CFI.co Blog - Page 39 of 47 - Business, Finance, Economics

Saving for retirement is so stressful when you feel like it’s all you can do to make it to the next paycheck. With more than half the American public feeling like they’re behind on their retirement planning, that’s a lot of stressing out!

In the following article, we’re going to address what you can do to turn the tide. But first, let’s look at the obstacles that are keeping you from it.

Why You’re Not Saving

Saving is easy once you get started doing it. But it can be very difficult taking the first step. This is usually due to us believing certain falsehoods we’re about to get into, but also could be due to some seemingly legitimate reasons.

Not Enough Income

Living paycheck to paycheck is an unfortunate reality for millions of people. If it’s all gone by the time the next check comes around, how could you possibly find enough wiggle room to put back for your retirement?

Failing to Track Your Spending

Some families don’t make enough money. That’s indisputable. But a large number of us also spend more than we intend to by failing to scrutinize the things we’re buying with meaningful detail.

Convincing Yourself You Cannot Afford It

Sometimes you can afford more than you think but you’re so downtrodden from the feeling of not getting ahead that you fail to realize the opportunities. We’re going to say something crazy here, but it’s true. You can always afford to save something.

Spending Therapy

This is one a lot of us have been guilty of. We’re so dejected by the lack of extra money each pay period that we get fed up with never having the chance to enjoy life and end up spending more than we should, thanks to weak sales resistance, a lack of willpower, and a little plastic.

Now you know the behaviors and situations that are causing the drama. It’s time that we looked at some solutions for what to do about it. Follow as many of these as you can, and you’ll have a retirement account before you know it.

1. Design the Lifestyle You Want

Before considering a savings account or any other financial instrument, get your goals in order. Don’t obsess over the harsh reality. Picture where you want to be.

What is a realistic lifestyle you would like to have if you were to ever pay your way out of debt? What does fiscally responsible behavior look like and how does it balance with what you like to buy or do?

2. Assess Where You Are

Still not quite ready for the retirement account. Instead, it’s time to assess where you are. And we mean where you truly are.

Go over your ongoing expenses with a fine-toothed comb. Account for every dollar you make. Compare the two to see how much discretionary income you have (or how much more you’ll need to earn).

3. Start Small

The smart saving habits have nothing to do with volume. Few people ever get rich overnight. They do it by incremental savings over time, thanks in part to the concept of compounding interest.

Enjoying any of that, however, requires that you save something, even if it’s just one percent of what you make. Get comfortable saving before upping the ante.

4. Know When to Get More Aggressive

Another important thing to learn when investing money wisely is that there will come a time when you can and should be more aggressive. Many analysts suggest taking the risk on more volatile investments (like emerging markets) when you’re in your 20s, for instance. Then, work in more conservative investments the closer you get to retirement.

That’s ideal. But it may not be for everyone. People who start late and are trying to catch up to their retirement number, namely.

The point: there’s a time to be aggressive and a time to be conservative in your investment decisions. Learn when those times are for you.

5. Choose the Right Financial Instruments

There are many retirement accounts and investment options to choose from. Employees often have the option of saving pre-tax dollars through a 401k. Self-employed individuals prefer the Roth IRA, which can be withdrawn at retirement tax-free.

You also might consider round-up accounts that go up to the nearest whole dollar and are tied to your debit card transactions. For every purchase you make, whatever change gets you to the next whole dollar goes into an investment portfolio.

6. Target the Amount You Will Need to Retire Comfortably

Use a retirement calculator to gauge how much money you’re going to need for retirement. From there, play with the numbers to see how aggressive you need to be in your savings for where you are at this moment in life.

7. Make More Money

Easier said than done, right? Not necessarily. The Internet has opened up a plethora of ways we can use our existing talents to make extra money on the side.

If you do start a side gig, however, make sure you hold out 30 percent for tax purposes. That’s considered self-employment money, so you won’t have an employer to pay half of your Social Security and Medicaid costs.

8. Cut Unnecessary Expenses

Are there any entertainment subscriptions you can live without? What about meals and coffees out?

Scrutinizing your spending will highlight opportunities to reduce your output. It won’t solve all your problems, but it will free up some money to go into a retirement account.

9. Capitalize on Your Benefit Offerings

This isn’t for everyone. But if you do work with an employer that offers a 401k with matching, take advantage of it. That’s like getting double for each contribution you make, up to three or five percent anyway.

10. Invest in Life Insurance

We recommend this because a) some life insurance builds cash value that can be withdrawn or borrowed against, and b) it will leave your family with options in the event something happens to you and you haven’t saved any money for retirement or unexpected expenses.

Yes, insurance is an ongoing expense. But it also provides you with enough peace of mind to not be discouraged when your retirement planning falls behind.

11. Enjoy Your Money When You Can

You can’t take it with you, and you’re only young once. Take advantage of a healthy mind and body by finding some room to enjoy your money when you can. Do it without feeling guilty, too.

Saving for Retirement Doesn’t Have to Be a Chore

Saving for retirement can be gratifying when you see those small contributions start to add up. Whatever you do, don’t be discouraged by a lack of progress. Start saving whatever you can now, and you won’t regret it.

