Monday, April 30, 2018
Home Based Business Ideas UK: What Do Baby Boomers Fear Most? It’s Not Death Or ...
Home Based Business Ideas UK: What Do Baby Boomers Fear Most? It’s Not Death Or ...: A fate worse than death for most older Americans is not loneliness or ill-health. According to a number of reports, including Dan Ric...
What Do Baby Boomers Fear Most? It’s Not Death Or Sickness
A fate worse than death for most older Americans is not loneliness or ill-health.
According
to a number of reports, including Dan Richards, the past president of the
American Association of Geriatric Psychiatry, the number one fear of Americans’
in their 50s, 60s and 70s is running out of money. They fear being broke and not
having enough money to afford retirement more than they fear death.
Older Americans’ number one fear about retirement is that
they won’t have enough money to afford retirement, a number of recent surveys reveal.
Running out of money after a lifetime's work is biggest worry
Some 43% of baby boomers, born in the years following the
second world war, said their greatest fear about retirement was outliving their
savings and investments, making that their top fear — over loneliness, boredom
and even failing health, according to a survey of 2,000 workers aged 50 and older released in 2015 by the Transamerica Center for Retirement
Studies.
Almost 60% of financial planners said that running out of
money was the top retirement concern for their clients, a survey released
earlier that year by the American Institute of CPAs last year found.
Even though they have lived during the most prosperous time
and in the wealthiest nation in history, outliving their money is even more
frightening than dying for most Americans over 50. More than 6 in 10 baby boomers
feared running out of money before they died more than death itself, a survey
of more than 3,200 baby boomers by financial firm Allianz discovered.
The survey results back up my 25 years' experience in financial services and research when writing the book, Yes, Money Can Buy You Happiness. I’ve also been reading Tony Robbins book, Unshakable, which is mostly about how the
American financial services industry is ripping off savers.
The book basically exposes the extortionate amount of fees levied by insurance companies and
pension providers and how this adversely affects retirees.
The
figures and examples are obviously based on the American market, but in my
experience they will also apply to most pensions and insurance industries.
Indeed, some of the large investment companies, like Fidelity, operate on a worldwide
basis.
Travel to any major city centre in the world and look at the tallest shiniest buildings.
Invariably, they will be owned by insurance companies, pension funds or banks –
the very companies which control most of our money!
Charges
and fees take a huge chunk out of people’s savings over the longer term,
prompting the Obama administration to introduce a bill to regulate the
estimated $17 billion swiped from savers in the US.
Tony Robbins gives one example of how a 1% reduction in fees saves a typical pension
investor (who is saving 5% of a $30,000 salary until retirement based on an average 7%
return pa) over $150,000.
Put
another way, an extra 1% per annum in fees adds up to over $150,000. This is
due to compound interest and the fact that the fees are levied on the growing
fund every year. When you look at the fees on the illustration, you tend to
think that 1% of a few hundred dollars per month is not going to make that much
difference, but over time 1% of the fund growing each year adds up to a
considerable sum of money.
Then
go on to say that the effect of these fees in terms of a lower amount being
invested can add up to close to half a million dollars and would mean that the money would
run out 10 years earlier in retirement than someone paying 1% less in fees based on the same growth rate.
Baby boomers are now helping less well-off children and grandchildren
Considering
baby boomers biggest worry is around money, this is a devastating revelation at a time when we are all living longer and also being asked to help our increasing less well-off children and grandchildren.
Overpaying for underperformance
Today’s
money tip is to check the fees on your pension plan (assuming you even have
one) or speak to your advisor. In the UK, fees should be clearly disclosed, but
in my experience most investors will not understand the real effects of fees
over the longer term.
The
industry obviously needs to charge some fees in order to run the administration
and investment advice. Fees of course are not the only factor to take into account when choosing a pension, but the problem is, too many people have been overpaying for underperformance.
When
it comes to performance, the vast majority of fund managers fail to even match
the average index growth of the stock market. Most of us would be better off in
a low cost index tracking fund, because they don’t need a highly paid
investment analyst to run the fund.
If
you look at the evidence you will see that many index tracking funds do better
than actively managed funds, which is astounding when you would think that a highly paid fund manager ought to be able to pick out a few stocks that would outperform the average, wouldn't you? Otherwise, what the hell do we need them for?
In
reality, only a select few of elite fund managers really outperform the market
over the longer term. These fund managers would not entertain the small
investor, so what are we left with? Unfortunately, in the main we are left with
poor or below average fund performance and above average fees eating into our
savings.
