no tight set-up followed. It would just be right to set financial statements including income, assets, liabilities, estate, and expenditure. This is a chance to see a projection of your finances in the future.

Set goals.

Life is all about the identification of clear objectives so that you can have direction. When you do, you get to come up with a sound financial decision. This means that once you are asked to comment about investment, do not close the doors for it. Be wise in managing your money.

Obtain long-term security.

Please consider these – compound interest, asset allocation, and savings. Saving means that you can to reduce spending. You hijack immediate goals because they are vital to financial life planning. They can help you resolve conflicts be it short and long term. Planning is about being prepared in the future. Hence, be secured.

Managing the unexpected.

There are instances when you will stumble upon unexpected circumstances in life. This may also occur in your finances. It may be the breakdown of your car or a death in the family. If any of these happen, are you prepared? Set contingency plans. Think about insurance!

How Crucial is Financial Planning?

For the past couple of years, the terms personal finance, financial planning, and retirement planning and investment management have all emerged. They created a fuss indeed. Magazines, blogs, newspapers and as well as television channels feature them. This is one of the reasons why the importance of it has been debated for so many times now. Now, the big question is – what can financial planning do for you? Why is it vital as well?

Knowing Financial Planning

These are the things that you must know about financial planning. Please consider these:

  • Financial Planning (FP) is considered to be a process directed to meeting your goals. This is done with the use of proper management for all of your finances.
  • The process of FP may assist you to answer questions including where you are today, where you see yourself in the future, what is the content of your personal balance sheet, what are the finances connected to your aims, among others.
  • The method typically involves the gathering of relevant financial information. It is also anchored around setting life goals. Among the data which may be seen are buying a home, children education and purchasing a car. The idea is to always examine the present financial status and then come up with a plan or strategy which may direct you to your goals. This must be about your future plans and your current situation too.
  • To develop a financial plan would ask for consideration of related factors. It may cover the current financial status of the client, financial goals, investment instruments, outstanding loans, retirement corpus, insurance requirement, risk profile, inflation and tax liability too.
  • For sure, FP would give you an idea of how your financial future is organized. It will serve as a plan which you may not have seen. When you organize your finances, you empower yourself to be independent when it comes to handling all the unexpected events in your life. Basically, the idea is to earn a successful personal financial planning. This is ideal for anyone who wants to manage their financial difficulties so that they can accumulate wealth as well. These are essential.

The Importance

Below are the reasons why it is important to have an effective financial planning. Take note of them:

  • When you employ financial planning, you are helped to increase your cash flow. The same is also true when it comes to monitoring the pattern of your spending. The cash flow may then increase as you undertake certain measures including prudent spending, tax planning and cautious budgeting.
  • There must be a financial plan or estimate when it comes to considering the expenditure and income of the person. This may assist in the selection of the best investment policy. This can enable an individual to reach goals.
  • Financial planning is also the answer towards the gaining of understanding most especially about the financial position you are in. There are times when adjustments may also become a thing here. This is a way so that you attain financial prosperity in the end.

What Kind of Mortgage Loan Should You Consider?

Most homeowners and buyers have to decide which kind of mortgage loan will work for them. Once this is done, the next step is to ensure that an application form is obtained. This may be through a Uniform Residential Loan Application. While there are many individuals out there who would want to make it appear that taking a loan is easy and simple, this process can be painstaking too.

If you are a first timer, it is vital that you become well-versed with the types of loan which are now available for everyone. What are they?

The Loans Available

These are the loans you might want to look upon if you are not yet sure about which one actually works best for you:

Conforming or Conventional Mortgage

The most usual type of mortgage is a loan. This may feature a fixed rate mortgage loan which is pursued by different loan programs out there. Once you have taken a conforming mortgage loan, there is a chance for you to stumble upon a lender who does not conform. When it comes to conforming mortgage loans, it will not matter whether the mortgage loan is adjustable or not.

As for conventional mortgage loans, there are several lives that have to be looked at. The most typical life or term is around 30 years. One of the benefits of a home mortgage loan is that it may come with a lower monthly payment. This may be available for FHA, Conventional, VA Loans, and Jumbo. If you want it lesser, and then you must stick to a 30-year loan. This is the typical answer to this.

Refinance Mortgage

This kind of loan is popular for the reason that it may help in increasing a monthly disposable income. Importantly, you must learn how to refinance when you are shopping for lower interest rates for a mortgage. The loan process in refinancing a mortgage loan can be faster and easier. This is true most especially if it is your first time buying a home.

