Month: August 2022

Wealth Management

How to Know Whether Your Retirement Income Will Be Enough

Author ByCFI.co

Forget about public speaking or bungee jumping. Not having enough retirement income is the new biggest fear of Brits (and folks all over the developed world). 

Are you in the same boat? Do you worry that you will have to get a part-time job, downsize, or beg from relatives to survive your golden years? Keep reading through the article below to know whether your retirement income will be enough to tide you over or not. 

Did You Take Into Account All the Retirement Income Killers?

Before you start calculating how much income you will need during retirement, you need to account for all those scenarios and situations that could drain your retirement income dry. We go through some of them below.

Not Having a Long-Term Care Plan

This can be one of the biggest drains on your retirement income if you are not prepared for it. It’s easy enough to make sure that you have some kind of long-term care insurance plan in place, so that if (or when) you need it in your old age, you are not dipping into your dwindling retirement income. 

If you know that you have a history of dementia or some other debilitating brain disease, it would be a good idea to purchase a long-term insurance plan, just in case. It’s better than having to dip into your retirement income and running out of cash way too soon.

Not Accounting For Increased Healthcare Costs

Even if you don’t have any major illnesses or diseases in your family history, healthcare costs (and costs in general) are going to increase with time. Inflation will take care of that. 

Hopefully, you have saved up enough, while accounting for such increased costs (adding 25% to how much you spend right now is a good way to do it). Consider this: it’s always better to have more saved up for retirement than less. You never know when that extra will come in handy.

Not Taking Care How Much You Withdraw Each Year

We will speak more about the 4% rule below, but ideally, you should be withdrawing 4% or less from your retirement income every year. The problem is that too many folks get overenthusiastic in their newfound retirement freedom and start spending willy-nilly without any discernment or care. 

Don’t do this to your older self. Leave YOLO to the younger folks, and take care not to spend beyond your means, even if you are finally retired and looking to enjoy life. 

Not Being Careful When Buying Big-Ticket Items

Presumably, you have already paid off your mortgage and all your other debt. Even so, you have to be careful when purchasing big-ticket items like a motorized home or a vintage car in your retirement years. These expenses can quickly add up and before you know it, the retirement income that was supposed to tide you over until the end is depleted and gone.

Not Being Cautious When Lending Money to Children

It can be hard to see your children struggling with money problems. But if you keep bailing them out whenever they have an issue, they are never going to learn and you are soon going to run out of income yourself. 

If you are going to lend to them, make sure they have a plan to pay you back or ensure that you have enough left over for yourself. 

Not Considering Divorce or Other Situation Changes

So many things can change in the 40 years or more (especially if your life expectancy extends rapidly) while you are retired. You could get divorced and get remarried. This will change your financial situation quite a bit as you will have to split your retirement savings according to the court rulings.

Make Sure You Use the 4% Rule 

This is how retirement income is usually calculated. You would first add up all your current yearly expenses (or monthly times 12). Probably you won’t use 100% of your current income during retirement, since you will be living a simpler life.

Thus, 80% of your current monthly income is considered an average for how much you would spend during retirement. 

This average will bump up or down depending on your specific situation. Use the various scenarios mentioned above to consider how that would change your retirement savings goals. 

Once you have a final figure for your monthly expenses, then you would multiply that by the number of years you expect to live after retirement. If you have a history of longevity in your family, then make sure you account for that. 

For example, if your monthly figure is 4000 pounds and you are planning for a 40-year retirement life span, you would need to save 40*12*4000, that is, 1.92 million pounds.

Each year, you would withdraw 4% from this 1.92 million pounds to sustain your lifestyle. 

Focus on Income Not Overall Savings

Remember that the money you have saved up will not be sitting there idle. But, it will be making money for you throughout its lifespan. That is, you will have invested it into bonds, stocks, or a combination of investments.

That’s why you also need to think about how much income you will receive from your investments when you calculate how much to save for retirement. You can also take into account government pensions and other reliable income sources, like a business you might still own or dividends from stocks. 

Don’t rely too much upon pensions or government social security programs though, since you have no idea if these will be bankrupt by the time you end up retiring. Better to think of them as a bonus rather than a necessity.