How do we solve this problem?
Firstly,
speak to a competent financial advisor who specialises in investment and
pension planning. Financial advisors usually specialise in one or two areas and
are not experts in every field, just like you would not expect your family doctor to perform a heart transplant. When I was a financial advisor, most of my
business came from mortgages and finance. Whilst I understood pensions, I was not
a specialist and would refer clients to other advisers who dealt with nothing but pensions.
Secondly,
read your policy documentation and pay particular attention to the ‘fees and
charges’ section usually buried in the print and written in immensely
boring language. This is particularly important if you are a small investor and
cannot afford a fee-based advisor.
Lastly,
educate yourself. In an earlier podcast episode, I recommended that we should
all take a financial advisor course because this would give you a good overview
and you would probably know as much, if not more, than many professional advisors.
At very least read a book on the subject. Find a book which relates to your
particular country’s financial services industry and learn about the various
types of plans and charges. I also recommend that you read weekend financial
papers, such as the Sunday times in the UK, as well as online comparison sites,
to keep up to date with changes.
The
internet has totally changed the game for most consumer products, but financial
services and pensions and more complex, which means most people need some form
of advice.
The cost of an advisor has traditionally been paid for by front end
loaded charges applied to pensions and investments - deducted from the premium and fund.
More recently, front end sales charges have been
slashed to a minimum for basic pension plans, which means there is no financial
incentive for advisors to offer them. Since most people will not pay for advice
in the form of a fee, they are left fumbling around in the dark.
There
is also the problem of people with multiple pension schemes from different employers
during their career. The number of people who stay with one employer for the
entire length of the career has fallen dramatically which means more and more people have a mixed bag of pension schemes and are not sure what to do with them.
In
an earlier podcast episode, I warned of the pensions cold calling scandal and the outfits who persuade people to cash-in or "unlock" their company schemes.
In
short, the pensions industry is in a mess and has not recovered from the
Robert Maxwell scandal and the Gordon Brown tax raid on pension schemes many
years ago. Furthermore, most large employers have stopped running defined benefits final salary pension schemes for their employees due to the high costs and open ended liabilities.
People
are totally confused by the range of schemes available to them and as a result do nothing and sit there like a
rabbit in the headlights.
I
predict that millions of people will be unable to retire in the coming decade.
We are going to see more 70-year-old men pushing trolleys around supermarket
carparks, which is fine if you still have your health and energy.
We
are already seeing pension poverty in the UK, where people have who have worked all their life are ending up broke and dependent on the state, which is also broke and in debt!
More and more people are seeking alternative methods of providing for their retirement, such as
property investment. Like me, they prefer to take things into their own hands and trust their own judgment, rather than
leaving it to so-called professional advisers in the pensions industry.
I
frequently meet many people in their 50's, 60’s and 70s at property seminars looking to
learn how to make money from investing in property because they realise they are going to be short of money in retirement.
If
you would like information on a free property investment taster course, email
me at Charles@CharlesKelly.net
As
always, money tips daily is not giving you financial advice and you should seek
professional advice from an independent financial advisor.
Sunday, April 29, 2018
Home Based Business Ideas UK: Shopping Trends Change And Supermarkets Merge As U...
Home Based Business Ideas UK: Shopping Trends Change And Supermarkets Merge As U...: As we hear that Sainsbury’s is planning to merge with Asda, we know that shopping trends are changing. Two thirds of shoppers now v...
Shopping Trends Change And Supermarkets Merge As UK Economy Slows
As we hear that Sainsbury’s is planning to merge with Asda, we
know that shopping trends are changing.
See also:
Why The Grass Is Always Greener On The Other Side
How to Monetise Your Knowledge and Skills and Turn Passion into Profits
Two thirds of shoppers now visit the supermarket more than
once a day. People are buying smaller amounts from discount stores rather than
doing major shops at out of town superstores.
At one time it looked like the huge out-of-town superstores
would take over the world. Now they have been hit by smaller supermarkets like
Lidl and Aldi, as well as online providers like Amazon Prime with free deliveries
of fresh food.
More mini supermarket are being opened by the large chains,
which is squeezing the little guys with the corner shop that used to be the
only shop open late at night – now many supermarkets open 24 hours a day.
Online shopping is obviously accounting for much of what we
do nowadays, which is why Sainsburies bought Argos.
