Four Reasons Why People Sell Their Annuities

December 24, 2014 Finance Tips

In the world of financial planning and retirement, the biggest question isn’t just “What are annuities?” The main question is, “Why are people buying annuities, and then looking for structured settlement cash outs?” The simple answer here is that annuities aren’t always the greatest investment, and many people only find out about the downfalls of their annuity after buying it. For starters…

First of all, inflation is naturally going to occur no matter how much you invest or how strong the economy is; settlement annuity payments rarely — if ever — take inflation into account when calculating the monthly payments you’ll receive. In other words, although you’ll get the same amount of money each year during retirement, you won’t be able to do as much with it.
It’s possible to buy an annuity that gives increased payments over time — these are called percentage increasing annuities, and although they seem to solve the problem of inflation, the remaining problem is that you’ll end up getting much smaller payments at the outset (and if you happen to die soon after you start receiving payments, you’re out of luck).
In fact, as grotesque as it might sound, the issue of how soon you (and/or possibly your partner) die after you start receiving settlement annuity payments can be a major problem, too. Level annuities promise to give you payments each month until you die, but if you happen to pass away just a year or two after you start receiving your money, then the rest of your investment will go to the annuity/pension company. Fixed annuities give you a bit more control over your money by promising a specified amount each month until your money runs out, but if you happen to out-live your money, then you’re left to your own devices as far as finances go.
Taxes are another problem: although your lump sum investment won’t be taxed while it sits in your account, once you begin receiving payments, those payments will be taxed just like a regular paycheck would be. Unlike a regular paycheck, the most common annuities aren’t adjusted for inflation (and consequently for tax increases), meaning that it’s incredibly difficult to plan for how much money will be taken out of your regular payments.

So what do you think? Are these downfalls still pretty minor, compared to the benefits of annuities? Or are they enough to convince you that annuities are the worst? More on this topic.

Home Equity Loans 101

December 23, 2014 Finance Tips

In some financial hardships, you result to your assets. Some situations demand that you consider refinancing as a way to get you back on your feet when in a bad financial status. The loans, especially from a middle market private equity firm, provide property owners access to quick money when the need arises.

Can you use home equity to buy another property? Can you use your home equity to buy another house? As an investor, you can use the home equity loan as a down payment for a second home. The first home becomes collateral. It is vital to note the following when drawing equity from your home; there are ways you can increase the equity of your home.

To get a high value to draw equity from house ownership, pay your mortgage earlier than anticipated. Take advantage of the fluctuations in the home market. There is increased home equity to draw from your home when the market value of your house is high.

When shopping for home equity loans, obtain quotes from several lenders to compare the interest rates. Consider the loan application fee; in most cases, the fee paid as the application is non-refundable when you fail to qualify for the loan after a low credit score.

Let’s get this out of the way first: In a perfect world, everyone would have enough money to pay for the things they need and want, and no one would have to spend hours just to find a bank or mortgage company that provides loans with reasonable interest rates, or the best mortgage rates that won’t cause too much stress. Nobody particularly wants to be in a financial situation where they need to take out a loan or a mortgage on their home, but these things happen all the time — and financial agreements like home equity loans actually help countless people get back on their feet and become financially stable.

So what exactly is a home equity loan?

The “equity” of your house is the amount of money left when you subtract how much you owe on your mortgage from the price at which you could sell your house. This is the amount of money, in a home equity loan, that you could receive in the form of a loan or a line of credit.

The most common way to go about a home equity loan is to do some research, and maybe even seek help from a financial consultant, before you make any big decisions. You can get home equity loans from pretty much any financial institution that offers traditional professional loans and/or home mortgages — e.g., banks, credit unions, specialized mortgage companies, private lenders, etc.

The average amount of money that people are able to take out in these loans is around 85% of their home’s total equity, and like any other type of loan or mortgage, interest rates always apply and always depend on each homeowner’s particular situation. Again, just like other types of loans, home equity loans usually involve the lender paying out a lump sum of cash to the homeowner, as per the loan agreement, and the homeowner will have to pay that amount back in monthly installments.

When it comes down to the basic facts, home equity loans are actually pretty simple to understand, especially if you have a knack for understanding finances and loan agreements.

Now the conversation is turning over to you — is there any important info about these loans that we left out? Make sure to share your insights in the comments section! Read this for more.

