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Gibraltar Opens Door to Further Fund Growth

Webmaster — Mon, 16 Apr 2012 13:58:52 +0000

The Government of Gibraltar has published the Financial Services (Experienced Investor Fund) Regulations, 2012. These introduce various improvements to the original 2005 Regulations, including the opportunity for large funds to use reputable and substantial administrators based in jurisdictions of equivalent standing to Gibraltar.

The new Regulations will also allow funds to redomicile to Gibraltar yet continue to use their existing reputable administrator, representing a significant advantage for funds moving to the EU with, inter alia, the advent of the Alternative Investment Funds Managers Directive, due to be implemented by July 2013.

The new Regulations enable Experienced Investor Funds to choose to file for registration ten days before the scheme is established, with automatic registration at the end of that period if no objection is received from the regulator. This provides greater choice, certainty and flexibility for prospective new funds.

The definition of Experienced Investor has also been expanded to include those considered to be professional investors in Gibraltar’s other investment legislation, the Financial Services (Markets in Financial Instruments) Act.

The new Regulations also provide further disclosures which are required in the offering documentation to help investors to make an informed decision prior to investing.

Commenting on the changes the Minister with responsibility for Financial Services, the Hon. Gilbert Licudi QC said he was delighted to announce the Government’s implementation of the revised EIF Regulations. “The changes will no doubt provide a boost to the industry,” said the Minister, “and is in line with the Government’s stated policy of working closely with professionals in the industry to make Gibraltar one of Europe’s premier jurisdictions for the establishment of hedge funds”.

“As part of the EU, Gibraltar provides access to a market of over 500 million people and the Government anticipates an increase in the flow of business to Gibraltar in the area of funds and hedge funds as a result of this legislative improvement.”

What You Need To Know When Figuring Out Your Financial Future

Webmaster — Tue, 03 Apr 2012 15:56:30 +0000

(NAPSI)-When it comes to financial planning, doing practically anything is probably better than doing nothing, but there are a few pitfalls to avoid on your road to a comfortable future.

Here is a list of a dozen steps not to take:
1. Thinking the opportunity has passed you by. While it’s true that the younger you start, the better off you’ll be, financial planning can be worthwhile at any age.
2. Failing to set measurable financial goals.
3. Making a financial decision without understanding its effect on other financial issues.
4. Confusing financial planning with investing.
5. Neglecting to re-evaluate the financial plan periodically.
6. Thinking financial planning is only for the wealthy.
7. Thinking that financial planning is for when people get older.
8. Thinking that financial planning is the same as retirement planning.
9. Waiting until a money crisis to begin financial planning.
10. Expecting unrealistic returns on investments.
11. Thinking that using a financial planner means losing control.
12. Believing that financial planning is primarily tax planning.

Put Planning To Work For You

To avoid the mistakes listed, realize that you are the focus of financial planning. The results you get from working with a financial planner are as much your responsibility as they are those of the planner. To achieve the best results from your financial planning, consider the following advice:

• Set measurable financial goals. Set specific targets that you want to achieve and when you want to achieve them. For example, instead of saying you want to be “comfortable” when you retire or that you want your children or grandchildren to attend “good” schools, quantify what those words mean so you’ll know when you’ve reached your goals.

• Understand the effect of each financial decision. Each financial decision you make can affect several other areas of your life. For example, an investment decision may have tax consequences that are harmful to your estate plans. A decision about your child’s education may affect when and how you retire.

• Re-evaluate your financial situation periodically. Your goals may change over the years due to changes such as an inheritance, marriage, birth, house purchase or change of job status. Revise your plan as time goes by to reflect these changes so you stay on track with your long-term goals.

• Start planning as soon as you can. People who save or invest small amounts of money early and often tend to do better than those who wait. Similarly, by developing good financial planning habits, such as saving, budgeting, investing and regularly reviewing your finances early in life, you’ll be better prepared to meet life changes and handle emergencies.

• Be realistic in your expectations. Financial planning is a commonsense approach to managing your finances to reach your life goals. It’s a lifelong process and can’t change your situation overnight. Events such as recession, inflation, or changes in the stock market or interest rates will affect your results.