Asda’s owner Walmart, still the largest retailer in the
world, seems to have lost interest in the UK and has bigger fish to fry to
protect its market from online retailers such as Amazon and Alibaba. Amazon’s
owner Jeff Bezos and Alibaba’s Jack Ma are two of the richest men on earth, so shopping
habits are definitely changing.
In other financial news, the UK economy’s growth rate has
slowed in the last quarter to, however, your economy is run by you, not the
government. Growth, GDP, inflation.
Focus on your own business and on your self development and career, not the world economy, which will always be fluctuating!
You can get in on the online revolution quicker and cheaper than ever before. You don't need a fancy website, you don't need your own product or a garage full of stock and you don't need a huge budget. What you DO need is some training and knowhow, focus and persistence!
Check out my Money Tips Daily Facebook page - www.facebook.com/moneytipsdailyFocus on your own business and on your self development and career, not the world economy, which will always be fluctuating!
You can get in on the online revolution quicker and cheaper than ever before. You don't need a fancy website, you don't need your own product or a garage full of stock and you don't need a huge budget. What you DO need is some training and knowhow, focus and persistence!
One of my mentors Russell Branson has written a fantastic book about building a following and tribe called Expert Secrets. Russell has a special promo running for a limited time where he will give you the Expert Secrets book for free as long as you pay for the postage.
Grab a copy while stock lasts, it could change your life.
Grab a copy while stock lasts, it could change your life.
See also:
Why The Grass Is Always Greener On The Other Side
Check out my Podcast episode "Shopping Trends Changing
As UK Supermarkets Merge" on Anchor! https://anchor.fm/charles-kelly/episodes/Shopping-Trends-Changing-As-UK-Supermarkets-Merge-e1d4qd
Saturday, April 28, 2018
Home Based Business Ideas UK: Why is the grass always greener on the other side?...
Home Based Business Ideas UK: Why is the grass always greener on the other side?...: You’ve heard the saying, the grass is always greener on the other side, why is this? Why does it always appear that things are better som...
Why is the grass always greener on the other side?
You’ve
heard the saying, the grass is always greener on the other side, why is this?
Why does it always appear that things are better somewhere else?
It's partly human nature of course, but there’s more to it. We look at somebody
else in another business and think they’re doing well. It looks like easy
money, so we give that a try and jump into it. When
the going gets a bit tough but we realise that there’s more to it than we first
thought and it takes hard work, we lose interest, And then we see some other
shiny new thing to try.
In
reality, most businesses take several years to get off the ground and become profitable.
I didn’t start making any money in a recruitment business I had for the first 4
or 5 years and the serious money came in floods after 8 or 9 years. At this point, we became an "overnight success" and everyone would say how lucky we were!
When
you see people doing well and making loads of money I have probably been
working at it for several years and invested hundreds of hours into learning
and development. They built the business through hard work, marketing and
follow-up service.
You
could be in the business specialising in a certain niche, but then see somebody
else making money in another niche and think I’ll get into that. And when that
doesn’t work, you try something else and so it goes on.
Look how focused a Cat becomes before jumping or hunting
Because
you never focus on any one thing you fail at everything!
For instance,
in my recruitment business we specialised in healthcare recruitment. Clients would often ask us to try and recruit other workers, such as pharmacists, PT's or
doctors. Whenever we tried this, we found that it was a distraction from the
main business, and also realised that it would take a long time to build up on
you niche. Fortunately, we always returned to our core business and focused on
what we were good at thanks mainly to my partner who was a bit more level headed than me!
Are you juggling too many things at once?
I
see people at seminars who jump from one business to another regular basis.
First they try MLM for a few months, then they try affiliate marketing or Amazon, and
they try online trading before jumping into property. They sign up for every course and mastermind programme spending tens of thousands of pounds. The problem is, they never
stick at one thing long enough to become an expert at it or for the seeds
they’ve planted grow into a money tree.
It’s
not Niche or sector it’s the person that matters. It’s what you put into it
that counts. There are people doing well in every business and there are people
doing not so well in every sector, right.
If you go to any sales convention in any sector, you will always see top peformers who are usually the top 10 or even 1%. The top performers don’t jump from company to company or industry to industry, they focus on one business and become experts and great that one business.
If you go to any sales convention in any sector, you will always see top peformers who are usually the top 10 or even 1%. The top performers don’t jump from company to company or industry to industry, they focus on one business and become experts and great that one business.
Top
athletes do not try to become the best at five different sports, they focus on
one and work hard on that for years until they reach the top in their chosen field. Then they get their "lucky" break, right!
