Category Archives: Financial Planning

Investment Traps to be Cautious Of

If you are an investor, you must protect your investment so that it could run smoothly and you will be successful. Investors must be aware about things that might not be good for their investments. It is imporant to be aware and not regret knowing some common dangers in investing.
• Paying too much in charges

If you want more money to be added to your investment’s value, you have to note the charges. A minimun charge wouldn’t hurt and it will give you more returns in the end. Always compare and check if you get more from the charges you are paying.

• Poor Administration
Make sure that you are good enough at managing your own investments. This is one key to a successful investment. When you learn to manage the money you put in, and you can track the flow and its progress, you will never have a hard time when you make some changes because you are hands on enough to know every detail of your different investments.

• Not taking risks
When you want to beat the inflation, then you have to make enough risks for the sake of your investment. An investor should be a risk-taker in times when the inflation rate is doing no good. The money that you have invested should be able to keep up the pacing of the inflation rate.

• Too many Investments in the same sector
As investors, you should take note that there is a tendency where investments would encounter a rough road. It is too risky to put many investments in the same sector ,like the banking industry, you can never be sure about its stability, so it’s better to invest in different sectors to reduce any problem on your portfolio.

• Paying too much tax
It’s important to pay lesser tax for your investment so that you can have money added in return. The government has offered ISA (Individual saving accounts) and pension, as tax breaks. ISA doesn’t have extra charges on some funds though they do have annual limits on how much you can put in each tax year. For 2013-14 this was £11,520- and up to £5,760 of this allowance can be saved in a cash ISA. When you are flexible, with ISA your capital can also be withdrawn anytime you want.

Think of these things before you invest and always take charge with you investments the best way possible.


Saving for Retirement

Most people realize the importance of saving money for retirement. However, some don’t take the steps necessary to save as much as they truly need. Does this sound familiar?

If you are not doing your part in saving enough for your future, there is no better time than now to get started.

Easy Ways to Save

Are you under the impression that it is challenging to save for retirement? Believe it or not, you can get on the right track soon enough if you follow some basic advice:

  • Automate your savings
  • Set goals
  • Don’t touch this money until you retire

When you automate your savings, you know that the appropriate amount of money is being put towards your retirement. You never have to worry about making contributions on your own, because this is taken care of for you.

Have you set any goals related to your retirement? If not, this is a big mistake. You need to sit down, look at your situation, and set both short and long term goals. This will make you feel better about your future.

Are you the type who will try to take money from a retirement account before you actually retire? Join the club. As tempting as this may be, you have to stay away from doing so. The more money you have in your retirement accounts, and the longer the money is in there, the more interest you are going to earn.

With these three bits of advice guiding you, you will find it much easier to save more for retirement. If you are young, this may not be something you want to think about. But remember, the money you save today will allow you to live a better life down the road – and there is nothing more important than that.

Saving for that Dreaded Rainy Day!

In saving money, a person is thinking of tomorrow and how they will be able to get by. It is due to a will to survive that keeps a person ever mindful and vigilant about what tomorrow brings which is unexpected. We can never tell what the future brings, so it is our due diligence that we prepare ourselves to be fit to deal with the unexpected. Saving money is a good example in how we prepare for what tomorrow brings.

In saving money, we are planning to be ready for any unexpected expenses that we might need to undergo. The first step of saving money is to know what you want to save for.


Saving money for something is a goal that you set for yourself as you put your money into a piggy bank or an actual bank. It can be viewed as an accomplishment when the time comes to buy it.

In planning to buy a certain thing, saving money opens your eyes to other monetary situations that you want to be equipped to handle when the time comes, if it comes. Saving money is a good habit that should be practiced by everybody as it shows that they are concerned about what tomorrow may bring. It also shows that they have the capacity to plan ahead of time as they are anticipating the worst and want to be ready for it. Time brings so many unexpected twists and turns that we can never predict so it is a good idea for you to be prepared.

Putting your money in a bank is a great idea as you do not have total control of your funds as you have to withdraw your money before it is available. It gives you a discipline in knowing what you need as compared to wanting and spending unnecessarily.

HSBC Finds Britons Not Prepared for Retirement

A recent survey from HSBC Holdings found that most Britons are not adequately prepared for retirement. The new survey found that the average citizen will only have enough savings to last for seven years after they leave the workforce.

The survey tracked citizens from 15 nations. Other nations included both developed and developing nations across the world. The researchers found that Britons were worse prepared than their counterparts in any other country. HSBC said that these workers will suffer from a dozen years of hardship after they run out of money.

Christine Foyster, head of wealth development at HSBC, said that expectations for retirement are constantly changing. Citizens are living longer than in previous years, which means they will need to save more diligently while they are working. She said that more than 50% of the population is not saving enough to survive their golden years. Nearly a fifth of the population isn’t saving for retirement at all.


The participants in the survey were asked what their biggest concern was when they entered retirement. Most of the participants said they were concerned with making ends meet. Nearly a third of those respondents said they were concerned that they would need to work longer than they desired. The other two-thirds said they feared they would have to cut spending on certain necessities.

The survey found that citizens in China and the United States would also struggle to survive through retirement without a financial hardship. Citizens in Malaysia were best prepared for retirement, but still did not have enough money saved for the last five years they expected to live.

Foyster said that workers have been concerned about retirement since the beginning of time. She said that the only way they can have the security they are seeking is if they start preparing early enough.