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What's the best way to find a financial advisor?

A financial advisor can be found, but how do you know if a particular advisor is right for you? If I type Bermuda investment advisory into Google, will I find the best financial advisor in Bermuda? Maybe I will; perhaps I won’t. Here are a few helpful tips to help you find a good advisor.

1. Understand the types of financial advisors

2. Check the advisor’s credentials

3. Know how they will be compensated

4. Use the internet

5. Ask questions

6. Verify the advisor’s credentials

7. Spot frauds

1. Understand the types of financial advisors - What are your requirements? Some financial advisors provide financial planning services but not investment advice. Some financial advisors manage instruments, but may not be familiar with financial planning. Others specialize in wealth management or retirement planning. Know your financial requirements and hire your advisor accordingly.

2. Check the advisor’s credentials - All financial advisors are not the same. Some may have more qualifications than others. Some organizations provide quick certifications to salespeople who can later pose as experts. Find a financial advisor with a CFP (Certified Financial Planner) or PFS (Personal Financial Specialist) or an investment advisor with a CFA (Chartered Financial Analyst) certificate. When you are convinced that a financial advisor has the skills necessary to handle your task, hire him.

3. Know how they will be compensated - Before hiring a financial advisor, find out how they want to be paid. Some work on a fee-only basis, while others work on an asset-based basis. Others charge commissions or an hourly rate. Each has its own style. Choose the one that fits you best.

Click here to read more: https://ifp-bermuda.mystrikingly.com/blog/what-s-the-best-way-to-find-a-financial-advisor

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Top 10 Tips to Start a College Savings PlanEducation is not getting any cheaper. The cost of graduating from college is undoubtedly higher than what it used to be for our parents and grandparents.

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Top 10 Tips to Start a College Savings Plan

Education is not getting any cheaper. The cost of graduating from college is undoubtedly higher than what it used to be for our parents and grandparents. As per CNBC’s research, education cost has risen by 25% in the last decade.

Between 1978 - 1979, the cost of attending a private college was approximately $17,680/year and $8,250/year for a public college. By 2008-2009, these costs had increased to $38,720 (private colleges) and $16,460. (public colleges) Fast forward to 2021, and these costs are roughly around $48,510 and $21,370, respectively.

In short, costs have escalated by almost 25.3% for private colleges and 29.8% for public colleges. Can you predict how much it will rise in the future? Nobody can predict the rise with accurate figures. On the other hand, not all parents are in a sound financial condition to meet all these expenses.

Many students carry the burden of student loans to their adult lives, hampering their ability to focus on their careers, marriage, and buy a house.

10 Strategies to Start a College Fund

1. Understand College Expenses

2. Save Now & Relax Later

3. Consider 529 Plans and Custodial Plans

4. Juggle College Fees with Other Priorities

5. Apply For Scholarships

6. Avoid Student Loans

7. Get a Fulltime/Partime Job

8. Invest in a Non-retirement Brokerage Account

9. Conduct periodic maintenance

10. Let Your Money Do the Work

Let's know all the strategies in detail.

1. Understand College Expenses

Higher education is expensive; there is no doubt about that. How do you calculate college costs? It all depends on your choice of college and the fund amount you can receive as financial aid. Tuition and college fees will eat up a massive chunk of your income.

Annual education costs are increasing at the rate of 6% per year. Can you believe that? It is double the inflation rate. Conduct a comprehensive study of public, private, and community colleges to get a rough estimate of costs. Once you get a clear picture of education costs for each category, you can decide which is the best for you or your children.

Once you know what is best for you, it is time to invest. Figure out how to invest, where to get your finances from, and how to go about it. Keep in mind your budget, time duration, and other factors.

Moreover, you can also request your friends, extended family members, and relatives to contribute to your children’s education rather than showering them with expensive gifts on Christmas, birthdays, and other festive occasions. Teach your children the importance of education early in life and encourage them to contribute a share of their allowance/earnings towards education funds.

2. Save Now & Relax Later

College costs are high now, and they are not going to come down anytime soon. Understand this and start planning beforehand. By doing so, you don’t have to worry about finances later. When you start early, the education funds grow with regular contributions, plus you have more time to multiply your investments while reducing the borrowing costs.

Remember that every penny counts. Along with education costs, inflation rise is also something you need to consider. It is never too late to start saving for education. Taking out an education loan may require you to compromise on your current lifestyle, not to mention the interest on the loan.