Good luck! And if you’d like any help with retirement questions or other financial advice, try our Letters to the Editor feature today.

Politics

EIT scales up support for innovators across Europe in 2020

ByCFI.co Blogger

In 2020, the European Institute of Innovation & Technology (EIT) will invest EUR 500 million in its Knowledge and Innovation Communities across Europe – the EIT Governing Board decided. This investment will drive European innovation in the areas of climate (EIT Climate-KIC), digitisation (EIT Digital), food (EIT Food), health (EIT Health), sustainable energy (EIT InnoEnergy), advanced and sustainable materials (EIT RawMaterials), manufacturing (EIT Manufacturing) and urban mobility (EIT Urban Mobility).

The EIT’s eight Knowledge and Innovation Communities competed for EUR 500 million and were evaluated against their strategies and business plans for 2020, as well as their performance to date. Based on this, the EIT Governing Board decided to allocate the following grants (in order of their selection in 2009, 2014, 2016, and 2018*):

EIT Climate-KIC: EUR 78.4 million

EIT Digital: EUR 66.2 million

EIT InnoEnergy: EUR 77.8 million

EIT Health: EUR 85.1 million

EIT Raw Materials: EUR 81.7 million

EIT Food: EUR 55.1 million

EIT Manufacturing: EUR 26.8 million

EIT Urban Mobility: EUR 28.8 million

In addition, the EIT Governing Board also decided to allocate EUR 30 million to the EIT Regional Innovation Scheme (EIT RIS) – the programme that helps modest and moderate regions (according to the European Innovation Scoreboard) to fully realise their innovation potential through the sharing of good practice and experience from across the EIT Community. The EIT RIS fund will be available to all EIT Innovation Communities that include EIT RIS eligible activities in their 2020 Business Plans. The EIT Governing Board also decided to allocate EUR 12.5 million for joint activities between Knowledge and Innovation Communities, as for example in the areas of artificial intelligence and Skills 4 Future.

In addition, the EIT Governing Board put in place a Task Force on enhancing innovation and entrepreneurship in higher education institutions, in preparation for the EIT’s role in Horizon Europe. The Task Force will be chaired by Patrick Prendergast, Member of the EIT Governing Board, and will include representatives of the European Commission (DG EAC).

Dirk Jan van den Berg, Chairman of the EIT Governing Board, said: ‘I am very pleased to see the progress in the past year, which is strongly based on the focused stewardship of the EIT’s Governing Board. It is crucial that the opportunities the EIT community offers innovators are scaled-up across the whole of Europe. Why? This investment is not just to create another product, or power another start-up; it’s to bring about the urgent need for more innovative European solutions at a much larger scale to tackle pressing societal challenges.’

Martin Kern, EIT Director, added: ‘The EIT is now Europe’s proven innovation engine and 2020 will see strong impact from our eight Knowledge and Innovation Communities, based on their submitted plans. Our results clearly show that the EIT’s investment delivers and turns ground-breaking ideas into products and services for a greener, healthier, more sustainable Europe. We particularly look forward to scaling up our support for innovators and entrepreneurs in countries where EIT Knowledge and Innovation Communities have a limited presence. I would like to thank the EIT Governing Board Members for their strong strategic steering of the EIT community.‘

Investing in what works

The 2020 funding will step up activities for entrepreneurs, innovators, and students, including business creation and acceleration services, entrepreneurial educational programmes and innovation-driven research projects. These activities have been shown to work, delivering tangible impact for Europe. In 2020, the EIT Community plans to power 1000 start-ups and scale-ups and launch more than 360 new products and services to contribute to Europe’s efforts of tackling global challenges. More than 900 students are expected to graduate from EIT labelled master and doctoral programmes, strengthening the pool of talented and entrepreneurially-minded change agents eager to transform their best ideas into solutions for Europe. It is foreseen that in 2020 alone, ventures supported by the EIT-Community will raise over EUR 400 million in external capital.

Since the EIT was set up in 2008, it has created Europe’s largest innovation community, with more than 1 000 partners and 50 innovation hubs. This has delivered support to more than 2 000 start-ups and scale-ups, created more than 6 100 jobs and more than 900 new products and services. More than 2200 students have graduated from EIT-labelled master and doctoral programmes. To date, EIT-supported ventures have raised more than EUR 1.5 billion in external capital.

EIT BACKGROUND: Europe’s future is connected to its power to innovate!

What is the European Institute of Innovation and Technology (EIT)? The EIT was created in 2008 to strengthen Europe’s ability to innovate and is an integral part of Horizon2020, the EU Framework Programme for Research and Innovation. The EIT is a unique EU initiative, the only one to fully integrate business, education and research. The Institute supports the development of dynamic pan-European partnerships among leading universities, research labs and companies. (EIT in a nutshell Infographic)

What has the EIT Community achieved? EIT Community Success Stories

What is the EIT Governing Board? The Governing Board is the EIT’s principal governing body, entrusted with the strategic leadership and overall direction of the operational activities implemented by the EIT Headquarters in Budapest. The Governing Board brings together 12 leading Members from across Europe, balancing prominent expertise in business, education, innovation and research fields.