So
why does the grass look greener on the other side? Something I learned from top consultant Sam Ovens is that the grass is greener where you water it!
Just
like business or niche that you develop, work on and water will be greener for
you, and look greener to the person on the other side of the fence.
Since
the launch of the book, the one thing, everyone is talking about focusing on
the one thing in a business or process that makes the most difference that you
should focus on.
It’s
like Pareto’s 80/20 law. That 80% of your results come from 20% of your
efforts.
In
the way, it’s common sense that you should focus on the things that matter
most, yet we easily get distracted by a multitude of other things that did not
get us results.
You can get in on the online revolution quicker and cheaper than ever before. You don't need a fancy website, you don't need your own product or a garage full of stock and you don't need a huge budget. What you DO need is some training and knowhow, focus and persistence!
You can get in on the online revolution quicker and cheaper than ever before. You don't need a fancy website, you don't need your own product or a garage full of stock and you don't need a huge budget. What you DO need is some training and knowhow, focus and persistence!
One of my mentors Russell Branson has written a fantastic book about building a following and tribe called Expert Secrets. Russell has a special promo running for a limited time where he will give you the Expert Secrets book for free as long as you pay for the postage.
Grab a copy while stock lasts, it could change your life.
Grab a copy while stock lasts, it could change your life.
I can send you the link if you email me at Charles@CharlesKelly.net or check out our Facebook page which is www.facebook.com/moneytipsdaily
Check out my Money Tips Daily Facebook page - www.facebook.com/moneytipsdaily
See also:
5 Tips To Survive In A Start Up Business
New HMO Letting Rules Could Drive Landlords Out Of The Buy-To-Let Property Market
See also:
5 Tips To Survive In A Start Up Business
Friday, April 27, 2018
Home Based Business Ideas UK: 5 Tips To Survive In A Start Up Business
Home Based Business Ideas UK: 5 Tips To Survive In A Start Up Business: Is the end near for physical shops? Well it is certainly tough out there. Meanwhile, Amazon sales were up over 40% in the first quarter...
One of my mentors Russell Branson has written a fantastic book about building a following and tribe called Expert Secrets. Russell has a special promo running for a limited time where he will give you the Expert Secrets book for free as long as you pay for the postage.
Grab a copy while stock lasts, it could change your life.
Grab a copy while stock lasts, it could change your life.
I can send you the link if you email me at Charles@CharlesKelly.net or check out our Facebook page which is www.facebook.com/moneytipsdaily
5 Tips To Survive In A Start Up Business
Is
the end near for physical shops? Well it is certainly tough out there.
Meanwhile, Amazon
sales were up over 40% in the first quarter of 2018. The online retailer made a
profit of $1.6 billion.
Jeff
Bezos became $12 billion richer on the basis of a 4% increase in the share
price!
Crazy figures that really relate to fluctuation the share price. I’m sure neither of these guys will be going out ordering new yachts or having a garage sale!
Crazy figures that really relate to fluctuation the share price. I’m sure neither of these guys will be going out ordering new yachts or having a garage sale!
The
news of online success comes on the back of failing High Street stores in
London and the collapse of major chains like Toys R Us, Maplin and Carpetright.
So
why am I telling all this? What is this got to do with money tips? The answer
is that opening up shops in the High Street is highly risky for the new
business person.
In
my local area there are four major supermarkets sucking money out of the High
Street and driving small retailers into the ground. Not content with that, they
are also opening smaller 7-Eleven-style corner shop stores to pour more misery
on the little guy who can only survive by running the business within the family
and working 18 hours a day. Frankly, he would probably better off driving a
bus.
Every
year in my town I see more hopefuls open up a shop selling everything from
smoothies, specialty ethnic groceries, restaurants, mobile phone cases to
expensive bathrooms.
Before
they open the doors they are incurring around £1000 per week in bottomline
costs excluding staffing. That doesn’t include the cost of refurbishing the
shop and buying stock. Not surprisingly, 95% of the shops are gone within a
year or two. Even national companies have closed stores and restaurants, so what chance has a newby got?
Losing a business not the end of the misery for the owners of a failed shop. Most
would’ve signed a long lease and personally guaranteed or signed a personal
guarantee to pay the rent regardless of how the business goes. This means they
will be paying for the premises even though the business is no longer running
until such time as the shop has been relet Which can take months or even
years.
If
they fail to pay the landlord can take action against the former tenant and
even force them into bankruptcy or take their house.
Under
the terms of the lease, the landlord can also charge for dilapidations and the
cost of refurbishing the shop or office premises.