Closing points and costs are usually collected each and every time there is a closing in a mortgage loan. When this is the case, it will never be a good idea for refinance to occur. It is just important to be regularly informed on the interest rates.

Reverse Mortgage Loan

This works for individuals who are already 62 years old or older and are already an owner of a mortgage. This is usually based on the equity of the home. This kind will normally provide a monthly income. However, the equity ownership is somehow reduced in here. This is dubbed to be an attractive loan product that so many people actually consider the use of it. It is not surprising why.

When it comes to the aforementioned, do not fail to look at the rate of the mortgage lock-in. This may be discussed with you as you shop for the best option so you must give it your full attention. Such is an important consideration. Think it through!

Why Should You Use Licensed Money Lenders for Investments in Real Estate?

The aim of licensed money lenders is in parallel to that of most investors out there. If you are one of the borrowers, there are reasons why you should think about hiring a private money lender in investing properties. Here are some of them:

Reasons Why You Have to Work with Private Money Lenders

  • Most private lenders working for real estate offer competitive interest rates. This happens because the loan on an investment property is usually secured through the Deed of Trust – this is a record which is signed before the procedure. The private lenders have the chance to offer interest rates which are competitive, and are directed towards the open market. As an addition, there are private lenders who look for investment properties. They are also going to bestow rates on a tenfold of properties without having to use a cash flow from traditional banks. The latter is popular for a more restrict lending.
  • The repayment of loans is done with a loan servicing company. Ever since, money lenders are fully insured that they only work with licensed loan servicing companies. This is why your monthly repayments are bound for institutions. They are not solely for individuals.
  • Private loans are rarely resold, and packaged. In order for a real estate to look at you, and the property you offer, an investment decision has to be made. Once they have learned that working with you is a good risk, and then they are going to settle for sure. This will enable you to measure the confidence that you have, and is still pursuing for the business. The same partners that you have are also necessary for the life of the loan.
  • Private loans are easier, more flexible, and faster to set-up, as compared to other loan options out there. There are private lenders who utilize the same investing principles as you do. This means that they are capable of making a quick decision. As this is the case, they will ensure that you do not go through a lengthy process which is the usual practice of most traditional banks out there.
  • The FICO score you have is not very much given weight in private lending. There are private lenders out there who do not rely on them so much. Instead, they will use their experience in investing to know if you, and your property will not lead the company into trouble. Once all the risks have been reviewed, and then the factors are determined.
  • The coverage ratio of the debt service provided by the private lender is not that strict. This occurs because the private lenders will not require you to go through the underwriting process. This is far from traditional loan servicing arrangements. They are more flexible in nature. They also look at other elements that may influence the repayment of the loan.
  • Shorter terms are normally offered. They will allow you to then secure a property. You can also avoid penalties in repayment for this.

How To Choose A Credible Licensed Moneylender In Singapore

There are so many stories concerning loan shark harassing borrowers and moneylenders in Singapore. Some loan sharks even present themselves as licensed moneylenders to potential borrowers. Even then, it is important for individuals to seek for reliable licensed moneylenders at Loan Advisor.

Potential borrowers in Singapore need to ensure they do not fall prey into one of the loan shark traps. There are actually some simple ways for you to ensure you are getting a loan from a credible and accredited lender.

Here are some important pointers that will guide you so as to ensure you are borrowing safely.

Loan Application Process

Reliable and accredited moneylender will have a simple process when processing loan applications. According to the law, a moneylender needs to make clear the terms and jargon used for a loan. This needs to be clear to you, the borrower and easy to understand.

You also need to be extremely careful concerning certain mistrustful behavior as well. This may include:

  • The use of offensive language
  • Not being issued with a copy of your loan contract
  • Being asked to sign incomplete loan agreement or a blank page
  • Being asked to present SingPass ID and your password
  • Holding of any personal papers (including work permit, driver’s license, and NRIC card)
  • Being offered a loan without any checks being done, such as over SMS, approving online, over the phone, or email

You need to note that a Credit Bureau (MLCB) for Moneylenders exists. This bureau keeps information on borrowers’ loans and their repayments record with the licensed moneylenders. This is intended to assist moneylenders to assess a borrower’s creditworthiness. You can also request a copy of your credit record from them as well.

Confirm Their License

Singapore has by now 170 certified moneylenders and each is registered with the Law Ministry. Do not accept to take out cash loans from any moneylender who is not on this list.