Retirement Income Doesn’t Need to Be an Adult Horror Story

You don’t need to start shivering in your boots or cowering with fear every time you think of your retirement savings plan. If you take the advice offered above and calculate your retirement income carefully, you should have more than enough to last you your entire lifetime.

Retire comfortably by keeping informed. Subscribe to our blog, so you can stay on top of financial trends and more.  

Finance

Metlife Investment Management to Acquire Specialist ESG Impact Manager Affirmative Investment Managment

Author ByCFI.co Blogger

Affirmative Investment Management (AIM) announced today that it has entered into a definitive agreement to be acquired by MetLife Investment Management.

(MIM), the asset management business of MetLife, Inc. (NYSE: MET). The acquisition is subject to regulatory approval.

MIM is a global public fixed income, private capital and real estate investment manager that provides tailored investment solutions to public and private pension plans, insurance companies, endowments funds and other institutional clients. MIM has over 150 years of investment experience, with offices in the US, Europe, Latin America and Asia comprising over 900 investment professionals and US$590.9 billion in assets under management, at 30 June 2022.
AIM focuses on mobilising mainstream capital to address the major challenges the world faces. Its mission is to manage fixed income portfolios that generate positive environmental and social impact without compromising financial returns. As the ESG impact and transition bond markets continue to expand, the opportunity to offer investment solutions to meet client demand has broadened from impact into transition, and public into private debt and real estate finance. MIM provides AIM with additional depth and breadth of complementary investment capabilities and resources that allows us to build upon our industry leadership and expand our impact and transition investment solutions in the future.

MIM will integrate AIM’s investing experts, processes and research capabilities to drive excellence in sustainable investing, develop new investment solutions and enhance MIM’s fundamental research, underwriting and security selection processes.

“We are pleased to be able to join a world-class institutional investment firm in MIM and continue our mission to deliver mainstream financial returns along with positive environmental and social impact” said Stephen Fitzgerald, who co-founded AIM in 2014. “Upon integration with MIM’s investment teams, we believe that we will deliver differentiated impact and transition investment insights and solutions to our combined roster of global clients while continuing to support positive environmental and social change.”

“By combining AIM’s expertise with MIM’s longstanding commitment to sustainable investing, we will be even better positioned to provide more comprehensive insight and counsel to clients and consultants on the changing market dynamics related to ESG and impact considerations,” said Steven Goulart, president of MIM and executive vice president and chief investment officer for MetLife. “MIM will maintain its fundamental investment processes, while AIM brings us additional capabilities to go deeper for clients on evaluating sustainability and risk considerations across all of our core competencies in public fixed income, private fixed income and real estate.”

AIM remains committed to its existing clients in Australia, Europe, Japan and US to deliver mainstream bond market returns along with environmental and social impact. As part of MIM, AIM will continue in its ambition to deliver best in class ESG impact and transition investment solutions to existing and prospective clients.

About Affirmative Investment Management

Affirmative Investment Management (AIM) is a leading global environmental, social and corporate governance (ESG) impact fixed income investment manager with deep capabilities in impact investing, verification, reporting and engagement. Established in 2014, AIM focuses on mobilising mainstream capital to address the major challenges the world faces. Its mission is to manage fixed income portfolios that generate positive environmental and social impact without compromising financial returns. AIM’s highly experienced team is solely focused on investing in, and expanding, the impact bond market with a rigorous approach to building impact bond portfolios and generating returns.

AIM has won numerous ESG and impact related industry awards, most recently Best Sustainability Reporting by a Fund Manager at the 2022 Environmental Finance Sustainable Investment Awards, Best ESG Investment Fund: Fixed Income at the 2022 ESG Investing Awards, Impact Asset Manager of the Year at the 2021 Australian Impact Investment Awards, and Impact Report of the Year (for investors) at the 2021 Environmental Finance Bond Awards.
About MetLife Investment Management.

