2019

A decade ago people would only think of investing their money into gold, lands or property. However, mutual funds have provided us with another considerable option to invest in. MF though is subject to market risks, can earn you great returns if you plan early and wisely. Two major benefits you experience while investing in the mutual fund plans, which are:

• Professional management of your investment
• Diverse and secured portfolios

However, relying on the managers to find the best plans for you to invest in is as good as picking out an MF plan on your own. And that is not going to help you get bigger returns as you’d have thought. Online mutual funds, however, can still help you make wealth. For that, you need to plan out your strategy and follow the basic golden rules.

4 Golden Rules to Help You Create Wealth with Mutual Fund Plans

1. Invest early and consistently

This is the most important rule for any investments. And it applies to mutual fund investment as well. The sooner you invest into MF, the greater your potential to create wealth. Also, you don’t need to invest a big amount to gain significant returns. Starting from a small yet regular investment would be sufficed.

2. Division of investments

While some lucky people become millionaires overnight, that doesn’t happen to everyone. So to build your wealth, you need to plan your investments wisely. Plan out your short-term, intermediate and long term needs and divide your finances into suitable plans. Apart from these investments do put some money in your bank account or MF options such as money market mutual fund. That way you won’t have to use your share meant for long-term plans in case of urgent needs when you need immediate cash.

3. Diversify mutual fund investments

Many people might know this, when you invest into mutual funds you get a diversified portfolio of investment securities. You can get even bigger diversification by investing your money in different sectors. That way your returns will be safe and you balance the losses when the market is down for some economic sectors.

4. Long period investments

Consistent investment for a longer period is another important rule for creating wealth with online mutual funds. The market is always fluctuating. So you’ll see the bar going up and down occasionally. But if you look at the stock measures over a longer period, for example – 10-15 years, the bar is consistently going upward. Buy-and-hold strategy when the market is down will help you earn bigger returns. Also, go for the index-funds for your long-term investment plans. Instead of trying to beat the market stock change, index-funds try to match with the market index.

Making money and building wealth is a challenging task. However, if you start early, plan out your long-term and short-term needs and invest with different economies for a longer period, you’ll sure make a fortune with online mutual funds.

Finding the right financial planner in Baltimore today can be a confusing state of affairs. The latter is so because there are so many of them, most of which are quite competitive and therefore quite difficult to choose. However, that doesn’t mean one shouldn’t put effort into ensuring they are getting the very best out of it. Without further ado, below are some of the ways one can use to find the best Baltimore financial planning firm to help them out in whatever capacity they wish:

Experience Is Crucial

As previously mentioned, there are quite several capable financial advisers in Baltimore. Therefore, finding one that works for a client’s needs is vital. With that in mind, the first place that one has to look at is none other than the level of experience. The financial adviser and planner with more experience are better than the one who is starting by a long shot.

Credentials Do Matter

Before contracting any financial planner, it is essential for one to know that they are capable of doing the job they’ve been contracted to do. For that matter, checking their credentials should also be carried out with the same intensity as they did when looking for their experience.

Thankfully, all financial planners are required to file their information with the security and exchange commission. The latter is what makes it easy to do a background check as all of their information is handed over in the form of an investment adviser public disclosure. Doing so makes it easier for one to decide on the financial planner to work with and the ones not to.

Go for The ‘Fee-Only’ Financial Planner

Since the ultimate goal is to make the most, going for the ‘fee-only’ financial planner can be an excellent bet for anyone looking to manage their finances. Why? Because the ‘fee-only’ financial planner is economical. Going for the financial planner who charges commissions only make matters worse as they are expensive in the end.

Thankfully, one can get in touch with ‘fee-only’ financial planner with ease. The latter is made easier through verified portals such as the garret planning network and the national association of personal financial advisers. One can also get their ‘fee-only’ financial advisers by looking for recommendations in and around Baltimore and still receive the very best services when all is said and done.

Fiduciary Standard

Everyone should always be advised to work with financial planners held to a fiduciary standard. A fiduciary standard refers to a financial planner who bases their advice on their client’s best interest. One can achieve the latter can be established through checking their fee as well as their previous working relationships. Once one has established this information, it would become quite easy for them to decide whom they can work with and those they don’t.