• Realize that you’re in charge. When working with a financial planner, be sure you understand the process and what the planner should be doing. Provide the planner with all relevant information on your financial situation. Ask questions about the recommendations offered and play an active role in decision making.

Ed Knox, CLU CLTC

Tel.: 305-677-0652
Email: edknox@knoxfinancialteam.com

Foreign Nationals

Webmaster — Mon, 02 Apr 2012 20:36:24 +0000

The US residential and commercial real estate market has experienced explosive appreciation over the past several years. Foreign investment is a big reason South Florida has been at the forefront of this incredible run. International interest in Miami and other South Florida markets is influenced by many factors. There are important US income and estate tax considerations that non-resident aliens (NRA’s) must plan for when investing in U.S. real estate. NRA’s need to be aware that the U.S. imposes an estate tax on the market value of a foreigner’s U.S. assets exceeding $60,000 upon their death. The $60,000 threshold for NRA’s is miniscule compared to the $5M of the net assets US citizens and residents currently get to exclude from estate taxes. The estate tax rates start at 18% and can reach as high as 55%.

Unless the United States has signed a treaty with a country to reduce or totally eliminate U.S. estate taxes, NRA’s from estate-tax treaty countries (which include all countries in Central and South America) are required to pay estate taxes above as described above within 9 months from the date of death. Consider the following example that illustrates how estate taxes can wreak havoc on NRAs in the U.S.. Mario, who resides in Argentina now, purchased a condominium in Miami Beach on January 15th, 2004 for $600,000. He puts $200,000 down and gets a recourse mortgage from the bank for $400,000. Assume that this is Mario’s only investment in the United States and he passes away in May 2005 while residing in Argentina (if he had died in the United States, other complexities of determining the US estate tax, such as the value of assets physically with him, would apply). Assuming the condo is worth $660,000 at the time of his death, Mario’s U.S. estate subject to U.S. tax is $600,000 ($660,000 – $60,000 exemption). The estate does not get reduced by the outstanding mortgage balance as with a U.S. citizen (unless the mortgage note is non-recourse, which is not very common). Under this scenario, the estate tax payable by Mario’s estate is almost $200,000.

When US real estate property owned directly by an NRA is sold, the IRS requires withholding at the time of sale pursuant to the foreign investment in real estate property tax act (FIRPTA). The amount of FIRPTA “withholding” required is 10% of the selling price, and the withholding responsibility is born by the buyer of the property. For example, if an NRA sells a condo for $800,000 that was purchased for $700,000 two years earlier, the buyer (through a withholding agent) has to withhold $80,000 and remit it to the IRS. Note that the 10% is up front, estimated taxes the IRS wants from the NRA, and is typically not the ultimate tax due on the transaction. In fact, in this example, the ultimate tax due would be approximately $15,000 (the profit of $100,000 tax is the maximum long-term capital gain rate of 15%). The NRA can claim a refund for the $65,000 tax over payment ($80,000 minus $15,000) by filing a US individual tax return for NRA’s, but he/she would have to wait until the return is filed and the IRS refunds the taxes. In the alternative, if a “withholding certificate” is executed by the time the real estate transaction closes, the NRA’s claim for refund would be expedited if the IRS deems the documentation provided to be acceptable. Note that no FIRPTA withholding is required of an NRA selling US real estate property if the buyer purchases the property as a personal residence for $300,000 or less.

If the US real estate property is sold by an NRA who structures the ownership as described earlier in this article (NRA owns a foreign corporation that owns a Florida corporation that owns the US real estate), then federal and corporate income taxes would be payable based on the income of the Florida corporation. The federal corporate income tax rates start at 15% and go as high as 35%. Florida’s corporate income tax rate is 5.5% of the net income with the first $5,000 of that income being exempt. Furthermore, corporations do not enjoy the favorable long-term capital gains maximum rate of 15%.

Therefore, if the US real estate property were sold at a net profit of $500,000 by a Florida corporation, the combined federal and state income taxes due would be approximately $195,000 (an effective rate of approximately 38%, because the Florida taxes pay the deductible for federal tax purposes). The after tax proceeds of $305,000 sitting in a Florida Corporation’s bank account can reach the ultimate NRA owner, generally without any further US income taxes, by having its foreign corporation owner liquidate the Florida corporation and distributing the proceeds.