I
have been on the end of this treatment by greedy landlords try and charge for
every scuff mark on the carpet, which is then replaced by the new tenant at no cost to the landlord.
Each
year thousands of people start up businesses in the hope that they can improve
their financial situation or become financially free. Unfortunately, over 90%
of these businesses will fail within the first few years.
Here
are 5 tips to survive in business
1. Keep costs under control
One
of the main reasons businesses fail is through lack of sales or marketing, But
costs play a significant part in their downfall.
I
have found that if businesses can survive the first few years they have a good
chance of going onto earning profits and succeeding in the long run.
One
way of keeping down costs is to start the business from home, preferrably part-time to start with, rather than
renting an office or shop premises.
2. Start Online
Starting
an online business with little or no start-up costs gives you the chance to
make money without risking your savings and your house. You can also run an online business in your spare time until you start making money without giving up your day job.
3. Build Your Business Before Opening a Shop
Is
the High Street Cornershop days over? Not quite, but the market is going
through significant changes. The old butcher, Baker, candlestick maker doesn’t
cut it anymore. There are more and more estate agents, Hairdressers and nail
bars taking up retail space.
If
you want to have a retail business in the High Street, build it up first from
home and then expand into a shop premises when you’re ready and there is proven
demand for your products.
4. Write a business plan
Before
you start any business Write a proper business plan and get legal and
accountancy advice, as well as a cash flow forecast. Some banks will help you
with this and there is online and offline advice avaialble. A plan can be a few pages of A4 and doesn’t need to be in
elaborates 100 page document. The main thing is that you know what you want to
achieve, how to achieve it, what it will cost and a forecast showing how much
cash you need each month to run the business.
In
my experience, most businesses just start get going without any form of
business plan and then work it out as they go along. To be honest, I’ve done
this myself, but it is not wise to fly by the seat of your pants. Do it the
easy way And you will avoid sleepless nights and risking everything.
5. Build a Following
Building
a following will separate you from the vast majority of your competitors who just
start a business and hope that customers will come through the door. But you
can hope and meditate and chant "om" all day long, but unless you do some
marketing and build your following you will soon be out of business.
One
of my mentors Russell Branson has written a fantastic book about building a
following and tribe called Expert Secrets. Russell has a special promo running for a limited time where he will give you the Expert Secrets book for free as long as you pay for the
postage.
Grab a copy while stock lasts, it could change your life.
Grab a copy while stock lasts, it could change your life.
I
can send you the link if you email me at Charles@CharlesKelly.net or check
out our Facebook page which is www.facebook.com/moneytipsdaily
Saturday, April 7, 2018
Home Based Business Ideas UK: If You Want To Achieve Anything Meaningful In Your...
Home Based Business Ideas UK: If You Want To Achieve Anything Meaningful In Your...: In 1979, a longitudinal study was conducted by the Harvard MBA programmme where graduate students were asked, “have you set clear, written ...
If You Want To Achieve Anything Meaningful In Your Life Set Goals And Write Them Down With Plans To Achieve Them
In
1979, a longitudinal study was conducted by the Harvard MBA programmme where
graduate students were asked, “have you set clear, written goals for your
future and made plans to accomplish them?”.
Only
3% had written goals and plans. A
further13% had goals, but had not written them down and 84% had no goals.
Ten years later, the same group was interviewed again and the results were absolutely
amazing.
The
13% of the class who had goals but did not write them down was earning twice
the amount of the 84% who had no goals.
The
3% who had written goals were earning, on average, ten times as much as the
other 97% of the class combined!
The
results speak for themselves. To achieve success, you must to first commit to
making a change and set goals.
The
very act of setting goals is the first step in turning the invisible into the
visible, the intangible into tangible and the dream into reality.
Many
years ago when I started a new business, my partner and I had to write a
business plan in order to obtain a loan from the bank. We wrote this comprehensive plan with a list of
all the great things we were going to do because we wanted to impress the bank
manager and get the loan. We got the loan.
Years
later I pulled out the business plan from my desk drawer and blew off the dust.
The funny thing is that even though we hadn’t looked at the plan since the day we had
presented it to the bank, I found to my amazement that we had achieved all the
plans on our list.
I recently
attended a Clickfunnels convention in Orlando at the Disney Coronado Hotel. Clickfunnels founder Russel Brunson talked about how Walt Disney had died before Disneyworld was
actually built. When it was opened, a journalist remarked that it was a pity
Walt Disney did not live to see his dream come true. A
staff member replied that Walt had in fact “seen” his creation in great detail in
his imagination long before the first brick had been laid.