MetLife Investment Management, the institutional asset management business of MetLife, Inc. (NYSE: MET), is a global public fixed income, private capital, and real estate investment manager providing tailored investment solutions to institutional investors worldwide. MetLife Investment Management provides public and private pension plans, insurance companies, endowments, funds and other institutional clients with a range of bespoke investment and financing solutions that seek to meet a range of long-term investment objectives and risk-adjusted returns over time. MetLife Investment Management has over 150 years of investment experience and, as of June 30, 2022, had US$590.9 billion in total assets under management.
About MetLife.

MetLife, Inc. (NYSE: MET), through its subsidiaries and affiliates (“MetLife”), is one of the world’s leading financial services companies, providing insurance, annuities, employee benefits and asset management to help individual and institutional customers build a more confident future. Founded in 1868, MetLife has operations in more than 40 markets globally and holds leading positions in the United States, Japan, Latin America, Asia, Europe and the Middle East.

For more information, visit www.metlife.com.

Business

5 Simple Ways to Protect Your Business Assets

Author ByCFI.co Blogger

As a business owner, you need to ensure that your products and services are high quality, that you’re marketing them correctly, and that your employees are productive and happy. However, one of the most important things you can do for your business is to protect your assets. Here are five simple ways to accomplish this:

Image source: https://unsplash.com/photos/unRkg2jH1j0
Image source: https://unsplash.com/photos/unRkg2jH1j0

1.  Have an Efficient Data Back-Up System

Your business records could be lost forever in a fire, flood, or other disasters, so it’s crucial to have a data backup system at the top of your asset management strategies. There are many ways to do this, but one of the most popular is using cloud-based storage. This way, even if your physical records are destroyed, you’ll still have a digital copy that you can access from anywhere.

2.  Get Insurance

Insuring your assets is one of the simplest and most effective ways to protect your business. Many types of insurance are available, so be sure to talk to your agent about the best coverage for your business. You may also consider getting liability insurance to protect yourself from lawsuits. In addition, insurance can help to offset the cost of repairs or replacement items. While the initial cost of premiums may seem like a burden, it is nothing compared to the financial losses that could occur in an accident or disaster.

3.  Keep Good Records

This includes keeping track of your inventory, recording all transactions, and maintaining accurate financial statements. Good record keeping will help you track what you have and where it is, making it easier to recover if something goes wrong. It can also help you spot problems early on and make it easier to track down assets if they are lost or stolen.

Good record keeping can also help you avoid tax problems. Make sure you keep track of all your deductions so that you don’t end up overpaying on your taxes. You can do this by taking advantage of business accounting services from reputable providers like Pherrus Financial. These services can help you keep track of your expenses and avoid potential problems.

4.  Invest in Security

Invest in security like security cameras, alarms, and even guards. If you have a lot of valuable equipment or inventory, investing in a robust security system is worth investing in. It will help deter thieves and give you peace of mind knowing that your things are safe. You can also use security measures to protect your data. Be sure to encrypt any sensitive information and keep it in a secure location. Only give access to people who need it, and change the passwords regularly.

5.  Monitor Activity

Even if you have all the security measures, check in on your employees and monitor their activity regularly. Review your financial records and look for any red flags. If something doesn’t seem right, don’t be afraid to investigate further. In addition, it is also important to monitor activity online. Cybercrime is a growing threat, and businesses must take steps to protect themselves from attacks.

There are many different ways to protect your business assets. You can help safeguard your business against potential risks by taking some simple precautions.

Banking

5 Signs to Watch for That It Is Time to Switch to a Different Bank

Author ByCFI.co

Mobile banking is estimated to be the primary method of managing money in the next two years as more high street branches close. But how do you know which is the right bank?

If you’re feeling drained by the fees, lousy customer service, and find it hard to juggle all your accounts, it might be time to switch to a different bank. 

Before you switch banks, look at these common warning signs to determine if it’s worth the hassle and will benefit your business.

5 Warning Signs That You Need a Different Bank

Most of us prefer the comfort of staying with a bank that we know instead of getting used to a new bank and all the different systems. However, moving to a different bank might save you time and money. 

Here are the five signs to watch out for that tell you it’s time to change banks. 

1. The Fees Are Too High

Fees are part of the deal when using a bank, but they shouldn’t cost you vast amounts of money. 

