Summary of Economic News through February 2016

–      Global equities came under pressure in February, posting a negative return in US dollar terms. Perceived safe havens rallied for a second consecutive month with Treasury, gilt and Bund yields falling.   

–      US equities registered a small negative return. Investors deferred expectations for further rate increases after Federal Reserve chair Janet Yellen warned that global financial market turbulence could set back US growth.

–      In the eurozone, weak inflation data reinforced expectations of further monetary policy easing. In the UK, sterling came under pressure after a referendum on the UK’s membership of the EU was called for 23 June.

–      Japanese equities posted sharp declines amid doubts over the success of “Abenomics”, a stronger yen and concern over the slowdown in China.

–      Emerging markets outpaced their developed world counterparts. Expectations for stimulus measures in China spurred a rally in commodity-linked stocks. 

Why do expats need to buy Life Insurance?

Without the right protection, families are sadly left with a burden of many expenses in the event of a tragedy. However, a proper life insurance policy can provide important funds to ensure the future of an expat’s family. Some of these expenses include:

1. Paying off obligations, permitting the family to be free from money related commitments to others
2. Resolving the estate, including paying legal costs
3. Giving resettlement back to the nation of origin
4. Covering future educational costs

Here are 3 ways how life insurance benefits expats and their families:

1. Provides Financial Stability

The aftermath of a family tragedy can be a troublesome, unpredictable period. It can take quite a long while for a family to fiscally settle after the death of the essential salary worker.

With a life insurance policy, a family can have the savings it needs to bolster its finances during resettling. This can give the family a cushion to get a stable wage, permit the family to stay in its present home, or supplant lost retirement funds.

2. Secures the Family's Future

Some protection policies can not only cover the family’s primary income earner, but the spouse as well. Insuring the spouse on the off-chance something happens, permits one insurance policy to do the work of two. While one naturally hopes no sudden tragedies occur, this layer of protection guarantees a family's financial future regardless of which spouse may unexpectedly pass.

3. Helps Ensure a Bright Future for Your Children

A primary reason why expats select their careers is to provide stability for their families. As expats spend their time overseas, there is a higher risk something unforeseeable could happen. Obtaining an insurance plan that meets the needs of an individual and his or her family can provide essential funding after a sudden tragedy. The right type of policy can help cover educational expenses, weddings, and other important events in the children’s lives.

What to Look for in a Life Insurance Policy

Finding the right life insurance policy requires a careful evaluation of a family’s needs, the type of insurance needed, and other important factors.

Expats should consider the following when choosing a policy:

1. Medical underwriting limits
2. Borderless coverage, especially for expats and frequent international travelers
3. Benefit limits
4. Whether premiums are fixed throughout the policy term
5. The type of coverage needed, such as Deaths All Causes as a result of illness, accidents, and acts of war and terrorism; or Deaths Natural Causes in high-risk areas
6. Eligibility age
7. Types of exclusions
8. Term renewals (for example, every year or every 10 years)

How Much Coverage Should I Get?

According to the Life Insurance and Market Research Association, experts recommend having enough life insurance to replace income for 7 to 10 years, but each individual must calculate their beneficiaries’ future financial needs. Several factors (such as age, children, mortgage, income, etc.) must be considered to determine the appropriate amount of life insurance coverage.

Source: Clements Worldwide

To know more: please read "28000- Make Every Day Count"
Available on: www.sanjaytolani.com

‪#‎expat‬ ‪#‎insurance‬ ‪#‎lifeinsurance‬ #28000 ‪#‎sanjaytolani‬ ‪#‎speaker‬ ‪#‎author‬‪#‎financialadvisor‬ ‪#‎moneymangement‬

What is your Biggest Asset?

You create the Assets for your estate and family...

What is more important? You or the Assets?....

NOW...Which is insured? .....

Research suggests that most people are insured less than the assets they own... just shows how much we ignore the source that builds the assets. 

Insure yourself and the income which builds your estate.

YOU ARE YOUR BIGGEST ASSET!!!

What is Income Protection and Why do we need it?

We know for a fact; plans and dreams are built on the potential income which we will earn over our lifetime.

