People retire all the time and it is all but natural for one generation of people to pass and give the reigns of their industry to the next generation. The same is the case with your financial advisor. The problem occurs when your financial advisor is close to your age and retires just when you need them the most.
This is the time of your own retirement when you have to take important financial decisions. Here are a few of the steps that you may take if you find yourself stuck in this unfortunate situation:
Discuss Succession Beforehand
Most problems occur because you neither your advisor have given a head to the thought of problems at the time of retirement. Always ensure that you ask your financial advisor about their plans to retire. You can then ask them to plan your retirement as well if you are comfortable with them and would find it difficult to work with a new financial advisor.
Create Long Term Retirement Plans
You need to always create long term retirement plans and only try to perform small changes in the plan when you actually retire. This way you will ensure that you are not suddenly surprised by the retirement of your financial advisor. If you have learned about the retirement of your financial advisor, then you should finalise the retirement plan before the actual retirement takes place. There can be a time though where you may have failed to learn about the intermittent retirement of your financial advisor which will truly put you in hot waters.
Turning to an Internal Team
If you are working in a large organisation then it must house financial experts as well. If your personal advisor has retired now and you have no clue about arranging your future finances, then it is best to employ the help of the internal team which is available at your workplace. Sometimes, your advisor may also inform you about a team that they had trained with their accounts for clients.
You should not necessarily appoint them as your future advisors, but take their help in order to understand if they can sufficiently cover your needs of financial advice or not. Most times, the members of this team may have worked as assistants to your financial advisor and already involved with maintaining your policies. You will be able to easily revert to them if that is the case.
Assessing Your Future Needs
The retirement of your financial advisor is the right time for you to once again take a look at your retirement plans and alter them if you find that you are in a different financial position than the one in the past when you planned your financial aspects.
You may often find that you are in a different economic condition and this may prompt you to alter your own retirement plans as well. You should perform a true assessment of your position with help from your retiring advisor or a team appointed by the advisor.
These are a few steps that you can take if your financial advisor retires and you are suddenly made to take an important financial decision.
If you’ve decided to start a business then you’ve come to the right place. There are just too many things you need to apply into a startup and the biggest being: funds. At some point you will understand that the startup will need more funds than you currently have and that’s when you’ll have to look into getting a loan. Don’t worry, this post will guide you through whatever help you’ll need with getting unsecured loans for your start up.
There are so many kinds of loans to choose from that it almost becomes overwhelming to decide which would be perfect decision for a startup. Usually people are stuck deciding between going for a secured and unsecured loans and usually unsecured loans always wins. But why go for this loan at all, after all, you get less interest applied to secured loans as compared to the latter.
The biggest advantage you get through unsecured loans is the lack of collaterals. Business startups are already a risk and to top it off by placing a collateral is a mistake you simply cant make. Businesses are unpredictable and startups are even more which means, you never know when recession might strike and you’re left with nothing at all. With collateral in the way, you get to lose the property as well so it’s better to spend a little bit extra on interest and be on the safe side than lose everything and have nothing by your side at all.
Another reason why people opt for unsecured funding is because it often requires the most minimal documentations. You don’t really have to show any papers describing the nature or purpose of loan which can be quite a hassle to deal with especially during a startup. Unsecured borrowing is the easier, trouble-free method to fund your business. However, it’s important to understand that even unsecured loans have several types and not all would be good for your business. You should be well aware of what you’re going for before you apply or else getting a loan would be a little more challenging for you. Here are some more ways you can benefit from business loans which are unsecured:
Here’s the thing, just like your credit scores, you also have to make sure your business credit profile is up to the mark. Getting an unsecured loan for your business startup means you’ll be improving your business profile quite a lot. This building of profile will eventually clear your way for good measure and a healthy business growth.
As discussed earlier, collaterals are a major problem with secured loans but using an unsecured business loan, you can make sure both your business and property are in excellent, safe hands.
With unsecured business loans, you don’t get to face the trouble with long processes and too much time being taken to get the money. If you apply to online lenders, you’ll usually get approved very quickly and then avail quick benefits as well.