When you’re trying to establish a new business or running a current company, the last thing you want to deal with is increasing fees for sneaky details like international transactions, inactivity, or account maintenance. 

Even though these small costs don’t seem like much at once, over time, they will start to eat away at your annual budget and leave you with fewer expenses to invest in your business. 

So, changing banks will give you more freedom with your banking without the unfair costs of paper and other additional fees.

2. No Longer Convenient

Banks are meant to make your finances easier to manage, not harder. The reason we use banks is to be able to use our money where and when we want. 

That means you should be able to use digital banking on the go and not have to visit a local branch when you have an inquiry or want to deposit cash.

If you’re not already using digital banking, you’re wasting time. 

3. Bad Customer Service

As a business, you often have to handle large sums of money and contact your bank to arrange certain transactions, so you want to have a friendly voice on the other end of the phone. 

Often, customer service can treat you like a number, not a valued customer, making it hard to develop a working relationship with your bank.

For example, if you have to wait for a long time on the phone, your request is ignored, or you don’t have access to a real-life representative.

If you’re frustrated with the poor customer service, you need to consider changing banks. 

4. No Business Tool Features

Using a personal bank account is entirely different from a business account, so you must have certain features if your company runs smoothly. 

You should be able to access online management tools, payroll features, and credit card processing. Otherwise, you’re not getting the most out of your bank. 

Switching banks might be the only solution for better business features that will help you organise your business finances and give you time to work on other parts of your company. 

5. Lifestyle Changes 

Things can change in people’s lives; you might get a work promotion, start a new business adventure, or simply want to upgrade your bank account.

No matter the reason, your lifestyle can change, and you’ll need a different bank.

It’s always a good idea to evaluate your banking needs and assess if your current branch is giving you what you need at various stages in life. 

Tips for Picking a New Bank

Once you’ve decided that you want a new bank, you’ll have to think carefully before signing up for a new account and getting a card through the mail. Otherwise, you’ll end up moving banks again in a few months. 

Firstly, you should consider your bank account options and what’s available. 

Look at the Different Bank Account Options

In general, a few main kinds of banks are available for customers. These bank accounts are checking, savings, CD, and money market accounts. 

You should decide why you need a bank account and if you want to open several simultaneously. That way, you won’t have to communicate with several banks all the time.

If you want to control all your finances in one place, you should check that the bank offers services for mortgages, financial planning, credit cards, and investment accounts. 

Most businesses prefer to use the same bank for all their accounts as it keeps things simple and straightforward when planning your annual budget. 

Find a Low-fee Bank

Ideally, you also want to have a bank that has low fees. On average, banks will be transparent about their fees, so asking about the additional costs is essential before opening an account. 

You don’t want any surprises later on! 

Don’t Miss the Fine Print

You must always read the fine print on a website or bank documents. As a safety precaution, it’s good to examine the procedure for closures, so you know your money will be safe if the bank ever shuts down. 

Therefore, you don’t need to worry that your money is safe and can focus on growing your business. 

You can check out our page to stay ahead and get regular updates on the business world and economy. At CFI.co, we aim to give you the best insights from world-leading organisations that will help your business thrive. 

Move Banks and Get the Service You Deserve

Nowadays, digital banks are created every day. There is no longer a need for visiting a branch and going for regular meetings that take time out of your day. 

Switching to a different bank is necessary if you keep having trouble with customer service, there are increasing fees, and the bank no longer meets your needs. 

Thankfully, after reading this article, you know the signs to watch out for and how to find the perfect bank. 

If you need more help, visit our page and stay informed about everything business-related. 

Banking

Top 6 Ways to Save Money on Your Banking Fees

Author ByCFI.co

How much did you pay the last time you went to an ATM? Banking fees can be a huge source of frustration for many people. However, it’s important to note that not all banks charge the same fees, and some are more likely than others to penalise customers for using their accounts.

That said, there are ways to save money on your banking fees and some common bank fees you can avoid. By following these tips, you can ensure that you’re not wasting money when it comes time to pay your monthly bills.

Let’s dive in. 

1. Keep Your Balance High

One of the easiest ways to save money on your banking fees is to make sure you keep your balance high. This can be done by not spending money regularly, or by setting up direct deposits for automatic payments.