Ed Knox, CLU CLTC

Tel.: 305-677-0652
Email: edknox@knoxfinancialteam.com

Services Offered by ACCA Business Advisers

mcgintl — Sun, 25 Mar 2012 16:10:04 +0000

ACCA business advisers are qualified professional accountants who are licensed, by ACCA, to offer professional services directly to businesses and individuals. Equipped with financial, commercial and strategic skills, ACCA business advisers provide an extensive range of services including:

business and tax advice and planning
preparation and audit of annual accounts
preparation of personal and business tax returns
set up of book-keeping and business systems
providing book-keeping services
payroll work
assistance with management accounting
help with raising finance
budgeting and cash-flow advice
business start-up advice
expert witness
corporate rescue and insolvency.

In addition, some members are specifically authorised to give investment business advice on topics such as pensions, insurance and unit trusts. Members of ACCA are required to adhere to the highest standards and comply with ACCA’s regulations, including our code of ethics and conduct. If they undertake regulated work such as auditing and insolvency services, they are monitored to ensure they comply with relevant regulations and standards. The ACCA Quality Checked scheme was established 10 years ago to complement the monitoring of regulated work. It monitors firms involved in unregulated general practice work, such as accounts preparation and taxation. The aim of the scheme is to help ACCA firms maintain high standards of customer service by encouraging them to adhere to principles-based quality control standards and to implement procedures that are considered best practice in the profession. http://www.accaglobal.com/en/discover/find-accountant/business-advisers.html

Key Figures from France in 2012

Webmaster — Mon, 12 Mar 2012 13:52:07 +0000

SMIC au 01/01/12

Horaire : 9.22€
Mensuel (35h) : 1398.37€

Stages en entreprise (plus de 2 mois)

Gratification mensuelle : 436.05€

Plafond sécurité sociale 2011

Annuel : 36 372€
Trimestriel : 9 093€
Mensuel : 3 031€
Hebdomadaire : 699€
Journalier : 167€
Horaire : 23€

Les taux de cotisations (régime général)

Part patronale : PP
Part salariale : PS
Plafond de sécurité sociale : PSS

URSSAF

Maladie maternité PP : 13.10% PS : 0.75%
Allocations familiales PP : 5.40%
Accident du travail (Expert-comptable) PP : 1.20%
Vieillesse non plafonnée PP : 1.60% PS : 0.10%
Vieillesse plafonnée PP : 8.30% PS : 6.65%
FNAL PP : 0.10% (tous les employeurs : 1PSS)
FNAL suppl. PP +19 sal : 0.40% (1PSS)
FNAL suppl. PP +19 sal : 0.50% (au-delà du PSS)
CSG PS : 7.50%
CRDS PS : 0.50%
Assurance chômage : PP : 4.00% PS : 2.40%
FNGS PP : 0.30%

Cotisations de retraites

Non cadres :

ARRCO T 1 : PP : 4.50% PS : 3%
ARRCO T 2 : PP 12% PS : 8%
AGFF Tranche 1 : PP : 1.20% PS : 0.80%
AGFF Tranche 2 : PP : 1.30% PS : 0.90%

Cadres :

ARRCO : PP : 4.50% PS : 3%
AGIRC : PP : 12.60% PS : 7.70%
CET : PP : 0.22% PS : 0.13%
Cotisation décès : PP : 1.50%
Cotisation APEC : PP : 0.036% PS : 0.024%
GMP (2011) : 64.19€
AGFF Tranche A : PP 1.2% PS : 0.8%
AGFF Tranche B : PP : 1.3% PS : 0.9%
Cotisations de retraites (plafonds 2011)
ARRCO : 9 093€
AGIRC tranche B : 12 124€
AGIRC tranche C : 24 248€

Ruptures du contrat de travail

Limite d’exonération de cotisations sociales :

soit 106 056€ lorsque l’indemnité est supérieure au montant prévu par la convention collective
soit les limites antérieures lorsque l’indemnité est inférieure ou égale au montant prévu par la convention collective : 6 PSS soit 212 112€

Soumis dès le 1er euro : à partir de 1 060 560€

Présentation simplifiée du bilan et du compte de résultat (2011)