What challenges do the EIT’s Knowledge and Innovation Communities focus on? EIT Knowledge and Innovation Communities work in the area of:

Climate: accelerating the transition to a zero-carbon economy, EIT Climate-KIC,

Digitisation: driving Europe’s digital transformation, EIT Digital,

Energy: achieving a sustainable energy future for Europe, EIT InnoEnergy,

Health: giving EU citizens greater opportunities to enjoy a healthy life, EIT Health,

RawMaterials: developing advanced & sustainable materials for Europe, EIT RawMaterials,

Food: leading the global revolution in food innovation and production, EIT Food,

Urban mobility: solving mobility challenges of our cities, EIT Urban Mobility, and

Manufacturing: strengthen the competitiveness of the EU’s manufacturing industry, EIT Manufacturing.

They offer a wide range of innovation and entrepreneurship activities. This includes education courses that combine technical skills with entrepreneurial ones, business creation and acceleration services, and innovation-driven research projects.

*The Knowledge and Innovation Communities have a lifespan of 7-15 years. During this time EIT funding is in principle gradually increasing until year seven and starts to decrease thereafter.

More information on EIT Community activities.

The EIT – Making Innovation Happen! For more information visit eit.europa.eu & follow @EITeu on Twitter

Finance

Snow Software Acquires Embotics

ByCFI.co Blogger

Snow fortifies its ability to deliver complete technology intelligence with Embotics’ award-winning hybrid cloud management platform

UK – Dec. 4, 2019 – Snow Software, the global leader in technology intelligence solutions, today announced it has acquired Embotics, a hybrid cloud management company. This acquisition brings together two market leaders, enabling CIOs to understand and manage their full technology stack from software and hardware to infrastructure and applications, regardless of whether they live on-premises, in the cloud or in a hybrid environment.

Embotics offers a platform-neutral cloud management solution with one of the quickest time-to-value in the industry. It provides a fast and easy way to automate provisioning, reduce costs and ensure governance across private, public, hybrid and multicloud environments. Leading enterprises such as Nordstrom, NASA and HBO, and service providers like LG CNS and NTT Data, use Embotics to drive their digital transformation.

“The rapid adoption of hybrid cloud by the enterprise has created new challenges for technology and business leaders who must maximise the efficacy and efficiency of technology without sacrificing innovation, productivity or security,”said Vishal Rao, President and CEO of Snow. “Technology intelligence is the future of asset and cloud management, moving beyond the silos created by point tools to provide the insight and manageability organisations need to gain a competitive edge. Embotics is a highly strategic addition to Snow’s portfolio. We are thrilled to welcome the team to Snow and deliver even greater value to our customers and partners.”

“We built Embotics to provide enterprises and service providers with an easier, faster, platform-neutral and fully integrated solution for managing the hybrid cloud and beyond”said Jay Litkey, Founder and President of Embotics. “Today, these organisations are strategically blending on-premises, private, public and multicloud architectures, and that requires a flexible and multi-faceted approach to gain agility through automation while controlling costs and risks. By joining forces with Snow, Embotics will continue to address these issues and answer the next generation of challenges with integrated capabilities at a global scale. Both organisations have a customer-centric DNA and commitment to innovation that will help us achieve our shared vision of technology intelligence.”

Together, Snow and Embotics will offer the first platform that delivers CIOs an integrated perspective across their entire technology stack, empowering them to tackle use cases that require insight into both on-premises and cloud services, such as cloud migration planning, Bring-Your-Own-License (BYOL) optimisation and hybrid cloud cost management. The process of integrating Embotics into the Snow platform will begin immediately, and the companies will have a single go-to-market strategy starting in 2020. The combined business will be optimally positioned for strong growth with an expanded market presence as well as the field and operational resources needed to deliver cloud management at a global scale.

“As IT organisations work to balance transformation initiatives with day-to-day operations, hybrid and multicloud strategies are essential for today’s enterprise,” said William Fellows, Founder and Research Vice President at 451 Research. “Workloads now span public cloud, private cloud and legacy on-premises environments, and that mix is constantly changing to address the needs of the business. With Snow’s acquisition of Embotics, the market will benefit from the combination of their respective strengths on-prem and in the cloud, most notably when it comes to solving the unique challenges of hybrid environments.”

For more information on the acquisition and Snow’s platform, visit www.snowsoftware.com.

About Snow Software

Snow Software is the global leader in technology intelligence solutions, ensuring the trillions spent on all forms of technology is optimized to drive maximum value. More than 4,000 organizations around the world rely on Snow’s platform to provide complete visibility, optimize usage and spend and minimize regulatory risk. Headquartered in Stockholm, Snow has more local offices and regional support centers than any other software asset and cloud management provider, delivering unparalleled results to our customers and partners. To find out more about Snow Software, visit http://www.snowsoftware.com/ and follow Snow on Twitter @snowsoftware.

Banking

NDB Board of Directors meets in Shanghai, approves three projects with loans aggregating to USD 937 million

ByCFI.co Blogger

On December 2, 2019, the 22^nd Meeting of the Board of Directors of the New Development Bank (NDB) was held in Shanghai, China.