Right
now, take a moment to map out your goals and your life. Don’t hold back, write
down all the things you want to do and achieve – it doesn’t have to be
financial or work related. Don’t be vague, be specific and definite.
Rather
than writing “I want a good job with a nice salary”, say “I want to work as a XYZ
for ABC company on a salary of £50,000 pa”.
Make
sure the results you are moving toward are specific, measurable, achievable,
realistic and anchored within a time frame.
Even
if you don’t have any firm plans or idea how you are going to achieve your
goals you should still take the first step by writing out your goals.
Check out my episode "3 Steps To Starting A Business And Changing Your Fortunes " on Anchor! https://anchor.fm/charles-kelly/episodes/3-Steps-To-Starting-A-Business-And-Changing-Your-Fortunes-e19649
Previous articles:
Wednesday, April 4, 2018
Home Based Business Ideas UK: Last Chance To Claim Tax Allowances UK Tax Year En...
Home Based Business Ideas UK: Last Chance To Claim Tax Allowances UK Tax Year En...: The UK tax year ends tomorrow, 5 April 2018 . If you're planning to make full use of your ISA or Pensions/SIPP (Self Invested Person...
Last Chance To Claim Tax Allowances UK Tax Year Ends Tomorrow 5 April
The UK tax year ends tomorrow, 5 April 2018. If you're
planning to make full use of your ISA or Pensions/SIPP (Self Invested Personal Pension)
this year, you must act soon. I have been talking about this since February in my Money Tips Daily blog and Podcast, so don't say I didn't warn you!
There are hundreds of banks and pension providers out there. You can invest online or in the High Street branches, but you only have just over 24 hours left.
If you're not sure where to invest, there's a simple
solution. You can just add cash to secure your ISA and SIPP allowances now and
choose investments when you're ready.
As always, I'm giving you information, not offering advice, so take advice from an independent financial adviser and remember that investments can fall as well as rise in value so you could get back less than you put in.
As always, I'm giving you information, not offering advice, so take advice from an independent financial adviser and remember that investments can fall as well as rise in value so you could get back less than you put in.
Here are the basic rules for ISA’s and SIPPs.
ISA (INDIVIDUAL SAVINGS ACCOUNTS)
An ISA is simply a savings account where you can shelter up
to £20,000 from UK tax as long as the money is held in the account and ISA
wrapper. You can also invest funds into a ‘stocks and shares’ ISA, where your
money is invested into shares or a fund holding shares. Again, the tax free
wrapper applies, but the investments can fall as well as rise in value.
When I worked in the bank many years ago, some customers
would have hundreds of thousands of pounds tied up in accounts which not only
paid a low interest rates, but were also taxed. By simply moving their money
into ISA’s they could avoid taxes forever on their savings and earn more money
on their savings, as interest rates were also higher in the ISA accounts.
Remember
that banks have a habit of churning accounts and reducing the interest rate on
those accounts making them effectively obsolete. Despite all the benefits, many of them
would say “no, I’m happy where it is” and refuse to move their money!
If you had invested the maximum allowable amount each year
into ISA’s or similar accounts since they were introduced you would now have
over £1,000,000 in a tax free wrapper. It's also far less hassle when doing your tax returns.
The Stocks and Shares ISA allows you to invest in shares or
funds which invest in the stock market on your behalf. These funds can go up or
down and obviously carry more risk than a cash ISA. If you already own shares,
it makes sense to shelter them in an ISA wrapper to avoid tax on dividends and
CGT or capital gains tax.
Companies like Hargreaves Lansdown offer this ISA service
and has a good online platform.
You can invest in an ISA by making regular monthly
contributions or a single lump sum each year.
Check out the best deals online (e.g. at
moneysavingexperts.co.uk or similar comparison sites) and now is the time to
start shopping around rather than leaving it until the last minute and risk losing
out.
In addition to the ISA allowance, all UK basic rate tax
payers can now earn up to £1000 a year in interest without paying tax on it.
With base lending rates standing at .5% as I write, you’d need quite a lot of
money on deposit to earn £1000 of interest on your savings. Assuming a savings
rate of .25%, you would have to have £400,000 on deposit in order to earn £1000
in interest.
ISA Features
- Save tax - Grow your money free of UK income and capital gains tax (stocks and shares ISA)
- Accessibility - although investing is best for the long term, you can take your money out whenever you need to
- Wide investment choice - choose from deposit based ISA to thousands of managed funds, UK and international shares, investment trusts and more.
