Stop Working Hard and Grow Money on Trees

For the average person today, getting ahead financially seems like an almost impossible feat. It’s difficult for many to envision ever escaping the rat race when the cost of living is so high and wages are so low. Seeing no way out, most just suck it up and push through, trying to make the “best of it” the only way they know how – by working harder.
WORKING HARD DOESN’T WORK
The problem with this approach is that the rules of money have changed, and working hard simply doesn’t work anymore. Most people have no idea that the rules of money have changed and that they are being penalized for playing by the old rules. Working hard used to work. Saving money used to work. However, after the rules changed in 1971, working hard and saving money progressively makes you poorer.
Because of a lack of financial education, a number of people find themselves metaphorically attempting to push a boulder up the side of a hill. A very few might make it, but for the majority the hill wins. This is what life is like today for those who don’t have a financial education and choose to play by the old rules and work hard.
The new rules require that your money work hard for you, instead of you working hard for money. You can look at this as “growing money on trees.” The rich don’t work hard for money. The rich have their money grow on trees, and so should you!
WORK TO ACCUMULATE ASSETS
The rich work to accumulate assets. In very simple terms, assets are things that place money in your pocket. Some examples are businesses, stocks, real estate, and precious metals. When we speak of growing money on trees, the asset is represented by the tree. Whether it is a business, real estate, stocks, or precious metals, the tree – as an asset – represents something that places money in your pocket.
How the asset performs is represented by its quality of DIRT. DIRT stands for debt, inflation, retirement, and taxes.
IT’S ABOUT HAVING GOOD DIRT
Having a sound financial education provides you the ability to increase the amount of money that goes into your pocket because of a high quality of DIRT. The poor and middle class suffer due to a lack of financial education. This is why they end up deeply in debt, destroyed by inflation, sold the riskiest of investments, and paying the highest in taxes.
Playing by the old rules is a losing proposition and dangerous! Learn to have your money work hard for you. Learn to grow your money on trees through assets – just like the rich.

Using Captive Insurance Companies for Savings

Small companies have been copying a method to control insurance costs and reduce taxes that used to be the domain of large businesses: setting up their own insurance companies to provide coverage when they think that outside insurers are charging too much.
Often, they are starting what is called a “captive insurance company” – an insurer founded to write coverage for the company, companies or founders.
Here’s how captive insurers work.
The parent business (your company) creates a captive so that it has a self-funded option for buying insurance, whereby the parent provides the reserves to back the policies. The captive then either retains that risk or pays re-insures to take it. The price for coverage is set by the parent business; reinsurance costs, if any, are a factor.
In the event of a loss, the business pays claims from its captive, or the re-insurer pays the captive.
Captives are overseen by corporate boards and, to keep costs low, are often based in places where there is favorable tax treatment and less onerous regulation – such as Bermuda and the Cayman Islands, or U.S states like Vermont and South Carolina.
Captives have become very popular risk financing tools that provide maximum flexibility to any risk financing program. And the additional possibility of adding several types of employee benefits is of further strategic value to the owners of captives.
While the employee benefit aspects have not emerged as quickly as had been predicted, there is little doubt that widespread use of captives for employee benefits is just a matter of time. While coverage’s like long term disability and term life insurance typically require Department of Labor approval, other benefit-related coverage’s such as medical stop loss can utilize a captive without the department’s approval.
Additionally, some mid-sized corporate owners also view a captive as an integral part of their asset protection and wealth accumulation plans. The opportunities offered by a captive play a critical role in the strategic planning of many corporations.
A captive insurance company would be an insurance subsidiary that is owned by its parent business (es). There are now nearly 5,000 captive insurers worldwide. Over 80 percent of Fortune 500 Companies take advantage of some sort of captive insurance company arrangement. Now small companies can also.
By sharing a large captive, participants are insured under group policies, which provide for insurance coverage that recognizes superior claims experience in the form of experience-rated refunds of premiums, and other profit-sharing options made available to the insured.
A true captive insurance arrangement is where a parent company or some companies in the same economic family (related parties), pay a subsidiary or another member of the family, established as a licensed type of insurance company, premiums that cover the parent company.
In theory, underwriting profits from the subsidiary are retained by the parent. Single-parent captives allow an organization to cover any risk they wish to fund, and generally eliminate the commission-price component from the premiums. Jurisdictions in the U.S. and in certain parts of the world have adopted a series of laws and regulations that allow small non-life companies, taxed under IRC Section 831(b), or as 831(b) companies.
Try Sharing
There are a number of significant advantages that may be obtained through sharing a large captive with other companies. The most important is that you can significantly decrease the cost of insurance through this arrangement.
The second advantage is that sharing a captive does not require any capital commitment and has very low policy fees. The policy application process is similar to that of any commercial insurance company, is relatively straightforward, and aside from an independent actuarial and underwriting review, bears no additional charges.
By sharing a captive, you only pay a pro rate fee to cover all general and administrative expenses. The cost for administration is very low per insured (historically under 60 basis points annually). By sharing a large captive, loans to its insureds (your company) can be legally made. So you can make a tax deductible contribution, and then take back money tax free. Sharing a large captive requires little or no maintenance by the insured and can be implemented in a fraction of the time required for stand alone captives.
If done correctly, sharing a large captive can yield a small company significant tax and cost savings.
If done incorrectly, the results can be disastrous.
Buyer Beware
Stand alone captives are also likely to draw IRS attention. Another advantage of sharing a captive is that IRS problems are less likely if that path is followed, and they can be entirely eliminated as even a possibility by following the technique of renting a captive, which would involve no ownership interest in the captive on the part of the insured.