The Board approved three projects with loans aggregating to approximately USD 937 million, bringing the NDB’s portfolio to 49 projects with loans aggregating to USD 13.7 billion.

Hubei Huangshi Modern Tram Project

The NDB will provide a loan of RMB 2.76 billion (approx. USD 400 million) to the People’s Republic of China for Huangshi Modern Tram Project. It will address urban transport connectivity problems in Huangshi, a municipality in the southeastern part of Hubei Province, through the construction of a modern tram network with a total length of 27.33 km. The components of the Project include: i) laying of tracks, construction of stations and installation of associated facilities for the tram network; ii) procurement of rolling stock; and (iii) consultancy support for commissioning, preparation of operations and maintenance plan, capacity building and project management.

Manipur Water Supply Project

The NDB will provide a loan of USD 312 million to the Republic of India for Manipur Water Supply Project. It will address serious challenges in clean drinking water supply in Manipur, a small mountainous state in the northeastern region of India, through construction and upgrade of drinking water supply infrastructure. The components of the Project include construction and upgrade of drinking water supply systems in: i) Imphal Planning Area, the capital city of Manipur; ii) additional 25 towns; and iii) 1,731 rural habitations.

Indore Metro Rail Project

The NDB will provide a loan of USD 225 million to the Republic of India for Indore Metro Rail Project. The Project is to implement a metro line of approximately 31 km in the city of Indore. The Project will provide mass rapid transit capacity for the city’s major mobility corridors, thereby contributing to local economic development and an improved urban environment by reducing traffic congestion and pollution.

The Board also approved technical assistance totaling to USD 0.7 million for two projects from India and Russia.

Mizoram Tuirini Small Hydro Project

The NDB will provide technical assistance of USD 300,000 to the Republic of India for Mizoram Tuirini Small Hydro Project. The NDB’s technical assistance will provide consulting services aimed at preparing the Mizoram Tuirini Small Hydro Project. The project envisages construction of a small hydropower plant with an installed capacity of 24 MW in the state of Mizoram, to increase installed power generation capacity of Mizoram.

Krasnodar Cable Car Project

The Bank will provide technical assistance of USD 400,000 to the Russian Federation for Krasnodar Cable Car Project. The NDB’s technical assistance will provide consulting services aimed at preparing the Krasnodar Cable Car Project up to the stage when it can be considered by external financiers to seek approval for its financing. The project envisages the construction of a cable car network to be used as an alternative public transportation modality in Krasnodar city, Russia to relieve traffic congestion.

It is the first time that the NDB Board of Directors approved the provision of technical assistance through the Bank’s Project Preparation Fund (PPF), a multi-donor fund open to contributions by all the Bank’s members. The PPF’s objective is to support preparation of bankable projects to facilitate borrowing member countries to raise funds for such projects from the NDB or other multilateral development banks.

During the Meeting, an update on the NDB project pipeline and status of approved projects was provided to the Board. The Board also discussed matters pertaining to equity investments, funding programme, treasury related matters, membership expansion, review of NDB’s General Strategy: 2017-2021 and development impact of the Bank’s operations.

On December 2, 2019, the 13^th Meeting of the Audit, Risk and Compliance Committee (ARC) of the New Development Bank was held in Shanghai. The ARC reviewed Quarterly Audited Financial Statements for the New Development Bank and the Project Preparation Fund of the NDB for the period ended September 30, 2019. The ARC also discussed matters pertaining to risk, internal audit and compliance.

The 8^th Meeting of the Budget, Human Resources and Compensation Committee (BHRC) of the New Development Bank was held on December 2, 2019. The Committee considered the Budget Utilisation Report for CY2019 and the Proposed budget for CY2020 as well as the three Year Budget for 2020-2022. The Committee also discussed matter pertaining to recruitment and diversity.

Background Information

The NDB was established by Brazil, Russia, India, China and South Africa to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries, complementing the existing efforts of multilateral and regional financial institutions for global growth and development. To fulfill its purpose, the NDB will support public or private projects through loans, guarantees, equity participation and other financial instruments. According to the NDB’s General Strategy, sustainable infrastructure development is at the core of the Bank’s operational strategy for 2017-2021. The NDB received AA+ long-term issuer credit ratings from S&P and Fitch and AAA foreign currency long-term issuer rating from Japan Credit Rating Agency (JCR).

Finance

High net worth millennials need professional advice. Here’s what those in finance need to know

ByCFI.co Blogger

Deloitte currently estimates that by 2020, millennials’ total net worth worldwide will be more than double what it was in 2015. There are several reasons that account for this trend, some of which include rising wages and the improving quality of life in developing countries.

However, there is another driving force: one of the largest intergenerational transfers of wealth in history.

Baby boomers, the children of the late 40s, 50s and early 60s, were able to buy property at a low-cost relative to income. Their homes, over the ensuing decades, have hugely increased in value; in the UK the average price of a house has doubled since 1996––even after accounting for inflation.