Les commerçants, personnes physiques ou morales, ne dépassant pas deux des trois critères suivants :
Total bilan 1 000 000€
Chiffre d’affaires net annuel 2 000 000€
Effectif moyen 20

Présentation simplifiée de l’annexe

Les personnes morales ne dépassant pas deux des trois critères suivants :
Total bilan 3 650 000€
Chiffre d’affaires net annuel 7 630 000€
Effectif moyen 50

Tarifs du RCS

Extrait K-bis : 3.11€
Dépôt des comptes : 46.32€
Immatriculation (création) : 62.19€
Immatriculation (société) : 83.96€

Divers

Retraite complémentaire de l’expert-comptable libéral – Classe A à H (2011) : 518€ à 16 185€
Taux d’intérêt légal : 0.71%
Taux d’usure (prêts aux entreprises) : 13.84% (4ème trimestre 2011)
Indice de référence des loyers (4ème trimestre 2011) : 121.68
Indice de révision des loyers commerciaux (3ème trimestre 2011) : 105.31
Intérêts des comptes courants d’associés – Clôture entre le 31 janvier 2012 et le 27 février 2012 : 4.02%

What to look for when examining disability plans?

AlineD — Tue, 28 Feb 2012 22:47:17 +0000

Nearly one-third of U.S. workers will become disabled at some point in their career before reaching retirement, according to a 2009 estimate from the Social Security Administration. Yet the federal agency says that 70% of employees aren’t covered by private long-term disability insurance. Social Security disability benefits are available for certain disabled workers, but the average payout is only 40% of a person’s income and the allowance rate for initial claims can be as low as 30% in some areas of the U.S.

Making up for the rest of that income is possible, but there’s a price. A 35-year-old healthy male who earns $100,000 in salary can purchase an individual disability policy with an annual benefit of $60,000 until age 65 for about $1,350 a year.
Here’s how to check your options for additional paycheck protection:
Short- vs. long-term makes a difference. Short-term disability, also known as sick leave, starts as soon as you’re unable to work due to illness, injury or the birth of a child. Forty-seven percent of U.S. employers offer short-term coverage and 40% provide long-term disability, according to industry trade group LIMRA. Some states, such as New York and California, require a minimum level of short-term benefits. You can read buying tips and ways to compare policies here and here.

Know what you already have. It’s important to determine your short-term coverage before going to purchase a long-term policy. All policies include an “elimination period,” which is the amount of time from when you become disabled to when benefits kick in. Think about this as you would view any insurance deductible. You don’t want to pay higher premiums for a shorter waiting period of 30 days if you have six months of short-term coverage.

Know how much you need. Long-term policies typically last for a set number of years or until you reach retirement age. The shorter the benefit period, the lower the premium. You should also check whether you can keep coverage if you leave your employer. This is known as portability.

Determine how much coverage you need. A typical long-term group plan will replace up to 60% of your salary. If your employer pays all or even a portion of the premiums, that’s likely your best option to start with. You can calculate how much you might need here or here.

Drawbacks to group plans. Group plans usually only cover salary; no commissions or bonuses unless that is considered part of your core compensation. Some group plans are capped at $5,000 a month, or $60,000 annually. And if you pay premiums on a pre-tax basis from your paycheck, you will be taxed later on the benefit payout.

Age matters. Younger workers might want to check rates with an insurance agent before buying through their employer’s group plan. In the individual market, age and health status dictate the premiums.

Read the fine print. Understand the difference between “own” or “any” occupation. Consumer advocates recommend a policy that’s triggered when you can’t do your specific job, not just any work. This is known as “own-occ.” An “any-occ” definition is less desirable and is based on being unable to do “any” work given your training, education and experience.

Protect yourself. Make sure the policy cannot be cancelled, known as “non-can,” and that renewal is guaranteed at the same premium as long as you pay on time.

Look for Accidents AND illness coverage. Some policies limit payouts to accidents and not illness. Consumers mistakenly think serious accidents are the overwhelming reason for a long-term disability when common chronic diseases play a bigger role. Only 9% of long-term disabilities were caused by injuries in 2009, according to the Council for Disability Awareness. Calculate your odds of missing work for months or years at this site and check out the leading causes of disability.

