Month: August 2022

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Key Investment Tips You Need to Follow

There’s a lack of willingness to invest among the general population in the UK, with only 12% of Brits known to have invested in the stock market as recently as 2018.

This is despite the fact that investing in stocks and shares can deliver higher returns than cash in 90% of cases, which means that we either lack the knowledge to invest or the means to do so on a regular basis.

The failure to invest is probably caused by a combination of these factors, but what steps can be taken to overcome this impasse? Let’s find out!

#1. What Are Your Financial Goals?

In order to invest successfully, one of the most important strategic components is to have a clear and concise financial goal in mind.

Make no mistake; the better your understanding of your financial goals, the easier it is to organise your finances effectively and achieve such objectives within a desired timeframe.

But how do you achieve such clarity? Well, we’d recommend conducting a detailed audit of your current finances and precisely how much you can invest within a given timeframe. This helps you to manage risk while pursuing viable returns, while also ensuring that you don’t overcommit yourself or take on too much leverage.

To help in this respect, you may need to liaise with investment management experts. This way, you can fill
any gaps in knowledge that you may have and leverage financial market expertise to your advantage.

#2. Start Investing Early

As most investment vehicles tend to deliver returns over time as yields are compounded and diversified, it makes sense that you should start investing as soon as possible.

Even on a fundamental level, the earlier you start investing, the more significant profits you can achieve over time. This also enables you to manage risk and pursue incremental gains while minimising the risk of loss.

Of course, what may change is the nature of your portfolio and how it is structured over time.

For example, you may invest in higher risk assets such as stocks and forex early on, in order to leverage higher yields and returns. Then, you can gradually look to consolidate such gains, by incorporating more stable assets into your portfolio like dividend stocks and bonds.

#3. Diversify Your Interests

As the latter point highlights, you can structure your returns and minimise your exposure to risk through the gradual process of diversification.

This can apply to many elements of your portfolio too, from diversifying individual assets within a particular niche to reaching out to new asset classes as your income and level of experience grows.

This also encourages regular investment and higher levels of engagement, as you frequently look to rebalance your portfolio to reflect your outlook and the wider market conditions.

Try to avoid over diversifying your portfolio too. This can dilute your returns considerably over time, although your chosen wealth manager can help in this respect.


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Unique ways to reward your clients

Rewarding your clients is a great way for your business to improve customer retention and brand loyalty, as well as help to contribute to the overall reputation of the business. Rewarding your clients doesn’t have to break the bank – in fact, there are plenty of affordable ways in which you can do this if you are on a budget. However, it can be good to treat clients with a bit of luxury – especially ones who are worth a lot to your business, or if you have a long relationship with them.

 Arrange private transport

If a client is having to travel to come to visit for a meeting, why not arrange some private transportation for them? This could include anything from a private chartered jet to a business class train or private taxi.  There are many benefits from taking a private jet, not only does it treat the clients with a bit of luxury, but the jet can land at airports that are closer to your meeting location compared to commercial
planes – saving time and providing a smoother, more enjoyable journey for your client.

Invite to a special event

Similar to granting clients early access to a new product, inviting customers to a special event can be an excellent method to improve brand loyalty and encourage word-of-mouth promotion of your company. This could include a fundraising event or even an awards celebration at a nearby venue. A special event is a great way to increase awareness of your brand on social media, as many customers and employees may share pictures from the event.

Reward with loyalty programs

Implementing a loyalty scheme is a great way to get customers coming back. Research has found that existing customers averagely spend 67% more than new customers, so making sure that your clients are coming back is essential for the sustainability and long-term success of your business.

Bespoke business and exclusive offers

Making your customers feel appreciated, will help them feel as though you value their business. This could include exclusive seasonal discounts or money off if they spend over a certain amount. Another
great way to provide customers with exclusive offers is to provide discounts on items or services that they regularly invest in from you – this can be personalized with various programs that can aid your business to predict consumer buying habits. Try to make use of these, and see how much your profits
increase!

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3 Great Tips for Building Retirement Savings

Retirement plan

You don’t want to hit retirement age with no savings. Doing that will leave you dependent on your family and government-issued benefits, or worse — it will push you to keep working for much longer than you’d like. You want a comfortable nest egg that you can rely on through all of your golden years. 

These three tips will help you build up your nest egg.

 

1. Make an Emergency Fund

What do emergency funds and retirement funds have to do with one another? Without an emergency fund, it can be tempting to turn to your large pool of retirement savings to remedy an urgent, unplanned expense. But this comes with consequences. 

Withdrawals before you’re 59 ½ typically come with early distribution penalties that will reduce your amount of funds. Your withdrawals will also be counted as taxable income. You will end up with much less than you originally removed to cover the emergency expense, and your nest egg will be a little smaller for your retirement.

You can avoid this tricky situation by making yourself an emergency fund. If you suddenly face an emergency expense, you can dip into your emergency fund to access the necessary savings to cover it. You don’t have to worry about early withdrawal penalties, and you certainly don’t have to worry about how the decision will affect your retirement. That nest egg can remain untouched.