SELF-INVESTED PERSONAL PENSION (SIPP)
A SIPP and most other approved pension schemes allows you to
gain 20% tax relief on
qualifying funds you invest into your pension plan. A SIPP generally gives you
a wider choice of investments than a pension plan with a single pension provider.
SIPP Features
- Save tax - Grow your money free of UK income and capital gains tax
- Great value - 0.45% p.a. to hold your SIPP investments.
- Wide investment choice - choose from 2,500 funds, UK and international shares, investment trusts and more
Tax rules can change and the benefits of investing in a SIPP
depend on your circumstances. At present, you can only access the money in a SIPP from age
55 (57 from 2028).
Business owners and the self employed should consult their accountants to see if they can make any last tax plans before the end of the tax year. After the year end might be too late to claim allowances against your profits. In my experience most accountants and reactive rather than proactive and only talk to you when it's all over, and then say "you could have done this or that last year...".
Bonus tip. Get into the habit of saving a percentage of your
income no matter how small to start with. The sooner you start saving the
better, as compound interest (interest on interest) will work in your favour.
Albert Einstein described compound interest as one of the greatest forces on
Earth.
Acton. See an independent financial advisor and do your own
research online.
Check out my Podcast episode "Last. Chance To Claim UK Tax
Allowances Tax Year Ends 05/04" on Anchor! https://anchor.fm/charles-kelly/episodes/Last--Chance-To-Claim-UK-Tax-Allowances-Tax-Year-Ends-0504-e19d1k. Also available on itunes.
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Tuesday, April 3, 2018
Home Based Business Ideas UK: 3 Steps To Starting A Business, Changing Your Fort...
Home Based Business Ideas UK: 3 Steps To Starting A Business, Changing Your Fort...: Money tips daily serves those who want to save money as well as people who want to make more money. No matter how hard you try and make...
3 Steps To Starting A Business, Changing Your Fortunes And Building A Better Life
Money
tips daily serves those who want to save money as well as people who want
to make more money.
2. Open your mind
3. Take ACTION!
No matter how hard you try and make savings, eventually you will reach the point
where you cannot cut your budget any further.
It’s
a bit like governments who find that making cuts and reducing wastage can only
go so far. The country needs to produce more revenue and GDP in order to
prosper.
Just like a business, you need a combination of both keeping costs down and increasing revenue and profits.
It’s
the same for your own personal “economy”, which by the way is the only one you
can control, right? After making savings and cutting down on waste and
nonessential spending, how do you the next logical step and start earning a little extra
cash so that you can enjoy a better standard of living?
You
could get a better paying job, work longer hours or take a part-time job, but
you will still be exchanging your time for money. This obviously has its
limitations, as there are only so many hours of your life you can give to an employer.
You
could also start a part-time business, on or offline, from home like millions of
people have done. Most small businesses start as home-based or part-time ventures
with little or no start-up capital.
Starting a physical business requires capital, premises and equipment. Whereas, an
online or service based business usually requires little or no capital as you are
giving your service in exchange for money. You don't need to purchase stock or expensive equipment, all you need is a laptop or smart phone to get started.
If you’re
starting a new business I would NOT suggest renting a shop in the High Street
or signing leases for shops or offices.
Every
year, I see shops in my local area come and go as one business after
another fails. I’ve seen shops selling all manner of things like party costumes and balloons, upmarket
bathrooms as well as numerous restaurants all collapse within the first two years.
Some were start ups, but others were established businesses. One casualty was
the restaurant chain Frankie & Benny’s who didn’t last very long in a premises
they’d spent a fortune renovating. They must have lost between £500,000 and £1,000,000.
Get real! If the likes of Maplins and Toys “R” Us (both have recently gone bust) cannot
make it on the High Street, you’re going to need something pretty special in
order to survive.
Over
the years, I’ve seen so many people who have had a windfall or come into some
money (or borrowed money from relatives who have had a windfall) start up a physical
bricks and mortar business or paid thousands of pounds for some useless
franchise only to lose everything.
You’ve
only got to watch shows like Dragons Den - a BBC TV programmes where people pitch new ideas to wealthy entrepreneurs - to see some of the ludicrous business ideas that people have and
get into without doing any proper market research. Some of the contestants have
already sunk their life savings into an invention or business idea which has no
chance of succeeding.