For millennials, this has had two implications. Firstly, many are reliant on their parents if they want to purchase a house. Secondly, they could be set to collectively inherit a huge amount of wealth. Research from EY suggests that those born between 1981 and 1996 in the US will receive $30 trillion from their parents in the next 20 years[1].

Consider the fact that the global economy is valued at $80 trillion, and the scale of this wealth transfer begins to become apparent. For those who already have property, along with high net worth (HNW) and ultra-HNW individuals, investing their new wealth in stocks and shares will be the order of the day, resulting in a changing client base for financial advisers.

Some things will be consistent with what has come before, according to research from Deloitte[2]; 82% of millennials still want to discuss their financial situation face-to-face with an adviser, meaning a wholesale switch to digital communication is unlikely. Furthermore, the ultimate aim for millennial investors will still be healthy and sustainable returns.

What could change is the kind of assets new investors are interested in. The growth of “impact investing”, also known as environmental, social and governance (ESG) investing, is particularly popular among millennials––EY predicts that almost a fifth of investments now under management worldwide are in sustainable financial products[3]. What’s more, two thirds of young people feel “obliged” to change the world for the better, meaning this is likely to inform their future investment decisions[4].

There are many examples of ESG investments providing good returns. The Cordes Foundation, headed by 29-year-old Steph Stephenson, has 100% of its $230 million in impact investments––and achieved an average yearly return of 8%[5].

The rise of millennial HNW individuals has one major implication for financial advisers: they need to be entirely up to speed with ESG financial products and the options available to millennial investors. With the importance of ESG products to the financial sector only likely to increase in markets around the globe, this is an important task that must be prioritised.

Alpa Bhakta is the CEO of Butterfield Mortgages Limited. Part of the Butterfield Group and a subsidiary of The Bank of N.T. Butterfield & Son Limited. Butterfield Mortgages Limited is a London-based prime property mortgage provider with a particular focus on the needs of UK and international HNW individuals.

[1] EY (2017), Sustainable Investing: The millennial investor

[2] Deloitte (2015), Millennials and wealth management

[3] EY (2017), Sustainable Investing: The millennial investor

[4] Deloitte (2015), Millennials and wealth management

[5] Sarah Murray (2019), Rich millennials push to put family wealth into impact investments

Lifestyle

Novice rower swaps big data for big waves to row the Atlantic – cheered on by Coldplay

ByCFI.co Blogger

Crown Records Management account manager takes on the world’s most gruelling rowing race

Novice rower swaps big data for big waves to row the Atlantic – cheered on by Coldplay

A records management professional who is swapping big data for big waves is set to row the Atlantic – cheered on by rock band Coldplay.

Claire Allinson of Crown Records Management normally spends her time as an account manager in Enfield, London, but will soon be part of a three-strong team attempting to row from La Gomera in the Canary Islands to Antigua in the gruelling Talisker Whisky Atlantic Challenge.

Claire, who had never rowed in her life before starting training two years ago, was inspired to raise money following the death of her dad from cancer.

And she has since pulled off an incredible coup – by not only persuading her employers to sponsor the boat but also coaxing Coldplay to support her too.

The legendary band, fronted by Exeter-born Chris Martin, have made a big donation to support the team who are raising money for Blood Bikes, a charity dedicated to providing an ‘out of hours’ service delivering essential items to NHS hospitals and hospices.

She said: “It’s a special charity to me because thanks to their fast action dad was around for precious extra time and even able to walk me down the aisle at my wedding.

“We all have very personal reasons for taking up the challenge and we are just ordinary women who want to achieve the extraordinary.

“To get support from Coldplay has been amazing. It all started when I bumped into Chris Martin’s dad Anthony and it has snowballed from there. We are so grateful for their backing.

“It’s not just the donation, they have also been Tweeting out support on social media. I’m a huge fan, so it means a lot.”

Claire has also received backing from Crown Records Management, which has sponsored the team’s Rannoch ocean rowing boat and allowed her to take three months off.

“The journey could take us 65 days, so it’s a long period off work,” she said. “My bosses have been really supportive, and my workmates have rallied round and agreed to do extra work to cover for me as well.”

As a Cross Fit fan, Claire has always had incredible stamina. But her practice routine involved getting up at 4am, training twice a day and then rowing for 36 hours every weekend for 24 months to prepare for the challenge.

She is joined in the boat by Bird Watts from Mevagissey and her 60-year-old mother Mo O’Brien from Penzance (who is severely hearing impaired).

The trio are also supported by a fourth member of the Oarsome Foursome, Linda Whittaker, who will be land crew support for the trip.

Linda completed two years of training but then developed such severe sea sickness that she was sadly forced to pull out.

Once on their way, the team could face 40ft waves and will row in six-hour shifts – two hours with 100 per cent effort, two hours with 50 per cent and then 2 hours of rest. But they must also keep a constant lookout for sharks.

“It’s a bit different to records management, that’s for sure,” said Claire.

You can keep up to date with the adventures of the Oarsome Foursome by visiting https://www.oarsomefoursome.co.uk/ or following @OarsomeFour on Twitter.