Avoid all of this by expanding your piggy bank account (savings) for higher education. This is a foolproof strategy, whether it’s education planning in Bermuda or any other part of the world.

3. Consider 529 Plans and Custodial Plans

Whether it’s a child education fund or planning for your grandchildren, family members, or yourself, you need to find the proper account to realise these plans. You have some options for the same.

A. 529 Savings Plans - These plans are one of the best vehicles out there to cover education costs. The main highlight of this plan is its tax advantages. Contributions towards this account will grow while being tax-deferred, plus withdrawals won’t be subject to tax deductions, provided they are used to meet qualified education expenses.

What else does this plan include? It includes tuition, room, and board, and fees. Depending on your location, you may qualify for a tax deduction or credit for your contributions. Another notable feature of the 529 savings plan is its comparatively high contribution limits.

B. Prepaid tuition plans - Similar to the 529 savings plan, the only difference is that prepaid tuition plans allow you to pay for future tuition at current rates. Think of how much money you can save with this plan. On the other hand, prepaid tuition plans have a couple of drawbacks - they only apply to specific colleges or universities, and they only cover tuition fees, unlike 529 savings plans that cover several expenses.

C. Mutual funds, stocks, and other securities carry a risk element, but they can bring in a windfall if done correctly. If you are not sure how to go about investing in these, take the help of an expert.

There is no denying that starting a college savings plan way before children start college is an absolute must. It is even more crucial to make regular contributions to the plan, monitor it, and change your strategy whenever necessary. Don’t underestimate the importance of starting early, plus planning and preparation for a college education fund.

As a company, we specialise in education planning and a wide range of Bermuda financial services. Need help with financial planning or related services? Give us a shout-out, and we will take care of it.

Click here to read more: https://ifp-bermuda.mystrikingly.com/blog/top-10-tips-to-start-a-college-savings-plan

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Top 6 Advantages of investing in Bermuda

Bermuda is a cluster of islands located between Europe and North America, with tourism being one of the top contributors to its GDP. In 2019, tourism generated over 990 million dollars of revenue for Bermuda. Leisure visitor spending declined from $111.9 million in 2019’s third quarter to $11.8 million in 2020. Despite the 89% decline in revenue, Bermuda has jumped back on its feet in 2021 & is recovering quickly.

Nevertheless, tourism is not the sole source of income for Bermuda. Due to the business-friendly nature of the islands, it is a popular jurisdiction for offshore incorporations and investment fund managers.

More than 18,000 international companies and partnerships operate from Bermuda. Out of these 18,000 companies, 400 have registered offices in Bermuda. As a matter of fact, 75% of the Fortune 500 companies and their associates have a strong presence in Bermuda.

This does not necessarily mean that such companies have a physical presence in Bermuda or were incorporated there. As long as the offshore companies don’t compete with local Bermudian businesses and contribute to the island’s economy, the government won’t have any objections.

Reasons for investment fund managers to incorporate companies in Bermuda

1. Epicentre of Investment funds

2. Top-notch connectivity

3. Quick issuance of work visas

4. Exceptional support and infrastructure

5. The Bermuda LLC

6. Dependable legal system

Why do so many companies offer hedge funds, asset management services, fund administration, or Bermuda Investment Advisory services? We will discuss the same in the points below.

1. Epicentre of Investment funds - Be it traditional or alternative investments, Bermuda is a hot spot for both. These investments include funds, equity, investment-linked securities, etc. Top players in the investment industry like Orbis, Fidelity International, Oakley Capital Investments Ltd, Nephilia Capital, GP Investments, and many others have headquarters/offices in Bermuda with a fleet of dedicated professionals.

Moreover, FATF (Financial Action Task Force) and OCED (Organisation for Economic Co-operation and Development) have rated Bermuda highly for its highly transparent, compliant, and positive attitude in the international financial market compared to other offshore jurisdictions. Bermuda is also an excellent jurisdiction for alternative fund managers, especially those who don’t believe in the herd mentality and want to do things differently.

Click here to read more: https://ifp-bermuda.mystrikingly.com/blog/top-6-advantages-of-investing-in-bermuda

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Retirement planning is now stress-free! IFP's Pension and Retirement Planning Specialists in Bermuda offers tailored retirement and pension plans to match your financial goals.

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Confused between too many financial policies. Don’t worry! IFP is one of the best and reliable financial investment advisory of Bermuda. We provide a range of investment solutions.

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Best international financial advisors and investment services in Bermuda. International Financial Planning is an independent financial planning company helping locals and foreigners.