The Benefits of Investing in REITs

Nov 20, 2017 | Posted by in Business, Invesment | Comments Off on The Benefits of Investing in REITs

A real estate investment trust (REIT) is a company that finances or owns real estate as an investment for producing income. Previously, investing in large commercial properties was only for investment houses and wealthy investors, but this changed with the creation of REITs in 1960, by an act of Congress. Today, small investors are able to invest in commercial property and earn rental income. According to sites like Fundrise, you can acquire access to large real estate deals without a major dollar commitment.

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Why a REIT

The idea of REITs was to provide a real estate investment arrangement that is analogous to the format that mutual funds provide for investing in stocks. They are governed by a number of regulations to maintain their tax exemptions, and most importantly, they are required by law to distribute at least 90 percent of their taxable income each year to shareholders. As mentioned in Fundrise reviews, individual investors can join others through a REIT and pool funds to invest in commercial property not otherwise possible for a small investor.

REITs offer a unique investment opportunity by reducing volatility and providing a natural hedge against inflation. REITs generally invest in most major property types including, shopping centers, malls, offices, apartments, hotels, self-storage facilities and healthcare properties. There are a number of benefits for investing in REITs.

Consistent and High YieldsFundrise Reviews

Understandably, the main draw for many investors has been the high dividend yield coupled with a remarkable consistency to pay and grow the dividend. REIT dividend yields have a history of being much higher than the average yield of the stock market, which means the average yield was about 4.3 percent in 2012. These dividends can make a big difference for long-term retirement savings, and they can also be reinvested to generate future returns. In later years, they can also provide a steady income stream to help meet expenses in retirement.

Uncomplicated Tax

For most partnerships, the tax issues are complicated, but not so REITs. Every year, REITs send a Form 1099-DIV to their shareholders, which gives a breakdown of how the dividends were distributed. As REITs do not pay corporate-level taxes, the ordinary income portion of the dividend for investors is taxed at the individual rate. If the REIT should sell assets, a portion of the dividend would be taxed as capital gains.

Ease of Buying and Selling Shares

Buying and selling property directly, is a laborious process that requires a great deal of time and money, whereas, REIT shares are bought and sold just like ordinary stocks on the stock exchange.

Reliability and Diversity

If you are looking for diversity, reliability and low risk, REITs are the ideal choice. They have proved through past performance of not only maintaining dividends but also growing them. An important feature of a high-quality, low-risk investment is a continuous record of dividend payments going back over many years and REITs pass the test with flying colors.

A REIT must have most of its investments in real estate and must give 90 percent or more of its taxable income to its shareholders as dividends. Since 1995, REITs have outperformed stocks and bonds. If you are looking for a total-return investment with a focus on income then buying shares of a REIT may be your best option.

10 Simple ways to achieve success at a young age

Nov 17, 2017 | Posted by in Business, Business Tips, Invesment, Management | Comments Off on 10 Simple ways to achieve success at a young age

Successful theories and concepts can be as large as the number. But for those who really want to achieve success at a young age, they never stop learning and continue to increase the intake of information from various sources to mature in thought and action. Some of them are summarized in 10 success tips at this young age.

success people

1. Not Afraid of Difficult Life

Failure is the door of success. Those ho managed to feel the sweetness of success at a young age understand this. It does not mean that it never fails, in fact, many times rise from failure to make our mental more tested. As a result, distress in life is not an obstacle even spur the spirit to keep trying.

2. Hard Work Smart

Hard work is mandatory, while smart work must also be so that our efforts can be effective in reaching the target that we want. Those who are successful at a young age can combine hard work and smart work to make themselves able to conquer barriers to achieve dreams.

3. Befriend Risk

Everyone understands that by becoming an entrepreneur it is possible to earn more. But, to be an established entrepreneur does not mean there is no risk, even according to some surveys, to become an entrepreneur you must be ready melakoni a job full of risk. For those who are now successful at a young age, risk management is a daily learning menu that never tired to continue to be mastered.

4. Choosing Education Based on Interest and Talent

Quality education is a good capital for someone to achieve dreams. Young people who have a clear vision of the future will choose an education that suits their interests and talents. In this way, his expectation of course, his education will be able to support the development of business or anything that dilakoni to grow maximally from time to time.
5. Trying to Set aside 25% of Annual Income

Those who are successful from a young age are very accustomed to proclaiming themselves to save. No kidding because with discipline set aside 25% of income per year then there will be savings to face the needs in difficult times. Or for bigger things like investment in property or business development.

6. Using Savings For Investment

Not just saving money, those who succeed at a young age also run their money through the capital market scheme. In this way, the passive capital you deposit will become an active capital whose profits can be used to finance many things.

