Archive 2019

Do you opt for saving, investing or both?

Savings in the Netherlands are still growing every year, but due to the low interest rates, investing is gaining popularity. Do you opt for saving, investing or both?

When do you choose to save?

When do you choose to save?

Despite the low interest rate on savings, savings in the Netherlands continue to grow every year. By saving on a savings account, you opt for security.

Your money is safe with the bank, you receive a little interest and you can withdraw your savings at any time. Savings in a savings account are ideal as a buffer for unexpected expenses and if you want to make a large purchase in the short term.

Low savings interest disastrous for purchasing power

Low savings interest disastrous for purchasing power

A major disadvantage of saving is the low savings interest rate at the moment. As a result, the return on savings is nil. Taking into account inflation and capital gains tax, you can buy less with your savings every year.

If you want to repair something of your return, you can deposit a portion of your savings in a deposit for a number of years. You retain the certainty, but are limited in the freedom to withdraw your savings at any time.

When do you choose to invest?

When do you choose to invest?

Due to the low interest rates, investing is gaining popularity. Investing can give you a higher return. We say can emphatically. The higher return on investing is associated with more risk. A negative return is also possible.

You therefore invest for the long term. Your investment is then less sensitive to price fluctuations and the risk of a negative return becomes smaller. If you choose to invest the return you also make you build up capital faster and you can expect a nice final amount.

You therefore also invest with savings that you do not need immediately. 

Choose a suitable investment product

Choose a suitable investment product

If you have decided to invest with part of your assets, it is important to choose an appropriate investment product. Topics to consider are:

  • Investment horizon: how many years do you need the assets.
  • Investment objective: you are happy to invest with regard to the final amount for your child’s pension or study. With other spending goals you might take a little more risk.

How do you want to invest?

  • You invest yourself through a broker.
  • If a professional wants to invest for you, choose fund investing.
  • As a supplement to your pension, pension saving is suitable and tax-friendly.
  • Crowdfunding is a relatively new way of investing. You then invest with a group of investors in private and corporate projects.

Conclusion: by combining saving and investing, you go for certainty and a good return in the long term.

Insurance for Families

 

To ensure that your existing insurance policies really meet the hedging needs of a family , you should put them to the test before the birth of your first child. We give you the most important information about which insurances are suitable for you and your family and how you can best secure your loved ones.  

In our first part of “Insurance for Families” you have already learned what a private liability insurance for your family and why a term life insurance is important for young families.   In the second part of “Insurance for Families” you will learn today how the disability insurance protects you and your family from loss of income and how the sickness allowance insurance can close a possible income gap in case of incapacity for work.

The disability insurance – compensate for loss of income  

The disability insurance - compensate for loss of income  

If, due to illness or accident, you are no longer able to practice your current occupation, a disability insurance can cover you. Especially for families whose livelihood depends on the income of a parent, occupational disability insurance is very important. In this case, the main earner should take out the insurance. The same applies of course to single parents .  

Even if it may surprise you, the risk of occupational disability is not limited to people in higher risk occupations. The most common cause of early retirement is serious mental illness or neuropathy .  

Even if you receive a disability pension from the state, keep in mind that it is barely more than a third of your last gross salary, if any! The conditions for admission to the statutory disability pension are much more difficult than for the private occupational disability pension.  

When does occupational disability insurance pay?  

When does occupational disability insurance pay?  

Whether your inability to work was caused by an accident or illness , the disability insurance pays you a monthly pension once you are no longer able to work at least 6 months to 50% of your job.  

Occupational disability insurance is one of the most important insurance policies, especially for families, as the disability pension and supplementary social benefits are usually insufficient to meet the needs of a family. If the main earner also financed the home , would fall in an emergency, not only the income, but also the home.  

You should only refrain from occupational disability insurance if you and your family can adequately cover their losses with existing reserves. Since disability insurance is quite costly, you should check in advance to see if you can and do afford this insurance financially. Talk to us on the disability insurance, your Goodfinancial partner will be happy to advise you! The topic of occupational disability insurance with your relevant health issues and choosing the right company is complex and should never be completed without an independent broker .  

