Category: Wealth Management

Wealth Management

Don’t Wait Until You’re Older. Start Saving For Retirement Now

Author ByCFI.co

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. 

Asset Management

The Dutch Fund for Climate and Development open for business

Author ByCFI.co Blogger

The Hague, November 15, 2019 – The Dutch Fund for Climate and Development (DFCD) has officially been launched in the presence of government officials, NGOs, investors, politicians and other interested parties. In May of this year, the DFCD was awarded to the consortium of Dutch development bank FMO, SNV Netherlands Development Organisation (SNV), World Wide Fund for Nature (WWF-NL) and Climate Fund Managers (CFM). “Today’s launch means that the DFCD is officially open for business,” said Linda Broekhuizen, Chief Investment Officer at FMO. “The consortium is keen to connect with innovative entrepreneurs with climate-related businesses and with private investors keen to mobilize much-needed funding from the private sector to join us in our mission to create a more climate-resilient world.”

Climate change is one of the biggest challenges we face today. It is already affecting people and nature across the globe, with developing countries being most impacted. “The poorest communities are the most vulnerable to climate change. Poor farmers and others at the bottom of the pyramid suffer and lose their livelihoods even with small changes in rainfall patterns or temperature”, as Meike van Ginneken, Chief Executive Officer at SNV explained.

There is an urgent need for investment to enable vulnerable communities and ecosystems to adapt to climate change. Carola van Rijnsoever, Director of Inclusive Green Growth, and Ambassador for Sustainable Development, Dutch Ministry of Foreign Affairs, said: „The challenge we face to help communities adapt to and mitigate the effects of climate change is enormous, and the case for action is incredibly clear. We cannot do this with governments alone. We need all stakeholders to be strong enough to confront this challenge. The set-up of this consortium in which finance and NGOs come together, is unique and uniquely positioned to do this.“ The government of The Netherlands has committed to addressing this need through the DFCD, making EUR 160 million available in the period 2019-2022 for climate adaptation and mitigation, of which at least 50% is earmarked for climate adaptation projects.

DFCD is a direct response to the increasing demand for climate adaptation projects that have to date suffered from a lack of funding compared with mitigation efforts. Linda Broekhuizen adds: “In 2018, USD 612 billion was invested in climate mitigation which is important and much needed. In contrast however, only 5%, USD 30 billion, was invested in adaptation. Adaptation may have to be USD 180 billion a year if the 2030 goal is to reach the USD 1.7 trillion as required according to the most recent report of the Global Commission on Adaptation.”

To help bridge this funding gap the DFCD aims to mobilize upwards of EUR 500 million from private sector investors. Andrew Johnstone, Chief Executive Officer of Climate Fund Managers adds: “The opportunities are there. Take water for example: 80% of the world’s wastewater enters rivers and oceans untreated and by 2025, half of the world’s population will be living in water stressed areas. Neither the private nor the public sector is doing enough, but together the investment potential is enormous, as is the impact to be delivered.”

This partnership of NGOs and financiers seeks to develop and finance sustainable private sector solutions to enhance resilience to the effects of climate change. These projects will boost the health of freshwater, forest, agricultural and ocean ecosystems, and improve water management.

“The consortium takes a landscape approach through investing in projects which are planned in an inclusive manner, and build on a solid understanding of the landscape, ecosystems and communities. In this way these projects will contribute to healthier ecosystems,” said Kirsten Schuijt, Chief Executive Officer of WWF-NL. “New and incredibly exciting in this consortium is that there is early-stage funding available to convert adaptation opportunities into bankable projects.” 

WWF and SNV take on the key role of developing climate-relevant projects from an early-stage idea to a bankable business case. Climate Fund Managers and FMO provide investment capital, delivering projects to full operations. This combination of early-stage involvement with full life-cycle funding will ensure lasting, long-term impact that contributes to the Paris Agreement and the United Nation’s Sustainable Development Goals (SDGs).

Interested parties can contact the DFCD through: www.thedfcd.com.

The Dutch Fund for Climate and Development open for business
In picture from left to right the DFCD partners at the official launch event in The Hague: Andrew Johnstone, CEO of Climate Fund Managers, Kirsten Schuijt, CEO of WWF-NL, Linda Broekhuizen, CIO of FMO, Albert Bokkestijn, project manger DFCD at SNV, Carola van Rijnsoever, Director of Inclusive Green Growth, and Ambassador for Sustainable Development, Dutch Ministry of Foreign Affairs.

In picture from left to right the DFCD partners at the official launch event in The Hague: Andrew Johnstone, CEO of Climate Fund Managers, Kirsten Schuijt, CEO of WWF-NL, Linda Broekhuizen, CIO of FMO, Albert Bokkestijn, project manger DFCD at SNV, Carola van Rijnsoever, Director Inclusive Green Growth, and Ambassador Sustainable Development, Dutch Ministry of Foreign Affairs.

Business

The growing movement of people fuels demand for international tax advice

Author ByCFI.co Blogger

4 November 2019

The increasing global movement of people and businesses is driving the significant growing demand for international tax advice. 

The observations come from deVere Tax Consultancy, part of deVere Group, one of the world’s largest independent financial advisory organisations, which operates in more than 100 countries.

The world is currently experiencing the highest levels of movement on record.  

According to the International Organization of Migration, the leading inter-governmental agency in the field, approximately 258 million people – or one in every 30 – were living outside their country of origin in 2017.

That is both a record high – and a number that has beaten all expectations. Indeed, a 2003 projection anticipated that by 2050, there would be around 230 million based outside their birth nation. But the latest projection has been dramatically revised upwards – there will be more than 405 million living away from their country of birth by 2050.

James Green, divisional manager at deVere Group, observes: “We’ve noted a year-on-year increase in international tax advice enquiries of more than a third.  

