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Financial Planning – Five Critical Steps in Financial Planning

1. Gather and Prepare Your Personal Financial Situation Status Quo

This kind of information can depend a lot on you as an individual, but it usually has to do with…

— your investments,

— your insurance policies (life, health, long-term care, property, liability, etc.),

— your retirement benefits,

— your tax situation (income tax, estate tax, gift taxes, etc.),

— your will or trust,

— your other estate planning information,

— your powers of attorney,

— any other financial information or documents you may need.

It’s helpful for you to put together some simple personal financial statements. These can be much like those that are used in business. They might include your personal balance sheet, an income statement, and other relevant statements.

In the case of a balance sheet and income statement, the assets and liabilities, as well as your income and expenses, are included in the statements. These can be combined, for example in the case of husband and wife, or separate income statements and balance sheets could be put together for each person in your family.

If you are using a professional, they may have forms already made up that you can use for these purposes.

2. Identify Your Goals and Objectives

This will take some thought, and is one of the most important foundations to your financial planning.

Put some time and thought into it, and the rest will fall into place much better.

3. Compare Your Current Scenario With Alternative Ways To Handle Each Part of Your Financial Planning

Relate it to your goals and objectives. Get the advice and information you need from others, including professionals, and make decisions for changing what is the status quo.

4. Develop and Put Into Place Your Plan

Not someone else’s plan, but YOUR plan.

Putting together the facts of your current situation, your potential future situation, your goals and objectives, and looking at those alternative ways of handling your case, you can lay down a plan that, while flexible, will act as a map for your future years in planning your finances.

5. Review and Revise Your Plan As Needed Periodically

Don’t think of your plan as carved in stone. Things change. Circumstances change. YOU change.

There may be family occurrences like marriages, divorces, deaths, births, changes of occupation, varying economic conditions, and many other things that enter into making financial planning decisions.

Put these five steps into play, and you’ll be glad they did. Read more. Absorb lots of information. But don’t let it paralyze you. Information plus action will take you a long way.…

The Relationship Between Insurance and Finance

Insurance and finance are closely interwoven fields of business, not least because they both involve money. They also often both involve speculation and risk, and often where one goes, the other will follow. Take property investment for example, it involves a large amount of capital out lay, swiftly followed by insurance to protect the capital investment. It would be ridiculous to spend such a vast sum of money on a venture and not protect it against possible damage. It therefore makes sense to store information on these two subjects together, as the relationship is so logical.

Insurance is a form of risk management used to protect the insured against the risk of a loss. It is defined as the equitable transfer of the risk of a loss from one entity to another in exchange for a premium. There are different kinds of insurance for just about every conceivable event. The most common insurance is probably life insurance, which provides a monetary benefit to a decedent’s family or other designated beneficiary.

It can cover funeral or burial costs and can be paid out to the beneficiary in either a lump sum or as an annuity. Property insurance is one of the more necessary insurances as property is extremely expensive and if it is lost or damaged for some reason (fire, earthquake, flood) it can be very difficult to replace without adequate reimbursement. Travel insurance used to be seen as an unnecessary expense and is still viewed as such by many. Its importance is, however, being increasingly recognised by the public at large. It is cover taken by those who travel abroad and covers certain unforeseen events such as medical expenses, loss of personal belongings, travel delays etc. There are numerous other types of insurance, too many to mention, all vital if you want to protect something of particular importance to you or another.

In the world of finance there are many sub-categories, also too numerous to mention but a few will be included here. Forex, or the foreign exchange market wherever one currency is traded for another. It includes trading between banks, speculators, institutions, corporations, governments, and other financial markets. The average daily trade in the global forex is over US$ 3 trillion.

Tax consulting usually involves CPAs and tax lawyers in addressing any tax issues that you may have. There may also be Professional Strategic Tax Planners and Enrolled Agents, depending on the company that you hire. They will help you reduce your tax debt, eliminate tax penalties, an innocent spouse claim, tax liens, bank levies, and preparing unfilled tax returns, as well as any other tax resolution problem that you might have.

