Child Benefit - Should You Opt Out?

It is estimated that only around 200,000 people have opted out of receiving child benefit since the government announced the new rules.

This probably leaves around one million people who are very likely to be hit by the 'high income child benefit charge'.

As the vast majority of our clients earn well in excess of the earnings figures discussed below, this is an issue that will affect many, and perhaps making an informed choice now can make matters simpler.

So what are these new rules and should you take action to opt out of receiving child benefit?

From When Does It Apply?

• New rules came into force on 7th January 2013 and any benefits received after this date will be taxed according to the new rules, see below

Who Is Affected?

• An individual, or their partner, who earn over £50k in a given tax year and who are receiving Child Benefit
• A tax rate of 1% for each £100 of income applies for those who earn between £50,000 and £60,000 pa
• anyone who earns over £60,000 will be charged an equal amount to the amount they receive as Child Benefit

How Do The Government Clawback This Benefit?

• Through income tax, although HMRC cannot claim monies until your exact earnings are known
• So it is likely that the earliest the tax will apply will be January 2014 through self-assessment & PAYE
• In later years tax codes could be adjusted for higher earners so that on PAYE it is clawed back monthly

Can This Tax Be Avoided?

• There are limited options here, but as your income level is calculated by assessing your gross income less any allowable deductions, then gifts to charity and pension contributions could be used to reduce the assessable income


• For those earning between £50,000 and £60,000, the new tax charge would be less than the full-child benefit­ received, so the household would, be better off if the child benefit claimant continues to receive it and the higher income partner pays the tax charge. Crucially, women still need to register for child benefit and then opt out to receive national insurance credits towards their state pension.

Should I Opt Out?

• It is perhaps not a decision to be taken lightly as it means that a couple with, say, two children would not receive the £146 per month due


• However, if earnings for one in the household is well above £60,000 pa, and they have no intention of gifting large amounts to charity or investing in a pension, then it does make sense to opt out if for no other reason than it makes your tax affairs simpler and could even avoid running the risk of a fine for getting it wrong

How Do You Opt Out?

• If you were extremely efficient and opted out by 7th January, then well done and no action needs to be taken other than to check that HMRC cancels your Child Benefit


• If you decide that this is your best course of action then you need to submit a declaration to the Child Benefit Office, which needs to be completed by the person who receives the benefit, usually the mother

The Financial Tips Bottom Line

Take the time to work out if you are affected by this new rule. If you are, then decide what you need to do and take action if necessary.

If you want to opt out, contact the Child Benefit Office as soon as possible to make your tax affairs as simple as you can.

Advocates Help You Get Your Social Security Disability Check

Though it is possible to be approved for disability benefits when applying the first time, most applicants either do not know enough about the process or do not prepare enough in advance and are not successful in their first attempt. This is where the hiring of an advocate plays to your advantage. The advocate will know the ins and outs of the process thoroughly and can almost guarantee your approval the first time you apply. Advocates do charge a fee for their work, but this fee is taken out of your check from Social Security, so, you only pay if you win!

Your advocate may either be an attorney or simply a person who knows a lot about the social security process. The prices of these advocates are regulated by Social Security and must not be more than 25% of the retroactive payment you might receive. You will only need to pay this fee if your application is approved. This means that if you are not approved while using your advocate, you will not have to pay them. Whether your advocate is an attorney or not does not change the amount you will pay for their help. This is to your benefit as it gives the advocate motivation and gives you peace of mind.

An advocate may help their clients with tasks such as filling out questionnaires and forms, accompanying them to the initial interview, getting medical records sent in, and tracking the application once it has been submitted. All of these aids are invaluable to your success when tackling the process of applying for Social Security Disability Benefits. It is important that you ask all potential advocates to what extent they will help you out and follow your application. You should feel comfortable that your needs are met and choose an advocate based on this.

