Wednesday, January 28, 2015

Four Reasons People Avoid Estate Planning

Estate planning is an essential part of your personal finances, but even those who understand this, may have done little or nothing to plan ahead for their death. A surprising number of people do not even have a will. There are many reasons why an individual will avoid estate planning, and many of the reasons people have are based upon a misunderstanding of the process involved. The following are four of the most common explanations heard from people as to why they avoid estate planning. 

They don’t have enough assets to be concerned about it
Many people believe that they simply do not have enough wealth to engage in estate planning. These same people don’t want to be bothered with the thought of drawing up a will or anything else related to estate planning. The truth is that you don’t have to have a lot of wealth to have the need for estate planning, owning something as simple as a house can create problems after your death. Probate can be long and cumbersome, but this can be avoided with estate planning today.

They don’t have the time
This reason borders on an excuse. It is true that you may be a busy person, but the fact is that there are certain things that you must make time for, and estate planning is one of them. You owe it to your family and others to make sure your financial affairs are in order. Not only will your wishes be carried out, but the process will be more orderly with the planning that you do today. What makes estate planning easy and less time consuming is using the services of an estate planner. After a consultation with an estate planner, your wishes will be understood, and all that is needed is for the proper paperwork to be drawn up. This work is all done by an estate planning attorney, so you are not spending a lot of your time. 

A family will work everything out
It is amazing how often people think that everything will work out financially if they were to die. Family attorneys tell a different story. Siblings, who get along fine, suddenly are at odds over a family asset or money. Children and surviving parents will fight as well. The family of the surviving spouse may try to prevent children from an inheritance if they were from a previous marriage. There are many circumstances that only manifest themselves after your death. Estate planning prevents this fighting from happening.

They have been putting it off

Procrastination is something everyone has a problem with now and then, but you cannot afford to put off something as important as estate planning. No one can know the future, but there is a certain chance that something could happen to you very soon, and then there is nothing you can do. Keep in mind that you can have medical issues that incapacitate you. You can have an accident or perhaps a sudden stroke. Your mental faculties are such that you can no longer make decisions. Estate planning can help you in advance, even in situations where you have become mentally impaired. 

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Wednesday, January 21, 2015

How to Set Up a Roth IRA?

A Roth IRA is a great investment for retirement because these savings are untaxed. While a traditional IRA offers initial tax deductions, Roth IRAs do not. However, holders may withdraw their contribution funds when they retire without paying taxes on these funds. Roth IRAs are ideal saving choices for those who expect their tax rate or tax bracket to be higher when they retire than at present. Moreover, they benefit young and low-income workers who will receive compounded growth on their savings without paying taxes on these funds, or those who are interested in leaving assets to heirs because these funds may be transferred tax free. Most people who earn income from a job are eligible to start a Roth IRA regardless of their occupation. Read on to find out how to set up a Roth IRA in four relatively easy steps.

1. Determine Eligibility

Prior to setting up a Roth IRA, individuals should determine whether they are eligible. Generally, households with an annual income of $50,000 or less qualify to open a Roth IRA fund. This is a general guideline because income brackets will vary depending on the size of household and other factors. Those with incomes that are higher than $50,000 annually may divide some of their savings into a traditional IRA. For 2015, the maximum amount of money that could be contributed to a Roth IRA was $5,500 or $6,500 for those over the age of 50 by the end of the year. Another requirement of a Roth IRA is that a person is earning income from a job or enterprise; however, married couples with one working spouse are typically able to open two Roth IRAs and contribute the maximum amount permitted annually to both accounts.

2. Gather Important Documents

Opening a Roth IRA is relatively simple and similar to opening a bank account. Those interested will need to bring their driver's license or another form of legal photo identification, their social security number, their bank routing number and their checking or saving account numbers. Additionally, they'll need to know the name and address of their current employer. Finally, these accounts require the name of a beneficiary or beneficiaries who would inherit the Roth IRA in the event that the holder dies prior to withdrawing these funds. Those who are opening the account will need to know their beneficiary's name, date of birth and social security number. 