It’s a good idea to get in the habit of checking your account balance each month and keeping it as high as possible. This also enables you to keep an eye on bank account fees and dispute them if necessary. 

If you have a high enough cash balance, many banks will waive monthly bank account fees or other charges simply because they don’t want to lose out on potential revenue from having their customers pay those fees.

2. Get an Interest-Earning Account

Interest is a reward for lending money. Interest rates have recently risen due to the current inflation crisis. Banks pay interest on savings accounts, certificates of deposit (CDs), and some money market accounts.

The amount you earn depends on the type of account and its balance. Generally speaking, the more you have in your account, the higher your rate will be—but that’s not always true!

If a bank offers an “interest checking” account with a low minimum opening balance requirement and no monthly service fee, it can be pretty attractive. It also makes sense to link any high-balance savings or CD to your checking account.

That way, you won’t get hit with unnecessary fees if you move money between these two types of accounts too often. Equally, it won’t affect you if you exceed certain limits while making transfers between them.

3. Set Up Direct Deposits

Setting up a direct deposit option is one of the best ways to save money on banking fees.

When you receive your paycheck, most employers will allow you to have the funds deposited into a separate account. This is called direct deposit and can be set up at any bank or credit union.

When you set up direct deposit, the check must go directly into an account that isn’t attached to your debit card in any way (such as an online checking account).

Direct deposit avoids all types of checks, which means no more trips back-and-forth between work and home or worrying about lost or damaged checks that could cost you even more money in replacement fees.

If you’re a sole trader or run your own business, consider hiring a personal accountant to help you save fees and arrange your finances. 

4. Opt for Online Statements

One way to save money is by opting for online statements. Some banks will charge you if you choose paperless statements, but if you do so, they’ll often waive those fees.

Some other benefits of online banking include the fact you can stay up to date on your finances without having to go into the bank or send someone a paper statement every month

If your bank offers it, there are usually tools like bill pay and mobile check deposit available on their website as well

This gives you more opportunities for catching mistakes before they happen—like missing a payment or overdrawing an account after paying some bills—and prevents them from escalating into larger issues that could negatively impact your credit score or even lead to bounced checks and late fees

5. Don’t Use Your Debit Card for Purchases

To save money on your banking fees, you can also opt to use credit cards instead of debit cards. Credit cards have higher interest rates and thus come with more fees.

However, they do not charge debit card transactions or foreign exchange fees (which are levied when using your debit card abroad), so these additional charges can be a good deal depending on how much you use it in the first place.

6. Stay Away From ATMs That Aren’t From Your Bank or Credit Union

If you’re going to be making a lot of transactions with your debit card, it may be worthwhile to consider using an ATM that is owned by your bank. Many banks will waive their own ATM fees for customers who use their ATMs, which can save you money if you have to do a lot of ATM-related transactions.

If this isn’t an option or doesn’t work for whatever reason, credit unions are another good alternative. Credit unions tend not to charge as much in fees as large banks and are often more profitable for consumers as well because they’re smaller institutions focused on helping members rather than maximizing profits. Still, you should avoid bank fees altogether. 

If there’s one near where you live that offers lower rates and better services overall (such as low-interest rates and higher savings bonuses), then it might make sense for you to switch over from your current bank account so that you can avoid paying those extra charges every month instead!

Yet another option would be switching over to something like Bitcoin due to its lack of fees (and potential increase over time).

It Doesn’t Take a Lot of Effort to Save Money on Banking Fees 

Keep your balance high, get an interest-earning account, and shop around.  These are just a few of the ways you can save money on your banking fees.

There are many others, so don’t be afraid to ask questions and do some research when you have some spare time. 

For more stories like this, be sure to check out our finance page.

Business

Tips for Americans Buying Parisian Apartments

Author ByCFI.co Blogger

Being one of the most popular tourist destinations worldwide, France can easily win your heart over. If you’re reading this page, you belong to many foreigners who decided to invest in a vacation home or settle in France for longer after a visit.  Statistically speaking, Americans belong to 3% of the foreign real estate buyers in the country of pastries, wine, and cheese, with the most popular location as French Alps, Paris, and Cote D’Azur. Yet Americans face many challenges when searching for real estate in Paris. Here are six main tips for you not to make common mistakes and survive in one of the most competitive markets in the world.