The knowledge and experience that an advocate provides for his or her clients are an all but necessary part of the application process. Of those who choose to apply without hiring an advocate, only 25 to 50 percent are approved. Some companies that employ advocates boast of rates as high as 95% approval for all of their clients. This dramatic increase in rates is due to the expertise of the advocates and their ability to consistently win success for their clients.

At this point, you may still be thinking that hiring an advocate would be a hassle and not worth it in the end. This could not be farther from the truth. These advocates want to work with you and will make the whole process a lot easier on you. They will do all of the work that you either do not have time to do or do not know how to do.

Working with an advocate is to your advantage in every way possible. You personally will have less to do and you will have a significantly greater chance of being approved for disability benefits.

How to Pay Your Mortgage Off Faster

Many of us want to be untied to our mortgage. It is likely the most expensive bill you pay every month. Although the interest you pay on your mortgage is tax deductible, all that interest would be better off put away in an investment account. Even at a low interest rate, you could still end up paying hundreds of thousands of dollars over the term of your loan.

So how can one go about paying off a mortgage faster? It's all about the term, which is how long the mortgage contract lasts. The term you choose - 1, 3, 5 or 7 years or some other period - dictates the amount of interest you'll pay. Whether you choose a fixed rate or a variable rate will also affect your interest payments.

The most common term is the five-year fixed, chosen by more than 50 percent of borrowers. Even though this term is the most popular, it's not necessarily the right choice for every home buyer. The right term for you may not be the one with the lowest rate. Some terms may lock you in at a higher rate for many years, while others may subject you to fluctuating rates. Discover the other options available, as well as their benefits and disadvantages.

Four-Year Fixed Term
The difference between the rate of a five-year fixed term and a four-year fixed term will save you one-third of a percent. This may not seem like a significant amount, but when multiplied over a four-year period, you could potentially save a few hundred thousand dollars in interest - not a small amount of cash.

One-Year Fixed Term
This term results in very little financial incentive for a lender, so it's not pushed as much as over terms. However, it can be the right term for a well-qualified borrower. With rates as low as 2.39 percent, it's ideal for a homeowner with less than 15 years left on their mortgage.

Terms to Avoid
A three-year fixed term versus a four-year term save you 0.10 percent, but when you renew, the savings could be decreased by higher rates. Avoid a seven-year fixed term as well. Although it offers a few extra years of security, the higher rates don't justify it. Another term to avoid is the five-year variable term. Although there is a savings of 0.40 percent, but with no rate protection, these savings can be offset by rising rates.

Pick the Ideal Mortgage for Your Situation
The ideal mortgage for one person may not be so perfect for another home buyer. That's why there are many options available to you. Safebridge Financial Group offers a variety of mortgage options to help virtually any home buyer - even first-time buyers - purchase their dream home. Learn more about what options we offer.

Common Questions About Opening Singapore Bank Accounts

Factors to Consider
There are many banks available in Singapore. They offer a range of services and have differing requirements for opening an account. It's important to decide which services are most important to you when choosing a bank. Make sure you'll be able to add accounts for other services later on, if you think that might be the direction your investing takes. Understand that you may not qualify for an account with every bank and that the banks where you do qualify may not offer all the services you want. It's a good idea to do your research before getting started in the process of actually opening the account.

What Kind of Account Can I Open?
Most banks share similar restrictions for non-resident accounts. Non-residents are typically restricted to savings accounts. These usually have no associated fees so long as the account maintains a balance, generally S$1,000. ATM cards associated with your savings account can be used to access your money at many locations; however, these transactions are subject to various fees when initiated outside of Singapore. You may also be able to open a term deposit account that carries higher interest rates than the basic savings account. Deposits are typically accepted in several foreign currencies. It is important to understand that U.S. citizens may face special obstacles in opening overseas accounts and it is advised to complete some research regarding these additional restrictions.

Is my money really safe in Singapore?
Singapore's financial and banking system is extremely well-regulated. It also provides greater stability than economic conditions in other nations. A central bank, the Monetary Authority of Singapore (MAS) monitors and regulates all the banks in the country. The SDIC (Singapore Deposit Insurance Corporation) insures deposits up to S$50,000. Foreign currency deposits, however, are not covered by the SDIC and as such, are not insured.