Loan Limits

There are set limits as to how much ready cash loan a licensed moneylender can offer to a potential borrower. For unsecured loans- those without security- you can take:-

  • Equivalent of $3,000 when your yearly pay is below $20,000,
  • Equivalent of 2 month’s pay if your yearly wages is above $20,000 but below $30,000,
  • Equivalent of 4 months’ pay when your yearly wages is below or over $30,000 but less than $120,000;
  • Any loan amount, when your yearly pay is $120,000 and above.

When you realize that the moneylender you are dealing with is ready to offer you a loan above the authorized guideline. then just know something isn’t right. Do not take out a loan from such a lender.

Interest Rates

Licensed moneylenders are also expected to follow the interest rates limits. This is in addition to the set loan limits. Effective 1 October 2015, moneylenders are to charge a maximum of 4% a month in interest rates. When a borrower fails to pay their loan installments in time, the moneylender is permitted to charge a fee. This late interest fee is charged monthly for every month the repayment is made late. And it is capped at 4% a month.

The late interest amount only applies to the loan amount that a borrower has not yet repaid. For example, if you took a loan of $5,000 and you have already paid $3,000 in good time, the licensed moneylender will only charge the late interest fee on the outstanding $2,000.

Other fees that licensed moneylenders are can charge are given below:

  • A fee not more than $60 for every month a borrower makes late repayment;
  • A fee not more than 10% of the principal amount granted; and
  • Court ordered legal costs for the recovery of the loan and successful claim for the moneylender.

Statement of Accounts

Once you have received your loan, it is advisable to ensure that the licensed moneylender delivers the correct amount you’ve borrowed. Bear in mind that in having a loan agreement shows that both the moneylender and you are bound by the said contract. Therefore, they need to follow its terms and deliver what was promised too.

When it’s time for you to reimburse the loan, you have to ensure that the accredited moneylender gives you a receipt. The receipt should have the correct date, show the correct cash amount that you have paid, your name, a signature and the moneylender’s stamp. You also need to get a semi-annual statement of account.  Of importance is that you retain all these documents and statements as proof of all the payments you will have made.

When you encounter any mistrustful behavior or when a moneylender does not adhere to the stipulated guidelines set by the Ministry of Law. You need to get in touch with the Registry on 1800-2255-529 or you can email them at OneMinLaw@mlaw.gov.sg.  You can be guaranteed that the Singaporean registry will not reveal your identity. This they can only do without your consent. Nonetheless, they will require that you go to an interview session. It is a good idea to attend as you then collect the relevant information. This will also facilitate the carrying out of a thorough investigation.

It is not advisable for you to take out loans from unlicensed lenders. This will be risking you and your kins lives.  And in specific, consider their loan shark methods of debt collection.

5 Things to Consider While Selecting a Financial Planner

Unlike somebody calling himself a CPA or a doctor, practically anybody can call himself a “financial organizer” or a “financial consultant” despite their instructional background and expert experience. Additionally, not all of them are objective in their recommendations and not all them always act in their customers’ benefits.

To guarantee your financial organizer is well-qualified in personal financial resources and objective in his guidance, think about the following 5 things:

  1. Preparation Credentials: CFP and PFS qualifications are granted to just those people who have fulfilled the accreditation requirements of education and experience in preparing for personal financial resources. In addition, they need to pass the accreditation assessments and concur follow the practice requirements and continuing education requirements.
  2. Topic Expertise: Financial organizers are preparing experts, not always topic specialists. For instance, a financial organizer will be knowledgeable in tax analysis and preparation, but unlike a CPA or an IRS Enrolled Agent, he may not always be a topic specialist when it concerns tax guidelines Similarly, a he might be competent in chalking out a financial investment plan, but unlike a Chartered Financial Analyst (CFA) he might not be an authority in the topic of financial investments. Deal with a financial organizer who is also a subject professional in those locations of personal finance that are essential in accomplishing your financial objectives.
  3. Customer Specialization: Not all financial coordinators serve all kinds of customers. Most focus on serving just particular kinds of customers with particular profiles. For instance, a personal coordinator might develop his knowledge and personalize his services to serve just those people and households who remain in specific occupations, or a specific phase of life with particular financial objectives and net worth. Ask whether the organizer concentrates on serving just particular kinds of customers with particular profiles to identify whether he is the best suitable for your scenario and financial objectives.
  4. Charge structure: The charge structure mostly identifies whose interests he serves best – his customer’s or his own. A Fee-Only expert charges just charges for their guidance whereas a Fee-Based expert not just charges costs but also makes commissions, recommendation charges and other financial rewards on the items and options they suggest for you. Subsequently, the suggestions from a fee-only one is most likely to be objective and in your benefits than the recommendations from a fee-based financial organizer. Deal with an expert whose cost structure is conflict-free and lined up to benefit you.
  5. Accessibility: He or she ought to be frequently readily available, mindful, and available to you. Ask the organizer the number of customers he presently serves and the optimum variety of customers he is preparing to serve in the future routinely. This clients-to-planner ratio is among the crucial consider evaluating your organizer’s schedule to you in the future. Also, ask which preparation activities are generally carried out by the organizer and which ones are entrusted to a paracoordinator or other junior employee. Finally, ensure the organizer is quickly available through phone and e-mail throughout typical business hours.

