Millennials are the age group that are now in the twenties and mid thirties today. Most of these age groups are evolving from graduates to independents to spouses. These are some important milestones and this group should be aware of the standard financial commitments that come with these major milestones. Here are 4 tax mistakes made by millennials. Filing as a dependent when you’re independent (or Vice Versa) – When filing your taxes and choosing your status, be clear on if you receive any financial assistance from your parents. If your parents claim you as a dependant on their tax return, you will be unable to claim an exemption on your income tax return. On the other end, if millennials file as a dependant, instead of an independant, you will not be able to reduce your taxable income. Skipping Out on Health Insurance – Under the new health care law, millennials without health insurance, will have to pay a penalty when filing their returns. Those who can afford insurance and have not, will have to pay an individual shared responsibility payment. Forgetting to Deduct Student Loan Interest – To encourage higher education the US government gives students with loans, a tax break based on the interest that has been paid over the year. The deductions and credits can reach up to $2,500 on qualified student loans. Miscalculating Deductions for the Cost of Relocating – If you have moved jobs due to a promotion or a relocation to a new office, you will qualify to deduct relocation costs. But remember that your new workplace must be at least 50 miles from your old home compared to your old job and old...

Women should feel secure and confident in handling their personal finances. Here are some financial planning advice that is specific to women; Get involved – Make sure you are involved in goal setting, budgeting, saving and investing. If you don’t get involved in the setting of your goals, you will find it much harder to reach them. If you are married or have a partner, include them in the goal setting process. Have a plan – Have a financial plan for your short and long term goals. Understand what your future expenses maybe and then work out how much you would need to save to meet those expenses. Maximize your employer benefits and retirement plans to receive tax benefits. Insurance – To secure your future, ensure you are sufficiently insured. For women whose spouses are the primary earners, it is important that your partner has life and disability insurance, to ensure that you are prepared for the worst. This will keep you and your family comfortable, until you are ready to enter the workforce. Maximize social security – To maximise your social security benefits, refrain for withdrawing your benefits early. Women have a longer life expectancy than men and therefore should ensure that they have a stable income after retirement. Assess your risk – When investing your funds, make decisions based on educated facts and not on short term market fluctuations. You may find that your portfolio may go up or down, but if they are tied to your goals, you will be less likely to make reactive...

You may be surprised to know that your vacation meals, can cost you more than your airfare. Here are some simple ways to cut costs on vacation meals. Cook for yourself – Book a hotel that offers a kitchenette or a mini fridge. Always eat breakfast in your room. You can stop at any supermarket and pick up some essentials, like fruit, cereal, milk, disposable plates and spoons. Eat 2 meals instead of 3 – When you’re on holiday you’re usually off your daily routine. Most days will be late starts, so have brunch and opt for an early supper at 5pm. Stock up on healthy snacks – Fresh fruit, crackers, cheese, nuts, water and milk are easy snacks to carry in your bag. Share your meals – Most restaurants serve large portions, use this to order a main and an entree and split it. If you’re travelling with children, ask the restaurant if they have a children’s menu. Look for cafes – Small cafes will provide a wide range of breakfasts, sandwiches and healthy smoothies at reasonable prices. Book a hotel that includes breakfast buffets – Breakfast buffets at a hotel usually have a variety of breakfast dishes plus a few mains. This is ideal for an early brunch. Happy hour – Many bars and pubs have happy hour from 3.30pm – 5.30pm. These happy hour offers are not only for drinks, they also include pub food such as pies, fish and chips and...

Feb 21, 2016

In economic climates such as these, there are very instruments that provide double digit returns. With the extremely low rates, some countries are seeing charges from banks to deposit funds. Index and other funds are also no longer the risk free return investors have come to expect. Real estate is one of the few investments if done right, can result in healthy returns. There are two primary conditions that need to be met in order for an investment in real estate to provide the kind of returns we like. Location This is the more important of the two conditions. Mature real estate markets will not see significant appreciation. In order to see the kind of return we are looking for, look for property in up and coming areas. Preferably close to transport hubs and infrastructure. There is a lot of research that will need to go in. Before you actually invest, qualify your plan first. Do a test run of your research and track how your selected property and area do over a certain period of time. This will give you a reasonable idea of what to expect from your selection. Time Unless you are looking to flip a properly quickly, real estate is a medium term investment. In the short term the returns are likely to be lower single digit. In order to maximize your returns, look to divest around the three year mark. There is a point the appreciation of the property will start to slow. That is the point you will want to...