It is unlikely that Singapore's government would allow any of its banks to fail, especially if it caused major losses for the depositors that exceeded the limits imposed by the SDIC. It is possible that local banks are more trustworthy in this regard, as the support provided by the government might not include foreign banks that only have a branch in the country. If you're really worried about a bank failing, you should probably go ahead and pick one of the banks based in Singapore.. The credit rating of Singapore is triple "A" and is agreed upon by all the major grading agencies.

Tips On Using Your Money Wisely

The way you spend your money is essential, especially during tough economic times. Being able to control your spending habits as well as spending your money wisely is a trait that you must adapt. Not only will it benefit you for the moment but it will surely help you in the long run.

1. Buy only things that are a necessity - A lot of people have an uncontrollable habit when it comes to shopping and they mostly buy things that they don't really need. Of course, buying that are wants but not needs can be a natural thing to do as long as everything is controlled. In the case of buying grocery items, it would be best to go shopping on a full stomach. The reason for this is that, whenever you go grocery shopping on an empty stomach, you will end up buying a lot of foods or items you see. Aside from grocery shopping, you will also have the tendency to buy things which you don't have. So before purchasing whatever that item is, always rethink if you'll really need it and if that item can wait for some time to be purchased, then don't buy it.

2. Always look for sales and discounts - When you're out strolling around malls or other places, be sure to always keep an eye for advertisements regarding sales and discounts. If you see this, then don't let the opportunity pass. Buy the necessities which you think you will use almost everyday in bulk purchases so that you can save money and you won't buy the same item again for the next few days or weeks.

3. Find every money-saving option as much as possible - Looking out for the best possible option to buy your items is a smart strategy. You can always pursue stores that sell wholesale products because they normally cost less. It will really help you save a lot of money compared to buying branded products. Just pay attention to the places you go because they might be selling the products you need for less.

4. Save for an item - To prevent a huge amount of money from leaving your wallet, you must save as much as possible before the day of your purchase. Also, don't immediately pursue high end stores right away when buying, but take time to look around for other shops that might be selling the same items for a lesser price.

When you start these money saving tips, stick to this kind of lifestyle because in the days to come, you will surely see an increase in your savings. Just remember to always discipline yourself and use your mind before purchasing any items.

5 Great Financial Tips for Expecting Parents

It can be a bit overwhelming being a first time parent; however, it can be exciting as well. Although your little one might be cute as a button, the expenses that you will incur for this little one will be challenging to deal with. There are many things to consider and prepare for such as your baby's food, milk, diapers, health expenses, clothes, vaccinations, toys and more. Starting to save now is important. Below are five tips for new parents that can be taken now to begin your financial planning to help raise your new baby.

Budget Mindset

First, you should start right away to get into a budget mindset. You need to realize that you will have a financial commitment once your little one comes into the world, so getting into that mindset and beginning your financial planning now is key. Pay a visit to your local department store or grocery store to get an idea on how much diapers will cost, as well as baby wipes and formula. You will begin to understand quickly how saving a few extra bucks each month can help to keep up with just the basics. You can also contemplate on areas where you can improvise such as buying generic formula or cloth diapers.

Life Insurance

Life insurance might not be on the forefront of your mind, however it is important and suggested for women prior to getting pregnant in the early stages of their pregnancy. This insurance will pay a certain sum of money in the event of your death within a specific term, such as 20 years, and is typically the most efficient plan. Having coverage before and while you are pregnant is a good idea in case of any unfortunate events that could happen during birth. You do not want to leave a financial burden on your family or your kids to deal with later on.

Health Insurance

Again, this type of plan is something to definitely think of before getting pregnant or at least the moment you find out you are expecting as you will definitely start racking up the maternity costs. You should also inquire about any out-of-pocket costs so you are not surprised later on. Generally, you can add your newborn to your plan within 30 days of birth, which is most likely the time where you will be most sleep-deprived. Therefore, planning for this type of coverage ahead of time is best.