Loans for University, Car Loans, Mortgages, Personal loans for Weddings, etc are all built on the potential income earned by the individual or the family.

In the last few decades, this has encouraged people to now start thinking about having Income Protection.

Now there are two potential reasons why a person can lose income:
1. Loss of Employment/Economic Downturn
2. Loss of Income due to Bad Health

If a person losses his/her job on average they can get a job within 6-9 months, even if not at the same level maybe with a 20-30% pay cut, hence it has been a recommendation to always hold liquidity to cover expenses for 6 months as a buffer.

But, if a person falls sick or gets disabled it would immediately put a stop to income.

Now the question usually asked is... well all my expenses for treatment would be covered by my Medical Insurance... Reality: Medical Insurance (individually purchased or by the company or government) would usually pay bills related to the treatment; but what about the daily expenses?
The family would still have to cover mortgage payments, education fees of the kids, might need to change lifestyle and or the house, other expenses like car loans.

Hence, Income Protection... Ensuring the family continues to get the income which the family would require in the event a person falls ill to be able to meet the financial commitments and to continue living the same lifestyle.

www.sanjaytolani.com

#sanjaytolani #speaker #author #28000 #incomeprotection #income #financialplanning #mdrt #topofthetable

Note: All proceeds from the books are donated to charity.

WHEN IS THE BEST TIME TO BUY LIFE INSURANCE?

So one of the most important questions asked about Life Insurance is...

WHEN IS THE BEST TIME TO BUY INSURANCE?

I mean, would it not make sense to invest the money in Hard Assets instead? Hard Assets give you higher returns...don't they?

Well, to get maximum return out of a Life Insurance policy, ensure you buy it "1 DAY before you die"; it would generate the maximum return; no asset class can match that rate of return. #LOL

But then that rises a bigger question... Which day is that??? Unfortunately, not all of us know (some claim to know) when that day is. So the best day to buy Insurance was "YESTERDAY", as our last day could be today.

Question: Do you want the same regret tomorrow? "I wish i had insurance yesterday"

"NOW" is when you have the power to protect your hard earned wealth and income.

Your delay... Your Loss...

If you want to know "How much is enough?" you can read more in "28000 - Make Every Day Count"

www.sanjaytolani.com

#sanjaytolani #speaker #author #mdrt #topofthetable #lifemember #orderonline #charity

Note: all proceeds from sale of the book goes to charity.

RMB Is Now a Reserve Currency. What It Means for Treasurers

The International Monetary Fund (IMF) announced Monday that the Chinese renminbi (RMB) has met the criteria to be included in the Special Drawing Right (SDR) basket of currencies. Effective October 1, 2016, the RMB will join the U.S. dollar, euro, Japanese yen and British pound in the SDR basket.

For corporate treasury and finance professionals, this news could make the RMB a more attractive option for both payment and funding.

Debra Lodge, head of RMB business development, North America at HSBC, believes that adding the RMB to the SDR basket could change the way that some U.S. companies view their foreign exchange risk both onshore and offshore. “This may challenge large U.S. companies—who purchase inventory from China—to rethink their purchasing strategy and shift to buying goods with RMB or simply add RMB into their currency hedging portfolios,” she said. “The bottom-line, U.S. companies will need to be RMB ready as the currency continues to reach key milestones in 2016.”

Additionally, some experts believe that U.S. companies may look to the RMB as the U.S. is expected to raise interest rates any day now. “We will see more U.S. companies considering raising capital in RMB, especially as many expect that the U.S. will raise rates in coming weeks,” said Martin Maciak, head of development, Americas at HSBC Global Banking and Markets.

However, for the RMB to truly progress into a global currency, some changes will likely need to take place in China. “There are still many capital controls in place that prohibit the currency from being freely used and until that happens, it can't be mentioned in the same breath as the USD, EUR or JPY without an accompanying asterisk,” said Alfred Nader vice president, Latin America and the Caribbean Western Union Business Solutions and an expert on the RMB. “Because of this, you won’t see a rush towards the RMB anytime soon. You will see a trickle, and the Chinese will have to be content with this until they loosen their capital controls. After all, a trickle is better than nothing.”