3. Choose Where to Open Account

After gathering the required documents and checking eligibility, investors will need to choose where they would like to open their Roth IRA account. It's recommended that people hire an investment advisor who can help ensure a person is eligible for this type of saving account and process paperwork. These individuals may help investors choose the best bank or mutual fund company to open these accounts. Usually, it's best to meet with an advisor in person; however, their are plenty of online brokers for those who prefer to complete this process online or over the phone.

4. Open Account and Make Deposit

Roth IRAs have annual contribution caps. An investment advisor, the bank or mutual funds firm will notify investors on these limits periodically. Investors may decide to deposit a lump sum into their account annually or choose to have an amount of money deducted from their bank account each month that is contributed to their Roth IRA. Some mutual fund companies permit investors to contribute small sums such as $50 a month. As a result, the average American can afford to invest in this type of saving for retirement.

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Sunday, January 18, 2015

How Binary Options Changed My Life

Just a couple of years ago, the term 'binary options' did not signify much to me but things are very different now. In this article, I will describe to you the manner in which I got involved in trading options, how this changed my life for the better, and what I have learnt along the way.

At the outset though, I would like to tell you some facts. First, it takes time to become familiar enough with the markets to hit upon a strategy that works to yield profits. There is no fail-proof strategy that anyone else can teach you, and it is also close to impossible that you will make a profit all the time. Second, but more important is, anyone can be a successful trader of binary options as long as he or she is committed to task. Third, it is important to have the right tools for engaging in investment in binary options. Websites like CI Trades are a great platform for beginners and experts alike. There are market analysis services available for a small fee too, which can be used once you are familiar with the basics of options.

How I first got interested in binary options?
Two years ago, I had a normal job that brought along with it a hectic lifestyle, and monotony. I longed to be free from the stress of the workplace, and mentioned the same to a college friend whom I unexpectedly ran into after a long time. It seemed he had some success with investment and trading, and suggested I try out the same. After a great deal research, I decided to begin my investment career with binary options.

In the months that followed, I read as much as I could about the market, and eventually began investing small amounts on online trading platforms, mostly CITrades. My experiences were mixed, and while I did not make much profit, I certainly was not losing money either.

Figuring out a Strategy
For a long time, I had been following helpful strategies such as those listed on many online forums. It still puzzled me why things were not working out better for me. Finally, one day, I realised the mistake I had made. I had tried to mix strategies, and there were times when I did not follow my plan thoroughly till the end. This is an error many fall prey to.

Now I lock down upon a strategy for the day and the sum of money I want to invest, before I begin trading. No matter how things go at the market, I cling to my strategy. This means I do not try to push my luck far on a day when the market is favourable, and neither do I take half-thought, spur-of-the-moment measures to reduce losses. Both of these actions result in losses more often than not. Equally important, I make it a point to never exceed the amount of money I have decided I will utilise in a day.

My Advice for Others Trading in Binary Options

I am now at a stage where I feel confident enough about my trading strategies to give advice to others who want to travel along the same road. In a nutshell, I think it pays in binary option trade to be organised, disciplined, and hard-nosed. Stay updated with market trends, and use good trading platforms such as CITrades and the like.
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Tuesday, January 6, 2015

The Basics of Binary Options Investing

With the economic recovery in full swing, people are beginning to invest their money once again in different sectors. People are investing in the booming stock market and the recovering housing market, and it’s definitely the wise thing to do right now. Investments right now will lead to a more secure future, should there ever be another financial collapse like the one that occurred a few years ago.

One lesser-known investment opportunity that many people are starting to discover is the binary options market. Binary options are fun, exciting, and a great way to make money in both the short term and the long term. If you’re curious as to what exactly binary options are, check out this article to learn all you need to know about playing the binary option market.

A New Investment

Binary options are a relatively new type of investment that has only gained popularity recently due to the success that people are having with it. Essentially, a trader bets on a certain asset based on several different potential future prices, whether those prices will occur or whether they won’t occur. Whether that price was hit or not determines whether a payout is rewarded.