The daily sickness insurance – to secure lost earnings  

The daily sickness insurance - to secure lost earnings  

To prove your disability, you must submit a large number of documents to your insurance company. These include, for example, medical reports and descriptions of your current job, and usually a diagnosis of “disability” occurs over a very long period of “disability”.

Until your application has been assessed and the incapacity for work is determined, a longer period of inability to work usually goes into the country. However, the entitlement to a continued salary payment lasts for a maximum of six weeks. From the statutory health insurance you would receive from this time the sick pay , but this is lower than the net salary. To close this income gap, it makes sense to take out a daily sickness insurance. Especially employees above with a gross salary above the income threshold should close this gap.  

 

For whom is sickness allowance insurance useful?  

Whether it makes sense for you to take out daily sickness insurance depends on your employment.  

  • Statutory Employees:  

If your salary is below the income threshold, the sickness benefit is approximately 20 percent lower than your previous net income. In order to close this gap and make a living, you should think about sickness allowance insurance.  

  • Privately insured employees:

If you are a privately insured employee, you will not receive sickness benefit after the six weeks of paid wages. Therefore, you should take out daily sickness insurance to cover your monthly expenses.  

  • Officer:

Civil servants do not need sickness allowance insurance because their benefits continue to be paid in the event of a long-term illness without a specific time limit. In the event that you can no longer work in your profession, it is possible to take out a disability insurance. 

Builders should take more time to look for a loan

Building is back in fashion: many Germans use the low mortgage rates to build their long-awaited home. Precisely because the building money is so low, even larger loan amounts can be taken up without automatically generating a very high interest burden.

Real estate loans have become so cheap

Real estate loans have become so cheap

Especially because real estate loans have become so cheap, there are increasingly more builders who do not want to deal with the issue of financing closer. Often this is perceived as a very dry matter, which limits enthusiasm and interest. Instead, they prefer to engage many builders with technical issues. Especially the construction planning is often devoted a lot of time.

However, this behavior does not lead to the best possible results in terms of funding. Just because construction money is cheap, does not mean that you can complete a favorable loan at any bank. There are still at least some significant differences between the interest rates of individual banks. If you want to finance cheap, you must make sure. The time for a financial comparison should be taken necessarily.

Can lead to considerable additional costs

Can lead to considerable additional costs

Unfortunately, this is often not done. Many people turn to their bank and finance directly there. As a result, higher interest rates are often accepted. These do not always seem big, but one should not be fooled: Already 0.1 percent can lead to considerable additional costs, which amount to several thousand euros.

Favorable loan to offer

Favorable loan to offer

Incidentally, finding cheap lenders is not at all difficult. Thanks to our mortgage lending comparison, the market is quickly examined. Our experts take away almost all the work from clients and buyers. How to determine which bank has the right or a particularly favorable loan to offer, so that the property is financed at the end of cheap.

Can Payday Loan Help Small Businesses?

Many may be familiar with the situation when money is needed here and now. Whether you are a natural person or a legal entity, you may have difficulties with the finances that were sharply needed to cover the debt, the necessary purchase or for the development of your own business. You can apply for a loan from a bank, but in addition to them, the Payday Loan also gives loans to the market, and they do it on a rather large scale. For example, in the capital of such organizations officially there are almost a thousand.

 

How to properly take a microloan

How to properly take a microloan

Director of the Russian Microfinance Center shared information on how to properly take a microloan and how much such funding can be useful for young businessmen.

First of all, payday loans should be divided into three categories:
1. “Loans to salary” – some kind of express loan for a short period. The interest rate in this type of lending is quite high, but it is a question of small amounts. Thus, the payment on the loan in the end can be 1.500 – 3.000 rubles. But such payday loans are more suitable for individuals, in cases where money is needed now, and before the salary a few more days.
2. Provides lending services, according to characteristics similar to a conventional loan in a bank. Here, the dates are already calculated in months and the rate on such loans is close to bank loans – 25% – 30% per year. The usefulness of such payday loans for small businesses is already causing much less doubt. In addition, applying for and getting a loan from an Payday Loan is easier and faster than a bank loan.
3. Non-profit organizations created to support small businesses that have the right to issue loans, having budgetary funds in their assets. Often, by applying to such a fund, you can count on a loan with a small interest rate – about 8% per year.

