Retirement planning is not in top priority for individuals just starting their career. In fact, some people even in mid-career do not consider it to be a concern. Comparatively lower salaries (for those just starting their jobs) and other recurring and unplanned expenses among popular reasons why individuals defer retirement planning. But by doing so, they are missing out on a simple but vital factor: the power of compounding.
Though it may seem natural to spend money on fulfilling one’s desires, one should understand that they are losing out on the benefits of compounding.
So the simplest answer to the question of when to begin planning for retirement is ‘the earlier, the better.’ Doing so before one settles in on a certain lifestyle creates a discipline which can be hugely rewarding when retirement is knocking on the door.
How Compounding Affects your Retirement
Let’s illustrate this with the following example:
If one was to save Rs 5,000 per month without fail for the next 30 years (but without investing), one would have a corpus of Rs 18 lakhs. But if one would have invested this amount and if it would have earned 5% per annum compounded monthly, the corpus would have stood at Rs 41.6 lakhs which is 2.3 times of the corpus without investment. At the more practical rate of 10%, the corpus would be worth over Rs 1 crore and at a healthy rate of 15%, investing Rs 5,000 a month for three decades would result into nearly Rs 3.5 crores.
It can be seen that the more time one has to invest, the bigger the corpus is. This is due to the power of compounding whose fruits are best enjoyed by investing early.Needless to say that if one can increase the monthly investment as salary increases, one can reap an even bigger reward at the end.
How to plan for retirement?
Investing in equities is a very potent tool to help one build a retirement corpus in the long-term. Since stocks is a volatile asset class and has no guarantee of returns, an investor should start early, even if the size of the investment is small, and invest regularly to ensure that with time, the equity portfolio grows in size. One can invest in a mix of large and mid-caps as well as high growth and mature dividend paying companies. Further, one can take the fund route to equity investing as well.
Investing often is necessary for rupee cost averaging. This strategy required one to invest a fixed amount of money at regular intervals in securities. By doing this, one would get more units of these securities when the prices are low and less units when prices are high. In this way, the cost of investing in these securities is averaged out. This strategy makes investing a disciplined activity and removes the worry of timing the market.This is also the philosophy behind Systematic Investment Plan (SIP) offered by mutual fund companies.
Saving is a necessary evil which initiates the process of creating a retirement corpus. Even with a low starting, one can put away a little amount every month for investing and then increase this as the salary increases.
One way to ensure meeting that the monthly savings and investment target is met consistently is to control expenses. Creating a breakdown of essential and discretionary expenses every month on a spreadsheet can be helpful in controlling expenses.
Keep Debt Slow
Debts in the form of secured (home loans) and unsecured (credit card, personal loans) should be used on a need only basis and not on the basis of what one wants but can’t afford. This is so as the EMI on loans eats into monthly savings. The bigger the loan and the longer its tenure, the higher is the interest component of repayment.
How You Can Make Money From Home
There is no secret to making money online, the only secret is your persistence. Hidden away between the tips on starting a wine club, taking up a photography club or joining the wine revolution, there are smart tips that anyone could use to earn money online without having to quit their day job. We have written lots about the many ways people abroad to help finance their lives.
A good place to start with online jobs is with paid surveys. Surveys pay for your time and allow you to earn a bit of extra cash. The reason you will be able to earn more than what you are actually worth is that a survey company will pay to send you their questionnaire so that you can answer it. The more accurate and detailed your answers the more likely you are to get paid.
There are many survey companies available, you need to choose wisely and carefully as some surveys are paid better than others. For example, you may get paid well if you give an opinion on the health of wine or food. You may get paid just as well if you offer an opinion on which type of music you like.
Another great way to make money online is to write articles. You could write an article and then sell it to an affiliate. If someone likes what they read you will get a commission.
If you are unable to write or if you do not have the time, you could hire someone to write for you. This could be someone who has experience in web content writing or a freelance writer. You could also sell your own articles on an affiliate website such as Clickbank or Commission Junction.
It is easy to make money, it can take some time but it is definitely possible. All you need is determination and discipline to keep at it.
Many people overseas have chosen to live off the grid lifestyle. There are many benefits to living this way and one of them is being able to make money from home.
There are also a lot of opportunities to make money doing research online, there is a constant increase in the amount of knowledge that is available to the public. It is much easier to research and discover new ways of earning money. and you can get started in a short space of time. So, I encourage you to give it a go.