Why Online Pharmacies Are So Dangerous

December 4, 2014 Finance Tips

Have you ever heard about something called an “online pharmacy”? It’s a pretty straightforward concept — it’s a business run entirely online, and it allows people to buy prescription drugs online and have the drugs sent right to their doorstep. If it sounds a little sketchy to you, your head is in the right place. Because as simple as these pharmacies seem, they actually present quite a few dangers to the health and wellbeing of their customers.

Because the FDA has such a hard time regulating these online pharmacies, it’s pretty to find that they sell unapproved drugs that aren’t legally supposed to be sold in the U.S., and they also tend to send out medications with the incorrect ingredients or with the wrong amount of the active ingredient. Even if these incorrect prescriptions are sent out by mistake (which is pretty unlikely), customers still have no way of knowing that they’re taking the wrong medication — until something serious happens, of course.

Unfortunately, either people aren’t aware that online pharmacies are so dangerous, or they’re simply willing to take the risks (either for financial reasons or for convenience). In fact, the Center for Medicine in the Public Interest has recently estimated that about $75 billion worth of counterfeit drugs — like the ones provided by online pharmacies — are sold every year. Scare tactics clearly don’t work well, and it seems like no amount of government laws and regulations can ameliorate the situation either.

So what can you do to make the prescription drug industry safer?

If you’re a consumer, the easiest thing to do is to stay away from these pharmacies and to encourage others to do the same.

If you run a pharmacy yourself, think about making some technology upgrades and product changes so that your customers will actually enjoy filling their prescriptions at your store. Something as simple as replacing an old cash register with a new retail pharmacy POS system can make a huge difference: transactions will be faster, creating customer loyalty programs will be easier, and pharmacy POS systems that automatically track sales trends will help you figure out which products your customers really want.

It may be difficult, if not impossible, to track down every online pharmacy and shut it down. But by working together, it may be possible to push these sketchy companies right out of business. Helpful links. Reference links.

One of the Biggest Problems in Modern POS Systems

December 4, 2014 Finance Tips

If you own a small business and have to manage a POS system on your own, being able to detect and solve problems (or find someone who can solve them) is extremely important; it doesn’t matter if you own a restaurant and use a general POS software, or if you own a small local drugstore and rely on a specialized retail pharmacy POS system — being sure that your system is safe and secure is essential for a successful business.

With that in mind, let’s take a look at one of the most common problems that business owners have with a POS system…

Security Breaches

With so many national chain stores experiencing security breaches in their POS systems, the silver lining is that more business owners are becoming aware that their own systems could use some updated security protection. If you start seeing weird files appearing or (ironically) you see an influx of warning messages pop up that suggest you should update the security system on your devices, those are two solid signs that dangerous malware (i.e., a computer virus) has gotten into your system.

Most newer POS systems come with round-the-clock support, and many companies offer to send out updated security features as they’re developed. It’s no secret that security companies are usually only able to create security programs against viruses after hackers have already sent out the malware, so if you have a secure system but still suspect that it’s been infected, that’s fairly normal.

The most important thing you can do is simply be aware of malware signs, and if you suspect that something is wrong, never hesitate to call an expert for help. Read more like this.

The Advantages of Enrolling in a Debt Relief Program

November 23, 2014 Finance Tips

The holiday shopping season is almost in full swing, and soon, Americans will be spending their hard-earned dollars on finding the perfect holiday presents for their loved ones. The National Retail Federations holiday spending forecast for November and December is bright, as consumers continue to gain confidence in the post-recession economy. Consumer spending is slated to increase at least 4%, with the average shopping spending $804, up from $767 from last year.

However, the holiday season can be a difficult time for those who are struggling with debt. Even those who are not in debt can quickly rack up thousands in credit card debt by not adhering to a spending plan or budget. As such, it’s important to help with debt and debt advice in order to have a happy holiday season that won’t stretch your finances beyond their means.

Debt relief programs offer a number of flexible debt relief options and solutions for those who in need of regaining of control of their finances. Don’t prejudge your financial situation. Debt counselling matches the right debt relief services with your financial needs and goals.

In addition to relief options, debt relief programs off expert financial planning advice, allowing you to make better, more informed financial decisions in addition to planning for your future. Visit here for more.

What Services Can Payment Processing Companies Offer Your Business?