Be Practical with Spending

There is nothing wrong with a few shopping tips for saving money. When you are out shopping looking to make a purchase for your child, take the time to explore other alternatives. You can always find other items available that come with a more affordable price tag and are made of the same quality. Buying second hand items like baby bath tubs, cribs or strollers can also be a good idea.

Plan Ahead

Waiting to plan for college until your child gets older can end up being too late. A public college's tuition costs and fees for the 2009-10 school years, according to the College Board, was $7,020 and was $26,273 for private college. By planning for college expenses early and taking advantage of tax-free savings and compounding interest, you can eliminate some of the burden of college expenses for your children. Search for ways to save extra income for this investment early on. Even asking for the help of family members and grandparents to donate funds to this cause can be a big help.

In addition to having a financial savings plan, you do need to keep on top of your credit rating. Down the road, you will most likely want to buy a new home, new car or help with loans for your child's education. It is important to monitor your credit scores regularly to make sure your credit is where it needs to be to get approved for credit for these types of things. Perform a credit check at least once a year to ensure you are in good standing.

Remember, once the baby arrives, it will take up most of your time. Remembering the times before your little one was born can get difficult; especially if you are trying to keep the love going in your relationship with your spouse or partner. Therefore, it is important to budget in a little extra spending money for date nights as well to keep your partnership strong, especially during the happiest and most stressful times in your lives. Being a new parent is challenging, but financially planning for your new family is important. However, saving to keep your family strong and happy is just as important.

An Insight to Short-Term Forex Strategies

There are numerous techniques and strategies for investing money in the forex market. The strategies differ mainly in the degree of risk that an investor is willing to accept, the assumed percentage of return and the withheld funds.

When choosing a strategy, the investor's temperament is extremely important - whether he likes to take big risks and if he can keep his temper under control.

Day Trading

Day Trading is a strategy of buying currency pairs and selling them on the same day.The Strategy provides the ability to open and close multiple positions, even a few to several hundred times on the same currency pair. Single profit from the transaction may not be big, but after adding the profit an investor can receive a return similar to the long-term strategy.

The big advantage of day trading is not holding positions overnight, during which an investor can sleep peacefully. Most brokers use the so-called rollover fees to withstand open at 5 am New York time.

The disadvantage of day trading, especially for novice investors may be traps that you can fall into. Often novice traders invest large amounts in many new open positions, do not use money management and thus often generate significant losses. In addition, novice investors often get over emotional - both when they win or lose thus trading with an unclear mind, leading often to very bad decisions.

Scalping

Scalping is one of the most popular techniques for day trading. The technique involves rapid opening and closing positions at a profit. Positions held in scalping are a few minutes or even a few seconds.

Scalpers do not seek large profits from each transaction, as in long term strategies. The Scalper strategy is to achieve small gains in a number of profitable trades.The size of profits and losses of each transaction is roughly equal, as opposed to long-term strategies, which mostly benefit from several times higher profits from winning trades than losses. To earn the same money, scalpers must perform more winning trades than losing.

Advantages of scalping

Reduced exposure to risk - scalpers utilize a small price movements taking place in a short time, so their positions are not subject to large fluctuations. Additionally, using a stop loss is possible to exclude large losses from a single transaction.

Gains in a quiet market - in most cases scalpers can earn even when the odds are against them. Scalpers can jump ahead a few pips as they use mostly bigger positions and smaller price changes.

Using economic and political news

Some investors prefer short-term investments and therefore use large fluctuations in currency pairs accompanying the publication of important economic data.

This strategy seems to be very simple, because in theory, just reading the news is positive or negative for the currency. It turns out however, things are not so simple, because the pre-release, many experts comment on the possible changes in economic indicators. The experts' speeches are able to change the mood of investors and affect the rates of currency pairs. If expert predictions do not work, then we can be confident that the market will react very rapidly.