A full interview with Claire is available at: https://www.crownworldwide.com/en-us/article/interview-with-claire-allinson–one-of-the-oarsome-foursome

The rowers are also raising money for Exmouth and Lympstone Hospice Centre and Carefreespace, which helps support unpaid carers.

RACE FACTS:

The rowers will row between 3,000-3500 miles to reach their destination.
Forty teams are taking part and two safety yachts with access to satellite phones will accompany the teams.
The Atlantic Ocean is 5.28 miles deep.
Waves can reach 40ft high.
Together the team will row 1.5m strokes during the race.
Each rower needs to drink 10 litres of water and eat 60 calories per kg of bodyweight a day to keep them alive.
The rowers will burn 5000 calories a day and lose 12kg in weight during the race.
They will also battle blisters, sea sickness, severe exhaustion and even hallucinations.
More people have climbed Everest than have completed the Talisker Whisky Atlantic Challenge.

Banking

How Many Bank Accounts Should I Have? (At Least Three)

ByCFI.co

In the past, people had a checking account and a single savings account. But those were the days when you paid by check and had to go into the branch to do any banking.

Times have changed! We can now send and receive money with a click of a button on your smartphones. So why are we still stuck in the same account habits?

If you’ve asked yourself, “how many bank accounts should I have?” read on. We’ve got all the answers.

How Many Bank Accounts Should I Have?

The average American has between $6000-$9000 in their checking accounts. But if you are one of those people, your money isn’t working as hard for you as it could be.

The great thing about multiple bank accounts is that you can separate your money for different purposes.

You can keep your money that is reserved for a vacation or emergency car and home repairs separate from your account that pays your monthly bills.
When your money is altogether in one lump sum, it is easier to spend money on things it wasn’t intended for.

Keep in mind that having multiple accounts is only beneficial if you aren’t paying a lot in fees and if the account doesn’t have minimum balance requirements.
Here are some of the best ways you can separate your money into various accounts.

Accounts for Saving

A savings account has many useful benefits. For one thing, these accounts tend to offer you higher interest rates.

Sometimes, these accounts place limits on how often you can withdraw from them. This might help you think twice about taking money out of your savings.
A lot of people have two different bank accounts: one savings and one checking.

But, two or more savings accounts are very useful for people who live paycheck to paycheck. Two or more savings accounts is a digital version of the jar saving system.

But instead of separating your savings into a jar labelled, car, school, and vacation, you have multiple accounts.
Here are some of the saving accounts you might have.

Emergency Fund

An emergency fund is a separate saving account that you use to save for unexpected costs.

For example, you could stash some funds in this account to save for job loss, unexpected car repairs and so on. Experts recommend 3-6 months of income be saved in this account.

Treat this account like a fire extinguisher in a glass case. You only break the glass and take out your money in a true emergency.

To grow this account, set an automatic transfer from your checking account on payday. It’s fine if you only deposit a little bit into this account each time you get paid. Over time, this fund will grow.

Short-Term Savings

A separate savings account can be set-up for your short term saving goals such as money for Christmas presents, a holiday or specific expenses like new tires for your car.

The goal of this account is to keep your money safe from accidental spending. You might have one for all your short-term saving goals, or you may prefer to have one for each goal.

The great thing about online banking is that you can name your accounts whatever you want. So you can make it clear what the purpose of each account is. Try to put a set amount into this account each pay period.

One way to help you stay on track is to figure out the total amount you need and when you need it by. Then divide that number by how many paychecks you’ll get until the goal date. This helps you figure out exactly how much money you need to set aside each pay to reach your goal on time.

Like the emergency fund, you do not use this money for bills, going out to eat or other superfluous expenses.

Long-Term Savings

You should also have an account for your long-term savings. You can save for things such as retirement or post-secondary education.
A regular savings account might not be the best place to grow your money.

Learn about investment management to help your money the most.

How Many Checking Accounts Should I have?

Now let’s talk about checking accounts. These accounts allow unlimited transactions such as withdrawals and purchases.

You may opt to have one checking account where you do all your spending. This means your paycheck gets deposited into this account. You also pay your bills from this account and buy groceries, gas for your car and go out to dinner from this account.

You can see how this may be problematic. The last thing you want is to spend money only to realize that now you don’t have enough for your rent or mortgage.
One of the best ways to avoid this is by having two checking accounts.

One account should be for your incoming funds such as paychecks. You should keep the funds you need for all your monthly bills in here.

Then, move the remainder of your money to a separate checking account. This is the account you can use for day-to-day spending. By doing this, you avoid spending money meant for your bills.

Final Words

There you have it. A complete guide to help you answer the question: “how many bank accounts should I have?”

Keep in mind that you may need to adjust this guide to suit your specific financial situation. You might find you need fewer accounts than we’ve suggested.

As long as you have a system that lets you divide your money into manageable and purposeful ways, that’s all that matters.

At CFI.co, we report on business, economics and finance to give you the information you need. Learn more about CFI here.

Banking

The Top 7 Best Private Banks Around the World

ByCFI.co

Exclusivity comes with a winnowing set of risk and a growing set of rewards. It costs money to reach for higher financial status, but obtaining such comes with a bevvy of perks.