As mentioned earlier, it is essential for the client always to invest as much time if they want to find the right financial planner to use whether for the short or the long haul. Thankfully, all this hard work is only to be done once because once they’ve found the right financial planner, they won’t have to look for another.

Conclusion

Having a financial planner has its perks. However, when it comes to getting one, everyone is entitled to get the very best. Thankfully, following all the above procedures can help a great deal when it comes to landing one especially in Baltimore where there always seems to be so many of them. That said, no one should ever be in a hurry to get one and should, therefore, be able to take as much as time as they can find the right person to help them reach their financial goals.

Tax season can be a stressful affair, which is why about one-third of individuals who file taxes use a service. Nothing better than a trained professional to make sure every ‘t’ is crossed and every ‘i’ dotted. Not to mention that tax professionals know how to find exemptions John Q. Taxpayer is unaware of. Unfortunately, like any contracted business success or failure depends on the service that is chosen. As many people are unaware of what to look for in a tax or accounting service, here are some key factors to consider.

Are They Legitimate?

Legitimacy is the first important thing to look for in a tax or accounting service. It is also easy to find. The IRS requires individuals or entities that prepare tax documents to have a Preparer Tax Identification Number. So the first thing a potential client should inquire about is the company’s PTIC. If they have one it is a good sign they are a legitimate business.

The next thing to look for is proper credentials. PTIC’s are easy to come by, but accreditation takes a little bit of work. Individuals who carry accreditation are certified public accountants, licensed attorneys, or enrolled agents who have completed a qualifying IRS’ Annual Filing Season program. Such individuals are usually referred to as an advisor and accredited tax preparer or an accredited business accountant. Luckily, all one has to do is consult the IRS’ directory. Every name listed in there is someone the Internal Revenue Service deems perfectly qualified to prepare taxes.

Look at Accolades and Associations

Once legitimacy has been discerned it is time to vet professionalism. Potential clients should be on the lookout for accolades and associations. If the tax preparer has won a few distinguished awards it speaks well of them, but if they are associated with some big-name companies that are even better. If legitimate businesses, important organizations, and key individuals trust a preparer with their taxes they are obviously very good at what they do. These accolades and associations should not be hard to find either. Any decent tax preparer worth their salt will brag about it, list the accolades in their marketing material, use them as references, and place plaques in full view.

Look for Warning Signs

The main danger many faces when using accounting and tax services is that their particular return will be handled callously. The agents will either not spend any time on prep, shuffle it to the bottom of the file, or simply offer the bare minimum when it comes to service. Another danger is that the service will take advantage of the client with high costs. One way to avoid this is by looking for warning signs. The first is in the way they charge for services rendered.

Legitimate services usually bill by the hour. This is because they are charging clients for their work. If they charge based on the size of the return itself this is a warning sign. It means they are more concerned with profit. It also means if customers return is not sizable they may not get the same service.

Another warning sign to be on the lookout for are services that do not e-file. Filing electronically is a mandate the IRS requires of any service that prepares more than ten returns. If a company does not e-file it may speak to their overall preparation and work ethic.

Finally, the last warning sign is whether the company will go to bat for its customers in the event of an audit. Legitimate preparers can represent their clients if the IRS comes knocking. They can aid taxpayers in every aspect an audit represents from setting up payments to appeals. If they are unable to do that it speaks to their professionalism and capability.

For the moments when time might not be in favor of you, personal loans are the source of finance that helps you maintain a stable financial condition. Whether it is planning the vacation of your dreams or paying the down payment of the house you have been looking for from a long time, these loans are the right choice when it comes to management of funds.

A personal loan can be both, secured and unsecured. The end use of the loan is not exposed to the lender while taking out the loan. In case of unsecured personal loans, the interest rate to be paid by the borrower is higher than that of the secured ones. Even though the rate of interest is highly influenced by the credit score and income of the borrower, an unsecured personal loan cost 15% to 25% of approximate interest rate from the borrowers.

Personal loans are highly beneficial when it comes to fulfilling your need. However, the problem starts to form its shape when people start borrowing these types of loans in order to make investments like equity investments. Personal Loan and equity investment cannot go hand in hand. If you are someone who is planning for the same, then it is time to think again.

