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Holiday Loans – Travel the World!

Holiday Loans – Travel the World!

After days, months and sometimes even years we all need a holiday, a vacation, some quality time off, with family or friends or alone to relax, rejuvenate and revitalize our body mind and soul. Working under the same conditions, day in and day out can always ware us down and decrease our performance levels. Sometimes, the solution is not to work harder and concentrate, the solution is to take some time off and enjoy some quality, if not quantity time to relax and reignite your mind. And how are you to fund this holiday of yours, especially because holidays need lump sum amount of money? The best option to opt for Holiday Loans, rather than canceling on quality time.

These monetary funds are of two main types; secured and unsecured types. The lender provides you with different amount ranges and repayment time periods in each case. In both the cases, you can apply for an extension, sighting valid reasons, which will be given along with an added interest rate.

Both these types of Holiday Loans, secured and unsecured, have their own advantages and disadvantages. In case of secured type, its advantage is that the interest rate charged is lesser than unsecured type. But, its disadvantage is that you are required to mortgage some land holdings with the lender as security. You must make sure that the value of the land must be in accordance with the total amount borrowed. You must make sure to repay your loan within the stipulated time limit; otherwise your land holdings will be ceased. On the other hand, in case of unsecured fund type, its advantage is that you are not required to mortgage any land holdings with the lender as security. As this puts the lender at a risk of losing a high amount of money the interest rate charged is more than secured loan type. You must also prove to the lender that you are capable of repaying your loan by showing that you have an adequately paying job, where you earn enough to repay your loan in time.…

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Index Annuity Crediting Methods

Index Annuity Crediting Methods

An index annuity earns interested based on an external financial index, such as the S&P 500. Interest that is credited to the annuity is based on a formula that is linked to the underlying index. An index annuity also is usually guaranteed to pay a minimum interest rate so that investors do not lose their initial investment premiums.

One of the most important features in determining the actual interest received on a contract is the crediting method used to measure the amount of change in the underlying index. The three most common methods are annual reset (ratcheting), high-water mark, and point-to-point:

Annual Reset

o Interest is determined by comparing the index value at the end of the contract year with the index value at the beginning of the contract year. Interest is added each year for the term of the contract.

High-Water Mark

o With this method, the index value is recorded at various points in time during the term of the contract. Typically, the annual anniversary is used as the reference points. Interest is added at the end of the contract and is based on the difference between the highest index value and the beginning index value.

Point-to-Point

o The final method pays interest at the end of the contract, similar to the high-water mark method. However, the amount is based on the difference between the index value at the end of the term and the index value at the beginning of the contract.

These three methods may yield similar results over one time span or drastically different results during another. It is important that investors research the options that are available on the annuity index annuity policy they are interested in because there are unique advantages and disadvantages for each method.

The annual reset method has the advantage that the interest is reevaluated each year and that future decreases in the index cannot affect the interest that was earned in previous years. The disadvantage for annual reset is that the participation rate may change each year. In general, its level will be lower than other indexing methods. Sometimes this method is also combined with a cap on the amount of interest that can be earned in a given contract year.

The advantage of the high-water mark method is that a customer may receive a higher amount of interest than other methods if the index reaches a high point towards the beginning or middle of the contract, then falls at the end of the contract term. However, the disadvantages are that this method sometimes comes with a cap and a lower participation rate than other methods. In addition, some contracts state that if the annuitant surrenders the contract before the end of the term, then the interest is forfeited.

The final method, point-to-point, has the advantage that many of the contracts have a higher participation rate than other index annuity methods since interest cannot be calculated before the end of the policy. However, like with the high-water mark method, some contracts will not pay interest if the annuity is surrenders before the term has ended.

The three index annuity crediting methods discussed above seem similar, however, the index-linked interest that is paid on an annuity will heavily depend on which method is used for the particular policy. Therefore, it is important that investors weigh the pros and cons of each method and choose the one best suited to current market trends.…

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Financial Planning and Wealth Management – A Comprehensive Guide

Financial Planning and Wealth Management – A Comprehensive Guide

Ways by which Financial Planning can be undertaken?

1. Cash Flow Management

Incomes and expenditures can be better matched through the Plan. It assists in identifying whether borrowings are within prudent limits.

2. Insurance

It usually takes care of unpredictable needs and as these needs can arise at anytime, insurance is extremely important.

3. Investment Planning

With increased volatility in capital markets, there is a surge in demand for small saving schemes as a safe haven. Schemes like PPF, NSC, KVP, RBI bonds, Senior Citizens Savings Scheme, Post office MIS need to be part of asset allocation for investors. Although, it is good to keep some risk free investment in the portfolio as a part of overall asset allocation.