November 19, 2014 Finance Tips

Although it still happens, it’s usually rare for businesses to only accept cash. Doing so not only limits the amount that customers can spend in their store (dependent upon what they have in their wallets, but it also creates a major inconvenience for shoppers who predominantly use credit and debit cards. However, thanks to all of the benefits that credit card payment processing includes, customers can have more options for payment when retail establishments, restaurants, and other businesses have the right technology in place.

Just what types of services does payment processing include? Here are a few common ways that businesses can accept credit cards and debit cards thanks to advances in technology.

Mobile Payment Processing: No longer do businesses need bulky cash registers at their counters. They now have the opportunity to accept credit cards on mobile devices, such as tablets and smartphones. This is especially useful for businesses that want to open up more checkout lines anywhere in the store or for restaurants that would like to offer their customers the chance to pay at a table.

Mobile Phone Payments: This option is a growing industry in the payment processing world. Mobile phone technology allows customers to pay at retail businesses using contactless devices to transfer funds. A good example of this is Apple Pay for iPhones; however, there are other retailers and companies developing their own versions of these apps.

Online Payment Processing: Finally, eCommerce, or online retail, is expected to reach over $1 trillion in revenue by 2015. Businesses that have expanded online need to have their payment processing include the ability to accept as many international currencies as possible all while providing low transaction fees. Online payment processing companies can also provide fraud protection and other risk management for these businesses.

Have questions about payment processing? Be sure to speak with a company that offers these services. You can also leave a comment below if you’d like to know more about these cutting edge payment solutions.

Three Reasons To Support Your Local Pharmacy

November 12, 2014 Finance Tips

Big retail stores are taking over these days, and when they have special departments for everything from home decor to pharmaceutical needs, the reasons to go to a smaller local pharmacy seem less convincing. So if you’re part of this trend, and you need a few reasons to convince you that your local pharmacy deserves your patronage, here are just a few reasons to get you thinking:

Many people choose to avoid local pharmacies because it’s common for small businesses to struggle with providing quick transactions and complicated coupon and/or customer loyalty programs. Bigger chain stores, on the other hand, tend to have the funds and the space to accommodate large retail POS systems.

But small pharmacies are a bit different; because pharmacists have to manage controlled prescription drugs and over-the-counter medications and health supplies, they’re more concerned with investing in high-tech retail pharmacy POS systems, even if the software is a bit on the expensive side. Many small pharmacies even have pharmacy software that can rival any big chain store, and they’re able to provide all the extra perks (like loyalty programs and ultra-fast transactions) without a problem.
Having a better pharmacy POS system doesn’t take the place of a real-life pharmacist, but it does help the pharmacist organize and track things like sales numbers and product inventory. And when the pharmacy staff spends less time on these menial tasks, they’re able to spend more time focusing on the needs of their patients.

Being able to discuss any medication complications and interactions with a certified pharmacist can be invaluable, even if you’re only taking over-the-counter medications. When you find a pharmacist around whom you feel comfortable, discussing sensitive health issues is much, much easier. Quite simply, no fancy self-check out lanes and no amount of useless coupons on a 5-foot-long receipt can take the place of a professional healthcare expert.
And finally, keep in mind that when you visit your local pharmacy, you’re supporting a business that provides jobs for your community. Most small businesses are incredibly dedicated to serving their local customers, and by keeping valuable jobs in the community, the entire area will benefit from a higher standard of living. While online shopping can be very convenient, it ends up taking money out of your community and could mean that your hard-working neighbors are left without jobs.

So now the conversation is being turned over to you — why you choose to go to a local pharmacy instead of a big chain store? Or, what’s making you hesitant to do so? Be sure to share your thoughts in the comments section!

The 2 Aspects of a Retail Cash Management Solution

October 31, 2014 Finance Tips

If your business handles cash sales, the tools you use to do so can have quite an impact both on worker efficiency and cash-handling accuracy. A full retail cash management solution has two parts: one virtual, one physical.

Retail Enterprise Management Planning

Enterprise Resource Planning, or ERP, refers to the software suites businesses use to collect data, transfer information and generate reports on many aspects of their business. Cash management software can allow the consistent logging of cash transactions and the details associated with them (such as who handles each transaction and at what times). Furthermore, the software can track trends, giving you insights as to how you might better draw in customers and improve profits. Generally, these software systems are able to generate automatic reports (saving employee time) that are useful for both record keeping and current and prospective investors up to date on the business’ financial situation.