When asked by the experts what research they had done,
they usually say they have asked their friends and relatives if they
thought it was a good idea and most people said yes! What would they expect
their relatives to say? What do their friends and relatives know about a new business anyway?
I’m
not saying don’t start a physical business, but you have to be very careful and
have enough capital to survive for the first few years.
If your physical business fails and you have ongoing liabilities, such as the rent on a long lease, or personal guarantees, you could lose everything including your house.
If your physical business fails and you have ongoing liabilities, such as the rent on a long lease, or personal guarantees, you could lose everything including your house.
What
are the alternative and better ways of getting into business?
You
don’t have to spend your life savings or start a physical ‘bricks and mortar’
business, as there are plenty of better and safer alternatives with far less risk and liabilities.
When
the Napoleon Hill published his ground-breaking book, Think and Grow Rich,
during the great depression of the 1930s he said that the way to start the
business with little or no capital was to provide “services”. This has not
changed that much in the last hundred years!
In
Hill’s day he mentions services like bookkeeping, which is still relevant today
as most businesses need a bookkeeper in addition to an accountant.
When
I was running a physical business we employed various bookkeepers over the
years, most of whom came to the office and had no business premises of their
own. On average we paid between £25 and £45 per hour for a Bookkeeper, and it
was not easy to find a good one.
The
service sector has replaced the old heavy industries that used to power the UK
economy. Today the City of London employs hundreds of thousands of people and
earns billions in revenue for the British economy.
3 steps to starting a business
- Decide what you really like to do.
- Open your mind
- Take Action
1. Decide what you really like to do
Before
you start any business, first decide
what it is you like to do or better still, what is your passion?
What
do you like doing in your spare time or at weekends?
What
jobs would you do for free?
What
would you really like to do if you won the lottery after you’ve got tired of
travelling the world and sitting on beaches?
We
all have unique talents and skills which can be monetised, so what is yours?
Of course,
you may need further training in your field, this can be done very cheaply in
your spare time.
One
thing that has changed over the last hundred years is the multitude of
opportunities which are now open to us in the internet age.
There
are thousands of jobs and businesses that didn’t exist 10 or 20 years ago.
People
can now make a living selling goods on Amazon, Shopify or Groupon. You don’t
need to rent a shop in the High Street, as these companies have built an online
store for you, and believe me, they get far more "footfall" than you will ever
get in the High Street!
You
don’t need to invent your own product, as there are thousands of products and
services you can sell as an affiliate partner on a commission basis.
You can also sell products for direct sales companies (Avon, Betterware and Ann Summers) and network marketing companies. You can also earn commission working with weight loss organisations and networking companies who have done the hard work of building a product and brand for you.
You can also sell products for direct sales companies (Avon, Betterware and Ann Summers) and network marketing companies. You can also earn commission working with weight loss organisations and networking companies who have done the hard work of building a product and brand for you.
I
know many people who are making a very good living in property, but started
with no capital.
Some
are running letting agencies on a rent to rents basis, with a make excellent
profits and have no shop and very little office overheads.
The
second thing you need to do is to open your mind and change your mindset. If
you’re stuck in your old ways and refuse to see the opportunities around you
then your closed mind will hold you back forever.
Things will not change unless
you change, and as Jim Rohn put it, "If you will change, everything will change for you".
The third
thing you need to do is to take action!
Nothing
moves without action!
Taking
action now might involve making a plan, doing some research or setting up a
free online account with Amazon.
I
can hear some of you saying, well that’s alright for some people, but I haven’t
got the time. This has more to do with your mindset than reality, because in reality, we all have the same number of hours in a day. How we use those hours
will determine our success, happiness and future security.
You can spend all your spare time in front of the television or on social media or use your time wisely by learning a new skill, improving yourself, looking for opportunities or setting up a part-time business.
If
every waking hour really is filled with activities, you might want to consider
outsourcing some of the work you do to free up time for income generating
activities.
Hiring
a cleaner or gardener might cost you a little bit of money, but the time it it
will save will be worth it if you use that time to generate extra income. My cleaning does my house in half the time I would take, which is a double bonus!
I’m
sure your hourly value is higher than a cleaner and if he’s not right now it will
be if you start using your time more effectively.
If
you would like further details on courses to get you started in an online or
property business, please email me at Charles@CharlesKelly.net
Check out my episode "3 Steps To Starting A Business
And Changing Your Fortunes " on Anchor! https://anchor.fm/charles-kelly/episodes/3-Steps-To-Starting-A-Business-And-Changing-Your-Fortunes-e19649
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