One of the easiest ways to make money online is by becoming a blogger. It really is very easy to become a blogger. Just type ‘blogging’ into Google and then fill in all the details. It is easy and it can even start to look lucrative.
Blogging is a good way to earn money if you have an understanding of the basics. You need to write about something that interests you. This could be about your family life, your interests or even a hobby that you like.
Once you have set up a good website for your blog, the next step is to get visitors to it. One way of doing this is by putting up advertisements. This is just the same as writing articles for other websites.
Some people choose to make money by selling products. You can do this in two ways, through a site such as eBay or through affiliate marketing. You could sell e-books or products related to the niche you are blogging about. The great thing about eBay is that there is always a steady flow of visitors.
These two ways are only two of the many ways to make money online. I recommend you look at all the options and find the ones that work best for you. Once you have found them, you will never stop learning about ways to make money online.
How To Avoid the Risks of Poor Credit
Security Finance is an unsecured debt collecting agency that, via a network of affiliated companies, provides “secure” personal loans to consumers who may otherwise struggle to meet their existing debts. Their loans are generally short-term, and their conditions often vary dramatically from those of traditional short term personal loans. The services they provide can be invaluable to both the consumer and the lender.
Security finance offers a wide variety of loans. These include: home equity loans, revolving credit lines, commercial and business loans, car and motorcycle loans, and other types of unsecured loans. These loans can be used for almost any purpose, and they will be more beneficial to the consumer than those offered by banks and other unsecured lenders.
Secured personal loans offer an excellent alternative to the high rate of interest paid by unsecured loans. The interest rates are often less, the terms are easier to meet, and they are often better suited to meeting a consumer’s unique financial situation. The collateral provided with the loan usually allows security that the loan will be repaid in a reasonable amount of time, with little or no difficulty.
Secured loans require the debtor to place collateral, such as his or her car, home, or other valuable asset, in order to receive the money they have been borrowing, and are therefore considered by the debt collector as an attempt to recover something that has been taken. Debt collectors will not hesitate to call a borrower who does not follow the terms of his or her loan agreement and in some cases will go as far as harassing them, calling and/or sending letters in an attempt to collect on a debt.
When applying for a secured personal loan, many borrowers are worried that the debt will affect their credit score. The fact is that there is virtually no correlation between the amount of credit available and the credit score. However, secured loans will typically have a much lower credit score than unsecured loans. This is because the borrower is putting his or her assets in a bank account where they are likely to be liquidated for payment.
It is important to remember that the loan does not negatively affect the credit history. The only time it can result in damage to a credit report is if it is reported incorrectly. If a borrower were to try to pay off a loan on a credit card that was reported as being “lost”, he or she would then be making the error a second time.
Security finance offers consumers an exceptional opportunity for personal development through the use of online applications, and the ability to make several payments on the same day to avoid late fees and penalties. This service also makes it easy to avoid late fees when paying loans off at the end of the month.
The ability to apply for secured loans online provides a tremendous opportunity for the consumer to improve his or her credit score. Security loans can provide a large number of benefits to people who are in financial difficulty, including: low cost, low rate loans, low credit, and the flexibility of being able to make multiple payments.
If you are considering applying for a secured loan but have never applied online, you should take advantage of the opportunity to make several purchases in a short period of time, rather than waiting until the last minute to apply for an unsecured loan. By using the secured finance website, you can save yourself the time and stress associated with filling out an application and can ensure that your credit report shows your financial progress accurately.
Once you have applied for a secured loan, you should also make sure that you understand the terms and conditions of your loan, including any interest rate that may apply to the loan. Be sure that you understand the term of the loan in full and fully. Do not hesitate to ask any questions that may arise. You should always contact the company directly when you feel that you are not fully clear on a matter regarding a loan.
Secured finance loans are a great way to increase your credit score while avoiding the hassle and expense of filling out and paying off an application by mail. Because the borrower is making a direct deposit of money into an account, the credit report that shows up on credit reports is often inaccurate.
How To Find Free Rates On Money Exchange
Money is a common item that can be bought, traded, exchanged or sold. This usually includes the value of the currency as well as gold and silver. Money is commonly accepted as payment of certain obligations, including taxes, and payment of certain goods and services in a specific country or socioeconomic context.