Cash Machines

There are several kinds of machines a retail business should consider. One is a machine to detect counterfeit money. Another is a scanner that allows for the immediate logging and depositing of cheques. But by far the most useful investment a business that deals in cash can make is a portable cash counter.

Cash counters ensure 100% accuracy in deposits, eliminating the human error margin. Most businesses assume that a few dollars lost here and there don’t matter, but these dollars can add up over time. Cash counters also save time; instead of an employee counting bills by hand (which is slow), repeating the process to ensure accuracy and then getting another employee to verify the count, the bills can be run directly through a counter a single time and grouped for deposit. There are also currency counter machines that deal with coins, which might be of use to a business that sells many small items.

What do you think is the best cash management solution for you? Do you worry when a register is a few dollars short at the end of the day? Join the discussion in the comments.

The Commercial Real Estate Industry by the Numbers

October 22, 2014 Finance Tips

The 2008 Recession really took a toll on the American real estate market, and it’s taken a long time for both residential and commercial real estate values to look healthy again. And considering that an estimated 2 million Americans are employed by residential and commercial real estate companies, it’s definitely a good thing that the industry is on the upswing.

Don’t believe that the market is really in a good place? Take a look at the following statistics:

5.09 million: The number of house sales that occurred in 2013. The increase in sales between 2012 and 2013 was around 9.1% — that’s a big increase for just one year!

253%: The increase, between 2009 and 2013, of people who used search engines (like Google) to make inquiries about the real estate market.

$22.8 billion: The amount of U.S. real estate properties that foreign commercial real estate companies bought between January and August of 2013. That’s right — investors all over the world have recognized that property values in the U.S. are going up. This really isn’t surprising, considering that experts predict employment in the U.S. to rise by about 10% between 2012 and 2022; when people have steady jobs and steady incomes, they’re more likely to make long-term investments in the real estate market.

Of course, it should be noted that the real estate industry is always a bit of a roller coaster; one good year does not ensure the success of the following year. But when trends look healthier overall, consumers and investors alike gain more confidence, and the market is able to stabilize.

Two Important Reasons to Hire the Best Bookkeeping and Accounting Services

October 2, 2014 Finance Tips

Bookkeeping is an essential part of the operations of any business, and those who tell you otherwise have an agenda that is not going to serve you well. We know that an accounting firm can garner a lot of business from companies that are looking for accounting booking services, but you don’t necessarily have to turn to them for help in every instance. You can learn some accounting basics for dummies to get you started, and this may be enough to earn you the ability to take care of the finances of your own business completely on your own and at your own pace.

Accounting bookkeepers are always there to help those who feel that they would rather pay for the service, but you need to be prepared to pay the salary of an accounting clerk bookkeeper if you decide to take this route. They are not overly expensive in the grand scheme of things, but you always need to be aware that there are costs associated with not learning some of these skills for yourself. It is perfectly acceptable to understand that not everyone is good at everything all the time. As long as you know this for a fact, you can appreciate it and simply pay someone to handle the tasks that are not in your wheelhouse.

Did you know that more than 20% of adults in London and 18% of adults East of England use accounting services? This is because bookkeeping and accounting companies provide several helpful services, and each one is designed to improve your financial situation. As a result, hiring the best local bookkeepers is one of the best decisions you can make for your business.

Filing Taxes

Filing taxes is one of the most difficult tasks you will ever encounter as a business owner. This is because you may be required to file taxes each quarter, which is both difficult and time-consuming because this is no easy feat. Fortunately, that is why tax accountants are available. These services will not only help you fill out all the necessary paperwork for your taxes, but they will also help you prepare your taxes so that you can avoid costly mistakes. This means that when you hire the best bookkeeping and accounting services, you will never have to stress over your taxes again.

Financial Planning

An incredible 60% of adults believe that they can improve their financial situations by establishing firm monetary goals. Luckily, accounting companies also offer this service. In fact, the best bookkeepers are more than qualified to offer financial advice, and they will even set up a realistic budget for your company to follow. Additionally, accountants will help you keep accurate financial records so that you can diligently keep track of cash inflow and outflow. As a result, you will be able to run your business more efficiently.

There are several reasons why you should immediately seek help from bookkeeping and accounting companies. Not only will these services file your taxes whenever needed, but they will also help you create practical financial goals, as well. This means that when you hire the best accountant, your business will benefit greatly. For more information, read this website.

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Year: 2014