4. Retirement Planning

Due to increase in longevity in life and growing expenses due to inflation sustaining the living standard during post retirement stage is a difficult task, so a wise investment of a nest egg during working life helps in lining comfortably during retirement stage

5. Taxation

The financial plan should help client in minimizing its tax liability and also maximizing its after-tax returns from your investments.

6. Estate Planning

Estate planning is arranging for the transfer of property to legal heirs and to other beneficiaries, in a way that will, as much as possible, achieve its objectives.

Who requires Financial Planning?

It is useful to everyone. Since every one has dreams and goals to be fulfilled, so even people earning small amounts of income should get their financial planning done, so that their limited income can be used more efficiently.

How is it different from Wealth Management (WM)?

Wealth management sounds similar to Financial Planning (FP), it differs in the sense that Financial Planning is for one and all while WM is only for a select few. It relates more the management of plenty i.e. taking care of the needs of affluent clients as part of a long-term, consultative relationship, while FP aims at getting the most out of limited resources.

What is a financial Plan?

Financial plan provides direction and meaning to financial decisions. It helps to understand how each financial decision can affect other areas of finances. For example, buying a particular investment product might help client save adequately to finance for its child’s higher education or it may provide enough for a comfortable retirement.

It includes a review of net worth, goals and objectives, investment portfolio, retirement planning, tax planning and insurance needs, as well as a plan for implementing client’s goals.

After a plan is developed, what next?

The best plan is useless unless it is put into action. Hence the plan should be implemented in said manner, and review the plan when there is a lifestyle change such as marriage, death or divorce. The review also considers changing goals and circumstances.

The entire process for a financial planner can be summed up as follows:

• Initial meetings with client and answering its queries if any.

• Receiving the Letter of Engagement

• Handing over a detailed questionnaire.

• Getting answers to those questions

• Plan preparation

• Getting the “Authority to Proceed” Letter enabling you to carry out the recommendations contained therein

• Plan Implementation

• Periodic Plan Review…

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Investing in the Markets With Options?

Investing in the Markets With Options?

Options are a great way to protect profits and safeguard against losses for people trading in the markets. They are perhaps the only true form of hedging, when people properly understand how to use them.

Although, the problem is that options are still widely misunderstood in the marketplace, and that is why many people do not get the results that they should with them.

One of the reasons for this is the Options education industry. Education is the most valuable thing a trader can do to progress their knowledge and experience of the markets, and it can ultimately be a big factor in either succeeding, or failing when trading.

However, when it comes to options training many of the companies in the industry actually approach it back to front. Often they will teach people all the different options trading systems that they can, even to a very advanced level and then let them live in the markets on their own.

The problem is that while students know theoretically how to use an option, they don’t know how to identify the opportunities where options can best be utilized.

If people are serious about making the profits that are possible with options trading, then they need to find companies that teach things the right way round.

These are companies that first coach their students in how to understand and identify good opportunities in the marketplace, and then after students feel comfortable being able to do this they then go on on to teach them what strategies are best suited for each different situation that they find.

Also, good companies will be able to offer traders the chance to trade in live markets alongside successful professional traders. It is one thing to understand something theoretically, but being able to progress and develop skills and experience alongside people who are already successful in the markets is extremely valuable indeed.…

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Accounting, Audit and Reporting In Thailand

Accounting, Audit and Reporting In Thailand

Accounting Period

A newly established business entity may choose any date for its initial accounting period. Thereafter, the accounts should be closed every twelve months.

If an entity wishes to change its accounting period, it must obtain written approval from the Commercial Registration Department and the Revenue Department.

Books of Accounts

The Accounts Act of 2000 prescribes the regulations regarding the keeping of books of accounts and supporting documents.

The Act also stipulates the qualifications of the bookkeeper, who must be a Thai resident, proficient in the Thai language, and a graduate from high-vocational school or university with the minimum of a Bachelor Degree in Accounting.

The Civil and Commercial Code also provides general rules on the accounts that must be maintained.

Recording of accounting entries may be done in the English language, but there should be appended a Thai language translation. All accounting entries must be written in ink, typewritten or printed. Computerised accounting systems are supposed to be registered with the Ministry of Commerce and the Revenue Department.

Accounting Principles

Generally, the accounting principles promulgated in the International Financial Reporting Standards are followed in Thailand. In addition, accounting methods and conventions sanctioned by law are considered as generally accepted accounting practices. The Federation of Accounting Professions is the authoritative body promoting the application of generally accepted accounting principles.

Certain accounting principles, which are adopted by a business entity, must be followed consistently and may be changed only with the approval of the Revenue Department. Such accounting principles include depreciation, statutory reserves, stock, dividends, consolidation, expenses paid out of net profits and accounting for pension plans.

Audit Requirements

All business entities including companies, partnerships, branch offices, representative offices and joint ventures are required to prepare profit and loss accounts and balance sheets on an annual basis, and have them audited. The auditor’s report must state whether the accounts have been properly prepared in accordance with the Accounting Regulations and whether these give a true and fair view.