There are three money systems in the world. The first is the use of coins or other units of currency, which are available in fixed denominations. The second is barter. It involves exchanging items of utility with other items of utility. In the third system, known as fiat money, there is no central authority that decides what the money supply is, and the monetary base is determined by political will.
The most common monetary system is the gold standard, which was used as far back as ancient Greece and Rome. In this system, coins were designed to be redeemable for gold bars. Gold, however, had a relatively high price at the time, and most individuals had no access to it. Barter is much more popular today, and most people live their lives in barter, trading items with one another.
In some nations, the second money system is called paper money. Most countries have national currencies, and each government issues money in the name of their country. This type of money is not backed by anything of physical value. It is not held by the government or bank. It is simply made from paper. Since most countries use this kind of money, it is known as the official “money” of the country.
Electronic cash was introduced in 1970. This system is very similar to barter. Instead of bartering for items, electronic money is created electronically. It is created electronically to represent actual objects that can be used as payment, and then is transferred to the buyer. The process is very similar to barter, except that there are no actual goods to be bartered for. It is considered a virtual currency.
There are many different types of money, and each one has its own characteristics. Money in the U.S. has a backing and is created by the federal reserve. Money in England is backed by the pound sterling, while the European Central Bank in Germany uses the euro. has a currency known as the Deutschmark.
Each form of money has its own advantages and disadvantages. People who use different forms of money have their own reasons for doing so. Many people choose to exchange one form of money for the other, to get the best rate on an item they need or want. Some choose the same form of money for more than one transaction.
Money exchange services offer different services to help people get the best rates on money exchange. They include a variety of methods that can help someone get a better rate. Rates vary depending on the length of time you wish to get money, the size of your order, and the current value of the item you are exchanging. Some of these services can also provide you with a credit card or other form of online payment to transfer your money through.
These services are available almost everywhere. You may call around to various companies for rates, or you can check out the Internet. There are several places on the Web that will give you free quotes, and compare rates among companies. It is important that you understand the rules and regulations that govern the rates you receive from these companies before you agree to any deal.
There are several different online providers. You will often find them listed under the names of a variety of different names, such as Money Exchange, Moneygram and eCash. If you are interested in getting quotes from multiple companies, make sure to ask around for quotes from at least three. so that you have a clear picture of how much the rates will vary and from which company to go with.
Many places will offer you a variety of free quotes if you fill out a form. Others will charge a fee for this service. To get an estimate, you should send out several free quotes. and then make sure to follow up with the companies.
To be able to get the best rates, it is very important that you get as many quotes as possible from different companies on the Internet. There are many sites that you can go to. Some will charge a fee to get these quotes.
Tax administrations around the world were already going digital. The pandemic has only accelerated the trend.
By Emine Constantin, Global Head of Accoutning and Tax at TMF Group. Why do tax administrations choose to go digital?...
Time for financial institutions to Take Back Control of market data costs
By Yann Bloch, Vice President of Product Management at NeoXam Brexit may well be just around the corner, but it is...
An outlook on equities and bonds
By Rupert Thompson, Chief Investment Officer at Kingswood The equity market rally paused last week with global equities little changed...
Optimising tax reclaim through tech: What wealth managers need to know in trying times
By Christophe Lapaire, Head Advanced Tax Services, Swiss Stock Exchange This has been a year of trials: first, a global...
Young adults lean towards ‘on-the-job’ learning as 6 in 10 say pandemic has impacted educational plans
Six in 10 (61%) of 16-25s agree learning ‘on-the-job’ is the best way to get on the jobs ladder in the current environment 59%...
Five things to consider when organising a remote work Christmas party
By Kate Palmer, HR Advice and Consultancy Director at Peninsula Christmas is usually a time of cheer and celebration, and...
Reasons to remote manage in a socially distanced world
By Paul Routledge Country Manager D-Link UK and Ireland As the world continues to adapt in varying degrees to the...
Barclays announces new trade finance platform for corporate clients
Barclays Corporate Banking has today announced that it is working with CGI to implement the CGI Trade360 platform. This new...
An unprecedented Black Friday: How can retailers prepare?
Retailers must invest heavily in their online presence and fight hard to remain competitive as a second lockdown stirs greater...
What’s the current deal with commodities trading?
By Sylvain Thieullent, CEO of Horizon Software The London Metal Exchange (LME) trading ring has been the noisy home of...