Archive for February 2021

What Will Every Personal Finance Agent tell you About Investing?

Not all of us are born with the talent to manage money properly. Some of us are skilled and talented in other areas, like spending money. This is why we need a personal finance consultant. Someone that will keep track of our spending and give us advice on what we should do and what to avoid.

Spending most of the time earning money and having enough on the bank account to buy the items we want at the moment, gives an illusion that it’s going to be like this forever. It’s not. We need to mind the future and make the right choices today, so we can have enough tomorrow.See here why saving matters.

In this article, we’re sharing five points that every personal finance agent will tell you. This is the advice you’ll get there, and we are telling you this for free. Don’t spend your money there, but learn for yourself and put these things into practice. Read on to know more!

1. Never gamble

A stock market is a place where many investors gain billions of dollars fast, but even more, lose this amount even faster. If you want to make a great investment, it is better done some other places instead of the stock market.

This place is basically gambling, and every experienced and an honest personal advisor will tell you to get out of this place. Unless you’re going with small amounts like up to $100 that means just having fun, it’s best to stay out of it. You don’t want to see your life-saving account cleared.

2. Invest in two things only

Although there are more safe investments, two things are always on top of the list – real estate and gold. Real estate is a safe investment because the prices of the property never drop in value. Just a small makeover of a house bought 20 years ago, and it’s ready to hit the high prices on the market.

Gold investments are even better. You don’t have to do anything, but store it in a safe place. The price you pay today will be much higher over time. Gold never loses value, it only goes up. When it comes to gold, learn more about investing in it on the link.

3. Make sure you have a retirement fund

The retirement fund is a smart move for everyone that has been working hard over the years. There are tons of retirement funds out there. You just need to inspect the options. Some of them are giving more than others, and you need to look for the best. The agent will surely help in this quest if you ask them to.

4. Ignore the trends

Now and then we hear how you should be investing in this or that. Whether that be stocks in a company, new technology, even cryptocurrencies. None of these investments are safe. They might be trending at the moment, but it’s not something that you may call a great idea.

Some of them may skyrocket, like the currencies we mentioned, but they may also plummet in a day. It’s a gamble just like the stock market. If something is trending at the moment, it just means that someone did great marketing. Ignore the trends.

5. Don’t go into debt

Finally, avoid going into debt. Yes, you may have enough at the moment, but that doesn’t mean you should get a loan to buy an island in the Pacific. Make smart moves and wasting money on things you don’t need is not a smart thing to do.

Going into debt means it will take a lot of time until you get out of it. The more in debt you go, the harder it will be to get out of it. Make sure you have a positive balance, keep the life savings in gold, and don’t waste your earnings on paying out interest rates for the banks. Check out what debts is on the link: https://www.investopedia.com/terms/d/debt.asp.

Conclusion

These five points are everything you want to know about investing and managing your money properly. Don’t throw it on stuff you don’t need, avoid trends and gambling, and make sure you do turn the banknotes into valuable long-lasting items.

Importance ofFinancial Advisor and Financial Planner in North Vancouver

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We can all agree that it is challenging to handle our financial plans, budgets, and spending by ourselves, especially if we want to create a solid retirement plan that will allow us to stop working and enjoy the rest of our days.

People still do not know anything about financial advisors because only wealthy individuals and companies can hire them. However, that is an entirely different perspective, especially if you wish to invest in your future.

There are many options if you wish to look for a financial advisor in North Vancouver, and you can go through them before you make up your mind. 

Thinking that you can do everything yourself is the worst course of action, especially if you do not experience trading and investing processes. The main goal is to find a professional withmore significant experience and education to help you allocate your funds.

They will help you conduct a proper job, which will provide you peace of mind. Let us start from the beginning.

What is a Financial Advisor?

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This particular term is not a form of a degree or official title. It is more of a generic name for people that can provide you wide array of financial services. Of course, they need proper education and certification to provide you with the services.

We can differentiate various types of financial advisors, including:

  • CPA (Certified Public Accountant) –You should know that they have to pass a thorough and rigorous exam and training to obtain proper certification. They can help you with business services such as acquisitions and mergers, taxes, accounting, and consulting, among other things. You should check here to learn more about CPAs in general. 
  • PFS (Personal Finance Specialist) – If a certified public accountant passes more exams, he/she can obtain extensive experience and education. Therefore, you can use their services for more comprehensive financial planning and not just accounting services.
  • RIA (Registered Investment Advisor) – This particular type of financial advising means that they will help you manage your assets, especially if you have a high net worth that will allow you to invest in different options. They can also work for commercial banks, endowment funds, hedge funds, mutual funds, and insurance companies with an idea to help others earn more money in the long run.
  • CFP (Certified Financial Planner) – When it comes to planners, they must pass an additional examination and training to obtain this particular certification. Simultaneously, they have to agree to a specific code of ethics and getthe proper experience. In most cases, their expertise includes estate planning, taxes, retirement, and insurance planning.
  • CFA (Chartered Financial Analyst) –You should remember that they need to have at least three years of experience in their particular field and take three exams to achieve proper certifications. In most cases, they tend to focus on mutual funds, banks, and other large institutions. 