Why Should You Bank Online With Your Credit Union?

The Internet has changed the way everyone lives and communicates. But it’s so much more than keeping in touch with your family and friends. It can also be used to simplify your financial life. It is a welcome change from the monotony of balancing your checkbook and correcting those antiquated handwritten ledger pages. With online banking at your fingertips it gives even the most dyed-in-the-wool paper trail junkie the opportunity to abandon ship and embrace the digital age and utilize online banking.
Banking online isn’t a new phenomenon and likely the majority of us already do it in one way or another. If you haven’t yet made the transition to online banking and are still searching for more information about the benefits, I’ve put together a list of reasons why you should consider using the Internet to manage your finances.
Bank at your convenience by managing your accounts on your schedule, 24/7. The only thing you need is your computer, tablet or a smartphone with Internet access.
Everyone has experienced his or her financial institution making an error and it’s not always in your favor. Or, I’m sure you have recorded a check incorrectly allowing the payment to fall through the cracks. The beauty of online banking is it allows you to monitor your account balance and pending transactions in realtime. And, since every transaction is recorded, it is possible to go back months to make sure every transaction has been recorded correctly.
Have you ever been late with a bill or has a payment gotten lost in the mail? Paying your bills online is simple, fast and very secure. Just check with your credit union and set up online bill pay.
It’s no longer necessary to wait for your paycheck to land on your desk. Just arrange for direct deposit online so you have immediate access to your money. It may be exciting to see that check up close and personal but the time you save waiting in line at the bank to make a deposit will make up for it.
Do you have people in your life, like kids in college, that need a cash infusion right now? Online money transfers make it easy to send funds wherever they need to go – fast and easy and most of the time free. And, if you have multiple accounts, online transfers give you the convenience of moving funds as needed.
Bank-on-the-go with online banking. Make a deposit, transfer funds or even deposit a check while you are waiting in line at the grocery store.
Go paperless with eStatements. Save time. Save money. Save a tree! Environmentally conscious and security-minded people are choosing to receive eStatements in place of traditional paper statements that can be accessed within their personal online banking from anywhere, anytime.
MoneyDeskTop by MX is designed to put a member’s data on center stage, molding it into a cohesive, intelligible and interactive visualization. MX provides access to a personal financial management software program whereby online banking becomes a “hub” of financial activity. Users aggregate accounts from any financial institution allowing members to track spending, create budgets and manage debt.
Do you want to have a check-free life? With online banking it’s easy to pay people and get paid easier faster and cheaper than using checks.
Be assured that your personal information is protected with online banking. Credit Unions typically use highly sophisticated encryption devices to ensure their members privacy and safety.
Additionally, many credit unions allow their members to apply for accounts, order checks, stop payments, apply for loans and even communicate with them online. Consider all the benefits of having an online relationship with your credit union.

Keeping Track of Finance News

The financial world is very volatile and every moment there are frequent changes in the economic activities around the world. The market is strongly driven by speculations and emotions and so the slightest of activities can have a deep impact on the position of the market. Events like political unrest, civil uprising, terrorist attacks, natural disasters, increase in oil prices and diplomatic failures can completely change the course of the market.

People who are involved in the financial sector should keep a track of all kinds of development in this sector. Also those who invest in the equities market will be largely affected by such development as the prices of shares change rapidly, based on the market situation and other external factors. So, investors should be in a good position to foresee any drastic change in share prices that can lead them to incur losses. This is why it is important for investors to keep a track of finance news on a regular basis.

Sources of Finance News:

Internet: The internet is the best source of all kinds of information and so there are many sites that can give you a lot of information about the business world. Sites like Google Finance, Yahoo Finance etc. will give you live market updates and information about stock markets from around the world. Also the stock prices of most big corporations, which are listed in various stock exchanges, can also be obtained from these sites.

News Channels: There are many news channels dedicated to broadcasting business and market news and they also highlight all events that can affect the markets. You can also get live news tickers about stock prices, performances of various stock exchanges etc. Another benefit of watching these channels is that you get to know opinions of market experts about the kind of stocks or mutual funds that one can invest on to get maximum benefits.

Newspapers: Business newspapers come with articles dedicated to the various happenings of the business world. There are many pages of information about the market, changes in regulations or laws and expert advice on the right kind of investments.

Business Magazines: These magazines can keep you updated about various corporate initiatives, acquisitions and mergers, stock predictions, economic forecasts, market news etc. They also publish quarterly or annual balance sheets of many companies which will help you in taking smart investment decisions.