Property investment is usually when an investor buys property with an eye to generate profit and not to occupy it. It is an asset that has been purchased and held for future appreciation, income or portfolio purposes. In some instances an investment property does not have to be held for profit, as some landlords in New York …

Difference Between Employers’ Liability Insurance (ELI) and Workers Compensation Insurance (WCI)

Employers’ Liability Insurance (ELI) and Workers Compensation Insurance (WCI) are two important insurance covers to protect the interests of employees, as well as employers. There are, however, certain differences between the two. Due to these differences, it may result in wrongful litigation and consequently anxiety to parties involved. The differences between ELI and WCI are relating to where they apply and what they cover. We will discuss about them here briefly.

Where they apply

Employers’ liability insurance

As an employer, it is mandatory for you in UK to purchase employers’ liability insurance. Not purchasing attracts penalty under law. In certain situations your employees may feel that you are liable for job related illness/injury which they may sustain and they sue for this. If it is really a case, it may bring in expenses such as hospitalization, financial compensation and the like. ELI helps you under such circumstances.

While it is mandatory for you as an employer to have ELI, your employees need to prove that the job related injury/illness is because of your negligence. Imagine yours is a lumber business. While working, your employees should have the necessary equipment, training and skills to operate them. If you employ them without teaching the safety norms, imparting the training and checking the fitness, and they sustain injuries, it will amount to your negligence as per rules framed under Employers’ Liability Insurance Act and employees are likely to feel appropriate to sue you, because you are liable.

Workers compensation insurance

On the other hand, workers compensation insurance is a cover for the welfare of the employees. It depends on the circumstances that are the tone of relation between employer and employees. Thus, if you are more concerned about employees’ health and safety, you need to purchase this insurance. It does not matter whether it was your fault or your employees’ fault that resulted illness, accident or death, this insurance comes to your help.

Coverage

Employers’ liability insurance

As an employer, you have to go to court of law if the affected employee sues you. You need to pay financial compensation and bear the hospitalization and medication. ELI covers all these expenses.

Likewise, for employees ELI covers the permanent and temporary disability, injury and wrongful death at workplace. It covers the cost of litigation as well.

Workers compensation insurance

For employers, WCI is a Good Samaritan. In most cases, it ensures that your employees do not resort to litigation. However, in such unfortunate event, WCI covers the expenses because of litigation. It covers the financial expenses to be given to the affected employee for work-related injury, illness or even death.

Employees when inured at workplace, under WCI, are guaranteed to get compensation from the employer to cover medical and hospitalization expenses and certain portion of wages. In most cases, it is two-thirds or more. WCI covers the expenses on litigation, by the employee. In general, WCI takes care of the situation and makes sure that litigation on the part of employees is avoided.

WCI …

Business Security Systems – Why Are Famous Companies Using These Systems?

Business security systems

Any business, big or small, is essentially exposed to many threats against possible losses due to various reasons. All business owners would naturally like to protect their businesses against any losses from the public or from their own employees.

The world renowned company ABC Malls, which has a chain of malls all over the world, has an elaborate business security system in place in each and every mall which they operate. In fact, these business security systems were an integral part of the mall’s beginning. These systems were able to help the mall recover millions of dollars in items recovered.

If we were to look at the reasons as to why they have invested in these elaborate and sophisticated business systems (which include security cameras and burglar alarms) in place at every single location, we would have an extremely long list. Below, I listed the top 7 reasons, I believe, as to why so many businesses like the chain of malls use these systems.

1. Decrease theft by employees – Security cameras lower the incidents of thefts by employees to a considerable extent. Strategically placed security cameras are a big deterrent.

2. Deter shoplifting – Some customers, no matter how rich or famous they may be, are in the habit of shoplifting small items. If they see themselves in a strategically placed camera as they enter the store, it deters them from shoplifting.

3. Increase employee productivity – Employees know that they are under constant watch and this leads to an increase in employee productivity.

4. Prevent or reduce unauthorized entry – When people know that their entry and movement within the store is not only being watched but is also being recorded, it prevents unauthorized or undesirable people from entering the store with any bad intentions.

5. Deter burglars – A good burglar alarm installed in the premises in addition to strategically placed security cameras as a part of business security systems definitely deters burglars from trying to steal at the store.

6. Reduce insurance premium – Most insurance companies offer significant discounts on monthly insurance premium payments if adequate business security systems are in place.

7. Protect against fraudulent claims – Sometimes customers or even employees have a tendency to lodge fraudulent claims. If an adequate number of security cameras are visible to such individuals, they are less likely to indulge in lodging fraudulent claims for fear of being exposed with the help of the recorded evidence.…