 

What is the Payday Loan different from a bank loan?

What is the Payday Loan different from a bank loan?

 

Payday Loans should be treated a little differently than bank loans. Payday Loans can help small businesses more often than banks. They are more suitable in the case when money is needed urgently, a vivid example of this is the cash gap. Unlike banks, Payday Loans have a more flexible customer relationship policy, and there is an opportunity to choose an individual solution. If an entrepreneur turns to non-financial organizations, he must be prepared for the fact that his candidacy may not be suitable for the requirements relating to the type of the company’s activities and the purpose of the loan. With regard to the use of budgetary funds issued – it will be necessary to report to the creditor on what and when the money was spent.

 

How to verify the authenticity of a Payday Loan

How to verify the authenticity of a Payday Loan

In order not to fall into the hands of fraudsters, you need to make sure that the microfinance organization acts legally. All existing Payday Loans are registered in the RTT Finance register, in order to check the company that the borrower decided to contact, you need to go to the Bank of Russia website and, without registering on the resource, find out the authority of the organization. Also, all Payday Loans must be members of an Self-Regulatory Organization. There are several such organizations, with their list, also available on the Central Bank website. And already on the resource SRO find the right organization.

SMS credit From 18 Years old

The Latvian rapid credit industry is developing very fast and more and more companies are offering their lending services to consumers. Both young and old find out about the ability to borrow quick credit from various ads or acquaintances. As we know, it is quite easy for younger people to be persuaded about taking such credits or about how much extraordinary income would be useful.

 

Young people really need credit?

Young people really need credit?

Of course, money can be useful in any situation, but just how much it is needed and do young people really need credit? The answers to this question are different, because everyone’s life, experience and surrounding circumstances are different. Therefore it is not possible to judge the whole group of people. SMS credits are one of the ways you can apply for a short-term loan. Several years ago, Finland introduced a new technology that enabled credit institutions to apply for a loan by sending a simple SMS to the customer.

 

How SMS Credit processed

How SMS Credit processed

This technology was also introduced in lending companies in other countries, including Latvia. Currently, almost all non-bank Latvian lenders offer SMS services. Usually the process of using this service is simple. When registering, you must provide your phone number on the company website.

This number is later sent to a confirmation message. After signing up, you need to send an SMS with a specific text, loan amount and repayment date to the number indicated by the company. Such a service is easy to use if you need a quick loan but do not have access to the Internet. The issue of quick loans has also been discussed among most non-bank lenders in Latvia.

 

Young people is allowed on credit but limited

Young people is allowed on credit but limited

In practice, all quick credit issuers have agreed that loans cannot be issued to persons under 20 or 21 years of age. There is only one creditor in Latvia – 24Lenders, which offers both SMS loan service and short-term loan from 18 years. This is also the only option for an 18-year-old to use an SMS credit service. This creditor has also set other criteria without a minimum age. There must be a permanent resident of Latvia with good credit history and regular income. The official workplace will certainly be able to convince the lender of the customer’s solvency.

So we can conclude that the credit for the 18-year SMS is a real thing, but the likelihood of getting such a loan is minimal. The lender is just one and absolutely must meet all the criteria put forward by the creditor.

 

 

Low-cost Profitable Business Ideas

If you are thinking of undertaking a project to obtain extra income and have little budget, here are some profitable business ideas. An explanation over at http://nakazato3.net

When we think about how to manage my money, we know that part of the strategy is also to make it grow and have a business can be one of the most viable alternatives to have an independent income and start planning today what you want for tomorrow.

Low-cost profitable business ideas

Low-cost profitable business ideas

1. Ironing and laundry

1. Ironing and laundry

There are fewer and fewer people who have time to wash and iron their clothes and yet it is one of the essential things in our daily lives.

