Take Out a Loan the Right Way

At one time or another, most people will find themselves a little short on cash. If this happens to you, hopefully you will have some savings you can dip into. If not, though, your next best option might be to take out a loan. While it’s always best to avoid taking out a loan in the first place, if it absolutely can’t be helped, you want to at least make sure you go about it the right way.

Know What You’re Getting Into

To begin with, don’t ever agree to loan terms without reading the fine print. You should know exactly what the interest rates on the loan are, how long you have to pay it back and in what increments, and what happens if you miss a payment or pay the loan off in more or less time than agreed upon. Be

aware that lending companies sometimes use tricky language or hard-to-understand jargon in the loan contract, so it never hurts to have a financial advisor look over the loan terms and provide advice before you agree to them.

Don’t Make an Impulse Purchase

The only reason that you should take out a loan is because you are in need of money. You might need that money to survive, or you might need that money to open a business or carry out some other well thought-out plan. The key words there, however, are “survive” and “well thought-out.” If you need a loan to get yourself or your family through a rough patch, that’s understandable. And, really, any loan that you’ve spent a lot of time thinking about and planning for is also acceptable. If, however, you’re getting a loan to buy one particular thing that you’ve suddenly discovered and just have to have or because you want to take a dream vacation, that’s probably not the smartest choice. Never use loans- which you will be paying off for quite some time- as a way to satisfy an impulsive want or desire.

Be Honest

Finally, always be honest when filling out the loan paperwork. You might be tempted to bump your income up a little bit or to leave out a few debts and financial responsibilities. In truth, though, the questions being asked on the loan application are there to protect not just the lending institution, but you as well. If you’re lying, you might be found out, which could end in legal trouble. But, even if you don’t get caught that way, you’ll probably end up over your head with the loan, which could lead to debt and long-term financial problems. When it comes to taking out a loan, honesty is always the best policy.

Hopefully, you will never have to take out a loan, but if the time does come, keep these tips in mind and be sure to talk over the long-term effects of the loan with your financial  planning advisor.

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ICAP PLC Employees Find Themselves in Trouble

When you go to a financial institution for financial planning and investment advice, you expect that institution to be trustworthy. Unfortunately, however, fraud often runs rampant in these institutions. On the bright side, though, more and more of these fraudulent financial institutions are being caught and punished every day.

Being “caught and punished” is something that ICAP PLC, a interdealer broker based out of London, has recently learned all too much about. Many of the brokerage firm’s employees are facing charges for fraud. These employees are accused of manipulating London Interbank’s offered rate, among other crimes.

Obviously, you’ll want to avoid dealing with untrustworthy financial institutions such as this one, but how can you tell a “good” institution from a “bad?” One way is to look at the institution’s track record; if it’s never been in trouble before, chances are you have nothing to worry about. In Naperville, get financial advice from a firm with a squeaky clean past: Platinum Financial Associates.

Climate Changes in the West Are Costing the US Money

Financial planning is important, both at the personal level and at the federal level. Careful personal financial planning is wise since it can help you to prepare for the future and avoid overspending. Likewise, the United States has to know how much it has to spend and what expenses it has in order to pay its most important debts first and budget for the others. Unfortunately, though, even the best laid plans don’t always pan out in the way hoped for. A perfect example of this is the recent climate changes in the west and the subsequent fires it has caused. A recent report from Yahoo! Finance declares that over 200 square miles of forest are burning in Yosemite National Park right now and that thirty-six other fires are raging in eight of the states in the west.

While forest fires are obviously incredibly dangerous and have the potential to destroy for-profit crops, homes, and more, dealing with them and with the other effects of climate change is expensive. 2013 marks the second subsequent year that the United States has gone above and beyond its budget for fighting wildfires. In fact, the federal government is now requesting additional funds from other government organizations. Tragic events related to climate changes cost the United States a whopping $100 billion last year, and more problems could be on the horizon if things don’t change for the better soon.

The really sad thing is that climate changes could be controlled if humans were not so wasteful and damaging to the environment. Naperville residents can do their part by reducing energy usage and trying to be as environmentally concerned as possible.

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Tips for Choosing a Financial Advisor

Everyone can benefit from professional financial planning advice, providing, of course, that they choose the right financial advisor. While many people are concerned over the fact that the U.S. Securities and Exchange Commission hasn’t passed any legislation regulating financial advisors, you shouldn’t let this scare you away from using them altogether. No, instead, you should just take this as an incentive for carefully choosing the best financial advisor possible. Professional economist Linda Stern, who writes for Reuters, recently released a list of helpful tips for those who are seeking to find a new financial advisor.

One of her pieces of advice was to choose someone who calls himself or herself a “fiduciary planner.” Stern maintains that these professionals must hold themselves to higher standards than others. While this advice is interesting, it’s not necessarily true. After all, a name is just a name, and just because someone calls himself a particular name doesn’t mean that person will necessarily live up to the standards which that name implies. It’s better advice to not pick an advisor based on name alone, but instead to look for financial planning professionals that treat you with respect and courtesy at all times and that keep your best interest in the forefront of their minds.

Another piece of advice from Stern—one that’s a little more spot-on—is to know exactly what fees your financial advisor charges upfront. Any good financial advisor will have no problem divulging all costs and expenses before you enter into an agreement. That’s the kind of service you can expect from Platinum Financial Associates, located in Naperville, which makes them an excellent choice for all your financial needs. 

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Recovering from Poor Financial Choices

Have you made poor financial choices in the past—choices that are affecting your life in the present? If so, you should know that it is possible to turn your financial life around. The first step in developing good, new methods of financial planning is to determine what’s wrong with your old methods. Are you overspending on something that seems harmless, such as going out to dinner or having drinks out on the town? Or have you just let your credit cards get out of control? If you are having trouble sorting out your finances on your own and discovering what mistakes you’ve made, a financial advisor can help by bringing an objective, fresh perspective to the situation.

Remember not to beat yourself up too badly about mistakes you have made in the past. Financial planning shouldn’t be about lamenting what you’ve done wrong; it should be about learning from your mistakes and applying what you’ve learned to better help you in the future.

For financial help and advice in Naperville, the friendly representatives at Platinum Financial Associates, Inc. are waiting to serve you!

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