As you can see, advisors can have more than one license. For instance, they can be both CFP and CPA depending on numerous factors. Even though it is confusing to follow all abbreviations, it is vital to find someone who has proper experience and training.

If you wish to learn how to become a CPA, you should visit this site: https://www.wikihow.com/Become-a-Certified-Public-Accountant-(CPA) for more information. 

Why Should You Find a Financial Advisor?

Since you understand by now that advisors can help you deal with both personal and commercial finances, the next question you should answer is why you should get one in the first place. 

One of the most common reasons is that you can learn where to invest your money and keep track of a particular investment plan because you do not have enough time to do it yourself or need a professional to help you with the process.

In the additional text, we will explain the common reasons why you should find a financial advisor that will provide you peace of mind.

  1. They Can Maintain Your Investment Plan 

It is vital to save for retirement so that you can enjoy yourself when you reach old age. However, it is challenging to make up for the lost time, especially if you started late. 

Even though answering these questions can seem daunting and challenging, you can rest assured because you will understand each step on the way with a professional advisor.

They can quickly help you keep track of the retirement plan, which will allow you to save ahead much more than you wanted in the first place. 

According to statistics, at least seventy percent of those who decided to find a financial advisor found ways to get back on track regarding retirement planning.

  1. They Can Help You Invest Your Money and Many More

Most people think that advisors are here to help you invest your money in properinvestment funds so that you can get the most out of it. However, that is just one of their responsibilities, while you can consider other things as well, including:

  • Rebalancing Your Investments – Keep in mind that the portfolio tends to feature a wide array of investments, including cash equivalents, bonds, mutual funds, and many more. The main idea is to get 100% of your assets for the money you place inside. For instance, you can relocate half of that in bonds or cash and place the next half in mutual funds. As you get closer to retirement, you may want to change percentages, which will help you protect the overall wealth you kept.
  • Tax Planning – You should know that numerous laws and regulations can apply to your particular financial situations. That is the main reason why you should find a financial advisor who can answer the questions on which investment will require the most significant taxation. They can help you learn which assets will affect your taxes and how much you owe to the day. By checking here, you will learn more about tax planning. 
  • Estate Planning – Building wealth is a crucial task that will help you determine whether you should place your money and what you should do with it. You can talk with an advisor to determine the best course of action so that you can distribute your assets by following specific instructions and not randomly.

FEW THINGS TO WATCH OUT WHILE GOING DEBT-FREE

Going debt-free is very easy nowadays we can use Credit cards. A Credit Card is one of the most widely used financial products today. Nowadays Credit Cards have become an indispensable part of everyone’s life as it has substituted the need for cash because one can pay for almost everything with the swipe of a credit card. But most of us don’t know how they work and that’s why we often fall into traps where we pay heavy interests and never utilize it according to our needs and benefits. Credit Card lets us borrow funds (usually from banks) for a pre-approved limit to pay for our purchases. Through these credit cards like American Express Gold Credit Card, we can use money that is not ours but we will pay later. 

How to use a credit card smartly:

The credit card shows a monthly credit card statement which states all transactions done on our credit card during that month which is called the billing cycle. To pay the credit card bill, we generally get a credit-free period of 20 days from the bill/ statement issue date. If we pay our entire credit card outstanding by the payment due date, we do not incur any interest charges or penalties. But if we failed to pay the amount before the due date, then we will be charged high-interest rates that vary from 36% to 42% annually for the whole 50 days period.

4 Tips to make credit card work for you: 

1. Pay your credit card bills on time:

If we pay our entire credit card bills before the due date, we do not incur any charges. But if we fail then we get penalized and charged heavily. So, only spend on a credit card, what you think you can pay later on time. 

2. Don’t settle for minimum payment:

There is a provision to pay part of our bill if we can’t pay full. To avoid penalties, we must pay our bills on time. But to avoid heavy interest rates, we must also pay the bill in full. don’t pay attention to the minimum dues. 

3. Avoid using your card at an ATM: 

Credit cards also let us withdraw cash from ATMs. But avoid using this facility because ATM withdrawals attract heavy charges. 

4. Avail a loan if Required: 

When we pay bills on time, we will have a good credit history and CIBIL Score. This score helps banks decide whether to approve or disapprove of a loan.

Credit Cards are valuable tools for earning rewards, traveling, handling emergencies, or unplanned expenses. Use the cards smartly and do not get caught in the debt trap. It is the only way to get an interest free loan for a maximum of 50 days. It increases our purchasing power. They are globally accepted, we can move around freely without worrying about currency conversions. So, get your credit card now and use it smartly to avail great benefits from it.