7. Investing in Property

Investing in properties such as homes or apartments is also one of the things that characterize successful young entrepreneurs. They realize that such investments can bring benefits after taking off single time by occupying their own homes. This property asset can also be sold for other needs. Keep in mind that every year the property price increases by 15-20%.

8. Join Insurance For Self-Protection

Not only in terms of active investment, young entrepreneurs should ideally also actively protect themselves with insurance products. They realize that by providing self protection through insurance then dependence if there is risk of falling ill or old age is no longer necessary to be a source of concern.

9. Not Wasteful and Easy Tempted New Technology

The reality of today that many follow by the young is the high cost of technology products such as gadgets and so forth. Though this is actually counter productive. Not less than that, most young people who succeed in the young age do not even think so. They see the gadgets as a means of supporting activities that are needs and not as a desire that became part of the lifestyle.

10. Focus and Have Integrity

This latter tip is the most fundamental to support success at a young age that is focus and promote integrity. They will not play games to achieve success with hard work and painstaking in running their business.

Of the many tips above, if applied in everyday and tangible in a business activity based on high passion it will be easier to realize success at a young age

Never eliminate this from your budget plan

Aug 7, 2017 | Posted by in Business, Business Plan, Business Tips | Comments Off on Never eliminate this from your budget plan

Creating a budget is one of the right ways to manage finances. With the financial budget, we can better know how much we have to spend for our needs during a certain period of time, for example a month.

financial plan

But sometimes, despite already using the budget some people are still wasteful in using the money. There are many ways to save money. You can stop eating at restaurants, stop buying new clothes, or buy unnecessary items. But what goods should you really never cut from your budget.

Here’s a list of items you should not cut into your financial budget for any reason:

Health Insurance

Did you know that two thirds of all bankruptcies are directly related to medical bills? If you have serious injuries or illnesses, your medical bills may drop to millions. That’s more general than you think. If your boss does not offer health insurance, buy your own personal insurance. If you feel that an individual plan is too expensive, consider the cost of not owning it.

Home Insurance

After the costs associated with your health, the second largest bill you may have to pay is your home costs. If a disaster strikes at your home and causes destruction, you no longer need to bother looking for your home improvement fund. Home insurance can help you protect your home and help in case something happens.

Car insurance

It violates the law to be ridden without at least the minimum amount requested by the state from car insurance. It does not cost much more to give you a little extra coverage that will pay compensation for both cars and other party vehicles. You also want a liability protection that includes bodily injury in the event of an accident.

Emergency Fund

You will be amazed at the peace that you will experience when you know that you have several months’ salary to deal with emergencies that may arise. Therefore, it is important to set aside an emergency fund each month in the budget. Reassess your insurance policy at least once a year to ensure that you have adequate coverage. Having inadequate insurance is almost as bad as not having it at all.

4 Smart Tricks to Get Rid of Debt Quickly

Jul 10, 2017 | Posted by in Business, Management | Comments Off on 4 Smart Tricks to Get Rid of Debt Quickly

Debt or loan is one of the most common solutions people make when experiencing financial problems. However, do you know that most of the debt actually backfires to the borrower because sometimes when they owe they do not pay attention to long-term risk.

time

In this case certainly can not be said if debt is a bad choice, because it could be the only debt available when people feel pressed.

Indeed, when the time comes to pay the debt will seem like a monumental task, then is there any way that can be done to pay off the debts that have been borrowed?

Reporting from the NZ Herald, here are some smart tips to be able to pay off debt quickly, what are ?:

1. Prioritize Debt Repayment with Highest Interest

The most logical way to pay off debt is by landslide method, which begins by paying the debt with the highest interest rate.

Because, this debt is the next will continue to grow the fastest unless you can immediately overcome and discipline in terms of payment.

2. Pay Little Debt First

In Neuroeconomic science is mentioned psychologically sometimes good to deal with smaller debts first. This is because it can make a huge debt will look to be smaller parts.

3. Switch to low-interest loans

If you have a lot of debt on credit cards or bank installments, you may be paying too much interest. We suggest contacting your bank, check your credit installment and look for other options, such as choosing a low-interest installment

Some people usually choose to consolidate their loan into one payment in one bill, because in the bill will show how the amount of debt and interest.

But be careful that low installment charges do not make the situation worse with you paying off new debt. And after getting out of debt, always remember not to use your credit card again, unless it’s a very urgent situation and no other way. Begin training yourself not to be easy to owe.

4. Get a Part-Time Job

To repay the debt, you need to find other additional money. Part-time jobs will certainly earn more money.