Appointment of Auditors

Each business enterprise is required to appoint independent auditors who are registered Certified Public Accountants in Thailand. Certified Public Accountants are registered and issued with licences by the Ministry of Commerce.

The Auditors are appointed at the Annual General Meeting of Shareholders (AGM) to serve until the next AGM. The AGM is also required to set the Auditor’s remuneration. Although the auditor must be independent, the Civil and Commercial Code allows a company to appoint a shareholder as an Auditor if he possesses the requisite qualifications.

Reporting Requirements

All business entities are required to file one set of their audited financial statements, together with an annual corporate income tax return and statement of director/manager with the Revenue Department within 150 days of their financial year end.

Companies, partnerships and branches of foreign corporations are required to file two sets of their audited financial statements and a statutory annual return with the Companies’ Registration Department within five months of their financial year-end. Companies are also required to include reference to the AGM that approved the financial statements and a copy of the list of shareholders of the company as at the date of the AGM. Failure to fulfil these requirements may result in a fine of up to 70,000 Baht.…

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The Basics of Cash Flow Management

The Basics of Cash Flow Management

The Basics of Cash Flow Management is important as it helps to ensure that you have enough or even excess money to save up for other usage every single month. Here are a few simple steps that you need to take to manage your cash flow:

Track your current monthly expenses on a daily basis for at least 3 – 6 months.

Analyze your monthly expenses to find out where does your money goes to.

Make a list on the expense items that you can cut down on.

Start setting aside 20-30% of your income to pay yourself first. Put this money into a separate savings account which you will not spend other than for investment purpose.

Plan your expenses budget every month after you have completed the above steps. Make a list on all your expenses and set a budget to it. Make sure that you stick to your budget and not give in to temptations. Make sure that your total expenses budget and planned savings does not exceed your total income per month.

For all major or big spending of about more than USD$1000, you need to plan for it, and ensure that your purchase is genuine and not due to impulse. Hence you need to take note of the cost involved and set aside a sum of money every month towards a fund and only purchase the item after your fund has collected enough to pay for it entirely.

With the above, you should be able to have more savings which you can use for investment purpose to contribute towards your financial freedom or retirement.

Take note that Good Investments are assets that are able to put more money into your pockets, not take money out of your pocket, in both short term and long term. Items that you purchases that takes money out of your pocket every month (creates expenses) are liabilities, not assets!

As long as you do not spend more than your income minus the amount that you need to set aside to pay yourself first, your cash flow will be fine! Take action to do that today! Do not procrastinate.…

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Is the Economy Really Recovering?

Is the Economy Really Recovering?

After a rocky period, right now the US economy seems to finally be doing better. Corporate profits the first quarter of 2010 increased to almost $117 billion over the fourth quarter of 2009, when corporate profits were almost $109 billion. We don’t have the results in for the second quarter just yet, but corporate profits certainly seem like they’re starting to increase. Which means things are getting better.

However, everybody we talk to doesn’t feel like things are better.

Why is this happening? Why is it that we see these reports that corporate profits are up by billions and billions of dollars, but on an individual basis it still feels like the economy isn’t recovering? The easiest answer, of course, is that unemployment is still above 9%. Recessions typically last nine months, but this one we’ve just gone through lasted over two years. But the bigger deal could be what some economists are calling a two-tier recovery. Meaning large corporations are feeling a lot of improvement, while small business owners and individuals are not.

There’s a reason for this. Big businesses, I mean really large businesses, have access to capital that small business do not. If a big business needs to borrow money to buy supplies or increase their inventory, they can go to the bond market and access the capital they need. But if you’re a small business owner, you can’t borrow money from the bond market. You’ve got to go to your local bank — and odds are the local bank is still dealing with underwater real estate loans. Some estimates suggest it will take another 18 months for the banks to work through their bad loans and be in a position to really start making credit available to the small business owner.

But there are other reasons the economy is working better for some types of businesses than others. The percentage of big businesses who are being unionized is declining, which gives the larger employers more flexibility as far as hiring and firing and reacting to economic forces than they’ve had in the past. Another reason would be that the savings rate in America is increasing somewhere between the rate of 3% – 6%. And if people are increasing their savings rates, chances are they’re cutting spending in certain areas like going out to dinner, or going to the beauty parlor. On the other hand, if their refrigerator breaks, they’re still going to go out and buy a new one.

So the smaller, service sector businesses are getting hit harder than the larger manufacturers. Exports are helping too. Large corporations get a fair amount of their revenue and profits from exports for international sales. But if you’re a small business, chances are you’re not exporting to any great extent. So this is why, when we look at the big picture, things that look like they’re improving, and the numbers back that up. While on the local level it still may feel like things haven’t gotten much better at all.…