It gets harder to manage everything the higher up you go, which is why specialized services come into being. Among the most broadly useful special services for the wealthy is the private bank. A place to house your wealth where it does work instead of collecting dust.

These banks offer more to their clients than other banking organizations. They offer fine-tuned control and added value to the banking experience, which explains why the largest private financial organization takes care of over 2 trillion USD.

But which bank does one chose for their own needs? A lot of factors go into making such a choice but this list will provide criteria and options.

Private Bank Offerings

The majority of what exclusive banks offer is hands-on experience and attention. Instead of dealing with a banker that deals with dozens, if not hundreds, of accounts, each getting a bit of nodding and hand waving when customers ask about their interest rates or money, a private bank offers professionalism.

Wealth Management

The growth and management of wealth ranks among the best private banking services.

The overlap between wealth management services and private banking is so large that it’s more worth mentioning how they are different. The largest benefit of a bank over a management service is accessibility.

Finances in a bank are more available in a moment without taking time to untie or vest before moving. Not all funds deposited stay completely accessible, but more so than with a management service.

Dedicated Personnel

Instead of having one banker with quotas and customers, you gain access to a dedicated person looking after you. This person may even be a team of people, depending. Their job is to work with you and your wealth to increase your bottom line and keep you aware of opportunities for growth.

You save time through individual attention. No going through a file each time you call to remember who you are. They know you and your needs on a personal level.

Dedicated Attention

The attention you receive from a personal representative bleed over into personal assistant territory. They anticipate your needs and offer additional help in planning and creating.

Network of Specialists

Your personal banker and banking team also bring you the benefit of other specialists. At some point, you will need to encounter and deal with tax attorneys, trust managers, and estate advisors.

your personal banker can offer referrals for each of these that they have personal experience working with. This saves you the time to vet and research for these people.

Perks in Pricing

Offerings, in terms of services, from a private bank contain everything you would see at a lower bank but with incentives woven throughout.

You can expect to see discounts and freebies on some services. It’s quite common to be offered free personalized checks or a safe-deposit box. While it’s not everything, can save upwards of $300 annually on a box.

Of course, most private banks have some fees for their services but it’s nice to see the value additions they supply.

Private Bank Profiles

Now that you have an idea of what types of services you’ll find in a private bank, you can evaluate the following. Each of these excels in their service, security, and returns tho their clients.

1. DBS Private Banking

This Singapore-based institution offers top-class digital transformation. They have trademarked the term iWealth to show their dedication to digital movements.

Their personnel are well versed in tech and connected to Asian and pan-Asian markets that seek to expand influence through the region. They’ve shown impressive growth in the last few years as well, jumping over 31% in assets in 2018.

2. J. Safra Sarasin

For those looking for a social-minded banking experience, Sarasin leads in programs bolstering societal goals.

The bank has been in operation since 1841 as a family-owned business. They have spent the better part of three decades building a reputation for sustainable technology.

They’ve grown while doing so, 23% in 2017 alone. They show that responsibility and social awareness can be profitable endeavours.

3. U.S. Trust

This top private bank offers a somewhat different set of offerings than others. Rather than focus on business owners and hairs, they work with executives and heads of industry.

The bank itself is part of a structure, as such, it is more branding than individual institutions. They work on stock options and retirement benefits for industry employees, which gives them substantial assets. Ideally, they work most often with C-Suite executives.

4. UBS

The top holding private bank is the world’s largest financier. It gained this honour after smart mergers between its U.S. management and its international operations. together they aim to provide the best and most complete investment and client services.

5. BBVA

Most private bank accounts start at $1 million in holdings. A few offer accounts for less, especially to financial movers, those with a definite possibility of increasing their portfolio rapidly.

BBVA works with a floor of $340,000.

Currently, it is involved with large housing markets in Spain and holds a presence in Latin American markets. These growing sectors provide new investment opportunities for clients.

6. Citi Private Bank

On the other hand, if you are looking to work with much more than the minimum, Citi Private is looking for that demographic. The bank caters to those with $25 million or more in assets.

They operate with a global strategic view, considering their high-end clients to be global citizens.

They work with multimillion-dollar investments and huge, intricate hedge funds. Their growth of 18% in 2017 shows they know who to influence and call shots.

7. Pictect

For those looking for something a bit more local, Pictect caters to the Western European market. An old-line Swiss bank in operation since 1805 with a foothold in Asia.

They work it old school, using investment banking and cross-selling of credit to bolster dividends. Pictect offers a small, cosy feel with a lot of clout in the world.

Finance a Future

Few people get to experience the thrill of shopping for a private bank. It’s not everyone that has the assets to qualify for joining one of these venerable institutions.

For further information on the banking industry and its impacts, read more here.