Due to the evolving market condition, it is not a beneficial thought to make investment using a personal loan. The rising rate of inflation is one of the biggest reasons for the same. The numbers that were last posted ranged above 12%. Due to the growth of GDP at around 8% to 9%, the economy is expected to see a negative growth in the current fiscal.

By increasing the Cash Reserve Ratio by 50 basis points the Reserve Bank of India has tried to tighten the liquidity situation. In order to keep a track of the inflation numbers, the bank is expected to increase basis points by another 50 to 100 basis points.

Using personal loan for investment can make the situation worse if the loan taken out by you is on a floating interest rate. There are chances that you might even lose the money that you have invested in the equity market. In addition, you might also have to pay more amount of money against your loan. Both of the situations can get really difficult for you.

If you are looking forward to invest into equity markets, an easy and risk free way to do the same can be through the way of arbitrage. This means that you buy in the cash market through the loan amount and sell it in the derivative market. This way you get the price higher than the price at what you bought including the amount of the rate of interest.

 Factoring accounts receivable is a business transaction in the form of person management in which the business sells its invoices to the third party (called the factor) at a discount. The business can sometimes calculate its receivable assets to meet it’s present and direct payment needs. It might also calculate their accounts to decrease credit risk. Factoring is usually referred to as reports receivable factoring, bill factoring and sometimes mistakenly accounts receivable finance.

The Three Components

There are three companies immediately affected: The one who buys the receivable, the one who sells the receivable, and the person who owns the business obligation that involves them to make payment in regards to the invoice. This receivable, commonly associated with the account for business performed or goods sold, is basically a business asset that makes the person of the receivable the legitimate position to take money from the debtor who has an obligation to pay an invoice for service. The merchant sells the assets at the discount to the third party, the special business organization (aka this factor) to get paid. This knowledge is used in production department in the industry when the direct demand for raw material outweighs their free payment and power to get “ on account ”. Both accounts discounting and factoring is used by B2B companies to ensure they get the direct income needed to fulfill their actual and present obligations.

Trading of Assets

If we discuss accounts receivable factoring, in the simplest terms, it means trading of the assets in the discount to the factoring corporation. It is also called this accounts receivable finance or accounts receivable support. The factoring corporation providing this money to the corporation charges just the nominal fee for the transaction but manages the collections of the account’s assets that have sold to them. This charged interest only depends upon the factoring corporation that the company selects. The less the time it gets to get the invoice paid, the smaller would take the factoring interest. Thus, the companies that have customers who give these invoices promptly and quickly, are committed the fee as little as 1 percent. Factoring is the language frequently wrongly used synonymously with accounts receivable finance. In EU, this period “ factoring ” has turned into the term for accounts receivable finance as a summary; but in the USA, the period relates to the specialized kind of financing that involves the actual transfer of the ownership of the receivable to the lender, more accurately known as American factoring. Factoring is a business transaction whereby the business sells its accounts receivable (i.e., accounts) in the discount. Factoring differs from the bank loan in three important ways. Forward, factoring is not the debt but the acquisition of the asset (the receivable ).

Bill Factoring

Accounts receivable factoring, a.k.a. Bill factoring or bill finance, is a method that allows business owners to rapidly move invoices into working capital. Instead of waiting for weeks or months for clients to pay their invoices, accounts receivable finance allows business owners to take the amount on those accounts and take that payment for pressing business needs. It’s especially ideal for jobs that take longer net policies but have ongoing operating expenses or current expenses that help motivate growth. Factoring accounts receivable-selling accounts receivables for the fee may be a useful source of immediate payment for developing corporations. Factoring, converting accounts receivable into payment by selling them to the finance business for the fee, may play a vital role in business. At factoring, after that business person sells some or all of the organization’s accounts receivable to the cause, this finance corporation typically advances 50 to 80% of the face value of the invoices. This factor accepts the probability and responsibilities of making a collection.

The company may give some huge selling to separate retailers on the account, debiting Accounts Receivable and crediting marketing Revenue. The company might then sell these accounts receivable to another sector, called the cause. This factor earns income by paying the discounted price for the receivable and so hopefully collecting the whole quantity from the customer. The payment to the company selling these assets is the direct receipt of payment. The biggest disadvantage of factoring is that it is much rather costly when compared to the costs of keeping the receivable on those volumes and finally collecting the entire quantity.