Look for a part-time job that suits your interests outside of prime business hours. Or you can also do online business selling goods in several online stores, now has a lot of people pursue online trading business and income earned is also okay, the important thing you want to try and think creatively.

The right strategy to apply credit for business

Jun 9, 2017 | Posted by in Business, Business Tips | Comments Off on The right strategy to apply credit for business

In the near future you are planning to start a business. After searching for existing theory, it was found that when wanting to start a business requires skill, creativity, networking, motivation, and determination.

cash payment

Although everything sounds as an ideal complete package, but in reality that is often discussed just the money capital. Applying for a loan or business credit in developing a business is in the options.

In order for you to not fail to apply for a loan or credit for that purpose, here are some steps to keep in mind:

Determine the good purpose of borrowed money

Of course the purpose of your loan is to do business. However when talking about loans for businesses, there are good reasons and bad reasons. And it can be a reference whether you are worth lending by the owner of the money.

Usually, a good reason is borrowed money related to the purpose of equipment financing, property purchase, long-term software development, or product development in a particular season – such as selling clothes in the Lebaran season.

Conversely, a bad excuse is that borrowed money is aimed at coping with the ongoing financial losses – if you are already starting a business before, building an office, or acquiring a business asset that is not essential.

Determine the lot of money needed

The lender will assess the size of your business. Therefore, do not underestimate the amount of money you want to ask. Because a small business does not ask for a large loan.

Meanwhile, when exaggerating the amount of money you want to borrow and not worth the value of your business, the lender will then question.

If necessary, try to have and prove it with a budget plan that is supported by the financial projections of the business being done. For example, by including a statement of profit and loss, as well as a reasonable cash flow statement.

Know your credit score

The lender will also make an assessment by looking at the credit score or the credit ability you have as a business owner. To be safe, try to get to the bottom of what the lenders are looking for, and how to compare the scores they have, with their expectations. So, you can calculate and measure the type of business and the amount of loan that can be submitted.

Compare loans

Each lender has different criteria and requirements. They also have different flowers. It is better you compare the first banks that have business credit. Do a little research for the bank you want to select. The easy way is to make a comparison of business loans online.

Create a document package

When applying for a loan, there are some documents that need to be prepared. In order not to rush and can apply for loans to several banks that have been compared, prepare some package documents needed.

These documents are usually like your data as a business owner and your business plan, financial reports and projections, personal financial information.

Not tired of waiting

All loans need to process. Therefore, do not rush to get a loan after filing. However, be diligent to check your status. In addition, some lending institutions will usually require additional documents.

Make the Most of Your Insurance Dollar

Jan 9, 2017 | Posted by in Business | Comments Off on Make the Most of Your Insurance Dollar

The development of captive insurance companies has been a way for insured businesses to save on their insurance costs. It is typically a less expensive alternative to securing policies from conventional insurance companies. In order to assist these insurance companies so that they can continue to offer the best value for those who are insured by them, companies like Captive Insurance Services offer consultation services to many captive insurance companies.

Insurance solutions

One way insurance consultants help is by evaluating the formulas that are used to calculate premiums. An unbiased method that bases the premiums on the loss history of a company rather than aggregated averages throughout the industry will typically result in significant savings, especially for businesses with low loss history.

These consulting companies can also help their clients by providing risk management services. Evaluations can be done by visiting insured businesses and reviewing their facility layout and business practices. From there, recommendations can be made that will lower the risk of things like fire or theft. For example, the amount of flammable materials on hand can be evaluated against what is actually necessary. Lowering the risk may be as simple as reducing the inventory level of those types of items. When this is not feasible, proper storage methods may enter the picture.

Another thing that puts businesses at risk for losing money is the injury rate of its employees. While it is hard to put a price tag on human suffering, injuries also translate into lost dollars. First, there is the medical expense for the injured person. Something like a serious back injury that becomes a life changing event for a worker can end up costing hundreds of thousands of dollars. By making recommendations that will minimize the risk of injury, consultants can save their clients some serious dollars.

In addition to cutting down on worker’s compensation costs, consultants who can conduct safety evaluations can save the insured businesses money by helping them to be in compliance with the regulations. An inspection by an enforcement agency like OSHA can result in significant fines when noncompliance issues are detected.

There are a number of other ways consulting companies can save money for those who go the captive insurance route. Effective claims management can keep the losses to a minimum and cut down on fraudulent claims. Buying power leverage can be used to drive down rates. The list can go on and on. If you are in charge of keeping insurance costs down within your own company, you might want to check into what a captive insurance consultant can do.