Paris

  1. Figure out the legal part of the equation.

The first thing you should do –  is research if your dream of owning a home in Paris is doable. Note that it’s a complicated process for Americans to get approved for a French mortgage, and the last thing you want to do is deal with the world-famous French bureaucracy. So before you send the “France houses for sale” request to Google, ensure your finances are all straight.

Visa-wise, Americans can stay in France as tourists for up to 90 days without a visa. If you’re planning to work, study, or stay in the country for a long time, you should obtain a long-term visa or a residence permit. Information on the visa requirements you can find on the France-Visas official website.

Another moment to remember is if you were hoping to rent your Parisian apartment whenever you’re back in the US, it wouldn’t be possible. Under newly-introduced French law, you can rent your property up to 120 dates per year only if it’s your first place of residence. Accordingly, the short-term or long-term rental is possible for the second home minimum of a year.

  1. Choose the best-suited neighborhood.

In a large metropolitan city like Paris, the location is crucial. When you come for a vacation, you want to feel safe yet close enough to major activities, shopping areas, and restaurants. Each Parisien’s arrondissement has a vibrant info structure, cozy cafes, and pastry shops with fresh croissants. Just put on your comfiest shoes and walk around each arrondissement to see how the atmosphere and ambiance change day to night. Avoiding touristic areas will help you save some dollars and immerse you in the true Parisien lifestyle. As the apartment prices vary depending on the location, being more expensive doesn’t always mean a better deal. You will never go wrong with apartments in the top-rated neighborhoods, as even during the crisis, those places sell for big money.

  1. Partner up with local and experienced real estate agents.

The best strategy for a successful buy is cooperating with a local agent. There is no such thing as a multi-listing in Paris, even though they have almost 4000 real estate agencies. Without multi-listing services, each agent has a limited database of housing they can provide you with. Take your time in choosing the realtor to hire. Consider their experience working in your budget frame and arrondissement you prefer,  the number of annual closing, and most importantly, their communication skills. Verify the agent has good English and won’t have trouble understanding your requests.

  1. Explain that you’re ready to pay the market price.

This tip might seem controversial at first. However, this is how you get most of the listings. Many buyers want to have a bargain and avoid paying for the overpriced property. Yet the agents won’t even bother sending you the links for showings if they see your “unrealistic” budget. With such a competitive market, your goal is to be taken seriously and get as many showings as possible. After seeing the place, you can still negotiate the price or expand the budget if you fall in love with the listing.

  1. Prioritize your requirements.

Be realistic while setting your must-haves. Paris is famous for its impeccable architecture, yet it’s a different house-planning from the US. The bathrooms are usually smaller, but it’s common to have a cute window there. It’s rare to find a spacious kitchen with an island or even an elevator in the building. So put your American standards aside and make your requirements list based on non-negotiable needs:

  • a place for a washing machine and dryer;
  • amount of rooms for all family members;
  • location;
  • easy access to higher floors with elevator;
  • a view (it’s common for Parisian windows to face the wall, and no one wants to see that on their vacation).

For those who are not ready to sacrifice their comfort and would still want a spacious place to live, there are many listings in Ile-de-France. The outskirts of Paris are full of historical or modern houses, with big backyards and enough space to fit a big family. The little old towns with cozy atmospheres and local produce are only 20-30 min away by train or a car ride from the city center of Paris.

  1. Remember the remodeling cost.

There is no benefit in buying a cheaper apartment to save up on location when the remodeling cost stays the same. In the long run, you’ll be paying more for repair work, redecorating, and labor, especially if you don’t have an elevator with six floors up. At the same time, a place that is a bit out of budget yet in the perfect state will require investment only in interior design.

The bottom line

Paris is a City of Love, and impossible not to fall in love with it! When apartment shopping in Paris, keep your mind open to get the best deal out there.  The French vacation home is an achievable goal requiring a bit more work and flexibility. Yet, following all the tips and cooperating with the right agent will guarantee you to find a second home in the heart of France in no time.