Financial Safety Advice

The proposal to have a law on Financial Security of a necessity in Ecuador. Despite the crisis of 1999, not yet have a modern and comprehensive framework for an orderly and traumatic handling of potential financial problems. The few cases of troubled financial institutions in recent years have been handled slowly, missing agile solutions to prevent a certain problem from spreading to other institutions. However, there are at least three aspects of the law in which care must be taken.

First, the size of the Liquidity Fund will remain small for quite some time, creating the need for external lines of credit or other protection mechanisms. The problem is that the new Constitution prohibits public debt than for investment projects, limiting the ability to borrow for a line of financial strength.

Second, the apparent mistrust of government to the private sector leads the public sector control markedly Liquidity Fund and is the only one who can convene meetings. Excessive under-representation of the private sector may involve a politicization of the agency and the banks do not believe in the system and continue to have their own cash reserves. Read the rest of this entry →

Let us see some features that should be a source of alternative income to live with a formal employment dynamics:

- Must be legal and transparent (I do not want to waste time on business investment or dark)

- Must be easy to understand (“I want to do something that requires great expertise and long hours of study)

- Must be easy to implement (“I work hard and I can not waste time”)

- Must start making money quickly (“I can not afford to wait years”)

- Must be cheap (“I have a lot of money to invest)

Once we have made clear how it should be that source of income, here are some tips to keep in mind when planning and implementing them:

1. Plan, calculate and consider all options. You must invest some time to think about what activities can be performed, preferably compatible with the main source of income.

2. Start slowly. The good thing is that alternative sources no rush to make more money. The idea is to add, so it is important to reduce anxiety. Read the rest of this entry →

A personal financial advisor is not a financial coach, but a finance expert who evaluates the financial situation of the people to give a diagnosis to help the advice to improve your financial situation.

Most people have already dealt with financial advisors to the recruitment of some insurance, invest in a mutual fund or want to tell us about a financial product that can be useful for us, in this case we will have dealt with a financial adviser dependency relationship which has to recommend and speak highly of the products of the institution you work for a commission.

The truth is that financial advisers as employees find it difficult to be advisors and employees of a bank or at the same time, if not always in the best interest and meets the needs of the client is the entity working. Read the rest of this entry →

In the Income Tax Regulations sets out the requirements of the formulas indirect payment to entities providing public service workers public transport between their residence and workplace, the so-called ‘check transport. ” These revenues were declared free by the Royal Decree 6 / 2010.

An adjustment to the tax regulation changes introduced in the investment tax credit for residence in the draft Budget Act of 2011.

From 1 January 2011 the deduction disappears for those income exceeding 24,000 euros per year.

In the income tax regulations defining the new scale of deductions to be applicable to recipients of income from work from January 1, 2011, establishing the maximum rate of 45% retention after the Government has increased tax for higher incomes.

The government has introduced in the draft Budget Act of 2011 increased 44% marginal income tax rate to which taxable income exceeding EUR 120,000 per year, one more point now, and has increased two points to 45%, the marginal income exceeding € 175,000 from January 1, 2011.

The new regulation introduces the withholding income tax investment income earned in the operations of capital reduction and distribution of bonus issues made by the Sicav, always involving distribution of benefits as a result of new tax treatment included in the Budget Bill 2011. Read the rest of this entry →

I have read many books on how to achieve success and find financial independence is something I’m sure we all want, so far, I have not found a general rule have to be followed, but I’ve noticed that if you find the balance between saving and investment can provide you with a lot of things to get it.

Undoubtedly, getting rich is necessary to invest the money in assets, but to get money to invest should be saved, it is common sense, unless you win the lottery or inherit a large sum of money, saving is the only that will provide capital to fuel investment.

We should note that saving and investment are independent and should not be confusing to begin with can make it clear that each of them.

Saving is the process of putting some money in a safe place that is accessible at any time. The best option of course is getting enough to cover all your financial expenditures for at least 6 months, including mortgages, utility bills, personal expenses, etc, have health insurance is also really important, this prevents disease end to your savings in a couple of days. Only when these things are in place then you should start investing Read the rest of this entry →