“This can be attributed, we believe, to three key factors.

“First, is the increasing movement of people. Whether driven by geopolitical, work or lifestyle reasons, more and more individuals are on the move around the world.  

“In addition – and despite the rhetoric of some populist politicians – globalisation in the world of trade and commerce is here to stay and is, if anything, gaining momentum as it encourages economic growth, creates jobs, makes firms more competitive, and lowers prices for consumers.

“Second, since the global financial crisis both individuals and companies have become more financially literate and aware of the importance of specialist financial advice, especially when it comes to cross-border affairs.

“And third, the reporting and tax filing requirements are increasing in most jurisdictions.  For instance – and this is just one example – in the U.S. where the Foreign Account Tax Compliance Act, or FATCA, is almost universally recognised as being burdensome, onerous and complex.”

Director of deVere Tax Consultancy, Mitch Young, notes: “The enquiries are coming from both internationally-mobile individuals and firms who are seeking advice on compliant and up-to-date tax filing, residency issues, inheritance tax, self-assessment, property tax structuring and disclosures, national insurance contributions, trusts and wills.

“Due to this considerable surge in demand for our services we have recruited more senior tax consultants, account managers and in-house barrister intermediaries.

“We have also launched our first tax apprenticeship scheme to find and train the top tax talent of the future.  In addition, we’re in the process of building an international tax network to meet the needs and expectations of our clients.” 

James Green concludes: “The demand for international tax advice is set to grow further still as the world becomes increasingly globalised and as the cross-border regulatory landscapes continue to evolve – and at a faster pace.”

Banking

Global Lending Automation Platform Trade Ledger Announces £1.5m Funding Round Led by Hambro Perks

Author ByCFI.co Blogger

The world’s first open banking business Lending-as-a-Service platform has completed a £1.5m funding round led by Hambro Perks, the leading UK early-stage venture firm.

Martin-McCann-CEO-Trade-Ledger
Martin McCann CEO Trade Ledger

London, 30 October 2019 – Trade Ledger, the ground-breaking business lending platform, which automates commercial lending processes for global banks and alternative finance providers, today announces strategic investment in a £1.5M round led by Hambro Perks, to further accelerate revenue growth.

Established in 2016 and now operating on three continents, Trade Ledger’s unique lend-tech platform automates all types of digital business finance, helping bank and non-bank business lending organisations alike to fast-track economic growth through process automation and scaling of business credit operations. Trade Ledger uses financial data APIs (often referred to as Open Banking), Machine Learning, Artificial Intelligence and Robotic Process Automation technologies to enhance or replace old and costly legacy bank systems for origination, credit decisioning, take on and loan management, enabling new cutting-edge working capital solutions for business customers. The resulting new lending solutions can reduce the time-to-cash from 90 days which is the industry average to 4 minutes and are better tailored to the working capital needs of modern high-growth businesses. 

Trade Ledger’s co-founder, Martin McCann, and his team believe that transforming business lending operations through the Trade Ledger Lending Platform is the single biggest area of opportunity for commercial banks and financial services organisations to benefit from Open Banking in the near future. “There is a £1.2 trillion gap in credit that businesses need to optimise growth which is why we created this lend-tech”, explained McCann. “We believe that only by reimagining new types of credit services only possible with this lend-tech, can banks solve this massive business problem profitably and at scale globally. By leveraging open trade data via APIs alongside other enterprise-grade enabling technologies, financial institutions can drive significant operational efficiencies and product innovation within their internal operations and dramatically increase market share.”

“My co-founder Matt and I launched Trade Ledger in 2016 to improve the business customer’s experience in their financial supply chain, by helping banks re-imagine the entire process”, continued Martin McCann. “With the increasing threat of big technology firms like Google, Amazon and Alibaba bridging the gap between traditional financial services and the supply-chain eco-system, incumbent banks and lenders must start thinking about how they remain relevant. Trade Ledger is currently the only true platform in the world that can help them do this at a global scale in the business lending sector.”

George Davies, Partner at Hambro Perks added: “We are delighted to be backing Trade Ledger as Martin, Matt and the Trade Ledger team continue to develop market-leading tech that benefits businesses around the world. Hambro Perks is committed to supporting brilliant founders and teams that are building global businesses, and we believe that Trade Ledger has enormous global potential. We are very excited about Trade Ledger’s rapid growth and to support Martin and Matt as they tackle the barriers that have created such a vast undersupply of working capital for businesses across the globe.”

The Trade Ledger Platform provides a complete innovation layer that masks the clunky traditional corporate business banking environment and delivers an excellent consumer-like experience. Trade Ledger supports compliance with new regulatory requirements through aggregation and normalisation of better credit risk data whilst underpinning the wider commercialisation of open data and adoption of new banking business models to generate new revenue streams. The platform orchestrates value in the lending ecosystem by moving organisations from process-led engagement to an automated data-driven lending model.

About Trade Ledger

Trade Ledger (www.tradeledger.io) is the world’s first open banking lending platform that gives banks the ability to assess business lending risk in real-time. This will enable banks to address the £1.2 trillion of undersupply in trade finance lending globally while providing high-growth companies with the working capital needed to sustain growth.

About Hambro Perks

Hambro Perks (www.hambroperks.com)  is a London based venture firm that backs and builds leading technology companies. Founded by Dominic Perks and Rupert Hambro CBE, Hambro Perks invests at an early stage and helps companies to scale with capital and strategic support. The firm invests from both its permanent capital and Co-Investment EIS Fund that is open to high net worth investors and is soon to launch other funds. Hambro Perks has backed more than 40 businesses such as the digital pharmacy Echo, the geocoding system What3Words, and the Muslim matchmaking app Muzmatch.