View from Asia

The SDR basket was a major topic of discussion during a plenary on the RMB at the recent Sibos conference in Singapore. A quick poll of attendees found that 62 percent believe that the RMB should be added to the SDR basket.

But not all experts believe the RMB belongs in the basket at this time. During the Sibos plenary, Amol Gupte, region head of treasury and trade solutions, APAC for Citi, said that while he expected the IMF to include the RMB, he didn’t think it should. “The reason I say ‘no’ is, I’d like to see much more capital account convertibility before it becomes a reserve currency,” he said. “If you are a reserve currency, you want to incent a foreign investor not just to own their own currency but to own somebody else’s currency as well. That’s what a reserve currency is. To do that, you need a lot more trust, transparency and liquidity for it to really succeed. I think it still needs to mature.”

Gupte asked attendees to consider what exactly will happen once the RMB achieves SDR basket status and becomes a reserve currency. “Sure, there will be some countries that will buy the RMB as a reserve currency, but that’s not going to change anything in my view,” he said. “You think of world reserves today; about 70 percent of the world reserves are in the dollar, about 15 percent are in the euro, 5 percent in the sterling, 5 percent in the yen and 5 percent in everything else. Is that going to change by a big magnitude if the vote is ‘yes’? I don’t believe so.”

Copyright © 2015 Association for Financial Professionals, Inc.

All rights reserved.

Here are some secrets about Life Insurance which the Super Rich are not telling you

So as an advisor to several Ultra HNI families and after several discussions with them, I have realized that the way Life Insurance is perceived by some of the SUPER SUPER Wealthy families is very different from the rest of the population. Below I have tried to quickly summarize some of those observations and comments.

The Ultra HNI Clients buy Life Insurance; EVEN IF THEY DON'T NEED IT!!!! WOW... !!

Now why do they buy it then? (The Million Dollar Question)

1. Liquidity! A lot of wealthy families are "Asset Rich" but liquid poor. The Life Insurance policy becomes a quick tool to create liquidity when any key person in the family passes away to ensure Hard Assets are not liquidated in a "Fire Sale". It also protects the reputation of the family

2. Income Replacement: AND I get this question asked a lot... But don't the Super Rich have passive incomes and established businesses?? Well they do, But when the primary breadwinner passes away, these income sources may start to dry up, so the Life Insurance provides a quick buffer to help stabilize the income flow.

3. Wealth Transfer: We all work very hard to build HARD Assets; It is essential that these HARD Assets are transferred to the next generation without loosing value. Taxes, Transfer fees, Probate costs, Lawyers, Trusts, Foundations, the more complex the structure the more fees the estate has to pay. Life Insurance ensures those payments are made without touching any of the assets in the estate. Hence ensuring full Wealth Transfer.

4. Hedge against the Future: But don't the SUPER RICH already have a secured future? Well just like a car, every estate needs to have Shock-Absobers, Seat Belts and Airbags. You may be in a Rolls Royce, but you would still need the essential protections from uncertainity. Life Insurance is the Shock Absober in the Estate Value. It hedges the pot holes on the way. Life is unpredictable and so is your estate value.

5. Life Insurance as an Asset!! Life Insurance is not considered an expense on the Super Rich Income Statement; one of the reasons why a lot of people think the Super Rich don't have it..It is on the Balance Sheet as an Asset. No wonder a lot of people have the Myth that Life Insurance is only for the Poor and not the Rich. Life Insurance is an option (for all the traders and accountants out there) which is always "in - the - Money" which means; it will always have value for an estate even at its worst performance. Its a Liquid Asset/Property on the Balance Sheet of the SUPER RICH

This is a quick summary of the discussions I have had with many families. If you believe you know someone who could benefit from this information. Please share it.

‪#‎sanjaytolani‬ ‪#‎author‬ ‪#‎speaker‬ ‪#‎financialcoach‬ ‪#‎mdrtlifemember‬ ‪#‎MDRT‬#28000 ‪#‎orderonline‬

www.sanjaytolani.com