Jan 21, 2016

The 50/20/30 guideline is one used by planners when working with new clients to help them understand where they spend their funds. This method can be used by anyone who is looking to work within a budget, to ensure that they have sufficient money for the month as well as savings. Fixed costs – These costs are those that do not vary very much during the month. For example, mortgage payments, utilities, car payments and rent. You could also add monthly memberships, like gym and subscriptions, like Netflix. A planner will suggest that you allocate 50% of your monthly earning for these costs. Financial goals – These goals can include savings for an emergency fund, retirement fund or down payment for a home or land. Planners will suggest that you allocate 20% of your funds for this purpose. This saving will help you maintain a secure future for you and your dependants. Flexible spending – These costs are those that vary during the month. This will include groceries, take out, shopping, entertainment and travel. A planner will recommend 30% of your monthly earnings for this area of spending. Remember that you can be flexible in this area as long as you don’t go over the allocated sum. If your looking at putting a 50/20/30 budget guideline into action, start off with putting down all your expenses, preferably on an excel sheet. You should do this for at least a month prior to assess your pattern of spending and then allocate your funds...

Jan 6, 2016

By Samuel Phineas Upham Banks are usually held to different standards because of the volume of money that flows through them. In the most recent fiscal crisis, we frequently heard this term “too big to fail” in reference to banks. Banking regulation aims to provide some guidelines and frameworks banks can work within to prevent this kind of thing from happening. They are not always successful, and some of these regulations can be rather knee jerk, but they come from a place of wanting to preserve the integrity and credibility of our financial system. Three basic principles guide the concepts involved with banking regulation. The Minimum It’s typical for banking regulations to lay out some minimum requirements that help to telegraph the objectives of the regulation. The one most commonly used is maintaining minimum capital ratios, but regulations usually apply to whichever parts of the bank stand to be exposed to the most risk. US banks have quite a bit of control during this process, and typically work closely with regulators on this aspect. Review by Supervisor Every bank is required to hold a license to operate. Those licenses are overseen by a regulatory supervisor, whose job it is to monitor the activity of registered banks. Regulatory supervisors also respond when there is a breach or a crisis at the bank. They are empowered to issue fines, give direction or revoke the bank’s license in extreme cases. Discipline Banks with discipline aren’t simply fiscally responsible; they have to disclose their financial information. That aspect is crucial when assessing risk, as is the market price. Together, that data signals the financial health of the institution. About the Author: Samuel Phineas Upham is an investor at a family office/ hedgefund, where he focuses on special situation illiquid investing. Before this position, Phin Upham was working at Morgan Stanley in the Media and Telecom group. You may contact Phin on his Samuel Phineas Upham website or...

Dec 21, 2015

Saving for retirement is often overlooked, since most young people assume that it is too far along the way to warrant any present investment. Saving for retirement early means that once you do retire you will have sufficient funds to do the things that you have always enjoyed. It’s good to start with a well paying job but a well paying job doesn’t guarantee savings for retirement. Here are a few tips to help you save for a secure, happy retirement. Save…NOW Don’t wait till you’re over 30 to start saving for your retirement. Speak to your local bank and look into a retirement fund. Your retirement fund value will vary according to your earnings. Since you will have to save a set value every month, you will learn to manage your other expenses accordingly. Don’t use the saved funds Avoid using a lump sum from your investment before retirement. Think of your retirement fund as money spent, therefore making it inaccessible. Expenses such as purchasing a new home, car or paying for your child’s education will come up, but remember that there are other ways to fund these expenses and your retirement fund is not one of them. Save more. If you have excess funds after your retirement fund monthly fee has been charged, save the excess. These saving can be invested in stocks, bonds, Exchange Traded Funds (ETFs) and mutual funds, but make sure you receive sound investment advice from a reputed...

Dec 2, 2015

By Samuel Phineas Upham In the olden days of commerce, one had to go through significant bureaucracy to perform interstate commerce. Today, this is something we take for granted and much of that has to do with the Electronic Signatures in Global and National Commerce Act. The Internet completely changed much of the business that people do day to day. On the consumer side, this transition looked quite simple. First we began swiping a debit card, then we had Internet access to track our purchases, and finally we are to the point where we need little more than a phone screen to send money to someone else. Every state in the Union has laws that govern how it handles electronic signatures, which are now a requirement for many transactions we will perform throughout our lives. This includes transmitting data electronically, which is becoming an increasing part of our lives. The ESIGN is the federal law that acts as a guideline to those state regulations. What the ESIGN does is validate contracts transmitted (wholly or partially) through electronic means. The act specifically prevents someone from challenging the effect, validity, or enforceability of a contract based on how it was transmitted in the first place. By making electronic documents as valid as their paper equivalents, commerce can continue online without causing any serious legal problems. Congress also took a forward-thinking approach to this document, allowing for the same provisions to apply to global transactions and documentation as well. About the Author: Samuel Phineas Upham is an investor at a family office/ hedgefund, where he focuses on special situation illiquid investing. Before this position, Phin Upham was working at Morgan Stanley in the Media and Telecom group. You may contact Phin on his Samuel Phineas Upham website or...