Binary options means two options, because the trader always has two options that he or she can choose from. Binary options are called a variety of names, from digital options to fixed return options to all-or-none options. All of these names refer to the same thing.


The best way to understand binary options is by looking at an example. There are many different types of binary options bets, and this is just one. A potential bet would ask you if you believe that the euro to dollar price would close above or below a certain price. You’ll be presented with the current price, financial history, how long before the bet expires, and what your payout would be if you win.

This is just one type of binary options bet, and visiting will let you learn about the rest. Since there are a variety of different types of bets and investments, there is no doubt a binary options bet that would interest you.

Why It’s a Good Idea

Investing in the binary options market is a great idea for a number of reasons, too many to mention in this article. They are a very unique type of investment, and they are very different from other types of investments.

One reason that binary options are a great investment idea is because it is less risky. With other investments, there are so many things that you need to consider such as margin, leverage, and slippages. With binary options trading, you don’t have those types of risks. It’s a very simple, straightforward type of investment. You’ll also have a large choice of what markets you want to trade in, as some brokers offer up to 90 different assets. This gives you a better chance to make money, and a lot of money at that.

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Thursday, January 1, 2015

Top 10 Roth IRA Tips

Starting a Roth Individual Retirement Account (IRA) is one of the best moves you can make towards securing your financial future. Roth IRA's are good choice as they advantages such as 
  • Tax free income in retirement
  • More flexible withdrawal options than traditional IRA's.
  • Contribution allowed after age 70 1/2.
  • High earners can contribute through a "back door".
  • Protects against future tax increases.
Setting up Roth IRA account is not not as complicated as you think, and you can get started as early as today. Choose where you will open your Roth IRA account. Investing advisors can help you choose one of the best Roth IRA providers for your Roth IRA account. Here are some simple tips to help you along the way.

1. Start early.  The best way to plan for retirement is to start early. Starting early, rather than waiting for some years could mean you take larger chunk of money, when you quit your job.

2. Contribute to a 401(k) first. If your employer offers any kind of matching program for your 401(k), your first priority should be to contribute as much as possible to that plan. Only after you've maxed out their matching offer should you look elsewhere. A Roth IRA will be one of your best options after that.

3. Forgot last year? You may still have time. You can contribute to your Roth IRA for the previous year all the way up to the date you file your taxes. As long as you had taxable income the year before, you can contribute the maximum for last year, and even start making contributions for this year so you don't forget again.

4. You're never too young. There is no minimum age threshold for Roth IRAs, so even minors can hold an account. You do have to have taxable income though; your allowance doesn't count!

5. You're never too old. Roth IRAs aren't just for spring chickens. In fact, if you're over 50 years old you can make additional "catch up" contributions of $1,000 per year over the normal limit.

6. Your money isn't locked away forever. You don't have to hesitate about contributing to your Roth IRA and not being able to access that money until retirement, because you can actually take it out at any time. Since the money was already taxed before you put it in, there are several situations in which you won't pay anything at all to take it out. For example, if you need to buy a house, have a major medical expense, or want to fund higher education, you can withdraw money without penalty.

7. Comparison shop. Your local bank or financial institution will probably have a Roth IRA plan available, but it might not be best suited for your needs. This popular retirement option is now offered by numerous financial outlets, both offline and online, so researching your options is essential in order find the plan that best suits your needs.

8. Make it a priority. Financially speaking, your Roth IRA is one of the best places you can have your assets. If you have to choose between funding an educational account for your children and putting money away for retirement, try to lean towards retirement. Simply put, there are a number of programs that will help your children fund their education at low cost, but the same can't be said for your retirement.

9. If you have a traditional IRA, consider converting. Roth IRAs, which came into existence long after the traditional version, have many advantages, even for older investors. They grow completely tax-free, so when you take the money out to fund your retirement you won't have to worry about paying a dime to Uncle Sam.

10. Diversify. Even though a Roth IRA is a powerful investment tool, it probably won't be enough to pay for your retirement by itself. The maximum contribution for 2015 is $5,500 and $6,500 if you're age is 50 or above. To secure your financial future, use a Roth IRA in addition to a company savings plan and your own personal investments.

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