As soon as you have shortlisted a couple of well-qualified and impartial financial organizers in your city, seek advice from the ones who use a FREE preliminary assessment initially. Throughout the preliminary assessment, examine the coordinator’s schedule and other expert characteristics you are looking for in your financial coordinator.

Having a well-qualified and objective financial organizer on your side is incredibly essential in your journey to your financial objectives. When looking for one, think about the coordinator’s expert qualifications, customer expertise, subject knowledge, charge structure, and accessibility to choose the best financial coordinator for your needs.

How to Borrow Money from a Shared Inheritance

A successor might need to wait months as well as years in order to get their inheritance circulations. This is because of the length of the legal procedure included. So, a successor is permitted, by means of cash loan or loans, to get funds in a matter of days. It has no result on the other successors of the estate. A part of the estate is designated by the cash loan company, in exchange for the loan. Here is how you can get a bear down your inheritance.

You need to first identify if you are eligible for an inheritance cash loan or not. Advances are just normally gotten by the successors from probate possessions. Probate possessions are savings account, insurance coverage, real estate, company interests and other properties that were just owned by the decedent. Non-probate properties consist of trust, pension or any accounts that are collectively accepted another person.

You need to very first identify what quantity of money you wish to provide from your shared inheritance. The normal variety of inheritance loans and advances are from $5000 to $250000. Select a quantity of loan that is less than the inheritance you anticipate. The quantity of the loan is topped by some loan providers at a particular portion of your overall anticipated inheritance.

Contact a company that has an expertise in inheritance advances. Do not forget to ask the inheritance company that for an inheritance advances what costs will they charge. The costs differ depending upon business. Charges typically depend upon the quantity of the advance, the intricacy of the estate and the quantity of time up until the estate closes.

– A cash loan needs to be organized by you from the lending institution. Funds can usually be dispersed by the business from advances and loans within a couple of days of business of the deal. If adequate funds are not present to pay the loan, ask the company about its effects. The beneficiary generally does not have personal liability for inadequate estate funds because the beneficiary is designated an interest to the company.

– Return the cash back to the inheritance cash loan company as early as possible. When the estate closes, administrator instantly pays the cash to the inheritance cash loan business as part of the deal. Nevertheless, discount rates and refunds are provided by some business for beneficiaries that repay the loan early.

What Services of the Best Banks You Need to Look for Before You Open a Business Account

Currently, there countless services company owners need to select in order to make their business much better and their endeavors much easier. With these options, company owner can also increase their revenues. These third-party services can also supply you with terrific advantages which can help your company accomplish your objectives. So, in order to achieve financial jobs business need, it is perfect to partner with the very best banks and open a business account.

Undoubtedly, there countless banks that provides trusted services for their customers. Nevertheless, you can differentiate which bank is best if you wish to open a business account by knowing the advantages it can supply. Below are a few of the functions you need to try to find.

Help you enhance your organisations’ financial status

Among the advantages of opening a business account in reputable banks is you can quickly enhance your business’ financial status. This is necessary to attract business to partner or to deal with you. Regrettably, not having enough financial resources can impact your possibilities. By opening a business account, banks can help you achieve the paperwork and financial resources you need which can help enhance your credibility.

Banks that use distinction funding services

The next advantage of opening business accounts is you can use distinction funding services. Undoubtedly, entrepreneur might come across many issues most specifically financial problems. For that reason, entrepreneur needs to find methods to make sure that their financial resources will not be impacted. By dealing with banks, company owners can correctly pick a financial service which can match their company needs.

Enable you to keep your business constant

Another function of opening a business account is you can keep your business constant. For example, paying costs and getting payments are a few of the most typical jobs company owner need to carry out in order to have constant business circulation. Regretfully, these jobs can in some cases be difficult since you need to ensure that your personal and business accounts are separated to assist you investigate your costs effectively.

Deal reliable supply chain options

Finally, opening a business account can also help you get supply chain services. Supply chain services are necessary since these are specifically created to assist you enhance your working capital, lower your expenditures, and have much better exposure and control over receivables. With this, you can boost business performance.