What if you don’t have enough savings? You should still try your best not to touch your retirement fund. If you need to cover an urgent, unplanned expense, try to cover it using your credit card or a personal online loan. 

When searching for an online loan, make sure it’s available in your state of residence. So, if you happen to live in Little Rock, you should look for Arkansas online loans to manage an emergency expense. This simple trick will help you find loans that are available in Arkansas.

 

2. Match 401(k) Contributions

Do you have a 401(k) through your workplace? Then, you should take advantage of 401(k) matching. This is when employers agree to match a portion of your contributions, meaning you can automatically boost your savings. 

Employers will have limits on how much of your contribution they are willing to match — this is sometimes based on your experience at the company. Employees that have been with the company for a shorter amount of time will typically have lower matching contribution rates. Over time, their rates will rise until they become fully vested.

 

3. Open an IRA

You can have a 401(k) and an Individual Retirement Account (IRA) at the same time. An IRA is a tax-advantaged retirement account that you can store additional savings into once you’ve maxed out 401(k) contributions. An IRA has a much smaller contribution limit than your 401(k), so it’s perfect for this secondary savings role. 

One of the biggest benefits of an IRA is that you get to choose from a diverse array of investment options to help your savings grow. You can invest in stocks, bonds, mutual funds, etc. With a 401(k) plan, your investment options will be fairly limited and chosen by your employer.

If your employer doesn’t offer a 401(k), you should definitely open up an IRA as your main retirement account. For a secondary retirement savings account, you can store funds in a high-yield savings account. This is an excellent alternative because your balance will grow with compounding interest and contributions over time.

Start building up your retirement savings now. You’ll be grateful you started saving early when you’re older. 

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3 Do’s And Don’ts Of Financial Planning For Your Business

Most businesses are established primarily to make money. Businesses won’t last if they don’t make a profit. There could be an exception to the rule for non-profit organisations. But every firm needs to generate some income to survive and cover its operating costs.

Therefore, managing finances is crucial to the success of any organisation. A company will likely overlook crucial financial information if it doesn’t effectively account for and manage its income and expenses. For this reason, creating a financial plan for your company is crucial. However, you may need the help of a financial advisor to come up with a sound plan.

The financial plan will direct how you intend to budget, spend, and invest your money and manage assets to achieve a specific goal. That said, below are some of the dos and don’ts when making your financial plan. 

Do’s Of Financial Planning

  1. Set Clear Goals

How does a business measure financial success? Usually, it’s determined by the extent to which it achieves its financial goals. When creating a financial plan, you must first define your short and long-term financial goals. Setting goals gives you something to aim for, and these goals will serve as the foundation for the strategies you devise in your financial plan.

When setting goals, make sure that your objectives are both attainable and realistic. Nothing is wrong with pushing yourself to your limits. However, you don’t want to stretch your finances beyond certain limits.  

  1. Watch Your Credit

When developing a financial plan, keep your credit score in mind. Your credit score can be both a blessing and a curse. You may be able to save money on your car insurance if you have good credit. However, bad credit will inevitably result in higher interest rates. To maintain a good credit score, pay your bills on time.

  1. Create An Emergency Fund

Even if you have an effective financial plan, the truth is that you can’t always plan for everything. Emergencies happen unexpectedly, and sometimes you have no choice but to slide deep into your savings to cover emergency situations. However, having an emergency fund set up can help you to prepare for these unforeseen events.

Don’ts Of Financial Planning

  1. Don’t Delay

It’s best not to delay establishing a financial plan because you risk missing out on opportunities to save money and maximise profits in your business. 

Without a plan, you have no foundation for spending, saving, or budgeting your money. As a result, anything goes. Furthermore, without financial accountability, there’s a good chance that your business won’t last long without experiencing financial difficulties. As a result, you must plan your spending as soon as possible. So, get a financial plan in place sooner rather than later. 

  1. Don’t Forget To Review

A financial plan isn’t just for show. You must review it regularly. You can’t simply write a plan and then forget about it. It’s in your best interest to diligently follow up on it and make any necessary changes or adjustments to achieve specific goals. 

Upon review, if your company is doing well, for example, you may be able to raise your goals or targets as a result. It means you’ll be able to set higher savings goals and spend more on certain things. This necessitates a change in your financial strategy that’s why reviewing is always necessary.

  1. Don’t Forget To Ask For Help

As a business owner, you may find yourself doing everything independently. While you may be very knowledgeable about financial management and how the finances of your business work, keep in mind that you may not know everything. So, it’s best to seek advice or assistance from a professional who can provide an unbiased assessment of how you can manage your company’s finances.

Hiring professional financial planners or advisors may save you money in the long run. Look for someone with years of experience and collaborate to create a solid financial plan.

Conclusion

Every business should have a financial plan. Finances are critical to any business and must be managed appropriately for it to succeed. Every business will likely take a different approach to developing a financial plan. However, it’s best to consult a professional financial planner to ensure a solid plan is in place. Remember that when it comes to money, accuracy matters. As a result, you may require the assistance of an expert to help you make the best decisions.