What not to do when looking to buy disability insurance.
Don’t forget to ask about riders. Riders for cost-of-living adjustments or a future purchase option can allow you to increase coverage as they earn more money without taking another physical or referencing your medical records. Don’t buy a policy before checking the insurer’s financial strength. Major credit-rating agencies such as Standard & Poor’s and A.M. Best offer company reports.

Don’t just accept the insurance company’s decision on coverage limits. Those with more variable income may be surprised at premiums and level of coverage, however particular occupations and risks are covered uniformly. More than three years of business records should clear up any questions about income levels and variability.

Ed Knox, CLU CLTC
3400 SW 27th Avenue Suite # 1502 Miami, FL 33133
Work 305-677-0652

Assistance Retraite – Novelvy – France

mcgintl — Fri, 17 Feb 2012 20:43:13 +0000

For 25 years, the company Assistance Retraite has focused exclusively on French retirement rights in compulsory pension schemes. We only provide our clients with a completely independent service, and do not sell any insurance or financial products.
The company employs 13 people and is located in Nanterre in the Paris region. We sell our services under the brand name Novelvy.

Thirty per cent of our clients are expatriates. We offer them two types of mission:
- A Pension Review (reconstitution and verification of rights acquired, future projection according to various scenarios defined at the start of the mission) so that clients are accurately informed of their situation, enabling them to make fully-informed decisions for the future (age at which to claim pension, purchase of additional pension rights, membership or not of the CFE (Caisse des Français de l’étranger – French expatriates pension fund) and additional funds, etc.). The review provides a true picture of a client’s situation as regards their pension rights and transforms an image that was often vague for them into a clear picture that answers their questions.

- Acting on behalf of the clients, when they have decided to claim their rights. Here, we deal with all necessary transactions with the various pension organisations until final notifications are issued and until the first payment is made from each organisation. A pension booklet, summarizing pensions and associated pension entitlements, closes the mission.

Assistance Retraite has expatriate clients in nearly 25 countries. Our representatives meet some of our clients during trips abroad. Other meetings take place when expatriates are visiting Paris. In many cases, correspondence takes place by email or telephone. At the start of each mission, a telephone interview is required to complete the mission statement, which is then sent by email for signature.

We also work with company HR professionals managing populations of expatriates and wishing to provide their employees with extensive information about the consequences of a change in status on their pensions.

For further information, please contact the Director of Assistance Retraite, Bruno Renardier, who will be happy to answer your questions.

Tel.: + 33 1 41 37 98 20
Mobile: + 33 6 18 57 77 45
Email: bruno.renardier@novelvy.com

You can also find additional information on our website www.novelvy.com

Offense and defense are key to your financial game plan

mcgintl — Wed, 08 Feb 2012 06:50:34 +0000

Offense and defense are key to your financial game plan
On the road to the Super Bowl, offensive and defensive strategies are essential to winning the game. The same is true in your game plan for financial security. Whether you are calling plays in the National Football League or working to fund your most important personal goals, you need both strong offense and defense.
Adapt strategies as the game changes

Developing winning strategies and adapting them as changes dictate leads to success in both sports and in financial security. In your personal financial plan, a strong “defense” helps you manage risk, providing a back-up plan to protect against life events that can impact your long-term security. Your “offense” includes various strategies to accumulate wealth over your lifetime to ultimately meet your financial goals. Having both defensive and offensive strategies in place not only moves you forward on the path to financial security, it gives you the confidence to take advantage of opportunities that may arise along the way.
By helping you explore your specific goals and future needs, your financial representative will develop a comprehensive financial plan that can be the basis for meeting your long-term goals. As your life changes dictate adjustments over time, you would adapt and incorporate the appropriate defensive and offensive strategies to suit your specific situation.
Your defense, strategies that protect against risk, could include:

Emergency fund – Covers at least six months of living expenses in an easily accessible cash fund
Disability insurance – Helps protect your income by providing a benefit if you should become unable to work due to illness or injury
Long-term care insurance – Helps protect retirement assets by covering potential costs of nursing home and assisted living care
Permanent life insurance – Builds cash value over the long term, provides insurance coverage for your lifetime and provides a benefit to beneficiaries upon death
Term life insurance – Provides a death benefit for a specified time or up to a certain age
Property and casualty insurance – Protects against loss or damage to home, car and belongings

