Healthcare Costs in the U.K. Individuals She is a single female who is self-employed and self-insured. Until this year, the only doctor’s visits she made in the last decade were for annual physicals. Her insurance covered the cost of that preventative care. However, the thought has occurred to her that she might be better off putting her monthly premium in an interest bearing account and paying for those annual visits with money from that account. As a healthy individual, she pays £130 each month only to have a deductible of £3200. In essence, she would have to pay £3330 each year before her insurance would cover any non-preventative claim. Even if the annual office visit cost me £130, she … [Read more...]
UK Economic Outlook Uncertain Despite Falling Inflation
The June economic outlook once again proved to be disappointing for the average household. Lower wages, higher prices and higher debt. Survey compiler Markit announced that its headline Household Finance Index (for the UK) for June rose to 37.0 from a four-month low of 36.6 in May, but remained well below the 50 level necessary for no change in finances compared the previous month. It has remained negative ever since February 2009 with the effect that June saw the worsening of the financial situation of around one third of the respondents as compared to the improvement of only one tenth. Over the next 12 months, the index measuring households' expectations for their finances rose to … [Read more...]
What Is Inflation Accounting?
What Is Inflation Accounting? Inflation has an effect on consumer prices, to be sure, but there are effects on corporate finance as well. Typically, in developed countries, inflation rates are fairly steady and somewhat predictable. However, in times of hyperinflation, prices soar and corporate financial reports can be misinterpreted without accounting for inflation. Inflation accounting offers a more accurate view of a company or individual’s financial situation because it looks at those finances through the lens of inflation. According to Investopedia "Inflation accounting requires statements to be adjusted according to price indexes, rather than rely solely on a cost accounting basis." … [Read more...]
What are Treasury Inflation Protected Securities (TIPS)?
As the Government continues to flood the economy with new money via QE1, QE2, Operation Twist and now Twist2, many investors are fearing a massive inflation may be just around the corner. And so they are looking for a sfe haven to protect their investments from the deluge they see coming. Therefore they are turning to Treasury Inflation Protected Securities, or "TIPS". TIPS are considered an extremely low-risk investment as they have Government backing, are protected from the ravages of inflation and are less volatile than bonds and safer than stocks. How Treasury Inflation Protected Securities (TIPS) Protect Against inflation Over time even small levels of inflation can make a big … [Read more...]
Inflation-Busting Tips To Help You Get The Most from Your Money
Rising inflation has been a major concern over the past few years. The real value of your money can be quickly eroded if the interest on your accounts fails to keep pace with the rising cost of goods and services. So what can you do about it? Here are some Inflation-Busting Tips to help with your investments: Inflation "The Silent Thief" Price Inflation is the measure of the rising costs of goods and services across a period of time, also described as the “rising cost of living”. Sometimes described as ‘the silent thief’, savers are often left unaware of the effect that inflation is having on their savings. While you may not physically lose money as a result of rising inflation, the … [Read more...]
What are I bonds?
I- Bonds: A brief overview: In the current shaky economy, everyone is looking for safe and secure investments. Investors might have a chance at high rewards with stocks and corporate bonds, but there’s also a huge risk to putting money in either. The snowballing crises in Europe aren’t making foreign investments look any more tempting. Where can investors trust their finances if they want a solid risk free return on their investment? Well, for those of you who want to play it cool and safe with your investments, you might consider: I bonds. What are I-Bonds? First of all, I-Bonds are officially called Series I Savings Bonds. According to the U.S. Department of Treasury, I bonds … [Read more...]
How Inflation Affects Your Savings- Reduced Buying Power
Inflation and Savings When the average person thinks about inflation, the first thing that comes to mind an increase in the Cost of Living i.e. that items they purchase regularly keep getting more and more expensive. While this is true, an even greater concern regarding inflation is its impact on savings and financial planning. Inflation Hurts Savings Buying Power Inflation hurts consumer buying power, because increased costs mean spending more to purchase the same items. What you put into a savings account today, at current interest rates (which are approximately 1% APR at the time of this writing), will only buy half as much in 20 years as it does now if you figure the inflation … [Read more...]
Using Binary Options to Hedge against Inflation
Binary Options and Inflation The word “inflation” is one that has become a very familiar one in the vocabulary of traders and everyday people, especially since the global financial crisis of 2008. The reason why inflation strikes fear into the minds of people is that it is a phenomenon that reduces the purchasing power of individuals. Typically, salaries and wages do not increase commiserate with level of reduction of the purchasing power of the currency, and fixed investment vehicles such as the money market do not provide enough earning power as to cushion the effects of inflation. That is why it is important that people are made aware of other forms of investments that can overcome … [Read more...]
Impact of Inflation on Bonds Part 2
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4 Practical Ways to Keep Your Small Business Profitable during a Recession
Small Business Big Profits Recession is a word that strikes fear into the heart of many small business owners and investors, and for good reason. Reports indicate that the number of failing small businesses drastically increased during the recent recession, and many are still in the process of recovering from insolvency due to the economic backlash. Although a recession certainly decreases the overall demand for products because consumers have less money to spend, there are certain companies in almost every industry that find a way to not only survive but thrive during these harsh financial times. Creatively Outdo Competitors to Increase Profits When people have less money to spend they … [Read more...]