Unsecured loans are great options whether or not you are going for a small business loan for your start up or a loan for yourself. They are hassle free and help you address any financial concerns you might have but it’s important to know your credit score is up to the mark before you can apply. After all, your lenders need to be sure they will be repaid by you in a good and timely fashion.
First loans are divided into its major constituents and then each will be subcategorised into different parts. While they all might basically look like the same thing, there is a great big difference between them. But before you look into that, you need to first know how you can decide which loan you can opt for:
Once you’ve got all that covered, it’s time to move ahead and figure out which loan would perfectly suit your purpose. Amongst the many types available to you, you can pick:
Most people tend to avoid this type of loans because it requires both the borrower as well as the lender to rely on each other for the loan rather than a proper organization. This, in itself, greatly increases the chances of risk involved as compared to other types of loans. Most people confuse this with doorstep loans, which is also a kind of unsecured loans. In the case of doorstep loans, you get to apply to an organization and the lenders will send an agent to your home. This is not necessarily the best option for a loan in case of business startups but you can still look into it.
These are built on trust. You make a contract with the lender and your signature on the contract will ensure that you will return the amount you borrowed. This, again, poses a great risk since signatures can easily be forged and you can find yourself facing a lot of trouble with your start up. However, you get to avail low interest rates and with the plus point of it being an instalment, it can help you decrease the burden by making certain payments on a monthly or weekly basis, as per the lenders requirements.
These aren’t really the best options but they can still help you immensely with your trouble of funding a startup. This is a short term loan and is taken by your credit card via cash. The borrower benefits from comparatively low interest rates applied to it and but you’ll have to pay it back as soon as possible. These loans are often taken against your credit card but of course, there’s always a limitation to it. You can consult the credit card company and ask for the details to help guide you with the process. While it may be an easy process, it’s also known to be quite costly so there’s really no benefit waiting for you here.
This type of loan is often recommended and it involves getting unsecured loans with a guarantee being placed on either the individual or the business. Usually, placing the responsibility on the business is riskier but this time of loan requires you to do so. Putting the responsibility on the business means it will be paying back the lender but if it fails, you’ll have figure out your repayments.
Term loans are the best types of unsecured loans you can get because this is often an agreed amount as discussed by both the lender and the borrower. Being an already agreed amount, you doing have to trouble yourself with variable interest rates and repayment plans. It’s all discussed and fixed by both the borrower as well as the lender. There’s really no room for surprises when you opt for term loans which is something that most start up borrowers look for.
Once you’ve decided on which loan would be best for you, you need to move on to the real questions. You can’t just make a decision and suddenly search for lenders to apply to, you need to know when would be the right time to apply for an unsecured loan for your small business.
Usually people don’t pay much attention to the factor of time, however, it’s crucial that you apply when you’re well researched and prepared to get a loan. Business loans for your start up is more than just about getting the funds but also about how well you’ll be able to manage it. Remember, you need to apply so that you can be approved and here are a few tips to help you with that:
The biggest factor you need to look at before applying is how good your credit score is. While most people might be under the impression that it really doesn’t count for much, you can’t go for their words. Without credit scores may not even be approved for loans especially since you’re opting for an unsecured loan. Because they don’t offer collaterals, the lenders often need your credit score to be up to the mark so they know you are a reliable candidate.
Since it’s a start up, you may believe that your business position isn’t really of importance right now but you are wrong. Where your business stands plays a major part in giving the lenders an idea of how their funds will be used. After all, you wouldn’t want to lend someone money only to find out they’re just wasting it all, would you? In much the similar manner, lenders need to be sure your business is on the right track or has the potential for growth. This would often mean you need a proper business plan laid out beforehand so you can show it to the lenders.
Another major point you need to look at is whether or not you are in the position that you’ll be able to repay your lenders. It’s important that you make a proper repayment plan and keep it ready and also apply when you have a proper cash flow and you are certain you won’t be drowning in debt later on.
These points are very crucial to keep in mind so you can’t really avoid any of them. Business startups are always a risk which is why secured loans are the better option but it’s always best if you consult a professional and be certain before taking any step.