Business

SMEs in cashflow black hole as they wait for £24bn in late payments

ByCFI.co Blogger

Late payments up more than £10bn in a year

15% of British freelancers spend 4 hours and above a week chasing invoices

CEO of ETZ Payments, Nick Woodward, provides commentary on how late and inconsistent payments are hurting businesses and freelancers alike

Today, new research showed that Small and medium-sized companies are waiting to receive £23.4billion, up from £13billion in 2018. More than half of businesses are chasing money owed, with the bill for trying to collect it hitting £4.4billion, says retail payment authority Pay UK. This comes as ETZ Payments reveals startling national representative research that shows that nearly a sixth of freelance and contract workers spend over 10% of their working week chasing invoices and payments. The new research from PayUK showed that the average amount owed to each firm had risen from £17,000 last year to £25,000 today. This demonstrates that across the board, self-employed contractors, freelancers, and small businesses are under strain. As we near the general election and with almost guaranteed further Brexit uncertainty, SMEs and workers are going through one of the most turbulent periods of their existence.

Nick Woodward, CEO of ETZ Payments, a back-office solution provider for the recruitment sector, offers the following commentary:

“This year and next year will undoubtedly be a turbulent period for small businesses and workers alike with myriad political and economic issues and an increasing amount of late payments. This issue is seriously harming cash flow, investment and growth across the UK economy. There are over 2 million freelancers and 5.7 million SMEs today, and with financial constraints such as chasing invoices, this will harm productivity and profit, and more needs to be done by the next government to ensure that these entrepreneurs, business owners, managers and workers, are paid justly and on time to keep the economy moving.”

Banking

Cardstream Works With Banking Circle To Create Unique Lending Service

ByCFI.co Blogger

Joint white label solution allows Cardstream’s Partners to offer their merchants flexible and affordable business loans

www.bankingcircle.com

London, November 2019 – Independent payment solutions provider, Cardstream, has partnered with Banking Circle to pioneer a unique joint white label lending solution. Each of Cardstream’s more than 200 Partners provides payment services to many hundreds of SME merchants. Now, with the launch of this new initiative, they can offer these merchants access to affordable, flexible business loans which could make the difference between their success or failure.

To help smaller businesses access essential business financing more easily, Banking Circle entered the SME lending sector in 2018, launching Banking Circle Lending and Banking Circle Instant Settlement. These revolutionary new solutions were built in response to an SME study involving more than 500 businesses, which revealed the impact of high interest rates, high arrangement fees and inflexible repayment options when accessing funding through traditional lenders.

Cardstream identified that the Banking Circle Lending solutions would provide an important added-value for its Partners as CEO Adam Sharpe explained:

“Cardstream’s Partners enjoy strong and trusted relationships with the merchants to whom they provide our white labelled payment gateway service under their own trusted brand. Now, with this new service developed with Banking Circle, they can offer loans to any of their merchant customer businesses based on their online payments revenue.

“The loans are risk free to the Partner, who is able to retain a share of the revenue generated if this falls within its business model and merchant agreement. We believe it’s a win-win for both sides. The Partner enhances its merchant relationships and the merchants have quick access to valuable funding, whether to fill a cashflow gap or to support business growth.”

Anders la Cour, co-founder and Chief Executive Officer of Banking Circle added: “Banking Circle is committed to providing market infrastructure as a real alternative to traditional banking solutions, with the aim of increasing financial inclusion. As part of this, we wanted to deliver a more accessible lending solution for businesses in need of a financial boost.

“Now, through our partnership with Cardstream, more than 200 payment providers have access to our unique lending solution, meaning tens of thousands of small businesses can access the cash they need to expand, restock or simply survive a quiet period. In the past, these SMEs would have been unable to borrow the vital funds, which could have meant letting employees go or even business failure.”

About Banking Circle

Banking Circle is a next-generation provider of mission-critical financial services infrastructure leading the rise of a super-correspondent banking network. Banking Circle empowers banks and financial tech businesses to support customers’ trading ambitions – domestic and global – whilst reducing risk and the operational cost of transactions. Banking Circle solutions are increasing financial inclusion by helping thousands of businesses transact across borders in a way that was previously not possible.

In 2013 Saxo Bank formed a new entity, Saxo Payments A/S, with the purpose of using Saxo Bank’s core capabilities within the non-cash payments market. In October 2015 the company launched the Banking Circle – its ground-breaking product for payments and FX to the Financial Tech industry. In October 2017, the company launched its new identity for Banking Circle, to reflect its position as a financial utility, servicing Financial Tech businesses and banks. In September 2018, Banking Circle was acquired by EQT VIII and EQT Ventures, in partnership with Banking Circle’s founders.

Domiciled in the European Union, Banking Circle specialises in providing global banking services including accounts, payments, lending and foreign exchange services to financial institutions, including FinTechs, banks, acquirers, payment service providers, FX brokers, money transfer businesses, e-wallets, and alternative payment providers.

About Cardstream

FinTech success Cardstream is the UK’s largest independent provider of white label payment software and services. Its mission is to become the global standard for white label payment provision. Everything the company does is designed to give its partners the freedom, flexibility and control to deliver the unhindered achievement of their business objectives.

Cardstream’s breadth of relationships, advanced portfolio of features and acquirer independence ensures that its partners can build a payment proposition they control and that delivers the maximum financial return.

For further information and inteviews please contcat the Cardstream Press Office:

Leon Lee – Commercial Director

T: 0345 0099575

E: leon.lee@cardstream.com