Your offense, strategies that fuel accumulation, may include:

Annuities – Fixed or variable-rate contracts that provide a deferred or immediate payment at regular intervals for a predetermined period or for life
Cash or cash equivalents – Money set aside in money market funds or savings accounts that is readily accessible
Certificates of Deposit – Vehicles in which a specific amount of money is deposited for a specified period of time and guaranteed to earn a set interest rate
401(k) plans – Employer-sponsored qualified retirement plans – with or without employer matching contributions – that allow eligible employees to save for retirement with payroll deductions into tax-advantaged plans
Education funding – College savings plans including 529 plans which contributions by parents or others grow on a tax-deferred basis for use by the future student who is named beneficiary of the plan
Equities – These include individual stocks, mutual funds and exchange-traded funds (ETFs). These assets might include large cap, mid cap or small cap funds, international funds, real estate or commodities funds. Equity securities are allocated to your portfolio based on your long-term investment strategy reflecting your risk tolerance, time horizon and goals.
Fixed Income – Securities that pay a fixed rate of return. This category includes government, corporate and municipal bonds as well as money market instruments and preferred stock. Like equities, fixed income securities are allocated based on your long-term investment strategy.
Individual Retirement Accounts – Personal accounts that allow you to set aside dollars for retirement on a tax free or tax-deferred basis in addition to your employer-sponsored 401(k) plan. Different rules and tax advantages apply depending on whether the fund is a traditional IRA, Roth IRA, Roth Conversion IRA or a Rollover IRA.
Real estate – Your primary home or other real estate investments contribute to your long-term financial security and therefore are part of your financial strategy.
As you navigate the stages in your life, the defensive and offensive strategies in your financial game plan will change to adapt to your specific needs. Whether you focus on covering critical risks as you build college and retirement savings as a young parent, or seek to protect your assets to ensure lifetime income as you retire, your financial advisor can help you find the winning plays to achieve your long-term goals.
by
Ed Knox, CLU CLTC
3400 SW 27th Avenue Suite # 1502 Miami, FL 33133
Work : 305-677-0652
Successful people consistently do what others can do BUT don’t..

EU sets Gold Standard for data security in the Internet age

mcgintl — Sat, 04 Feb 2012 23:51:08 +0000

by Jay A. Scaramazzo, MBA,CIA,CISA,CRISC,CIFE, GLOBAL Change Management Specialist/Lead Auditor, United States
http://internal-auditing.com/art.asp?n=311

Disability Insurance Update – USA

mcgintl — Wed, 11 Jan 2012 21:56:53 +0000

Where does DI fit within the financial planning process?

Financial planning begins and ends with income planning. Unless you first protect a wage earner’s income, there cannot be a financial plan! A financial plan is not a financial plan without involving disability insurance.

Why is Group LTD inadequate?

With Group LTD, you are just a tenant. You are not in control because you do not own the policy. It can be taken from you in an instant. Your employer may give it up. The insurer may decide to stop insuring the group. You are at their mercy. Additionally, Group LTD typically only covers your base salary, therefore bonuses, commissions, incentives, deferred compensation, stock options and pension contributions are generally not covered. In most claim scenarios, people are very disappointed with the inadequacy of Group LTD.

How does DI differ from Long Term Care?

Simple- DI pays you and LTC pays someone else who is providing the care service.

How does DI differ from Life Insurance?

When it comes to income replacement and asset conservation, there is no difference. The difference between the two types of insurance is you’re either above or below 6 feet of dirt. The main concept to think about is that the chances of becoming disabled are much greater than dying prematurely.

How much DI should I have?

You should have as much DI as possible. No less than 65% of your gross income is considered adequate. We have not met anyone on claim that has told us that their benefit is more than enough. Unfortunately, when you’re disabled, the truth is always the opposite. There is never enough money. This is why Supplemental Disability Insurance is often necessary to adequately protect a person’s income.

by

Ed Knox, CLU CLTC
3400 SW 27th Avenue Suite # 1502 Miami, FL 33133
Work 305-677-0652