So, why not think about putting a laundry, an iron or two things in one? You will need an investment amount that requires at least 3 washing machines, 3 ironing donkeys and 3 irons. The size of the premises will be depending on the capital you have to invest, as well as the area in which you decide to put the business.

Take into account that if it is a question of renting an establishment, you must have the deposit, the rent and at least 2 monthly payments of the lease as long as the business begins to pull on its own.

Define the cost of the dozen according to your fixed costs. For this, take into account the cost of electricity, the use of appliances, stationery, if you have a couple of people who will help you in the work of the business and of course, the rent of the premises.

2. Canine aesthetics

2. Canine aesthetics

Currently a bath and haircut for your pet can be more expensive than that of a person. The interesting thing is that there are people willing to bear that cost to ensure the care of their pets. If you are also a fan of animals and particularly dogs, this can be a business for you.

There are mobile aesthetic options where you only have to invest in adapting a “combi” type vehicle to give the bathroom to pets, which in addition to reducing costs because you will not have to pay a room, it will help you to provide a personalized service to the pick up and deliver the pet at the owner’s door.

You will need to partner with someone who has experience in handling dogs in stressful situations, such as bathing and haircuts, but if you manage to do it and focus on advertising it, in a short time you will have recovered the amount of the investment.

3. Car wash

3. Car wash

One of the most profitable businesses is car wash. What do you need? A land that facilitates the use of treated water. You will have to consider the personnel who will be responsible for the cleaning of the vehicles, as well as the purchase of detergents, jargon, wax, polishes. However, as you will notice, the cost of these supplies is very low and you can reduce it even more if you buy in bulk with brands specifically dedicated to cleaning. From there on, you just have to focus on the cars being well washed and ready to receive many cars, especially after a rainy day.

4. Take away food

If what you like is cooking, take advantage of your talent and cook from home. You could promote your food for special events or day to day and deliver it yourself at home. You can prepare a daily “run” meal and become a customer base that you take every day to the door of your home or office what you prepare. Get your best dishes and delight the palate of your customers, who can help you grow your customers more and more.

5. Sale by catalog

In the market there are several product options that you can sell among your friends and family, until after your impact is greater and customers reach further. Jewelry, lingerie, cosmetics, fragrances, kitchen utensils, shoes, clothes. If your entrepreneurial spirit allows it, develop at the same time a web page where you can promote the products and facilitate the payment via internet.

It is likely that the rebound of this type of business is not so immediate, but once you do it, take off the income from this activity can remain constant.

Do not forget that whatever business you want to start, you would not like to have an amount to start with. In this case, a loan may be the option, especially if you have a fixed income and are thinking about the business with a long-term vision.

Lowering the key interest rate so far without affecting construction loan interest

With its renewed lowering of the key interest rate, the European Central Bank (ECB) caused great astonishment on the market, as even experts did not expect this step.

The interest rate cuts have always had a positive effect

The interest rate cuts have always had a positive effect

However, many prospective builders or homebuyers may have been pleased, because so far, the interest rate cuts have always had a positive effect on the construction loan interest.

One of the prime examples is the penultimate cut in the key interest rate to 0.15 percent, which made the already very favorable real estate loans even cheaper and even made it possible for new interest rates to set new records in terms of low interest rates.

But in recent weeks, interest rates have picked up marginally – and interest rates on mortgages have not given in since the last cut in the prime rate.

Construction money is still extremely cheap

Construction money is still extremely cheap

It seems that the absolute low point in the construction field has been reached somewhat towards the middle of the year. Since then, mortgage rates have tightened, the cut in the interest rate has had little effect. However, potential borrowers need not be confused because ultimately the construction money is still extremely cheap.

The last rise in interest rates is not very large, many homeowners who have financed cheap only a few years ago, would be glad they could benefit from the current conditions.

Timing of taking out a real estate loan

Timing of taking out a real estate loan

From that point of view, the timing of taking out a real estate loan could hardly be better. The current mortgage rates are more attractive than ever, and ultimately it will only be a matter of time before interest rates continue to rise. Although the current pressure is low, another and possibly significant decline in mortgage rates is considered unlikely.